Ricardo Hausmann Explains How the Venezuelan Economy Collapsed

The podcast explores Venezuela's economic history and potential future, particularly its over-reliance on oil and the challenges of diversification. Ricardo Hausmann, formerly a minister of planning and board member of the Central Bank of Venezuela and now a Harvard professor, provides insights into the country's boom-and-bust cycles tied to oil price volatility, the erosion of property rights, and the impact of Chavez's policies. He argues that the decline predates sanctions, stemming from the firing of skilled oil workers and nationalization. Hausmann suggests that political stability, based on free and fair elections, is a prerequisite for economic recovery and attracting foreign investment, advocating for international pressure to ensure democratic reforms.