Overcoming The Dutch Disease: Can The Chinese Relationships Ignite The Venezuelan Economic Engine?

Resource rich Venezuela currently holds the biggest oil reserves in the world.A once wealthy and prosperous nation is currently trapped in an economic and social turmoil.This research paper aims to explore what are the causes behind the crisis of Venezuela in the framework of the resource curse also known in the economy sector as “the Dutch disease” cases of the crisis curse are shown in two dimensions,with resource rich Botswana and Norway as cases of successful evasion of the crisis despite the origin of their economic wealth,and resources rich Venezuela,Russia and Azerbaijan as cases of economic stagnation despite their vast natural resources reserves.An additional case will be presented in Spain to show different causes of the same crisis.This paper will make a great emphasis in the need for unity and multilateral cooperation where China plays a central role as leading economic power towards a sustainable world.There are however some limitations as United States might question the increasing presence of China in a region considered to be U.S influence sphere.This study suggests a series of policies recommendations directed to improve areas such as governance system,institutional transparency,institutional articulation,and international cooperation,where investment from China is paramount in the rebuilt of Venezuela’s economic apparatus.