The overcoming directions of the structural economic crisis in oil exporters’ countries according the conditions of global oil prices’ instability (at the example of the Bolivarian Republic of Venezuela)

• Main Authors: Ivan Marchenko, Vladyslav Shapoval
• Format: Article
• Language: English
• Published: V. N. Karazin Kharkiv National University 2020-02-01
• Series: Вісник Харківського національного університету імені В.Н. Каразіна: Серія Міжнародні відносини, економіка, країнознавство, туризм
• Online Access: https://periodicals.karazin.ua/irtb/article/view/14453/13588

The article examines the dependence of the country's oil export economies (for example, Venezuela) on the state of the world oil markets through the analysis of the individual components of its socio-economic system. The subject of the study is the manifestation of the structural economic crisis in Venezuela in conditions of changes in oil prices in international markets. The goal is to identify the main causes of the structural economic crisis in Venezuela and to generalize the ways to overcome it. Objective: the consequences of the fall of world oil prices in 2014-2016 on the economic situation of Venezuela; A review of economic cooperation between Venezuela and key global players, in particular, the United States, the People's Republic of China, and the Russian Federation; The changes in the socioeconomic situation in Venezuela that were caused by export losses were analyzed and prospective ways of overcoming the crisis are presented. The study used the scientific methods: the method of comparison – in describing the bilateral political-economic relations between Venezuela and the developed countries of the West, on the one hand, and the new geopolitical partners of Venezuela on the other; analytical-empirical, statistical method and others. In analyzing the socio-economic indicators of Venezuela's economic development under conditions of recession, the cause-effect and the method of deduction – in identifying the weaknesses of the Venezuelan economy and the ways of smoothing the contradictions in conditions of oil and export dependence. On this basis, the following results were obtained: it was identified the main causes of the structural crisis in Venezuela and promising ways in stabilization of the monetary and financial situation in the economy (in particular, the introduction of cryptocurrencies with an attachment to oil as an additional source of financial resources in the country and searching the new sources of loan financing with using of the geopolitical aspect. Conclusions: the economic crisis in Venezuela caused by the over-dependence of economic development on oil exports and due to the ineffectiveness of the socio-economic system’s elements. The alignment of world prices does not allow for a deep recession’s quickly emerging, therefore, price fluctuations in world markets will aggravate the internal economic position and will provoke a socio-political crisis in the country.