Category Archives: Intense Energy Crisis

Venezuela- Great Economic Growth, Now Has Increased Energy Demand

Venezuela, an important country in South America’s recent economic success has actually been fueled by energy and electricity issues. This is interested as Venezuela has enjoyed really good economic growth in recently years (e.g. it saw a decline in poverty under Hugo Chavez from 50 percent to 30 percent according to El Nacional.com). This gave people money to buy consumer goods such as refrigerators and air conditioners and benefited the local economy. It also, being an Oil Producer enjoyed high energy prices that it used revenues from to increase social spending. Health Care and food became more affordable for the average Venezuelan. This was great and helped a lot-Wired.com has covered this issue- (Your text to link…).
So, in Venezuela thanks to economic growth and smart investing from the government, you had a situation where poorer people could now afford to buy better things and enjoy a higher standard of living. However Osio says, the article from Wired.com tells us that unfortunately the government could not keep up with the energy demands of the growing spending citizens and therefore it now has to ration energy and raise prices such as gas prices. This story  from Elvenezolano is pretty interested as it shows that although growth economically is great it can lead to unforeseen issues such as increased demand for energy.