I.

Introduction

Venezuela, officially Bolivarian Republic of Venezuela, republic in South America, bordered on the north by the Caribbean Sea and Atlantic Ocean, on the east by Guyana, on the south by Brazil, and on the south-west and west by Colombia. The region west of the Essequibo river in Guyana is claimed by Venezuela.

The coastline of Venezuela is about 2,735 km (1,700 mi) long and has numerous indentations, of which the gulfs of Venezuela and Paria are notable. The coast is generally narrow and steep, except in the west, which has expanses of low and occasionally marshy land. Of the approximately 70 islands off the coast that belong to Venezuela, Margarita is the largest and most important. The total area of Venezuela is 916,445 sq km (353,841 sq mi). The capital and largest city is Caracas.

II.

Land and Resources

Venezuela has four distinct geographical regions. In the north-west and north are the Venezuelan highlands, which include the country’s highest point, Pico Bolívar (5,007 m/16,427 ft). The Maracaibo lowlands, containing Lake Maracaibo, an inland extension of the Gulf of Venezuela, are near the north-western coast. Pollution of Lake Maracaibo and other lakes is a major environmental problem. The llanos, a region of tropical grassland, are in the north-central region, and the Guiana Highlands, which reach elevations of more than 2,743 m (about 9,000 ft) above sea level, are in the south-east and south. Venezuela claims a significant territory within neighbouring Guyana.

The mountains of the Guiana Highlands extend from the delta of the Orinoco River into Brazil and Guyana, and are interspersed by open areas and forest. The chief mountain ranges are the Parima and Pakaraima, which form part of the boundary with Brazil. Angel Falls, one of the world’s highest waterfalls, is in the eastern part of the highlands.

Venezuela has six navigable rivers. Of the thousand or more streams in the country, the majority are tributaries of the Orinoco which, with the Apure, Meta, and Negro tributaries, forms the outlet into the Atlantic Ocean for the interior of Colombia, as well as Venezuela. The Orinoco extends east across central Venezuela and drains approximately four fifths of the total area of the country.

A.

Climate

The climate of Venezuela is tropical on the llanos and along the coast, and temperate in the mountainous regions. The average temperatures in Caracas and Maracaibo are 18° C (64° F) and 27° C (81° F) respectively for January, and 21° C (70° F) and 29° C (84° F) respectively for July. Average annual precipitation in Caracas is 840 mm (33 in), and in Maracaibo it is 580 mm (23 in).

B.

Natural Resources

Venezuela is rich in mineral resources, notably oil, natural gas, bauxite, gold, iron ore, copper, zinc, lead, and diamonds. Forests, too, are an important resource, covering about 39 per cent of the land.

C.

Plants and Animals

Forests of varied species including palms, coral, mangoes, and brazilwood cover more than one third of Venezuela; environmental concern about deforestation has increased. Plant life common to the Temperate Zone (the region north of the tropic of Cancer) thrives above about 900 m (3,000 ft). Long grass grows on the llanos, and mangrove swamps cover much of the Orinoco River delta.

Among the animals of Venezuela are the jaguar, monkey, sloth, anteater, ocelot, bear, deer, and armadillo. Bird life is abundant and includes the flamingo, heron, ibis, guacharo (or oilbird, a bird of prey), and numerous other species. Reptiles including crocodiles and such large snakes as anacondas and boa constrictors are also found in Venezuela.

D.

Environmental Concerns

Venezuela protects 36 per cent (1997) of its land area—the highest percentage of any country in North and South America. Yet despite these protective measures, Venezuela continues to lose some of its valuable tropical forests: from 1990 to 1995, more than 2.5 million hectares (6.2 million acres) of forest were cleared. In addition, soil degradation in the grasslands of the llanos, resulting from years of overgrazing, has become a major problem.

Occasional oil spills have caused fish kills and the closure of some shoreline resorts on Lake Maracaibo. Industrial pollution also plagues the Caribbean Sea coast where most of the country's population lives. Insufficient sewage treatment facilities contribute to the pollution of the Caribbean Sea coast as well. In the country's urban regions, only 64 per cent (1990-1998 estimate) of the population has access to proper sanitation; in rural areas, the figure is estimated at 30 per cent. Air pollution is an additional concern in urban centres such as Caracas, Maracaibo, and Valencia.

Venezuela is party to international treaties concerning biodiversity, climate change, endangered species, marine life conservation, ship pollution, tropical timber, and wetlands.

III.

Population

About 67 per cent of the population of Venezuela is made up of mestizos (people of mixed ancestry), some 21 per cent is of white descent, 10 per cent is black, and 2 per cent is unmixed Native American. The society is more than 88 per cent urban.

A.

Population Characteristics

Venezuela has a population of 26,814,843 (2009 estimate), giving the country an overall population density of 30 people per sq km (79 per sq mi). About 80 per cent of the population lives in the northern highlands or coastal regions. Only about 4 per cent inhabits the huge area (nearly 50 per cent of the total land area) south of the Orinoco River. Native Americans living in the jungles were estimated to number about 53,500 in the 1981 census.

