Venezuela crisis

Besides Ukraine, tension has occurred also in Venezuela. According to the media, a large demonstration against the government broke out, to cause death of more than 10 people. President Nicolás Maduro took a hostile attitude against the protestors. It will lead to the situation in chaos.

The New York Times: Venezuela Is Divided Even on Its Death Toll

The instability of Venezuela is based on the national recession. Inflation rate reaches 56% in Jan. 2014, it is obviously a burden upon citizens. The Venezuelan national bond is facing the crisis of default.

Bloomberg News: Protests Sow Doubt on Venezuela’s Debt Dedication: Andes Credit

Venezuela is an oil-rich country. Exportation of oil to the US was the largest way to gain foreign currency. However, the production of shale-gas in the US grew dramatically recently, so called shale-gas revolution. It made the US reduce the amount of oil imported from Venezuela. In addition, the relationship between Venezuela and the US has been worsened since 2002 in which a riot was attempted in Venezuela. Now Venezuela is in serious peril.

Natural resources are a double-bladed sword. They may make a nation wealthier. Meanwhile, they sometimes bring a seed of conflict. Furthermore, a destructive innovation will ruin the value of them.

In contrast, Japan has no natural resources. Perhaps this fact has strengthened the competitive power in Japan. The situation is more typical in Korea. On the other hand, there are other challenges in these countries. The future is still unclear.