CDDRL's Terry Lynn Karl discusses development efforts by oil-producing countries

Terry Karl, an expert on development efforts by oil-producing countries, says a lack of adequate financial controls has for decades encouraged corruption in Venezuela, and the problem remains today. "There is no question that the [government's social] programs have brought hope to people. There is still a question about whether they're well enough targeted and efficiently run, and whether there are strong enough controls against corruption," she said. She also said the programs face serious long-term dangers from the boom-and-bust cycle of oil prices. "If the price falls, there's not enough money to sustain these programs. If the price rises and spending continues at its current rate, this creates inflation, which in turn eats away at the gains of the poor."

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