Post-Maduro: Is Venezuela Capable of Reviving Its Devastated Economy?
President Donald Trump addressed the nation about the U.S. capture of Venezuelan President Nicolás Maduro and his wife.
Over the weekend, U.S. special forces executed a daring raid on Caracas, capturing the now-former dictator of the country, Nicolás Maduro, and his wife. They were subsequently taken to New York, where both were indicted on multiple charges, including narco-terrorism conspiracy and cocaine importation conspiracy.
What comes next? Following Maduro’s capture, President Donald Trump announced that the U.S. would initially take over the administration of Venezuela. “We will run the country until such time as we can do a safe, proper and judicious transition,” he stated during a press conference at Mar-a-Lago in Florida. “We can’t take a chance that someone else takes over Venezuela who doesn’t have the interests of Venezuelans in mind.”
However, addressing Venezuela’s issues poses significant challenges, particularly regarding its currency, the Venezuelan Bolivar. According to data from Trading Economics, the Bolivar has weakened by a staggering 469% over the past year alone.
‘WE BUILT VENEZUELA’S OIL INDUSTRY:’ TRUMP VOWS US ENERGY RETURN AFTER MADURO’S CAPTURE
A motorcycle rider passes in front of an oil-themed mural in Caracas, Venezuela. (Javier Campos/NurPhoto / Getty Images)
Experts suggest that one potential solution could involve implementing a currency board to peg the Venezuelan Bolivar to the dollar. Robert Wright, a visiting professor of history at the University of Austin in Texas, noted, “There’s been a lot of success using a currency board as it most often stabilizes the currency.”
If successful, this stabilization could significantly reduce the risk of another hyperinflation. In February 2019, Venezuela’s inflation rate reached an astronomical high of 344,509.50%, according to data from the Central Bank of Venezuela. Economists believe the actual rate was likely even higher.
The roots of Venezuela’s economic troubles run deep, largely stemming from decades of poor economic policies. A pivotal moment occurred in 1976 when the Venezuelan government nationalized all oil and gas companies operating in the country, transferring control to the state-owned Petróleos de Venezuela (PDVSA). This included companies previously owned by major players like Mobil Oil, Exxon Corp., and Royal Dutch Shell.
People walk along a street in Caracas on Jan. 4, 2026, a day after Venezuela’s dictator Nicolas Maduro was captured in a U.S. strike. (Federico Parra / AFP via / Getty Images)
US OIL GIANTS MUM AFTER TRUMP SAYS THEY’LL SPEND BILLIONS IN VENEZUELA
The Trump administration expressed dissatisfaction with the current state of affairs, despite the historical context. “We built Venezuela’s oil industry with American talent, drive, and skill, and the socialist regime stole it from us,” Trump remarked during a recent news conference.
The situation with PDVSA traces back to the inauguration of President Hugo Chavez in 1999. In 2001, he enacted an “enabling law” that allowed the government to override existing contracts and directly intervene in private enterprises. Pete Earle, director of economics and economic freedom at the American Institute for Economic Research, stated, “Chavez rejected market economics,” effectively embracing full socialism.
A coast guard boat of the Venezuelan Navy operates off the Caribbean coast on Sept. 11, 2025. (Juan Carlos Hernandez / Reuters)
The situation deteriorated further in 2002 when Venezuelan workers staged a general strike, demanding another election. The Chavez government responded by dismissing over 18,000 skilled employees, primarily from PDVSA. “From that point on, the country ceased to be industrial and instead became political,” Earle explains.
As a result, PDVSA’s crude oil output plummeted. Production, which had peaked at 3.5 million barrels per day in December 1997, has now fallen to just 1.1 million barrels. This decline is partly attributed to the regime’s preference for appointing political allies over qualified petroleum engineers.
For years, the economic crisis has severely impacted the lives of many Venezuelans. According to the United Nations World Food Programme, around 15% of the total population—approximately 4 million people—urgently need food assistance.
A person walks past a gas station of state oil company PDVSA, in Caracas, March 16, 2022. (Gaby Oraa / Reuters Photos)
The food crisis began in 2016 when supermarket shelves were left bare, and reports emerged of zoo animals dying from starvation. The following year, shocking news surfaced that thieves were stealing animals from zoos to survive.
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The food shortages stemmed primarily from misguided economic policies. “It’s absolutely tragic,” Earle lamented. By 2018, the average Venezuelan had lost over 20 pounds, and a resurgence of malaria was reported in nine out of the country’s 23 states. “The nearest likely outcome is preventing chaos and ensuring that food and services are restored,” he concluded.
