Venezuela Humanitarian Fund Annual Report 2021

2021 in Review

HUMANITARIAN CONTEXT

Humanitarian situation in 2021

The prolonged and significant economic contraction, sectoral sanctions, political polarization and situations of localized violence remain key drivers of humanitarian needs in Venezuela, affecting approximately a quarter of the population. In 2021, a modest recovery in oil production and a series of liberalizing economic measures have slightly improved economic performance and helped curb inflation. The GDP contraction in 2021 was estimated at 3 per cent, an improvement from 30 per cent in 2020, with the economy expected to grow in 2022.

Economic contraction and the negative effects of broad sectoral sanctions continue to undermine the provision of essential services such as health-care, water and sanitation, education and domestic gas, fuel and electricity supply. The deterioration of public service delivery has negatively impacted the lives and livelihoods of vulnerable families. Protectionrelated services to address violence, abuse, neglect and exploitation, including mental health and genderbased violence (GBV) have been affected.

Impact of COVID-19

COVID-19 has aggravated the humanitarian situation, with quarantine measures leading to reduced economic activities, including formal employment opportunities, impacting production and trade and increasing domestic violence. People’s incomes, savings and purchasing power have been affected. While food and non-food items are available, vulnerable families often face difficulties accessing these due to decreased purchasing power. The informal dollarization of the economy has led to increased prices, and while there have been regular adjustments to the minimum wage, accompanied by social cash transfers, these are not sufficient for vulnerable families to cover their basic needs, especially for those without access to foreign currency.

Food security and nutrition remain a key concern, and the prevalence of undernourishment has increased from 2.5 per cent in 2010-2012 to 27.4 per cent in 2018-2020.

During 2021, the COVID-19 pandemic heavily strained the health-care system. As of 31 December 2021, 444,635 cases had been confirmed and 5,328 people had died. New variants of the virus led to new waves of infection, and while rates have been kept relatively low there is a continued risk that new waves put further pressure on ICU capacity. Limited early access to vaccines constrained the country’s initial response. However, as of 31 December, 40.6 per cent of the population was fully vaccinated4 . Key challenges in the COVID-19 response include limitations in regular access to energy, safe water and safe waste-disposal services in health facilities, limited diagnostic capacity and personal protective equipment, and the departure of qualified health personnel.

The focus on COVID-19 curtailed the provision of other essential health services, particularly for chronic diseases and access to sexual and reproductive health, and the implementation of the regular vaccination programme, reversing recent gains in the control of vector borne diseases.

The pandemic affected people’s well-being, with an increase in mental health and psychosocial support consultations for children, adolescents and caregivers. School closures to mitigate the spread of COVID-19 affected 6.8 million students in the country. Estimates indicate that at least 20 per cent of students had difficulty completing the school year through remote modalities, with children in isolated areas, with disabilities and from indigenous communities being the most affected. The return to in-person classes started on 25 October. Ensuring safe conditions in educational facilities and supporting teachers, and vulnerable children and adolescents are critical elements for attendance and retention in the school system.

Mixed migration flows continue, including people intending to leave, returnees and/or people engaged in cross-border pendular movements. The closure of the borders with neighboring countries throughout most of 2021 forced people to use irregular routes and crossings, which increases protection risks, including human trafficking and gender-based violence.

In 2021, the rainy season from June to September affected thousands of people due to overflowing rivers, landslides and floods in several areas of the country, including the states of Apure, Bolivar, Cojedes, Merida, Yaracuy and Zulia among others.

Projected situation in 2022

Humanitarian needs are likely to continue due to the prolonged economic and sociopolitical situation and the effects of COVID-19. Critical issues include the delivery of basic services, food security and nutrition, human mobility and protection needs.

The country’s GDP is expected to grow in 2022 after eight consecutive years of contraction, which could help stabilize the humanitarian situation. However, sustainable improvements in the economy will depend on lasting progress in the political dialogue and the evolution of international sanctions. Factors such as the extent of economic reform measures, inflation trends, fuel and electricity supply, the ability to rekindle oil production and investment in social protection programmes are key for sustained economic changes and a reduction of humanitarian needs.