Venezuela Country Profile Part 4: International

International Trade 

• Exports 
• Amount to 35% of Venezuela's GDP 
• Top  products exported by Venezuela 
• Crude Petroleum (77% of total exports) 
• Refined Petroleum (18% of total exports)
• Iron Ore (0.62% of total exports)
• Raw Aluminum (0.34% of total exports)
• Iron Reductions (0.33% of total exports)
• This representation makes it clear that oil is Venezuela's staple resource and is an enormous part of their economy 
• The largest amount of Venezuela exports goes to the United States (27% of total exports) and Egypt (20% of total exports)
• Imports 
• Amounts to 21% of Venezuela's GDP 
• Top products imported by Venezuela 
• Refined Petroleum (33% of total imports)
• Crude petroleum (2.2% of total imports) 
• Iron Ore (2% of total imports) 
• Other Sea Vessels (1.8% of total imports) 
• Soybean Meal (1.6% of total imports)
• The largest import origins of Venezuela are the United States (24% of total imports) and China (15% of total imports)

Exchange Rate 

• Currency in Venezuela is termed the Bolívar 
• The Bolívar is 0.16 of the US dollar, 1 US dollar is equal to 6.29 Bolívars 

Immigration/Emigration 

• In 2010 1,007,400 people immigrated to Venezuela.  Most of these people came from Columbia, Spain, Portugal, Italy, Peru, Ecuador, Chile, The Dominican Republic, The Syrian Arab Republic, and Cuba
• In 2010 521,200 people emigrated from the country.  The top destinations were The United States, Spain, Columbia, Portugal, The Dominican Republic, Ecuador, Canada, Italy, Chile, and the United Kingdom 

Relations with Other Countries 

• Historically, The United States and Venezuela have had close relations, however that changed after Hugo Chavez became president.  Chavez didn't like the way that The United States handled their economic and foreign policy.  Venezuela's friendship and positive trade relations with Cuba conflicted with the US's isolation of Cuba and after Chavez took office oil prices greatly increased for the United States.  
• Venezuela has some positive relations with countries in the Caribbean and South America.  Venezuela and Brazil share a boarder and 2001, opened a high-voltage power line from Venezuela to Brazil to help power Northern Brazil.  
• Recently, Venezuela has been going through political and economic turmoil and it will be interesting to see how it effects their relationship with other countries.  

Work Cited 

https://www.insidermedia.com/international-trade-global-destinations/south-america/venezuela/

http://atlas.media.mit.edu/profile/country/ven/

http://venezuelanalysis.com/news/6999

Prologue: A Fez of the Heart: Travels around Turkey in Search of a Hat 
By: Jeremy Seal

a. One particular passage from the reading I found particularly interesting was when Seal was comparing the differences between Halil's work tools and his father's work tools.  The passage states, "Halil is now a successful Pomegranate hotelier, but he has not forgotten his father.  The tools of the old man's trade - the wooden ploughs and the threshing sleds, horse-drawn sleds... have been tided up, varnished, and displayed around the hotel, along with photographs of an ancient face, to commemorate the man and his way of life."  The passage goes on to say "The tools of Halil's trade are fax machines, tour operators, a facility with profit margins and exchange rates, charm, and foreign languages.  No son will build such a memorial to Halil."  The extreme differences from one generation to the next really struck me.  The work goes from tangible, physical capital to intangible services.  This drastic difference puts into perspective how drastically a culture and economy can change in a short amount of time.  It is also interesting to me that the way the passage read, it seemed like his fathers trade and tools were deemed as more respectful than Halil's tools and trade.

b. Economics plays a large role in shaping a culture and vice versa.  This can be especially evident in a place where tourism is the staple in the economy.  In this reading, it seemed as if the more the economy moved from agriculture and manual labor to tourism, the less concerned and sure Pomegranate became with their culture.  The reading also demonstrated that culture can be used as an economic advantage in tourism.  For example, the reading discussed that food changed as tourism advanced.  Turkish food was replaced with European food and restaurants advertised authentic Turkish food as a selling point so that tourists could feel like they were getting the complete experience. Another example is the fez hats.  The hats were forbidden to wear but were allowed to be sold to tourists because the grand hats made great souvenirs.

c. The conflicts and connects of tourism and culture in this little Turkish town, can be seen on a bigger scale and in other countries. This passage made me think about different cultures I've visited and made me realize how much of a tourist I was on these vacations.  For example, I recently traveled to Playa Del Carmen, Mexico.  My mom and I stayed in a really nice all-inclusive resort but one day we wanted to venture to town to get the "Mexican Experience."  In this extremely touristy town, there were hundreds of stores and restaurants all trying to provide an authentic experience to attract customers.  The shopkeepers and restauranteurs use the stereotypical Mexican culture to make money.  Now that I think about it, culture and tourism are extremely connected.  Tourists want to embrace and feel a part of the traditional culture of the place their visiting.

