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Originally Posted by Ahldagor
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How do you manufacture without resources? Venezuela for example.
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Venezuela is awash with natural resources such as diamonds, bauxite, gold, iron ore, natural gas and petroleum. The GDP of the country is $378.9 billion as of 2011. The country largely depends on oil revenues, which accounts for about 95% of the export value and around 12% of the country's GDP value
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What's going on in Venezuela -- is a small elite can simply sell all their natural resources, then pay the military off to suppress the rest of the population while this small group lives in luxury from imported goods. Instead of using that wealth to reinvest into the economy (building industry/infrastructure) and make the country better in the long term.
It's not all that easy though...Because whenever these countries awash with resources finally do try to enter the global economy...the World Bank, IMF etc...insists they persue neo-liberal policies and open their boarders so that foreign corporations can siphon off most the prosperity. Which is why America et al. was kicked out of South America.