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 ✓ UPSC's answer
Why the answer is (d)
• Statement-II is correct: Venezuela holds the world's largest proven oil reserves — about 300 billion barrels, mostly heavy crude in the Orinoco belt — ahead of Saudi Arabia.
• Statement-I is incorrect: Venezuela's economy collapsed by about three-quarters between 2014 and 2021 under hyperinflation, sanctions and mismanagement, and although there was modest growth after 2021, it has not achieved a rapid recovery; nearly 8 million Venezuelans — a quarter of the population — have emigrated, the largest displacement in the Americas.
• Oil wealth has not translated into stability because output fell from over 3 million barrels a day to under 1 million.
• Hence Statement-I is incorrect but Statement-II is correct, option (d).
Why the other options are wrong
- (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- Statement-I is wrong: Venezuela has not recovered rapidly and emigration continues.
- (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain…
- Statement-I is wrong, so both cannot be correct.
- (c) Statement-I is correct, but Statement-II is incorrect
- It is Statement-I that is wrong and Statement-II that is right.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2024, held on 16 June 2024. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.