Since the start of his second term, Donald Trump’s sole mission appeared to be winning the Nobel Peace Prize. He reportedly claimed credit for stopping several wars, yet the prize never came his way. Now, the Trump administration seems to have dropped the mask and revealed a more expansionist face. The Venezuelan president was arrested on charges of drug trafficking and sent to prison. But the story does not end there. From now on, the sale of Venezuela’s vast oil reserves will be controlled by the United States. The money earned from this oil will also be used to buy essential goods—once again, mainly from the US.
In Hindi, there is a saying for such a situation: tying someone’s hands and feet, throwing them into the water, and then arriving in a boat as their saviour. What is happening to Venezuela today effectively ends its economic freedom. If the country cannot sell its own oil, and if the US decides who it is sold to and at what price, Venezuela loses the power to choose its trade partners and decide how to spend its earnings. In such a scenario, the government exists only in name, while real control shifts outside the country.
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The control goes even further. The money earned from oil sales will first go to the US, which will then return the funds to Venezuela. Using that same money, the Venezuelan government will buy essential goods—ranging from medicines and food grains to electronics. In effect, the country loses its right to independent imports and exports and moves into a state of absolute economic control.
This can be called economic imperialism. On paper, the country will appear independent, but it will not be able to take its most important decisions on its own.
Supporters of Nicolás Maduro are still staging sporadic protests in Venezuela (Photo: Reuters). The first major impact of this situation will be on politics. The country may be free in name, but not in reality. When all resources are controlled from Washington, even the question of who governs the country will effectively be decided by the White House. Any elected government will, in practice, be a US-friendly administration that can do little more than say “yes, boss.”
In the current situation, after Maduro came under US custody, Vice President Delcy Eloina Rodríguez was appointed as the acting president. Trump has also taken an aggressive stance toward her, repeatedly warning that if Rodríguez goes against his wishes, her fate could be worse than Maduro’s. In other words, Caracas can no longer function without Washington’s approval.
Foreign policy will also be severely affected. A country whose economic lifeline is controlled by another cannot openly oppose it. On every major issue, Venezuela will be forced to echo the American line. On global platforms, it will become little more than a puppet or a shadow of the US.
Strategic decision-making will suffer as well. Such countries cannot freely decide whom to sign defence deals with, whom to grant port access to, or which nations to allow for military exercises. Often, foreign bases, logistics agreements, or mineral deals have to be accepted under economic pressure.
Until now, Venezuela has been close to Moscow and Havana, both of which follow socialist ideologies—ideologies opposed to the US. Under the control of a capitalist power, Venezuela’s ideological stance will weaken, and its traditional allies will gradually drift away.
To use a domestic analogy, Venezuela has now become like a spouse with no independent income. In such a situation, even bad decisions by the partner are often accepted because there are no alternative means of survival. The US did not carry out a full-scale military attack on Venezuela or destroy its army. It simply removed the leader and took control of the resources. Now, everything—from land to policy decisions—will be determined from Washington.
This is a new form of colonialism, often described as neo-colonialism. The difference is that earlier there was direct rule; now, control is exercised through dominance over resources. This allows foreign powers to present themselves as liberal and helpful, while continuing to rule behind the scenes.
This is a tried-and-tested method. After the world wars, when nations began competing to appear democratic, outright wars and conquests became unfashionable—though the desire for dominance remained. As a result, a new method emerged: absolute economic control. China has mastered this approach. Under President Xi Jinping, Beijing has targeted one country after another.
Take Sri Lanka as an example. Under the banner of development, China extended massive loans. When the time came for repayment, politically unstable Sri Lanka could not generate enough revenue from the infrastructure projects to repay the debt. With no viable option left, China took the Hambantota Port on lease. Even today, Chinese influence can be seen in Sri Lanka’s policies. After falling under China’s influence, Sri Lanka has even distanced itself from traditional friends such as India.