Summary of the state of the Venezuelan economy

 Summary of the state of the Venezuelan economy

[Extract from a report commissioned by Castillo y Rada]

Dear Sir, 

I am in the process of finalising the report you requested on the general state of the Venezuelan economy. Below is an introductory summary, in case you do not have time for the whole report at this time.

The economy of Venezuela is well-balanced, and strong compared to that of other regions, such as Ecuador. There is a sustainable distribution of activity between cattle farming, agricultural activity, and exports.

These activities are spread across the region according to geography. The plains are naturally suited to cattle ranching, for example the Llanos of the Orinoco Basin. This industry produces only a few goods - namely meat and hides. On the other hand the lower Andean ranges facing the Caribbean are home to numerous plantations, producing cacao, coffee and indigo, among other things. Venezuela is one of the world leading producers of cacao, much of which goes to export. 

Part of the reason for Venezuela’s economic success is its relatively unique ability to trade with Europe, given its long coastline, its being the nearest coastline to Europe, and the high density of developed ports along its coastline. This allows it to export its cash crops like cacao. Though New Granada has some coastline on this side of the continent, it is small and undeveloped.

This all being said, Venezuela has not industrialised extensively, and is in a similar, though more well off, position to other regions who are similarly underdeveloped.

What must be noted is that while Venezuela’s economy is not the most dire in our country, it is still in need of modernisation and industrialisation, which is a fact true of our country entire.

Yours humbly,

Juanito Gonzaga

Universidad Central de Venezuela