The BigB-Preliminary round                               Ace Intra School 2017-18TEAM-1.Simran  Jaswal 11-F2.Harshita Madan 11-F                                              VENEZUELA CRISESANS1.Being the newly appointed president of VenezuelaI would take the following  steps andregulate significant policies to make my country great again and ensure thatthe country  uses its whole potential toget back on the right track.

1.FOREIGNDIREVT  INVESTMENT (LABOUR INTENSIVEINDUSTRIES)- The country at present is facing severe economic problemsand the  entrepreneurs along with theprivate sector stand at a very low position. Foreign direct investment incapital intensive industries will lead to more utilisation of natural resources.Hence allowing FDI in labour intensive unitswill give us the following advantageTackle the major problem of unemploymentand poverty  that has raised to anunexpected level .Employment opportunities will prove to be significant as itwill help in breaking down the vicious cycle of poverty and will bringstability in income of people.Our country’s private sector afterseeing the development in other spheres of economy  will surely try to make up its mind inentering the market.THE CAPITAL INTENSIVE INDUSTRIES OFTHE NATION of the nation are at present not in theposition to compete with huge MULTINATIONAL COMPANIES  with giant infrastructure and financialresources.

Hence a time of  20 years  will be given to the country’s large scale industries to redevelop itself and bringout its latent potential.FII(foreign institutional investors) such as merchant bankers  , mutual funds and pension funds will beallowed to invest in Venezuela financial market2.EMPOWERINGAGRICULTURE   AND  OTHER SECTORS OF THE ECONOMY- The primary sector is at very badcondition .The revenue of the govt will be used to make investment in theagriculture (only on necessary crops)sector so that the population can tacklefood shortage and get basic nutrition  diet that is required by a common person.fu3.tomake good foreign relations-As in the current scenario, primeminister of India Narendra modi is doing his level best to strengthen theforeign relations that indeed is an essential step for any country ,that wantto be proficient in the globalised world ,following the same strategy Venezuelawill make  alliance will developedcountries and ask them to share their technology, innovation and technical knowhow with Venezuela by investing in Venezuelan marketVarious training programmes can be conductedby both the nations like technical and expertise exchanges ,EXCHANGING  IT knowledge with industry, universities,research and development organisations and small and medium enterprises. 4.

enhancetourism sector-.Venezuela is among the top 20 countriesin terms of endemism and is one of the most 10 unique bio diverse country inthe world .Venezuela’s is biodiversity is extremely rich and vast and consistsof Andes mountains, Amazon basin rainforest , Amazon dolphins ,jaguar ,capybara,rodents and much more .Intensifying this sector will eventually result in morerevenue collection ,which in turn can be used to tackle the debt problem of thecountrythis sector can provide employmentopportunities to many people and will certainly help in combating poverty andunemployment related issues.5.FORMULATING   FOLLOWING  ECONOMIC   POLICIYVENEZUELA  ENREPRENEAURS SCHEMEThe govt will sanction loan to 400 startups at 10 percent interest p.a. The start ups need not to pay the interest infirst three years of their functioning but will have to pay accumulatedinterest at the beginning of the fourth year But the condition is the start upshave to invest 20 percent of their profits in public deposits, securities etcThe aim of the policy is to reduce liquidityin the market(measure to control inflation) by providing significant financialassistance to private sector.

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JOINTCOLLABORATION SCHEME-Any foreign labour intensive industry(ssi)can allign with Venezuelan private sector industries. The govt will reducethe tax upto 50 percent and can take advantage of special economic zone .Butthe Venezuelan ind. must have a stake of atleast 50 percent in thecollaboration.The aim of the sector is to strengthenprivate sector unit of Venezuela so that through the joint collaboration theycan learn with financial expertise ,technical managers ,and can acquireprofessional and mechanical skills from these well established foreign multi-national companies6.CONTROLHYPERINFLATIONThe printing of currency will be standstill for sometime in order to reduce hyperinflation.7.

MANAGING  OIL EXPORTInstead of exporting oil to developedcountries Venezuela will export it to developing countries of the world.Because countries like USA , china will require oil in large quantities withmore demand which Venezuela cannot afford. The developing countries like india,Argentina ,Chad will till the date are  running on conventional resources .

They cannotrun on renewable resources nor think of majorly running on such resources atleast for 40 years. Hence oil is fundamental key of their livlihood and they willsurely collaborate with Venezuela.Venezuela will export oil to suchcountries which lack in something like india employment ,so that both thecountry can mutually cooperate with each other. Venezuela will export oil to suchcountries if required at even cheaper rates.8.FOSTERRELATION WITH DEVELOPING COUNTRIESThe aim is not to increase revenue butto form an association with such countries which will intensify our relationand provide aid and backbone to Venezuela at this severe point of time. Suchcountries will export excess of their produce to us at nominal rates because ofrobust and deemed relationsThis will help us to tackle problems offood shortage and will significantly help Venezuela to empower itself andcontrol the present crisis    ANS2If I am Juan Vincent Gomez, President of Venezuela in 1922; upondiscovering a huge oil well I will go with the advice of those advisers who aresceptical about the idea of selling the oil blindly and think that doing sowill do more harm than good.

