(I) High oil prices helped Venezuela to emerge, two years ago, from a long recession. (II) Soon the government launched a comprehensive economic reform programme, which was to be financed through the oil revenue. (III) In fact, the flow of money through trade could have enabled them to avoid taking unpopular decisions. (IV) However, with the recent precipitous drop in oil prices the economic situation has again begun to deteriorate. (V) In particular, the governments seems likely to cut down on the reform programme which it embarked on with high hopes.