BUS201 Lecture Notes - Lecture 5: Mixed Economy, Longrun, Gross National Income
15 Mar 2020
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Week 5 economic environment and economic development. Hyperinflation has decimated the national currency and crippled the economy. Oil production has halved since the president took power in 2013, and further weakened by the collapse of the price of oil in 2014. Maduro has sought to centralise power in the executive and systematically remove political rivals and members of the venezuelan opposition from participating in the democratic processes. Venezuela has gone beyond simply transitioning to a more concentrated authoritarian style rule, it has now morphed into what has been termed a mafia state". A mafia state refers to a state that has effectively been criminalised, here, criminal entities have successfully infiltrated and compromised government institutions at all levels. Venezuela has evolved into a rampant kleptocracy. Hernando de soto wanted to figure out what was trapping people in poverty. Developed countries; australia highly industrialised and highly efficient, what they manufactuer is largely service based developed countries are the richest.
