Major Economic Problems Facing Mexico and Venezuela - Essay Example

Due to bribery in the country, poverty and unequal income distribution have become consistent problems in the country. About 17% of the population lives below the country’s line poverty.

On the other hand, the country of Venezuela is facing major economic problems led by security issues. The country experiences local militia groups that are stronger than the local police in some instances. The country also experiences drug trafficking and the prevalence of guns. The country from time to time experiences demonstrations and strikes that oppose the scenario that is making the country unbearable. By 2011, the country became one of the most dangerous countries in the world (Roberto). The gangs in the country also have control of the prisons in the country, and the centers are some of the most luxurious institutions in the world. The laws in the prisons are also different from the national constitution, and they tend to suit the criminal minds. The country also faces the most alarming rate of inflation.

The Best Country to Make a Home
Both Mexico and Venezuela experience poverty. Millions of citizens live in poor conditions. The countries also experience poor health care as well as the poor education system. The countries also rely on production rather than manufacturing in the exchange market. Besides, the two countries are dependent on oil production to sustain their economy (McKinley).

However, Mexico stands out from the two countries. The human population that exists in the metropolitan areas is about 77% of the population, unlike the 88% of the population in Venezuela who live in an urban area. In addition, the location of Mexico is suitable for a trade more than Venezuela since it borders major economic powers such as the US making trade more efficient. The climate of the region especially central Mexico is suitable for farming with enough rain to grow crops. The climate of Venezuela is mostly tropical. Although Venezuela gains from beaches, Mexico also gains from tourism. Similarly, Mexico relies on more export commodities than Venezuela. About 90% of the proceedings of the Venezuelan government emanate from oil (Chris). The implication is that a slight negative change in oil prices greatly affects the country of Venezuela. Research also indicates that Mexico is developing at a higher rate given the economic overheads that are being built. The country has more establishments for railroads, electricity power plants plus airports.

In particular, Mexico 2014 had a GDP growth of 2.9% in contrast with Venezuela, which has a GDP growth rate of 1.1% in 2014. The inflation rate in 2014 for Venezuela is about 63% implying that the country is not the best to make a livelihood. The unemployment rate in Venezuela is also more than that of Mexico whereby Venezuela is about 7% while that of Mexico is about 4% (Han Shih).
Due to the above facts, Mexico is very much better to live than Venezuela. Read More