Venezuela News & Protests: How Does Revolution Affect Venezuela's Relationship With United States?
Venezuela's 2014 start has been plagued with rioting, student protests, deaths, and civil unrest. The U.S. watches, and waits for a resolution to the problem that they perhaps cannot offer, or the U.S.'s willingness to help is complicated by a number of political and financial issues.
Venezuela and the U.S.'s relationship is almost on the edge.
Heinz Dieterich, known as the father of the 21st Century Socialism, and former friend to the late President Hugo Chávez until 2007, has criticized the new President of Venezuela Nicolás Maduro for not continuing the Chávez model. The Chávez model, Dieterich says, could help save the country from its current crisis.
According to Fox News Latino, in Dieterich's opinion Venezuela without Chávez has changed. Dieterich explains that Chávez's ideals still hold today, but they have been diminished by the radicals who seek to change it.
In other words, the Chávez model is no longer helping the country because people [the radicals] have not adopted it completely, so it is lacking in some areas.
Dieterich explains that the oil revenue is no longer enough to support the model; and, the tax system does not generate enough income, just to name a few of his issues.
While Dieterich's sociological and political point of view is perhaps one-sided, a closer look at the oil situation between the U.S. and Venezuela could provide a more cohesive perspective.
In La Opinión, it reports that Venezuela and U.S.'s root cause of their financial problem is oil production. Last year, Venezuela and the U.S. traded $44,000 million in goods, according to the census bureau.
"These paradoxes and contradictions between these two countries have been in existence since Chavez took power, and beyond," Michael Shifter said, President of the Inter-American Dialogue.
The Inter-American Dialogue is a U.S.-based center for policy analysis, exchange, and communication on issues in Western Hemisphere affairs. Its aim is to bring together public and private leaders from across the Americas to address hemispheric problems and opportunities.
"In 2011 and 2012 there has been an exchange in trade between the two countries in excess of $55,000 million," Shifter added.
Venezuela sells oil to the U.S., and buys fuel (gasoline and diesel). The export of oil from Venezuela to the U.S .has dropped. The first fuel imports have doubled between 2012 and 2013.
Venezuela cannot sustain its economy if it stops exporting oil to the U.S. Both countries have a mutual dependence. Even exports of petroleum products associated with the U.S. from Venezuela has dropped to $1.726 million, after a record of $2.982 million in 2012. The export of fuel to Venezuela rose from $507 million last year to $962 million in 2013.
But Venezuela is still the fourth largest oil exporter. An expert economist on energy James Williams of WTRG Economics stated that Venezuela could double their production with efficient machinery and adequate investment. Venezuela has tried to develop alternative markets but it has been very slow.
As Venezuela marinates in its political and economic instability, its Latin American neighbors, Peru, Panama, and Colombia all call for peace.
On the international front, Venezuela plays political football with the U.S.; they expelled three US ambassadors from their country. The U.S. State Department, perhaps retaliated by ejecting three Venezuelan diplomats from the U.S.
In all of the political ire and civil unrest, the U.S. nor Venezuela has asked for sanctions, the oil is perhaps more important.
"We have to be clear that we don't end up playing Goliath to Mr. Maduro's search to be David," Joe Garcia said, the U.S. Democratic Representative for Miami. Garcia too did not ask for sanctions against Venezuela, the Miami Herald reported.