"Sanctions have a domino effect on the Venezuelan economy" (Deep Look)

Source: People's Daily

Core reading

In recent years, the United States has continuously expanded its economic and financial sanctions against Venezuela and imposed a series of sanctions and blockade measures, which have seriously reduced the Venezuelan government's oil export revenue and insufficient food and medicine imports, seriously hindered Venezuela's efforts to develop economic and social development and improve people's livelihood, and seriously damaged the basic human rights of the country's people.

Venezuelan Vice President Rodríguez recently said at the EU-CELAC Summit that sanctions against Venezuela are a tool for the United States to disrupt the country and even the entire Latin American and Caribbean region, and directly violate international law and the UN Charter. Rodriguez also said that the US sanctions and blockade of Venezuela not only have a negative impact on Venezuela, but also affect the development of other Latin American countries.

"Economic, humanitarian and development crisis for Venezuela"

In Caracas, the capital of Venezuela, 71-year-old Bonifacio Cabez and his 64-year-old wife Carmen González walked through 4 pharmacies and still could not find a drug to treat Cabezas' prostate cancer; Outside supermarkets and shops in some cities in the country, people are waiting in long lines hoping to buy a little beef...

Gregrio Callenho and his wife, Yasmir Callenho, live in a neighborhood in Caracas. Gregorio used to be a taxi driver, but now has limited mobility and life has become more difficult. He said that under the US sanctions, Venezuela is short of supplies and rising prices, and they have to sell their property to survive. "U.S. sanctions against Venezuela have been going on for many years, and we're like we've been looted. I had to pay a lot of living expenses and had to sell my minivan and sell my own taxi. Jasmir's brother had diabetes and died at the age of 52 because he couldn't buy the right medicines. "U.S. sanctions took his life," Yasmir said. ”

Venezuela used to be one of the fastest growing economies in Latin America. Since the administration of leftist President Hugo Chávez in 1999, Venezuela's diplomatic relations with the United States have deteriorated, especially since 2017, and the United States has continuously escalated sanctions, which has seriously hindered Venezuela's economic and social development.

A report released by the UN Human Rights Council's Special Rapporteur on the negative impact of unilateral coercive measures on human rights, Alaina Duhan, shows that Venezuelan government revenues have fallen by 99% compared to pre-sanctions levels, and public services have nearly collapsed due to insufficient funding. More than one-third of the population is severely food insecure, the average household has only a few hours of piped water per week, and the sharp decline in government funding has left schools and students without essential supplies.

A report released by the European Center for Economic Policy Research said that U.S. sanctions have exacerbated Venezuela's economic difficulties, and the country's people have suffered greatly. Since 2017, about 80,000 people living with HIV in Venezuela have not received medication, and many of the 16,000 cancer patients and 4 million people with diabetes and hypertension have not received treatment. The authors of the report said that the US government deliberately used sanctions to devastate the Venezuelan economy, causing the country's people to lose access to life-saving food, medicine, medical equipment and other essential supplies, in serious violation of international law and relevant treaties.

The website of the UN Human Rights Office reports that some hospitals in Venezuela often lack disinfectants, medicines and equipment. Former UN High Commissioner for Human Rights Michelle Bachelet said various sanctions have severely hampered the functioning of Venezuela's health care system, and Venezuela has encountered obstacles in importing life-saving medical supplies, which has caused long-term harm to vulnerable groups.

"U.S. sanctions have created an economic, humanitarian and development crisis in Venezuela that has had a devastating impact on people's lives, especially but not limited to people living in extreme poverty, women, children, health workers, people with disabilities, people with life-threatening illnesses or chronic diseases, and indigenous populations," said Alaina Duhan. ”

"A ruthless, illegal and failed policy that has caused serious harm to the Venezuelan people"

Since 2009, the United States has imposed hundreds of sanctions on Venezuelan individuals and entities and foreign nationals who do business with Venezuela, according to an article on its website. Under the U.S. government's policy of maximum pressure, the U.S. Treasury Department significantly expanded sanctions against Venezuela, which are authorized through a strong legal framework, including legislation, executive orders, industry decisions, and general licensing. The U.S. government's increased sanctions on Venezuela have made it nearly impossible for the country to access international markets and exacerbated its domestic economic problems.

In 2019, the United States expanded economic sanctions against Venezuela, including banning the import of Venezuelan crude oil and freezing the assets of the country's oil companies in the United States, aiming to cut off the Venezuelan government's economic lifeline. The United States also handed over the assets of Certico, the U.S. arm of Petroleos Venezuela, to the Venezuelan opposition.

Due to the comprehensive sanctions and blockade imposed by the United States on the Venezuelan oil industry, Venezuela cannot import the raw materials needed for the operation of the refinery. Since March 2020, there has been a serious shortfall in the country's gasoline supply. British media reported that at some gas stations in Venezuela, vehicles queuing for refueling stretched for more than 7 kilometers, and some even had to queue for 13 hours to refuel. Reuters reported that Venezuela, one of the world's important oil producers and exporters, suffered the worst gasoline shortage in history and became one of the countries with the highest gasoline prices, after the country had been among the lowest gasoline prices in the world.

Former Venezuelan Foreign Minister Prasencia said that the US government's ban on buying Venezuelan oil, freezing the Venezuelan government's bank accounts and seizing ships bound for Venezuela have caused Venezuela to experience the largest recession in history.

Former US Secretary of State Mike Pompeo's new book "Not Giving In" published in January this year revealed that the United States had tried to deprive Venezuela of its ability to obtain foreign exchange by exporting oil and gold by imposing unilateral sanctions, exerting economic pressure on Venezuela and influencing the 2018 Venezuelan presidential election.

Jeffrey Sachs, an economist at the European Centre for Economic Policy Research, said: "The purpose of the US sanctions is to destroy the Venezuelan economy and thus bring about regime change, which is a ruthless, illegal and failed policy that has caused serious damage to the Venezuelan people. ”

"US unilateral economic sanctions are a clear violation of international law and a violation of human rights"

The US sanctions have caused a serious humanitarian disaster and have been widely opposed by Venezuela and the international community. Alena Duhan said that the unilateral sanctions imposed by the United States on Venezuela are politically motivated and directly hinder the Venezuelan government's ability to protect people's livelihood. She noted that humanitarian concerns could not be manipulated and hijacked by politics, and that unilateral sanctions imposed on other countries by Western countries, led by the United States, were inconsistent with international law. These unilateral sanctions, which are imposed primarily in the name of human rights, democracy and the rule of law, undermine precisely those principles.

"U.S. sanctions have had a domino effect on the Venezuelan economy, affecting all sectors, from the oil industry to agriculture and food." Armando Benediti, Colombia's former ambassador to Venezuela, said the sanctions prevented Venezuela from accessing international markets and limited its ability to export oil. "This has severely affected the country's economy, leading to a lack of medicines, food and other basic products."

Moncada, Venezuela's permanent representative to the United Nations, criticized that "the sanctions imposed by the US government on Venezuela are terrorist attacks." "The United States does not allow us to use our own money to buy the services we need." The United States presents itself as a savior and uses humanitarian pretexts to impose sanctions and interference in Venezuela, but so far we have not seen any humanitarianism. ”

Latin America-based Southern TV said on its website: "Economic sanctions are the favorite tool of the United States in maintaining its global hegemony. The unilateral economic sanctions imposed by the United States are a clear violation of international law and a violation of human rights. ”