Venezuela Country Profile Part 3: Tourism

Importance of tourism

• Data released in 2012 by the Tourism Ministry tells us that:
• 782,686 foreign tourists visited Venezuela
• Of those tourists a majority, 428,211, were from South America most from Columbia and Brazil.   
• 198,922 visited from Europe and 76,663 visited from North America. 
• In 2012 tourism generated just over 1 billion dollars for Venezuela.  
• Although Venezuela is a beautiful country with many intriguing tourist destinations, the countries focus and profits from tourism far falls behind the countries wealth from oil production.  Tourism in Venezuela has also been discouraged recently because of the political instability and social unrest in the country.  

Major Tourist Attractions 

• There are many beautiful and well-known tourist destinations in Venezuela that include: 
• Angel Falls - Known as the largest waterfall in the world 
• La Isla Margarita - A beautiful island just off the coast in the Caribbean Ocean 
• Pico Bolivar - the highest mountain in Venezuela

National Parks, wildlife 

• Venezuela has 43 National parks making up about 20% of the countries territory 
• One well-known park is Parque Nacional Mochima, El Morro. The National Park consists of coastal marine areas and forest.  
• Tourists can expect to see an abundance of tropical wildlife including monkeys, tropical birds, snakes, tree frogs, and tropical fish and other marine life in the coastal waters. 

Important Museums 

• National Gallery of Art - located in the capital of Caracas.  Over 4 thousand pieces of artwork in this famous gallery.  Lots of historical pieces of work. 
• The Caracas Museum of Fine Arts - an "encyclopedic" art museum also located in the capital 

Venezuela Country Profile Part Two: Economics


GDP

• 381,286,237,848 USD 
• Upper Middle Income
• As of 2012 

GDP Per Capita

• 13,200 USD
• As of 2012 

Life Expectancy 

• 74 years 
• As of 2012 

Poverty Rate 

• 25.4%
• As of 2012

Literacy Rate 

• 95.5%
• As of 2012 

Unemployment Rate

• 7.2%
• As of 2014 

Inflation 

• 42.6% 
• As of 2012 

Natural Resources 

• Venezuela has a large amount of petroleum and natural gas.  This prized commodity accounts for about 1/5th of their GDP.  However, it only accounts for less than 1% of the workforce.  
• Venezuela's climate is hot and humid with average temperatures at about 74 degrees.
• Venezuela has about 2,800 km of coastline along the Caribbean Sea 

Labor 

• The number of employed persons in Venezuela is 13005919.00
• The number of unemployed persons in Venezuela is 1014676.00 
• The educational system in Venezuela is highly centralized.  Primary education is compulsory and free in public schools.  Primary education lasts for the first 9 years of schooling.  Secondary education follows.  Technical and vocational information is taught here and usually lasts for 3 years.  There are private and public sectors.  Higher education is then offered at Universities.

Capital 

• Venezuela's wealthiest industry is oil production.  Wealth in oil allowed the country to grow in other ways and in the 1960's the government made it a goal to diversify the economy.  Manufacturing grew immensely and now is about one-sixth of the GDP and workforce.  
• The countries transportation system is very well developed.  Road systems allow for domestic travel.  Coastal and inland waterways serve for bulk transportation.  There is also air transportation for long distance traveling.  

Work Cited 

http://databank.worldbank.org/data/views/reports/tableview.aspx

http://www.indexmundi.com/venezuela/demographics_profile.html
http://www.climate-zone.com/climate/venezuela/fahrenheit/caracas.htm
http://wenr.wes.org/2013/05/education-in-venezuela-reform-expansion-and-an-uncertain-future/
http://www.britannica.com/EBchecked/topic/625197/Venezuela/32724/Industry

News Summary: "Venezuela crippled by 56% inflation and social unrest, but filling a car with gas is still 'cheaper than a bus ticket'"
Article by: Tom Blackwell
Article Link: 
http://news.nationalpost.com/2014/04/04/venezuela-crippled-by-56-inflation-but-filling-a-car-with-gas-still-cheaper-than-a-bus-ticket/


