Venezuela mismanaged its oil, and US shale benefitted
Chavez’s socialist reforms boosted state control but pushed knowledge and capital out of the sector, opening the way for the US shale revolution
Hugo Chavez’s election in 1998 marked a decisive break with Venezuela’s traditional political order, reflecting widespread public frustration over corruption, inequality and economic instability after decades of oil price downturns. His rise was framed around the concept of “Socialism of the 21st Century”, a populist, nationalist and anti-imperialist ideology aimed at redistributing wealth, expanding social programmes and extending state control over strategic sectors, particularly oil. Re-elected in 2000, 2006 and 2012, Chavez steadily consolidated power while reshaping institutions, laying the foundations for a more centralised and polarised political system. Chavez’s most consequential po
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