How Sanctions Contributed To Venezuela’s Economic Collapse
During the past decade, Venezuela lived through the largest economic contraction documented in the history of the Western Hemisphere. The implosion took place at the same time as the U.S. government barred oil purchases, froze government bank accounts, prohibited the country from issuing new debt, and seized tankers bound for Venezuela. One would think it should be self-evident that any account of Venezuela’s economic contraction would place economic sanctions in a central role.
However, sanctions play a surprisingly limited role in most mainstream accounts of the Venezuelan crisis. A recent Council on Foreign Relations background piece on Venezuela mentioned sanctions only in passing and instead attributed the country’s economic collapse to “decades of poor governance” and the “perils of becoming a petrostate.”