To manage the huge amount of naturalresource which could prove as a major boon to the country,  I will -·       Utilise the huge oildiscovered properly by exporting only managed amounts of oil so that thenatural resource could give the country benefit for a longer period of timeand also so that the huge supply does not overshoot the demand because in thatcase, the prices will fall down.           To manage the export, productionquotas will be implied  and strict                           penalties willalso be there in case of violation.Also, the country should not be solelydependent upon oil and the other sectors should also be given equal importance.

The Sectors to be improved are-·       Agriculture sector-Increase the agricultural production and productivity, by giving subsidies tofarmers. Increase its share in the GDP of the country so that the nation isself sufficient and is also able to maintain buffer stock in case of anemergency or food shortage. This will also provide employment opportunities.·       Secondary industries- Promotionof manufacturing and agro based industries to reduce the amounts of imports,promote private sectors and reduction in poverty by providing employment.·       Skill development andeducation-Schools and other educationalinstitutions for higher education be established to promote education andskills. It will lead to the formation of Human Capital.·       Health promotion-Hospitals,both private and government be established for promotion of health, reducedeath rates and infant mortality rates and stop the spread of contagiousdiseases.

Health awareness be created.·       Development ofinfrastructure-Like roads, railways, airlines,bridges, highways, storage facilities, organised markets to promotedevelopment.·       Promoteentrepreneurship-By providing incentivesto start new businesses and create ingenuity in the work force. It will promotethe private sector. ANS3yesWethink that being natural resource rich is advantageous to countries in thepresent scenario when transportation costs are decreasing and the world ispushing towards globalisation.

because-INTRINSIC  INVESTMENT ADVANTAGE-countriesthat have surplus natural resources always get an inherent advantage of gettingincome without bearing any significant risk or without investing in it. Beingnatural resource rich help them to allocate their fund to other things, likehuman capital formation, technological upgradation, diversification of publiccompanies.Thusa significant part of their treasury is not wasted in buying which can be usedat other areas of vital concernINCREASED   REVENUE-Mostof the underdeveloped , developing and developed nations are still dependent onconventional energy resources. As long as their dependence continues, thedemand for natural resources will continue. Thus the sale is not a matter of concernfor the next 100 years. More export will increase the govt treasury, leading tomore growth and more fundsINCREASING   FOREIGN  DIRECT   INVESTMENTlarge scale multinational company  (that deal in metals ,steel, coal mines etc)willsurely expand their business to a place that is rich in natural resourcesto increase their sales turnover andtheir profit. Thus increased fdi will be a boon for  the host country, leading to more employmentRENEWABLE  TRADITIONThe country after gaining lots oftreasury and financial resources can itself try to go green. Renewable energyresources are more valuable and better than the conventional .

The setting upcost is high, and the natural resource rich country can bear it .so it canitself go green and take the advantage of a sustainable environment.FOREIGNEXCHANGE RESERVES PROPERLY UTILISEDMany countries like India spend a largepart of their foreign exchange on purchasing oil ,petroleum products etc. Theyend up purchasing oil which  is used forconsumption and does not lead to sharpening of knowledgeNatural resources rich countries  can instead spend their foreign exchangereserves on technology exchange ,which will help in sharpen the minds ,creatingemployment, boosting innovation etcTHINGSTO BE NOTED1.

being natural resource rich doesn’tmean that a country cannot have well developed human resource. The country can invest in human capital and takethe dual advantage.2.one cannot be wholly dependent on any one segment of resources.

The govt mustensure that all the sectors are utilising their potential well and doing theirlevel best to increase GDP.3.Properplanning is a necessary step and a well plan along with a well plannedexecution results in the success of any project.4.natural resource rich countriesbasically get income without anyinvestment. the govt should ensure that the benefit reaches to each andevery citizen, the poorest sectionof the society must be given proper aid.

the money should not get absorbed in corruption 5.susdtainable development is anecessity in today’s environment. Over usage of natural resources can result inexcessive depletion leading to decimation of environment6.natural resource rich countries ratherthan having pride in their intrinsic resource must take up a challenge tobecome an all rounder by focusingimmensely onhuman resource , primary, secondary andtertiary sector as well. this can help them in becoming master of all trades and moving a step further than the countriesthat have invested in human resources.  Venezuela where although it had the largestoil reserves in the world, even more than Saudi Arabia, it is facing one of theworst social and economic crises in the world.

This is because it only dependedon its natural resource and neglected the development of human capital andother sectors of the economy.Thus, being natural resource rich isadvantageous only when there is proper management and resource utilisation.Countries like Japan, Singapore, SouthKorea, Hong Kong, Switzerland and many others who do not have much naturalresources but are successful economies as they have fully utilised their humanresource. countries like Venezuela, Kuwait, Saudi Arabia can move a step aheadby investing in human resource and taking the dual advantage of both theresourcesAs in the present scenario whentransportation costs are decreased and the world is moving towardsglobalisation, being natural resource deficient is not that much of a problem,provided  the human capital is welldeveloped. This is because the nations can then export technical knowledge,know how, intellectual products to other natural resource rich countries and inreturn get those natural resources. BUT ifa country  has natural resource and humanresource then the country can prove out to be a successful and powerfuleconomy.

  ANS4No. Water is not wet, whereas, When ittouches other things or human beings, we say that those things and ourselveshave become wet. Wetness is simply a state of being drenched in water.