(S)trengths: A natural endowment of the world’s most demanded resource, namely oil. Huge reserves of crude oil in the country. A boom in the oil price in the international market causes a flourishing of the Venezuelan economy; a rise in the employment rate and the GDP of the country. It also runs a current account surplus owing to the surplus revenues earned from oil. The non-oil sector has also been growing at a steady and fast pace. Finance and insurance has grown 258.4 percent during the current expansion, an average of 26.1 percent annually; construction, which has grown 159.4 percent, or 18.9 percent annually; trade and repair services (152.8 percent, or 18.4 percent annually); transport and storage (104.9 percent, or 13.9 percent annually); and communications (151.4 percent, or 18.3 percent annually). Manufacturing grew 98.1 percent during the expansion, or 13.2 percent per year.
(W)eaknesses: An overdependence on the oil industry often leads the economy to come crashing down in the case of drop in oil prices. The constant political instability in the region leads to rapid policy changes and an overarching control of the military forces in private and public spheres.
(O)pportunities: Foreign public debt is low, at about 9.8 percent of GDP. Principal payments for the next four years are about $1.5 billion a year, which is very modest. Therefore Venezuela could also increase its borrowing internationally if necessary, but it is extremely unlikely to encounter any balance of payments problems. In the face of strong deflationary pressures, Venezuela’s inflation is likely to continue falling in the near future.
Challenges: The main challenge for Venezuela in the next couple of years is to implement an effective stimulus package that can keep the economy on a steady growth path. Venezuela could make infrastructure and other public investments that will increase productivity in the years that follow.
(T)hreats: Current concerns are a weakening of democratic institutions, political polarization, a politicized military, drug-related violence along the Colombian border, increasing internal drug consumption, overdependence on the petroleum industry with its price fluctuations, and irresponsible mining operations that are endangering the rain forest and indigenous peoples.
Kerala is located at the southern tip of India and was formed in 1956. In terms of area, it constitutes only 1.275% of India; it accounts for 33.3 million of the total Indian population .i.e. 2.76% of the total. It is the third densest state in India but this camouflaged by plush green biodiversity.
Like Venezuela, Kerala too is a resource-driven country, exporting its ecology .This is in the form of tourism and also the export of primary products like coffee, coconuts and spices. Ecology plays an important role in the Kerala economy by providing a diversified natural resource base, enabling a large degree of occupational diversification.
Variables | Venezuela | Kerala |
|
Total population:74.39 years male:71.26 years female:77.67 years (2014 est.) | Total population: 74 years. Male: 71.67 yrs Female:77.2 yrs |
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(2013)
Total-84.1 Female- 83.9% Male- 84.2% |
(2011)
Total- 94% Female-100.76 % Male-96.11% |
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It was 103% in 2009-10, and dropped to 102% in 2011-12. This percent exceeds 100 due to the inclusion of over-aged and under-aged students because of early or late school entrance and grade repetition. | 100 % Gross Enrolment Ratio. |
|
12,729 | NA |
|
2009
The child (below 5 yrs) mortality rate was 17.5(a drop in rate as compared to previous years above 18 ratios), per 1000 live births. The infant mortality rate was 15 per 1000 live births |
2005-06
Child mortality rate is 16.3, and infant mortality rate is 15.3 per 1000 live births. |
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Secondary school enrolment (% gross) was 83.48 as of 2011. Over the past 40 years this indicator reached a maximum value of 83.48 in 2011 and a minimum value of 35.15 in 1971. | 45% of the total population enters into higher secondary education. |
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The policies of the Bolivarian Government has caused poverty to fall to 23% in 2009 from 70.3% in the second half of 1996 accompanied by 40% of extreme poverty and a record inflation rate of 103%. | The incidence of rural poverty has declined in the 1980s in spite of the slow rate of growth of the economy |
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92 deaths/100,000 live births (2010) | Lowest maternal mortality rate in India. 66 deaths/100,000 live births (2010-12) |
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78% of the total population of the five-year age group following on from secondary school leaving. | Neglect on higher education. For example, in 1998-99, such a ratio is estimated to be 5.6 per cent in Kerala, compared to 5.9 per cent in the country as a whole on average |
|
0.482 | 0.40 |
Kerala and Venezuela are similar on grounds of following a path towards very high GDP. However, as much as they have been showing rapid development, an important issue which poses a huge problem for both economies is that of social security threatened by Crime, and the widespread corruption.
Presently, in 2013, after the death of President Chavez, President Maduro took over, the Venezuelan economy has been experiencing acute shortages due to turmoil. Marginal Propensity to consume is very high currently in Venezuela due to high inflation and shortages. In Venezuela, growth in the money supply leads to inflation. This growth in money supply is caused by an almost near full employment level in the economy.There is high consumption in basic commodities such as milk, butter, coffee, cornmeal and toilet paper. This shortage has been caused due to theState-controlled prices – prices that are set below market-clearing price.Many factories operate at half capacity because the currency controls make it hard fo