President Donald Trump addressed the nation about the U.S. capture of Venezuelan President Nicolás Maduro and his wife.
Over the weekend, U.S. special forces executed a daring raid on Caracas, capturing the now-former dictator of the country, Nicolás Maduro, and his wife. They were subsequently taken to New York, where both were indicted on multiple charges, including narco-terrorism conspiracy and cocaine importation conspiracy.
What comes next? Following Maduro’s capture, President Donald Trump announced that the U.S. would initially take over the administration of Venezuela. “We will run the country until such time as we can do a safe, proper and judicious transition,” he stated during a press conference at Mar-a-Lago in Florida. “We can’t take a chance that someone else takes over Venezuela who doesn’t have the interests of Venezuelans in mind.”
However, addressing Venezuela’s issues poses significant challenges, particularly regarding its currency, the Venezuelan Bolivar. According to data from Trading Economics, the Bolivar has weakened by a staggering 469% over the past year alone.
‘WE BUILT VENEZUELA’S OIL INDUSTRY:’ TRUMP VOWS US ENERGY RETURN AFTER MADURO’S CAPTURE
A motorcycle rider passes in front of an oil-themed mural in Caracas, Venezuela. (Javier Campos/NurPhoto / Getty Images)
Experts suggest that one potential solution could involve implementing a currency board to peg the Venezuelan Bolivar to the dollar. Robert Wright, a visiting professor of history at the University of Austin in Texas, noted, “There’s been a lot of success using a currency board as it most often stabilizes the currency.”
If successful, this stabilization could significantly reduce the risk of another hyperinflation. In February 2019, Venezuela’s inflation rate reached an astronomical high of 344,509.50%, according to data from the Central Bank of Venezuela. Economists believe the actual rate was likely even higher.
The roots of Venezuela’s economic troubles run deep, largely stemming from decades of poor economic policies. A pivotal moment occurred in 1976 when the Venezuelan government nationalized all oil and gas companies operating in the country, transferring control to the state-owned Petróleos de Venezuela (PDVSA). This included companies previously owned by major players like Mobil Oil, Exxon Corp., and Royal Dutch Shell.
People walk along a street in Caracas on Jan. 4, 2026, a day after Venezuela’s dictator Nicolas Maduro was captured in a U.S. strike. (Federico Parra / AFP via / Getty Images)
US OIL GIANTS MUM AFTER TRUMP SAYS THEY’LL SPEND BILLIONS IN VENEZUELA
The Trump administration expressed dissatisfaction with the current state of affairs, despite the historical context. “We built Venezuela’s oil industry with American talent, drive, and skill, and the socialist regime stole it from us,” Trump remarked during a recent news conference.
The situation with PDVSA traces back to the inauguration of President Hugo Chavez in 1999. In 2001, he enacted an “enabling law” that allowed the government to override existing contracts and directly intervene in private enterprises. Pete Earle, director of economics and economic freedom at the American Institute for Economic Research, stated, “Chavez rejected market economics,” effectively embracing full socialism.
A coast guard boat of the Venezuelan Navy operates off the Caribbean coast on Sept. 11, 2025. (Juan Carlos Hernandez / Reuters)
The situation deteriorated further in 2002 when Venezuelan workers staged a general strike, demanding another election. The Chavez government responded by dismissing over 18,000 skilled employees, primarily from PDVSA. “From that point on, the country ceased to be industrial and instead became political,” Earle explains.
As a result, PDVSA’s crude oil output plummeted. Production, which had peaked at 3.5 million barrels per day in December 1997, has now fallen to just 1.1 million barrels. This decline is partly attributed to the regime’s preference for appointing political allies over qualified petroleum engineers.
For years, the economic crisis has severely impacted the lives of many Venezuelans. According to the United Nations World Food Programme, around 15% of the total population—approximately 4 million people—urgently need food assistance.
A person walks past a gas station of state oil company PDVSA, in Caracas, March 16, 2022. (Gaby Oraa / Reuters Photos)
The food crisis began in 2016 when supermarket shelves were left bare, and reports emerged of zoo animals dying from starvation. The following year, shocking news surfaced that thieves were stealing animals from zoos to survive.
CLICK HERE TO GET FOX BUSINESS ON THE GO
The food shortages stemmed primarily from misguided economic policies. “It’s absolutely tragic,” Earle lamented. By 2018, the average Venezuelan had lost over 20 pounds, and a resurgence of malaria was reported in nine out of the country’s 23 states. “The nearest likely outcome is preventing chaos and ensuring that food and services are restored,” he concluded.
