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The Venezuelan economic collapse was primarily caused by the erosion of property rights and rule of law, not by oil price volatility or sanctions. The state's assumption of control over all economic activity left citizens without rights when state revenues failed.

Impact: Investors in resource-rich nations must prioritize legal and political risk assessments over commodity price forecasts to avoid catastrophic losses.

— from Venezuela's Resource Curse and Institutional Collapse · Odd Lots· Feb 09, 2026