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
▶ Answer & Explanation
Correct answer: D. Statement-I is incorrect but Statement-II is correct
Venezuela's prolonged economic and political instability has led to a severe humanitarian crisis, resulting in mass emigration, not a successful prevention of people fleeing. Despite this, the country is widely recognized as possessing the largest proven oil reserves globally. The economic crisis, therefore, is not a consequence of managing oil wealth effectively for domestic recovery, but rather due to mismanagement and external factors.
Source: UPSC gs1 2024