Venezuela is currently in a state of unrest.  The country has daily struggles with protests, riots and other acts of citizen rebellion.  In his article, Blackwell describes the country as going through sky-high inflation, having an abnormally high murder-rate, and a lack of basic items.  He claims that a large reason for the protests and upheaval is because citizens are unhappy with the government and their leader, they don't want to wait for the next election to make government changes.  He also makes it clear that analysts also see the unrest as due to the country's messy economy.  Venezuela has the largest oil reserves in the world, their economy should be booming.  However the country is misusing their precious natural resource.  In the article, it explains that domestic subsidies result in making it cheaper for citizens to fill their tank than buying a bus ticket.  Because of this, billions of dollars are being kept from Venezuelan oil companies.  At the same time, Venezuela is underwriting oil costs sales to Caribbean countries.

In class we have been discussing markets.  As we have seen, government involvement in markets can sometimes be a good thing and sometimes be a bad thing.  The Venezuelan government is costing Venezuelan oil companies lots of money because of their subsidizing requirements.  I'm wondering what would happen if there would be less government involvement in this market.  Would it help Venezuela's struggling economy? Or would it create more unrest with rising gas prices?

Venezuela's situation is a difficult one.  The country is a mess right now with political unrest and economic instability.  It is hard to suggest a resolution because their is so much going on in the country. It is also tough to fully understand the situation because the government has put regulations on the media, not allowing any opposition to the government get any television airing time.  To me, it seems like obtaining new government officials is inevitable in order to restablish order in the country.

Country Profile Part 1: Venezuelan Culture

The country I have chosen to profile is Venezuela.  Venezuela is a country in South America.  I have chosen this country because I am interested in South American culture and hope to travel there some day.  Venezuela seemed like an interesting choice because recently they have had many political problems and have been featured in the news a lot lately.

Here is some information regarding the culture of Venezuela:

Popular Sports 

• The most prevalent sports in Venezuela are baseball, soccer, and basketball.  Baseball is the most popular sport.  Some Venezuelan sport icons include:
• Miguel Cabrera - Detroit Tigers MLB (triple crown winner, AL MVP 2012 & 2013)
• Pablo Sandoval - San Francisco Giants MLB (World Series MVP 2012)

Music 

• The traditional music of Venezuela is salsa, merengue, and joropo.  Joropo is the most popular and is a rural form of music that originated in the plains.  Some popular Venezuelan musicians include:
• Oscar D'León - a famous musician of salsa music 
• Alicia Machado - a famous Venezuelan actress, singer, and former miss universe.  

Food

• Some staple ingredients in Venezuelan dishes include coconut, plantains, seafood, goat, corn, and Italian pasta dishes. 
• Traditional dishes 
• Venezuelan Andean Hallacas - Venezuelan tamales 
• Tequeños - fried cheese sticks 
• Arepas - corn tortillas filled with some form of meat 

Major religions/spiritual beliefs 

• It is estimated that 92% of the Venezuelan population is Roman Catholic 

National holidays and traditional customs 

• Declaration of Independence day - April 19 
• Easter - April 20 
• Independence day - July 5 
• Hugo Chavez Day - December 8 
• Simon Bolivar remembrance day - December 17
• Christmas - December 25 

Popular TV shows and movies 

• Miss Venezuelan 2012 is one of the most watched and popular 
• Some important actors and actresses are Édgar Ramírez and Majandra Delfino 

Online news sources 

• El Universal: Major Venezuela newspaper with news section in English.
• http://www.eluniversal.com/english/
• Latin Focus - Venezuela: Examines Economic indicators, forecasts, briefing, calendar, and links to government, companies, and news.
• http://www.latin-focus.com/latinfocus/countries/venezuela/venezuela.htm#Economic%20Indicator
• Venezuelan analysis  
• http://venezuelanalysis.com/

Online forums for expatriates 

• Venezuelan expat forum 
• http://www.gringos.com/forum/f91/
• Internations Expat forum 
• http://www.internations.org/venezuela-expats/forum

Type of Government 

• Venezuela is a federal republic.  It is governed by a constitution.  Executive power is held by the president who is head as the state and head of the government.  Has four branches, the legislative branch, the executive branch, the judicial branch, and the citizens branch. 
• Has multiple parties including The United Socialist Party and The Democratic Unity Roundtable.
• Nicolas Manduro is the president of Venezuela he succeeded Hugo Chavez who died in office in 2013 
• Venezuela is currently in political turmoil that is causing economic and social problems.  Venezuela is in a state of limbo between socialist and capitalist practices.  

