October 24th, 2018
Written by - Katherine Cassese '21
Inflation in Venezuela
Venezuela is currently experiencing the highest inflation rate in the world, estimated to be 1,000,000% (IMF). Inflation describes the situation of general increase in the prices of goods and services that decreases the purchasing power of people with inflated currency (you could have a million dollars, but still might not be able to buy a cup of coffee if inflation occurs severely). This is occurring in part because Venezuela holds the world’s largest proven oil reserve, which accounts for 96% of Venezuela's exports. With such a lucrative business venture readily available, Venezuela does not possess much other industry and imports many of its goods. In 2015, the price of oil fell and Venezuela’s export profits were not enough to sustain the imports required. Venezuela was left with a high demand for goods, but did not have the supply to fill these needs. This led to a massive increases in price. Venezuela’s currency problems mean that the population faces food shortages, inadequate medical care, and social unrest. This has created a refugee crisis, with 2.3 million migrants leaving the country since 2014. Nearby South American countries are accused of ‘closing the door’ to these migrants. The blocs historic policy has been one promoting Free Movement, where travelers did not have to present identification to cross borders. Now, Ecuador, Perú, and Colombia have instituted new legislation, requiring migrants to present their passports to their respective countries upon entry.
Elections in Brazil
Brazil has had a tumultuous election season. To begin with, Brazil’s former President, Luiz Inacio Lula da Silva, popularly known as Lula, dropped out of this year’s election. He left office in 2010 boasting an 87% approval rating, which was largely due to his efforts to reduce poverty. However, in 2016, he was indicted in a corruption scandal and, in 2017, sentenced to almost a decade in prison. Lula continued his presidential campaign throughout his many appeals and then campaigned from prison as well. Only after the highest court in Brazil announced his candidacy to be unlawful did Lula pass the torch to his running mate, Fernando Haddad, who now represents Brazil’s Workers Party. Next, the Right-Wing party Candidate, Jair Bolsonaro, was stabbed by Left-Wing supporter at a campaign event. Bolsonaro is currently recovering and, to the alarm of more centrally-minded Brazilians, continues to gain ground.
Migrant Caravan
A caravan of migrants from mostly Honduras, though it includes some from Nicaragua, El Salvador, and Guatemala, is headed for the United States. The most recent statistic for the size of the Caravan estimates their number to be 7,322 (UN, October 22). Bartolo Fuentes, a former Honduran Congressman who has been accused by some of ‘organizing’ the caravan (he denies organizing such an exodus is even possible) has remarked that the number of migrants in the caravan is roughly equal to the number of Hondurans that emigrate every 15 days. Many cite violence as the reason they are leaving their homes, though economic issues also play a large part. Trump and other politicians who support strong border controls, usually Republicans, have tried to galvanize their their base using the Caravan before the upcoming midterms. Concerns that Republicans will not turn out to vote in large numbers, contributing to a ‘blue wave,’ has made many Republicans alter their message to be more based in immigration. Migrants who do get to the American-Mexican border will likely apply for asylum.
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