Question
Q7. Consider the following statements:
Statement-I:
Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.
Statement-II:
Venezuela has the world’s largest oil reserves.
Which one of the following is correct in respect of the above statements?
- Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- Statement-I is correct, but Statement-II is incorrect
- Statement-I is incorrect, but Statement-II is correct
Answer: 4
Detailed Explanation
- Option D is Answer.
- Venezuela has been facing an ongoing socioeconomic and political crisis.
- The crisis has been marked by hyperinflation, escalating starvation, disease, crime and mortality rates, resulting in massive emigration from the country.
- Hence, Statement 1 is Incorrect
- The country has suffered economic collapse in recent years, with output shrinking by three-quarters and rampant hyperinflation contributing to a scarcity of basic goods.
- Government mismanagement and U.S. sanctions have led to a drastic decline in oil production and severe underinvestment in the sector.
- It is the worst economic crisis in Venezuela’s history, and the worst facing a country in peacetime since the mid-20th century.
- The crisis is often considered more severe than the Great Depression in the United States, the 1985–1994 Brazilian economic crisis, or the 2008–2009 hyperinflation in Zimbabwe
- As of April 2025, Venezuela continues to hold the world’s largest proven oil reserves, estimated at approximately 303.8 billion barrels.
- This figure surpasses that of other major oil-rich nations, including Saudi Arabia, which has about 258.6 billion barrels. Hence, Statement 2 is Correct
