Q97 (IAS/2024) Geography › World Human & Economic Geography › World mineral resources Official Key

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 ?

Both Statement-I and Statement-II are correct and Statement-II explains Statement-I

Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I

Statement-I is correct, but Statement-II is incorrect

Statement-I is incorrect, but Statement-II is correct

Result

Your answer: — · Correct: D

Explanation

The correct answer is option D because Statement-I is incorrect while Statement-II is correct.

The crisis in Venezuela[1] remains ongoing, and following the July 2024 presidential election, concerns about another refugee crisis have emerged, with millions likely to flee[2]. Additionally, xenophobia has increased in regional countries as the number of refugees and migrants from Venezuela has grown[3]. This evidence clearly contradicts Statement-I's claim of rapid recovery and success in preventing emigration.

However, Statement-II is accurate. Venezuela has the world's largest proven oil reserves at an estimated 304 billion barrels (18% of global reserves) as of 2020[4]. Paradoxically, although Venezuela sits atop the world's largest known crude oil reserves, the petroleum industry has not escaped the deterioration[5], demonstrating that having vast oil reserves has not translated into economic recovery. Therefore, only Statement-II is correct, making option D the right answer.

Sources

[1] https://en.wikipedia.org/wiki/Crisis_in_Venezuela
[2] https://en.wikipedia.org/wiki/Venezuelan_refugee_crisis
[3] https://www.ilo.org/fr/media/387976/download
[4] https://en.wikipedia.org/wiki/History_of_the_Venezuelan_oil_industry
[5] https://www.migrationpolicy.org/article/amid-economic-crisis-and-political-turmoil-venezuelans-form-new-exodus

How others answered

Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.

Community Performance

Out of everyone who attempted this question.

50%

got it right

Web / Current Affairs

Online pages / news items supporting the statement

Web source

Presence: 5/5

"Status | Ongoing"

Why this source?

The passage explicitly labels the crisis status as ongoing, indicating the economic problems have not been fully resolved.
An ongoing status contradicts the idea of a rapid recovery from a prolonged crisis.

Web source

Presence: 5/5

"Further information: 2013–present economic crisis in Venezuela"

Why this source?

Refers to the economic situation as the "2013–present economic crisis in Venezuela," indicating the crisis persists up to the present.
A crisis described as continuing from 2013 to the present implies there has not been a rapid recovery.

Web source

Presence: 4/5

"Following the announcement of results of the 28 July 2024 Venezuelan presidential election, a national and international political crisis developed. Concerns about another refugee crisis have emerged since the election; millions of people who expected change from the election are likely to flee"

Why this source?

Describes a 2024 political crisis and notes concerns about another refugee crisis and potential mass departures.
Continued political instability and renewed migration pressures imply ongoing economic and social distress rather than a rapid recovery.

Indirect textbook clues (5)

How books hint at the answer

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 4: Inflation > d) Hyperinflation > p. 63

Strength: 5/5

“Currently, the economy of Venezuela is passing through an alarming rate of hyperinflation. (It was around 130,000% in 2018.)”

Why relevant

Explicit statement that Venezuela was experiencing alarming hyperinflation (≈130,000% in 2018), which is a hallmark of a very deep economic crisis.

How to extend

A student could check whether inflation rates fell dramatically by 2024 (e.g., to single digits) — a necessary sign of a rapid recovery from hyperinflation.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > sqrt{G}3 > p. 546

Strength: 3/5

“\sqrt{G}3 • It was a free trade agreement signed between three countries, namely, Mexico, Colombia and Venezuela.• The agreement was signed for 10 years from 1995 to 2005.• It covered areas such as: Ø Intellectual Property Rights • Public sector investment • Easing of trade restrictions ٠ Reducing 10 per cent tariff over a period of 10 years• The agreement didn't last long, as there was no active participation on the part of Venezuela.”

