Venezuela’s Fall: How Oil Wealth Turned Into a National Curse

Kazi Abul Monsur#

Venezuela was once one of the wealthiest countries in Latin America. With vast oil reserves, rich agriculture, and a vibrant political history, it seemed the country would never face poverty or crisis. Yet, in 2025–2026, Venezuela’s situation proves that having resources does not guarantee prosperity; flawed policies, corruption, and political interference can destroy a nation. Oil has now become Venezuela’s curse. Venezuela is one of the prime examples of how a wealthy country can fall into ruin because of oil.

Reports indicate that the United States has allegedly arrested Nicolás Maduro and his wife, Cilia Flores, according to the U.S. administration. U.S. President Donald Trump shared an image on his social media platform showing Maduro blindfolded and handcuffed aboard a U.S. Navy ship (USS Iwo Jima). At the same time, video footage has surfaced showing him arriving in New York and meeting with U.S. officials. Some international media outlets have reported that he is being taken to the United States to face specific charges.

But what is actually happening? Why is the United States acting so aggressively?

Venezuela’s history began as a Spanish colony. After Christopher Columbus arrived in the region in 1498, Spain seized the country. For the next three centuries, Spain exploited its resources and enforced slavery. Venezuela’s problems began with flawed economic models and corrupt governance, which, coupled with political crises and international pressures, fueled further turmoil. Before European colonization, various indigenous peoples inhabited Venezuela. When Columbus reached the coast in 1498, Spain took control and named the region “Venezuela” — meaning “Little Venice,” inspired by the stilt houses over water.

The leader of the independence struggle against Spain was Simón Bolívar, the legendary figure of Latin America. Venezuela first declared independence in 1811. After numerous battles, Spain was completely defeated in 1823.

Even after gaining independence, the country was left impoverished and politically unstable. For most of the 19th century, military rule, coups, and civil wars prevailed, and democracy never fully took root. In the 1920s, massive oil reserves were discovered, turning Venezuela into one of the world’s major oil producers. Rapid urbanization followed, along with the rise of a middle class. Venezuela became one of the wealthiest countries in Latin America. However, its economy became entirely dependent on oil, neglecting agriculture and industry.

When military rule ended in 1958, a democratic government emerged. Although investment was made in education and infrastructure, corruption grew, oil wealth became concentrated in the hands of a few, and wealth inequality intensified. Hugo Chávez was elected in 1999 and implemented socialist policies. He nationalized the oil industry and introduced education and healthcare programs for the poor. Importantly, he pursued anti-U.S. policies. Initially, his popularity surged as the poor benefited. But as state control expanded, corruption grew, and government institutions weakened.

Until the mid-20th century, the United States was Venezuela’s largest oil buyer, with American companies heavily investing in the country. Venezuela was a “U.S.-friendly” nation. However, after Chávez came to power in 1999, this changed. He reduced the influence of American oil companies, openly presented himself as an anti-U.S. leader, and declared, “Venezuela is not America’s backyard.” This was a major shock for Washington.

So what was the real concern for the United States? Three main issues were critical:

Oil – Venezuela possesses some of the world’s largest oil reserves, and the U.S. wanted to ensure oil flows remained under its influence.

The Spread of a Socialist Model – Chávez inspired other Latin American countries, forming alliances with Cuba, Bolivia, and Nicaragua, attempting to create an “anti-capitalist” bloc.

Geopolitical Influence – The presence of Russia and China in the region was a red flag for the U.S.

In this situation, the United States has often avoided direct military intervention, instead applying multi-faceted pressure to establish influence over Venezuela.

After Hugo Chávez’s death in 2013, Nicolás Maduro came to power. Under his rule, the fall in oil prices, corruption, and economic mismanagement led the crisis to peak. The U.S. labeled Maduro’s government illegitimate and imposed successive sanctions, targeting oil exports, international banking, and government assets. Washington claims these measures are “to restore democracy and protect human rights.” Critics argue, however, that these sanctions have worsened the suffering of ordinary citizens.

In 2019, the United States recognized opposition leader Juan Guaidó as interim president, a major strategy to increase international pressure on Maduro. Yet this initiative did not achieve the desired outcome. Maduro remained in power, and the country’s political division deepened. A Latin American expert remarked, “Venezuela collapsed due to its own mistakes, but international politics accelerated that collapse.”

In Venezuela, the military is not only a security force but also a political entity. Chávez himself was a military officer. Upon taking power, he ideologically reshaped the armed forces as “Bolivarian,” placing politically loyal officials in key positions and involving the military in business, food distribution, and oil security. As a result, the military became dependent on the government.

In short, Venezuela does not have a separate, politically neutral military. Alongside the regular armed forces, there is a politically loyal militia that supports the government and suppresses opposition movements. The Bolivarian National Armed Forces are divided into four branches: army, navy, air force, and national guard, plus the politically loyal Bolivarian Militia. The military is not fully professional or neutral; it is closely tied to the ruling government.

Venezuela’s experience proves that oil wealth alone does not guarantee prosperity. Excessive reliance on oil, state control, corruption, and price manipulation have plunged the country into humanitarian and economic crises. Currently, Venezuela has a population of 28.5 million. Due to shortages of food and medicine, millions have left the country. Child malnutrition, health crises, and economic collapse are part of daily life. Venezuela’s history teaches that resources alone cannot make a nation prosperous. Strong institutions, accountable governance, a diversified economy, and consistent policies are essential for sustainable development.

Venezuela has shown that despite oil wealth, corruption, political missteps, and international pressure can drive a country toward destruction. The resilience and patience of its people continue to be tested, and what was once a blessing in the form of oil has now become a terrifying curse.

After Chávez’s death in 2013, Nicolás Maduro assumed power. Falling oil prices caused state revenue to collapse. The government began printing excessive money, resulting in hyperinflation.