The state run oil company makes up about half of their GDP, which is why the economy collapsed when oil prices fell.
People are pointing to socialism and saying that it caused this hardship, but the same would have happened under a privately run oil company as well. It's the danger any economy heavily dependent on a single commodity faces.
Venezuela is a larger example of what happens to a company town when the company shuts down or moves the factory somewhere else.
I disagree. The economy would've been fine, just as it was before the prices boomed in the 00's.
The problem is entirely caused by government policy. Arbitrary and CONSTANT expropiations accross all industries and subsequent bankrupcy of the expropiated companies caused the decline. People wanted to get their money out so the government banned forex. Then prices soared because importing was now hard as hell, so they controlled prices and everyone has been going bankrupt in a domino effect since.
I live here and I don't give a fuck about socialism/capitalism debates. This country was destroyed by a socialist government. That is all there is to say.
The oil industry is the majority chunk of our economy. In other industries, the government has expropiated most of the main players (and subsequently driven them to bankrupcy). Forex is banned and most goods are price controlled, from vegetables to healthcare. These controls do not reflect reality.
