Huge wealth inequality is a major feature of Venezuelan society. This continues to undermine sustainable development and contributes to political instability. It already looks unlikely that Venezuela will meet all of its Millennium Development goals (1990 - 2015) on poverty reduction despite the reforming zeal and promises of the current administration.
This explains the popularity of reforms designed to bring about a less unequal society in opposition to powerful vested interests in maintaining the status quo. The current administration has labelled the reform and poverty reduction agenda as the "Bolivarian Revolution" and is using oil industry profits to finance social programmes aimed at reducing poverty.
The Venezuelan economy is dependent on its oil industry and approximately one third of its Gross Domestic Product (GDP) and more than 50% of government revenues are generated from oil and its derivatives. The government has made efforts to diversify into the exploitation of other mineral reserves including iron, aluminium, coal, and cement; and is trying to close the infrastructure gap in transportation and energy supply.
The government is also privatising loss making state owned enterprises and seeking foreign investment in petrochemical, mining, forestry and tourism - albeit with a strict emphasis on state control of assets. Tax collection is being improved and now accounts for the other 50% of governmental revenue.
GDP has risen by more than 600% since 1996 reaching 206,125 billion Bolivar