Consider the following statements: Statement-I: Recently, Venezuela has achieved a rapid recovery from its…
Consider the following statements: Statement-I: Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries. Statement-II: Venezuela has the world's largest oil reserves. Which one of the following is correct in respect of the above statements?
- ABoth Statement-I and Statement-II are correct and Statement-II explains Statement-I
- BBoth Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- CStatement-I is correct, but Statement-II is incorrect
- DStatement-I is incorrect, but Statement-II is correct
Answer and explanation
Correct answer: D
Statement-I: Incorrect. Venezuela continues to suffer from a severe economic crisis marked by hyperinflation, shortages of basic goods, and political instability. This crisis has led to a massive exodus of Venezuelans seeking better living conditions in neighboring countries and beyond.
Statement-II: Correct. Venezuela indeed possesses the world's largest proven oil reserves, surpassing even Saudi Arabia. However, despite this vast resource wealth, economic mismanagement, corruption, and international sanctions have crippled its oil industry and hindered its ability to leverage this asset for economic recovery.