Few modern cases so vividly illustrate the devastating intersection of economic mismanagement, political erosion, and human suffering as Venezuela. Once among Latin America’s wealthiest nations—with the world’s largest proven oil reserves—Venezuela has undergone an unprecedented economic collapse that has reshaped its society and serves as a cautionary tale for voters everywhere.

From Prosperity to Crisis

Venezuela’s story is one of dramatic reversal. In the early 2000s, rising oil prices funded expansive social programs and transformed the nation’s social landscape. But deep structural vulnerabilities—such as overdependence on oil exports and underinvestment in other economic sectors—left the economy fragile to external shocks.

As global oil prices plunged and state revenues shrank, the government tried to sustain spending through debt, currency controls, and excessive money printing—policies that fueled hyperinflation ...