Venezuela PEST Scan
On this page you'll find a variety of information about the country of Venezuela. The Website includes a breakdown of Venezuela's political structure and stability, economic workings, facts about the Venezuelan culture and the technological development of the country. The information in this page will be helpful for students studying the country or for persons looking to visit the South American nation. Enjoy!
Gross Domestic Product ~ $430 billion (ranked about #30 in the world)
Gross Domestic Product Per Capita ~ $13,000.00 (ranked about #60 in the world)
Roads: The roads in Venezuela are in disrepair. Many blame the infrastructure problems on the Venezuelan government, as they have "centralized" the many public services (including roads). Centralization means that their national government has taken control of things such as roads, ports, and airports. They have taken this control away from state governments and the private sector. The roads are so bad, that the typical pothole has been renamed the "mega-hole." See the picture below.
Utilities and Energy: Water and energy are also under the close watch (or control) by the Venezuelan government. While water supply still does not reach those in the poorer communities, energy is considered a strength for Venezuela by some. Shortcomings, or failures in utilities come from the nations struggle to find funding to meet the needs of all Venezuelan people.
Shale: Worth noting, Venezuela has a large, recoverable oil shale reservoir. U.S. technologies could be used in this country to unearth and make us of this natural resource
Foreign Exchange: Venezuela has a rather strict and often delayed foreign exchange process. This can create problems for those importing goods into the country looking for acceptance and pay. This also creates problems for the Venezuelan people seeking those goods that are held up in shipping ports.
Labor Quality: There is not much data available that describes the quality of the workforce. Below is a breakdown of employment in Venezuela by occupation
- 64% Services
- 23% Industrial
- 13% Agriculture
Child Labor: Venezuela employs 1.1 million children. These children are often pulled from education and placed in jobs that some would consider dangerous.
Wages: Venezuelans just received a major boost in minimum wage this year (30%), but the boost is misleading. Some estimate that the actual exchange rate of the bolivar is 50 to $1 U.S. dollar. "At that rate, Venezuela’s minimum wage is $85 a month, or about $3 a day." With inflation (prices raising) by over 50% last year, this minimum wage is hardly the major boost the government has touted.
Benefits: Venezuelan employers pay into a pension system for their employees. The Venezuelan workers also earn vacation days and are often paid year-end bonuses.
Currency Exchange Examples:
Trade Balance With United States ~ $5,000,000.00 Surplus