For many years Venezuela was a leading country in South America. As an example, we can mention that in 1980 it exported more than $19 billion. That is about 20% more than Argentina, Colombia, and Peru together. It had one of the highest per capita incomes, a great volume of car sales and many Colombians and Peruvians moved there in search of a better life. But times have changed, Colombia sold abroad about 30% more than Venezuela last year. Neoliberal Peru exported 50% more than the Land of Hugo Chavez. Venezuela is no longer a great exporter and its foreign trade is shrinking although the country has a lot of oil.

Car sales have plummeted

For many years the sales of cars in Venezuela were much higher than in Peru. Both countries have similar populations in size. In 2005 more than 23,000 vehicles were sold in Peru. The same year more than 174,000 vehicles were sold in Venezuela, that is seven times more than in Peru. About 150,000 cars were sold in Colombia in 2005. By the way, Colombia is 50% more populated than Venezuela. In 2016 we can see that about 170,000 vehicles were sold in Peru, more than 246,000 were sold in Colombia and less than 3,000 were sold in Venezuela... That is five times less than in Nicaragua, which is five times less populated!

Minimum wage is miserable

This is no surprise. Today that the minimum wage plus the food bonus in Venezuela is about 250,000 bolivars, that is the equivalent of $30.

In Peru, the minimum wage is 850 soles per month, a little bit more than $260. In Colombia, there is a minimum wage that also includes transportation assistance and, as a whole, it is about $270. No surprise that car sales are so low, poverty has grown exponentially. By the way, the minimum wage in Ethiopia is almost $20 per month.

But there is a good side in Ethiopia, this country has been growing about 10% over the last ten years. On the other hand, the economy of Venezuela contracted more than 18% in 2016.

Per capita income is false

In 1980 the per capita income of Venezuela was four times higher than the Peruvian one and almost three times higher than the Colombian.

According to the International Monetary Fund, the per capita of Colombia was almost $6,000 last year. It was more than $6,000 in Peru. On paper, it was more than $9,000 in Venezuela, which is clearly false. Measuring the size of the economy in that country is difficult because there are many exchange rates, not just one as happens in normal countries. The government gives false economic statistics related to inflation, GDP and more.

Venezuela is poorer than Bolivia

The per capita income of Bolivia is almost $3,200 and we can see that in the country of Evo Morales you will not find the economic failure that you see in Venezuela. Bolivia has better economic indicators. On a per capita basis, sales of cars are about 30 times higher in Bolivia than in Venezuela.

Bolivia was the poorest country in South America for a long time, but that position belongs to the Land of Nicolas Maduro today. There must be a change in the Land of Twenty-First-Century Socialism unless it wants to have a minimum wage lower than the Ethiopian one.