01/24/25
In “
The Collapse of Venezuela,” my forthcoming book, I show that U.S. economic sanctions significantly contributed to the country’s economic implosion, accounting for more than 52 percent of the collapse in GDP. In my more recent research, I estimate that had it not been for U.S. economic sanctions, approximately 4 million Venezuelans would have chosen to stay in their country rather than flee abroad.
Milton Friedman once wrote that economic sanctions are not an effective weapon of political warfare because they are likely to harm the imposer as much as the intended target. The Venezuelan case provides a compelling example.
Rather than weaken Maduro, sanctions have strengthened his position, enabling his concentration of power and consolidation of ties with America’s adversaries. As U.S. companies have exited Venezuela, they have been replaced by actors from China, Russia and Iran, further entrenching Maduro’s regime and reducing U.S. influence in the region.