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?

(a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
(b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
(c) Statement-I is correct, but Statement-II is incorrect
(d) Statement-I is incorrect, but Statement-II is correct

Correct Answer: (d) Statement-I is incorrect, but Statement-II is correct

Explanation

Option (a): Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- Incorrect: While Venezuela does have the world’s largest oil reserves, it has not achieved a rapid recovery from its economic crisis, nor has it succeeded in preventing its people from fleeing to other countries. The country continues to face significant economic challenges and a large-scale migration crisis .
Option (b): Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- Incorrect: Statement-I is incorrect. Venezuela has not achieved a rapid economic recovery, and the migration crisis persists. Therefore, this option is invalid .
Option (c): Statement-I is correct, but Statement-II is incorrect
- Incorrect: Statement-I is incorrect as Venezuela has not achieved a rapid economic recovery, and the migration crisis continues. Statement-II is correct as Venezuela has the world’s largest oil reserves .
Option (d): Statement-I is incorrect, but Statement-II is correct
- Correct: Statement-I is incorrect because Venezuela is still experiencing significant economic challenges and a migration crisis. Statement-II is correct as Venezuela has the world’s largest oil reserves .

Learn more

Economic Crisis:
- Persistent Challenges: Despite some economic improvements, Venezuela continues to face significant economic challenges, including high inflation and food insecurity .
- Migration Crisis: Over 7.7 million Venezuelans have fled the country due to economic hardship and political instability, making it one of the largest migration crises in the world .
Oil Reserves:
- Largest in the World: Venezuela has the largest proven oil reserves in the world, totaling approximately 303 billion barrels .
- Economic Dependency: The country’s economy is heavily dependent on oil exports, which have been affected by political instability and international sanctions .
Inflation and Food Insecurity:
- High Inflation: Although inflation rates have decelerated, they remain high, impacting the population’s access to food and other essential goods .
- Food Prices: Food prices have stabilized but remain significantly higher than in previous years, making it difficult for many Venezuelans to afford basic necessities .
Humanitarian Crisis:
- Health and Services: The humanitarian crisis includes severe shortages of basic goods, healthcare, and essential services, exacerbating the living conditions for many Venezuelans .
- International Aid: Efforts by international organizations and neighboring countries continue to provide humanitarian assistance, but the needs remain vast and underfunded .
Political Instability:
- Government Control: The political landscape is marked by the control of key institutions by the ruling party, leading to a weakened system of checks and balances and ongoing political repression .
- Sanctions and International Relations: International sanctions, particularly from the United States, have significantly impacted Venezuela’s economy, although some easing of sanctions has occurred in recent years .