Thursday, November 14, 2013

Industry of Venezuela

Until the 1950s Venezuela had little industrial capacity apart from food processing and petroleum extraction. Huge oil revenues, combined with low tariffs, permitted an array of items to be imported. Manufacturing has been transformed since that time, especially following the government’s increased efforts to diversify the economy in the 1960s. Among the factors contributing to the industrial base are an abundant supply of fossil fuels and hydroelectric power, a variety of raw materials, considerable available capital; and a relatively high purchasing power per capita. The consumer-goods and metalworking industries were established with the help of protective tariffs and import quotas. With the 1973–74 rise in world oil prices, revenues expanded, and the government directed its investment strategy toward large-scale resource-based projects such as iron and steel manufacturing, aluminum smelting, and the production of transport equipment and petrochemicals. Industrial growth slowed, however, when oil prices declined several years later.