Venezuela, with the largest proven oil reserves globally, struggles economically due to low revenue from oil exports compared to other major exporters, earning only $4 billion in 2023. Mismanagement, underinvestment, and subsidies are key factors contributing to the country’s financial woes.

Decades of policy missteps, including diverting oil revenue to social programs rather than reinvestment, have weakened Venezuela’s economy. The overreliance on oil exports has led to a collapse in other sectors, fueling hyperinflation and economic turmoil. International sanctions have further exacerbated the country’s economic challenges.

In contrast, Saudi Arabia has successfully managed its oil wealth through Vision 2030, diversifying its economy and investing oil surpluses in a sovereign wealth fund. Norway has avoided the resource curse by saving oil revenues in a sovereign wealth fund and operating a state-majority oil producer transparently. These models showcase effective management of oil wealth.

Read more at Yahoo Finance: Why Venezuela Is Poor Despite Having The World’s Largest Oil Reserves