In the course of the 20th century, Venezuela went from being one of the poorest countries in Latin America to becoming the richest. In 1970, it ranked among the 20 richest countries in the world with a higher per-capita GDP than Spain, Greece and Israel, and only 13 per cent lower than the UK.
Venezuela’s reversal of economic fortune started in the 1970s. From 1974 onwards, labour market regulations were tightened to a level that was unprecedented almost anywhere else in the world – let alone Latin America. Increasing state interference in the economy and massive over-regulation led to the situation in the once rich country constantly deteriorating.
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