In early 2019, The Economist reported that Venezuela’s GDP had fallen by 50% over just five years. During the same time period, charges of bribery and corruption were piling up on members of the Venezuelan government, including president Nicolás Maduro, whose reelection that year was widely perceived as illegitimate. Using what you learned in the chapter, discuss how bribery and corruption in the Venezuelan government could lead to declines in GDP.

What are some of the crucial elements that governments must provide to encourage innovation and growth?