Domestically, the dramatic fall in security capacity threatens citizens' well-being, the state's ability to guarantee public security and national defense, and even the country's sovereignty, as the central government's territorial control increasingly fragments. This chapter begins by defining and assessing state and security capacity and differentiating strong, weak, and failing states. It focuses on security capacity, Venezuela fares poorly along both dimensions, probably placing the country in the failing category, with the real risk of becoming a failed state. In Venezuela's case, the state's inability to protect its citizens or its sovereignty means it is likely to become one of Latin America's regional crime hubs. It will be important for politicians, policymakers, and foreign donors seeking to help rebuild Venezuela to focus on institution building and state capacity along with electoral democracy and social protection.