The Curse of Natural Resources

Venezuelan President Hugo Chavez is openly establishing a socialist dictatorship in his country. Normally, this would scare away International investors and consequently harm Chavez's public image. But investors are staying because they "continue to see oil prices as ultimately the key driver" of investments." So even though Chavez is badly screwing up the economy, investors are staying for oil.

In the long run, its large oil deposits will probably hurt the Venezuelan economy because they increase the political freedom of its economically destructive leader.