Chapter Summary:

 

• Venezuela’s paradox: World‑leading reserves coexisting with economic collapse and political repression—a case study in Dutch Disease and governance failure.

• Cartels & prices: OPEC’s coordination power, price spikes (e.g., 2008), and how fracking later softens that grip by adding flexible supply.

• What helps: Transparency (EITI), diversified economies, and rule‑of‑law institutions mitigate the curse.

• Takeaway: Rents without institutions breed instability; geology alone can’t guarantee prosperity.

Additional Notes:

Chart created using data from https://www.worldatlas.com/industries/the-worlds-largest-oil-reserves-by-country.html
Link to Extractive Industries Transparency Initiative
Link to wikipedia entry on Seven Sisters
What is wildcatting?
https://www.youtube.com/watch?v=lOsABwCrn3EVenezuela - Inflation rate 2026| Statista