Many Chavistas (supporters of former president Hugo Chavez and his policies) will say that it is an economic warfare from the opposition party. Others will blatantly blame the United States and other governments that are controlling oil prices. There are also some that blame the current socialist government and its failing economic policies.
Although there are many factors that have played a role in Venezuela's declining economy, it has become clear that the current government policies are to blame.
During Hugo Chavez's regime, the private sector faced stricter government regulations forcing them to cut back on production. New policies also gave way to a more powerful executive branch of government with very little checks and balances. This allowed the government to nationalize many of the services that had once been controlled by the private sector.
Unlike other members of the OPEC, Venezuela did not take advantage of the oil price boom in 2009 to accumulate surplus. Instead, it utilized the revenues towards fiscal stimuli such as lowering taxes, providing subsidies to low income families, and signing multi-million dollar contracts with local firms. This overspending was not done as a mere act of kindness towards the poor, but as a way to secure the electoral votes for the next elections.
The Venezuelan government has overstepped its boundaries through excessive intervention in the economy. These policies have put them between a rock and a hard place. Reducing spending is not an option for a government that needs votes; nationalized firms are in such bad shape that there are not many interested buyers; increasing oil prices locally would hurt low income supporters; and shortages will continue indefinitely if the the government continues to reduce imports.
It will be interesting to see if the current economic crisis will force the government to rethink some of its economic policies.
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