Expats In Venezuela

It is rather disappointing that the situation in Venezuela on the whole does not reflect the ever-growing increase in confidence and economic stability in Latin America. There are a number of issues which should set alarm bells ringing for expats looking to move to the country for a new life. That is not to say that Venezuela is not for you but you should have your eyes wide open if this is your choice.

Politics

The political scene in Venezuela has been dominated by the socialist parties for many years now and while there are elections in 2012, with many hoping for increased democracy and a change of government, there are concerns regarding intimidation and blackmail. Whether the true voice of the Venezuelan population will be heard in these two elections remains to be seen, as there are serious concerns about the impartiality of the elections and an ever-growing hostile environment. Trading partners will also have their eyes fixed upon the Venezuelan political situation in the short to medium term but what influence they can cast over the current authorities is debatable.

Venezuelan economy

The Venezuelan economy is dominated by the oil industry which now accounts for over 80% of exports and literally funds government spending. While there are significant reserves in and around Venezuela which the authorities have access to, it is worth noting that while the economy is set to grow by over 3% in 2012 inflation recently increased to 27.6%. Even with continued economic growth the rate of inflation is having a massive impact upon relative spending power and the cost of living in the country.

The government recently announced plans to introduce yet more price fixing measures which they hope will bring inflation more under control but this is only a short-term fix to a very long-term problem. Venezuela has had the highest rate of inflation in Latin America for the last six years and the situation does not appear set to change.

Demographics of Venezuela

If you delve deeper into the demographics of Venezuela you will see significant influence from the likes of Spain, wider Europe, Africa and other areas of the world. However, it is the startling fact that only 1% of the current population are directly descended from the indigenous Venezuelan population which caught our eye. This perfectly reflects the multicultural and multi-ethnic breakdown of the Venezuelan population and a culture which is very varied and has been influenced by a large number of groups.

The future Venezuela

The future of Venezuela is very much in the hands of the electorate with hopes that government change will occur in 2012. More and more people are now crying out for greater democracy and greater transparency from the authorities although it will certainly be a very hard and very tough path to this eventual goal. The current government already stands accused of intimidation and blackmail with regards to next year's elections which does not bode well for the future.

Conclusion

While there are attractions with regards to Venezuela, which has a beautiful landscape, varied climate and a very attractive culture, it is the economic situation and the political arena which are causing most concern. Until next year's elections are out of the way there are a number of risks associated with a move to Venezuela which all expats should be aware of before even contemplating such a decision.

The road to change will be very tough and very long but if the electorate manage to hold their nerve next year then the future prospects for Venezuela may be about to improve.