Running head: BUSINESS
Introduction to International Business
During Chávez's time in leadership, the economic system was socialist. Chavez crudely
implemented socialism in somewhat undemocratic ways. For example, one of the most
significant policies during his reign was that there would be a redirection of oil revenues to the
country's poor people. Oil prices were inflated, and the poor relied on the revenues drawn from
the product through social programs that were put in place by the government (Naím, 2018). The
oil prices allowed Chavez to get loans and bonds from countries like Russia, U.S., and China.
However, the overall implication of this was that the country ended up with huge debts. During
elections, these oppressed people had no option but to still vote him in despite of his actions. The
political system was autocratic. Chavez was in full control and his successor was clearly known
by everyone, and there was little that the public could do to change the status quo. The political
system was also hybrid: The economy was socially-owned, and it worked together with the
democratic political system. While many socialist economic systems entail centralized industrial
policies and economic planning, extensive infrastructure development...
15 Million Students Helped!
Sign up to view the full answer