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UPSC Prelims 2024GS1Current AffairsInternational Economy/Geography (Venezuela)

Q47. Consider the following statements :
Statement-I : Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.
Statement-II : Venezuela has the world’s largest oil reserves.
Which one of the following is correct in respect of the above statements ?

A. Both Statement-I and Statement-II are correct and Statement- II explains Statement-I
B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
C. Statement-I is correct, but Statement-II is incorrect
D. Statement-I is incorrect, but Statement-II is correct✓ Correct

Detailed Solution

✓ Correct Answer: Option D

Statement-I is incorrect. Venezuela has been experiencing a severe and prolonged economic crisis, leading to one of the largest displacement crises globally, with millions of people fleeing the country.

There has not been a rapid recovery preventing emigration. Statement-II is correct. Venezuela indeed possesses the world's largest proven crude oil reserves, accounting for approximately 17% of global reserves.

Despite these vast reserves, the country faces significant challenges in oil production and economic stability. This question combines current international economic affairs with geographical facts, highlighting the importance of understanding global economic trends and resource distribution for the UPSC exam.

Current Affairs Link

Venezuela's ongoing economic crisis and its status as a major oil reserve holder.

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