Why relevant

Example that Venezuela failed to participate actively in a regional trade agreement (√G3), indicating episodes of economic disengagement or instability affecting trade relations.

How to extend

One could examine whether Venezuela's trade volumes, tariff integration, or re-engagement with neighbors and trade blocs had sharply increased by 2024.

India and the Contemporary World – II. History-Class X . NCERT(Revised ed 2025) > Chapter 3: The Making of a Global World > 3.2 Post-war Recovery > p. 69

Strength: 3/5

“Post-war economic recovery proved difficult. Britain, which was the world's leading economy in the pre-war period, in particular faced a prolonged crisis. While Britain was preoccupied with war, industries had developed in India and Japan. After the war Britain found it difficult to recapture its earlier position of dominance in the Indian market, and to compete with Japan internationally. Moreover, to finance war expenditures Britain had borrowed liberally from the US. This meant that at the end of the war Britain was burdened with huge external debts. The war had led to an economic boom, that is, to a large increase in demand, production and employment.”

Why relevant

Discussion of post-crisis recovery (Britain after war) shows that major economies can face prolonged crises and slow recoveries, illustrating that deep crises need sustained repair.

How to extend

Use this pattern to ask whether Venezuela shows multi-year structural improvements (external debt, industrial capacity) by 2024 consistent with a rapid recovery.

History , class XII (Tamilnadu state board 2024 ed.) > Chapter 5: Period of Radicalism in Anti-imperialist Struggles > 5.5 The Great Depression and Its Impact on India > p. 67

Strength: 3/5

“Stock Market Crash in US Wall Street The Great Depression was a severe and prolonged economic crisis which lasted for about a decade from 1929. The slowdown of the economic activities, especially industrial production, led to crises like lockouts, wage cut, unemployment and starvation. It began in North America and affected Europe and all the industrial centres in the world. As the world was integrated by the colonial order in its economic sphere, developments in one part of the world affected other parts as well. The crash in the Wall Street (where the American Stock Exchange was located) triggered an economic depression of great magnitude.”

Why relevant

The Great Depression example illustrates that severe, prolonged economic crises produce long-lasting declines in production and employment, implying recoveries can be slow.

How to extend

Compare Venezuela's 2010s downturn indicators (production, employment) with signs of sustained rebound by 2024 to judge if recovery speed is rapid or gradual.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 15: Budget and Economic Survey > 15.2 Economic Survey 2022-23 > p. 449

Strength: 2/5

“• 1. India's economic growth in FY 2023 has been principally led by private consumption and capital formation.• 2. The third decade of the 21st century has seen several challenges till now, some of them are Covid-19 pandemic, Russia-Ukraine crisis and monetary tightening and flight of capital from emerging economies and increase in interest rates• 3. India's recovery from the pandemic was relatively quick, and growth in the upcoming year will be supported by solid domestic demand and pickup in capital investment.• 4. As per the IMF's World Economic Outlook, global growth is forecasted to slow from 3.2% in 2022 to 2.7% in 2023.”

Why relevant

Notes about global shocks (COVID-19, Russia–Ukraine, capital flight, rising rates) identify external factors that can impede or shape recoveries in emerging economies.

How to extend

Assess whether Venezuela benefited from favorable external conditions (e.g., commodity prices, capital inflows) by 2024 sufficient to drive a rapid turnaround.

Consider the following statements : Statement-I : Recently, the United States of America (USA) and the European Union (EU) have launched the Trade and Technology Council'. Statement-II : The USA and the EU claim that through this they are trying to bring technological progress and physical productivity under their control. Which one of the following is correct in respect of the above statements?

Consider the following statements : Statement 1 : The United Nations Capital Development Fund (UNCDF) and the Arbor Day Foundation have recently recognized Hyderabad as 2020 Tree City of the World. Statement 2 : Hyderabad was selected for the recognition for a year following its commitment to grow and maintain the urban forests. Which one of the following is correct in respect of the above statements?

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