Chapter 1 of "Reinventing the Bazaar"

1. The author see's decision-making autonomy as a defining characteristic of a market, where each party is voluntarily involved.  McMillan furthers his point by saying, "If people lack autonomy, then their dealings are not, by this definition, market dealings.  Both the buyer and the seller are separate from each other and have the ability to accept, veto, or barter to achieve their desired outcome.  Another key characteristic McMillan addresses is competition.  McMillan points out, "Competition curbs any individual participant's power."  Competition levels the playing field and helps to create autonomy.

2. I have observed a lot of people who believe that market are the font of liberty and prosperity.  I have also been exposed to people with negative opinions about markets, who believe that markets are a source of exploitation and poverty.  I think that some people might have a feeling of distrust towards markets because of the competition it creates.  Because of this high competition, companies do whatever it takes to either produce the best product or the highest quantity of a product.  With this comes costs.  Sometimes a company may be to focused on being the best or producing the most that they don't care about the welfare of their workers or don't create a safe, quality product.  It is also a fear that people who are "left out" of this market or is left behind because of competition will be left with nothing and no government support.  Some people may distrust government control because they think that government is going to make it so that companies can't make big profits if they deserve to make big profits.  I am still in the learning process and still trying to figure out whether I lean towards a market economy or government involvement.  I tend to think that a market is beneficial with government regulations put in place to ensure consumer and employee safety.  I also think it is important for the government to create ways for start up companies or struggling people to get back on their feet and avoid suffering because of lack of money.

3. McMillan uses folk football as an analogy for a completely lawless market and claims that modern markets are governed by rules just like modern sports.  I think this analogy is a great one.  As I mentioned in part 2, I think that rules are necessary in order to create a positive market economy environment.  One specific rule I find important for modern markets is minimum wage laws and employee welfare laws in general.  It is crucial that employees are protected because if they weren't competition could result in extremely low wages, poor working environments, and lack of employee benefits.  Another rule I find important is product quality and safety regulations.  Especially in the food industry, it is important that this is monitored in order to ensure health and maintain that companies are being honest about their products.  These are just a few of the many rules that are important in a market economy.

Reading: Differences in Human History

Date: 4/1/2014
Reading: "Why Did Human History Unfold Differently On Different Continents For The Last 13,000 Years?" by Jared Diamond

a. Perhaps Diamond's most important point and something he elicits in the opening sentence is his desire to turn the study of history into a science.  He believes it is important to treat history as a science in order to realize historical events and learn from them in order to prevent disasters in the future.  Another key point Diamond points out is that most people are racists.  He says that a main reason for this is that they don't have another answer as to why history took the course that it did.  Diamond attributes modern world inequalities to historical differences in Eurasia compared to the New World, South Africa, and Australia.

b. Diamond identified some important determinants to a society's success including: number of domesticated plants and animals and east/west axis vs. a north/south axis.  The luxury of having a large amount of domesticated plants and animals allow for for more calories per acre than animals and plants in wild habitats leading to a greater population of farmers/herders in comparison to hunters and gathers.  It also led to food surpluses which allowed for the acceleration of technology because craftspeople could focus on their work instead of raising their own food.  The east/west axis of eurasia meant that domesticated species could be spread throughout all of Eurasia because it had a similar climate throughout.  The north/south axis of continents such as the New World and South Africa meant that there were drastic changes in climates and domesticated species could not adapt to climate changes.  Some other important determinants expressed included continent size/population size and isolation.  For example, Australia is the smallest and most isolated continent.  This can drastically slow technology because of limits in productivity and access to outside resources.

c. The above ideas can be applied to today's global economy in multiple ways.  One way is that as Diamond explained, differences in development started a long time ago and once a continent/population faces lack of development often times they are taken over and if they aren't taken over, it can be very difficult to every catch up to continents/populations that are further along in development.  This can be seen in modern day economies.  Poorer economies tend to be underdeveloped and it is difficult for them to improve their economy/development because they don't have the means to obtain necessary resources in order to create  a stable economy.  Another way the ideas can be applied is population size.    For example, China has become extremely developed and advanced this could be due to their dense populations, especially in cities like Beijing and Shanghai.