Narrator: Venezuela has been
suffering a humanitarian crisis for years.
The situation is so dire
that an estimated 3 million Venezuelans
have fled their homeland.
After the country's economy collapsed
in 2014, it's been plagued by hyperinflation
as well as food and medicine shortages and power outages.
Narrator: And at the heart of it all are two men,
Venezuela's president Nicolás Maduro
and the leader of his opposition, Juan Guaidó.
For years, Maduro denied the country's issues
and blocked aid deliveries coming from most countries.
Guaidó set up a parallel government
and pledged to deliver aid.
Other countries got involved
and pushed the UN to intervene.
Mike Pence: It's time for the United Nations to act.
Narrator: In April,
Maduro finally acknowledged the country's crisis
and allowed the Red Cross to deliver aid.
Things haven't always been this way in Venezuela.
In fact, its large oil reserves once made it one
of the richest countries in Latin America.
So what happened?
It starts with Hugo Chávez.
He was elected as president of Venezuela in 1998,
in large part thanks to his 21st century-socialism message
that promised to clean up corruption
and balance economic inequality.
As it happens, fortune was on his side.
Will Martin: So Hugo Chávez came to power
in Venezuela in 1999,
and that coincided with a really big spike
in oil prices in 2000.
So effectively what happened is
that overnight, Venezuela managed
to have pretty much double the oil revenues
that it had previously,
which allowed Chávez to fund a lot of the spending
that he'd pledged in his election campaigns.
Narrator: The country was booming,
but it was spending money faster than it was coming in.
Martin: The issue with Venezuela
is that they spent so quickly
that the tax revenues weren't able
to keep up with government spending,
which created this big gap.
Narrator: Then on March 5, 2013, Chávez passed away.
It was his fourth term in office.
Nicolás Maduro was voted into office a month later
when the country's luck was drying up.
Martin: What had happened in the intervening years is
that the Chávez presidency had nationalized
a lot of the country's businesses,
manufacturing plants, that sort of thing,
and was therefore relying very heavily on oil
to bring in revenue for the government.
Beatrice Christofaro: So when oil prices plunged,
suddenly the government didn't have money
to pay for the social programs
that were so popular amongst the lower classes.
But also, it didn't even have the money
to import all the things that it needed.
Venezuela really imports almost all
of its basic necessities, from food
to medicine, cars, all of that.
So when suddenly all this oil revenue wasn't
coming in anymore, the country was faced
with severe shortages.
Narrator: The shortages were so severe
that a national survey found that between 2015 and 2016,
74% of respondents lost an average of 19 pounds.
At the same time,
Maduro's opposition was swiftly gaining strength.
In 2015, they gained a two-thirds majority
in the National Assembly,
threatening Maduro's position as president.
In response, Maduro stacked the Supreme Court
with justices on his side.
Then in 2017,
Maduro created the National Constituent Assembly
that would rewrite the constitution and effectively
bypass the opposition-controlled National Assembly.
And to make things worse, hyperinflation set in.
It's basically like inflation on steroids.
Prices increase more and at a faster rate.
For example, in August of 2018,
a roll of toilet paper in Caracas cost 2.6 million bolívars,
the equivalent of 40 American cents.
The bolívar is so devalued
that Venezuelans need large sums of cash
to buy small amounts of items.
Martin: And so basically, that's the issue is
that Venezuelans can't afford the goods
and services they need to live basic, normal, happy lives.
Narrator: In January of 2019, tensions grew even more
when the opposition leader,
Juan Guaidó, claimed the presidency,
citing emergency powers in the constitution.
The US quickly backed Guaidó,
and Maduro responded by ordering all US diplomats
out of the country.
Christofaro: About 50 countries, including the US,
the UK, a lot of Latin American countries,
have recognized Juan Guaidó
as the legitimate leader of Venezuela,
which is significant in the sense
that it shows that he has international support,
that his government is considered legitimate
by a lot of people.
Narrator: But there's another problem.
Maduro still controls the military.
And beyond the military's strength,
its officers hold influential positions in the government.
In February, Maduro blocked aid
coming from the Colombian border.
Later in the month, he closed the southeastern border,
again blocking aid from entering the country
because the government thought admitting aid
would basically mean admitting defeat.
Christofaro: The government has also said
that if they were to accept US aid
or from any other imperialist country,
they would be acknowledging
that Guaidó's government is legitimate.
Narrator: There was backlash against Maduro's leadership.
Hugo Carvajal, Venezuela's former intelligence chief,
called out Maduro, making accusations
that his inner circle is corrupt.
Christofaro: All the high-ranking officers,
which Guaidó actually needs on his side,
feel very comfortable in this position of power
that they've had.
Of course, under Maduro, they have a lot of power,
but they've also been implicated
in a lot of problematic things
such as corruption and are just afraid
that if they go to the other side,
they might be reprimanded for that.
Narrator: In a New York Times op-ed,
Guaidó said he has been secretly meeting
with members of the armed forces
and has offered amnesty to defectors
who have not committed crimes against humanity.
Christofaro: Right now, he is trying to oust Maduro,
and they've been in this political tug of war
for the past few months where he has been meeting
with international leaders,
where he has been appointing opposition ambassadors
around the world and has been calling for mass protests,
and his goal right now is to get the military
on his side and to call for new elections.
Narrator: The US is Venezuela's largest oil customer
and is supporting Guaidó by imposing financial sanctions,
directing US companies to withhold payment
from Maduro's state-owned oil company.
Steven Mnuchin: We will continue to use all
of our diplomatic and economic tools
to support interim President Guaidó,
the National Assembly, and the Venezuelan people's efforts
to restore their democracy.
Narrator: In April, the US enacted
another round of sanctions,
trying to prevent Maduro's government
from trading oil for Cuban intelligence services,
and Vice President Mike Pence lobbied the UN to back Guaidó.
Pence: And so the United States is calling
on the United Nations to live up
to its very purpose, reject the failed leadership
of Nicolas Maduro, stand with us,
stand with nations across the world,
across this hemisphere,
to help the people of Venezuela forge a brighter future.
Narrator: A week later,
with 7 million Venezuelans living
in need of humanitarian aid,
Maduro reversed his aid policy,
allowing the Red Cross to start a large-scale effort
to feed and provide medical attention
throughout the country.
However, Venezuela is still in one
of the worst economic depressions in modern history.
The International Monetary Fund has predicted
the country's economy will shrink by 25% this year.
Narrator: This crisis is far from over.
The country's infrastructure and economy need repair.
But the Red Cross intends to fight malnutrition
and disease in what it estimates will be one
of its largest humanitarian efforts
since the beginning of the Syrian Civil War.