As the political and economic crisis in Venezuela grows worse it has become a tinderbox. With food and medicine shortages already acute, President Nicolas Maduro’s blockade to keep humanitarian aid from entering the country—and protesters’ reactions—have led to four deaths and hundreds injured in clashes with the military in recent days. Added to this quagmire are not-so-veiled threats of military intervention from the U.S., stirring an already chaotic mix.
Experts at the Wharton School say there are viable ways of resolving today’s grave issues that could improve the lives of Venezuelans and heal the economy—without violence. But that can happen only if cooler heads can prevail and one side does not insist on controlling most, or all, of the country’s vast economic potential. Philip M. Nichols, Wharton professor of legal studies and business ethics, and Dorothy Kronick, a professor of political science, suggest that the U.S. sanctions on Venezuela, in force since March 2015, could cripple the Venezuelan economy even further should the U.S. decide to add more restrictions.
As for how the country could prepare for an economic recovery, Nichols says, “First and foremost, opportunity has to be distributed in an equal way. If the exigencies of Venezuela are used as an excuse to return to the economic structures of old, Venezuela will collapse again.”
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