WTF Is Happening In Venezuela?

Two opposition leaders jailed amidst non-stop protests this past week. 

Leopoldo Lopez, the former presidential candidate and Antonio Ledezma, former Mayor of Caracas, were both kidnapped from their homes by secret service, where they had been under house arrest. This move was made days after the Trump Administration's decision to sanction Venezuelan President Nicolas Maduro. 

Maduro has just held an election to replace the legislative body, named National Assembly which resulted in mass protests and boycotting of votes. This led to a pro-Maduro assembly being formed, which gives the Venezuelan President unlimited power over legislation and even the ability to rewrite the country's constitution.

Venezuela's Supreme Court stated that the decision to transfer the Venezuelan President's opponents came from when Lopez "violated" the conditions of his house arrest by engaging in political campaigns, and Ledezma had violated his house arrest conditions by talking to the media.

In a statement released recently, Donald Trump condemned the decision to send the men to prison:

"The United States condemns the actions of Maduro's dictatorship" He states, "Mr Lopez and Mr Ledezma are political prisoners being held illegally by the regime...." and finishes by saying "We reiterate our call for the immediate and unconditional release of all political prisoners". 

For more on the statement, see here. 

Venezuela has been experiencing many protests, which has left over 122 people dead over the last couple of months. The core of the crisis, however, extends back to the 20th century. 

Venezuela is home to one of the largest oil reserves in the world, even ranking higher than Saudi Arabia. In 1922, a huge oil well was discovered. Foreign oil companies such as ExxonMobil and Shell, rushed over to get in the action. Ever since, the oil industry drastically expanded, overshadowing other industries. By 1928, Venezuela became the largest oil exporter in the world. By 1950, Middle Eastern countries began exporting oil, leading to supply overtaking demand and oil prices decreasing. 

As 95% of the Venezuela's economy is made of oil revenue, this meant that if oil prices plummet, so would the economy. Unfortunately, that became the case. 

When Hugo Chavez, Maduro's predecessor came into power in 1998, he was elected partly on the promise to use some of the oil money to help the poorest in the South American country. Huge demands from developing nations such as India and China did increase trade and in turn helped boost the economy. This allowed Hugo to pursue his economic strategy. However, Hugo Chavez began overspending on his social programs. When he fell short, he borrowed heavily.

In comes Nicolas Maduro in 2013, following Hugo's death from cancer. Maduro followed in his predecessor's footsteps with more regulations, restrictions on imported goods and corruption. This led to a hostile environment for private companies, who shortly decided to relocate away from the country.

Today, Venezuela faces the highest inflation rate in the world, mass unemployment, food shortage along with medical supplies as well as the country being massively in debt.  82% of Venezuelans fall under the poverty line, hence the protests. 

While the president does nothing to improve the situation in Venezuela, he instead consolidates his power by eliminating the competition and attaining unlimited power over legislation and the Constitution. 

Seriously, WTF is going on in Venezuela?