A frightening example of what can happen to an industry when it is denied effective government protection against the black market and corruption is provided by the Venezuelan shoe production sector.

As recently as a decade ago, the Venezuelan footwear industry was thriving, providing work for over 200,000 people. Today, it employs less than half that number, having been decimated by illegal imports and ‘underground’ factories that produce footwear without paying government duties. In the last three years alone, over half of the country’s legitimate footwear businesses have disappeared with the loss of over 50,000 jobs, while a high proportion of the remainder have become import agents or gone underground themselves.

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