The Venezuelan crisis
The Philippine economic story is an unfair comparison with that of Venezuela, but the grim situation in the South American nation will serve as a lesson to everyone trying to run a government. The inflation rate in Venezuela is currently estimated at 100,000 percent, with the International Monetary Fund predicting it could go up to one million percent toward the end of the year. The Venezuelan government raised the minimum wage by 3,400 percent to compensate for zooming prices, printed more money and devalued the bolivar by 96 percent in an effort to defuse the economic crisis. The inflation rate, however, worsened. With little foreign exchange earnings as a result of weak oil prices and capital flight, Venezuela suffered massive food shortages that, in turn, fueled the inflation rate to increase further. Falling public services, hyperinflation and shortages of basic necessities have forced millions of Venezuelans to abandon their country. The United Nations estimated that about 1.6-million Venezuelans have been displaced since 2015 when the economic crisis worsened. It says 2.3-million Venezuelans are now living abroad but other sources put the figure much higher.