B.

Political Divisions

Venezuela is divided into 22 states (Amazonas, Anzoátegui, Apure, Aragua, Barinas, Bolívar, Carabobo, Cojedes, Delta Amacuro, Falcón, Guárico, Lara, Mérida, Miranda, Monagas, Nueva Esparta, Portuguesa, Sucre, Táchira, Trujillo, Yaracuy, and Zulia); the federal dependencies, which comprise 72 islands in the Caribbean; and the federal district, which is the site of Caracas, the national capital.

C.

Principal Cities

Caracas, with a population of 2,085,488 (2007), is the capital as well as the financial and commercial centre of Venezuela; the nearby town of La Guaira serves as the seaport for the city. Maracaibo, the country’s second-largest city, with a population of 1,450,665 (2008 estimate), is located on the shores of Lake Maracaibo, and is a major centre of the petroleum industry. Valencia, population 839,926 (2008 estimate), is the hub of several important highways as well as a major railway terminal.

D.

Religion

The principal religion is Roman Catholicism.

E.

Language

At least 40 languages are spoken in Venezuela. The official language is Spanish, which is spoken by the majority of the population. Many of the languages spoken are Native American languages, notably Wayuu (170,000 speakers), Yanomamö (12,000 to 14,000), Piaroa (12,000), and Guahibo (5,000), all of which are mother tongues for the number of speakers mentioned in parentheses. English, Arabic, and Chinese are also spoken by immigrant communities.

F.

Education

Education in Venezuela is free and compulsory for children between the ages of 5 and 15. The adult literacy rate in 2005 was 94 per cent. The country’s 15,984 primary schools had a total annual enrolment of some 3.5 million pupils and were staffed by 184,409 teachers; secondary and technical schools had a combined enrolment of 2,174,619 students. In 1994 the government spent 22.4 per cent of total expenditure on education.

About 550,000 students were enrolled in institutions of higher education, which included the Central University of Venezuela (1696) and Andrés Bello Catholic University (1953) in Caracas; the University of the Andes (1785) in Mérida; the University of Zulia (1982) in Maracaibo; and the Polytechnical Institute (1962) in Barquisimeto.

G.

Culture

The dominant influence on the culture of Venezuela was that of the Spanish conquerors. The Native Americans of the country, lacking any political or cultural unity of their own, were assimilated by the immigrant groups and had only a slight influence on the national culture.

The distinct Venezuelan contribution to folk legend is the llanero, or South American cowboy. The national dance, the bropo, and such popular instruments as the maraco, a small harp, and the cuatro, a small guitar, are all associated with the llanero.

Venezuela was one of the less-profitable colonies of Spain and lacks the splendours of Spanish architecture that are found in other South American countries. Nevertheless, in the second half of the 20th century, the combination of the wealth produced from oil discoveries and strong ties with the United States helped foster the development of modern architecture. Caracas is now considered one of the most modern cities in the world.

See also Latin American Art and Architecture; Latin American Literature; Latin American Music.

H.

Museums

Some of Venezuela’s leading museums are located in Caracas. These include the Museum of Fine Arts, the Museum of Colonial Art, the Natural Sciences Museum, and the Bolívar Museum, with displays on the life and times of Simón Bolívar. Also of interest are the Talavera Museum in Ciudad Bolívar, and history museums in Maracaibo and Trujillo.

IV.

Economy

The Venezuelan economy is based primarily on oil, although diversification of industry has been encouraged. Free-market reforms were in force from 1990 to 1992. In 1994, following a banking crisis, the currency collapsed and inflation began to soar. An economic stabilization programme was introduced with exchange and currency controls, further privatization plans, reduced government spending, and raised taxes. The programme’s failure to deal with the country’s problems forced President Caldera to launch another stabilization programme in 1996, including heavy increases in petrol prices and the complete removal of foreign exchange controls, in order to secure assistance from the International Monetary Fund (IMF). Tourism increased in the mid-1990s, especially after the devaluation of the currency made Venezuela one of the cheaper South American destinations. In 2007 there were some 771,000 tourists (up from 429,000 in 1994), which generated an income of US$1,394 million. The annual national budget in 2005 included revenue estimated at US$36,475 million and expenditure of about US$41,125 million. In 1995 Venezuela’s foreign debt stood at US$35,842 million and in 2007 its gross national product was US$105,327 million, giving a per capita income of about US$7,550.

A.

Agriculture, Forestry, and Fishing

In 2003, farming employed about 11 per cent of the workforce and contributed 4.5 per cent of the gross domestic product (GDP) in 2003. The principal crops include sugar cane (9.3 million tonnes in 2007), bananas (1.21 million tonnes), maize (2.1 million tonnes), rice (800,000 tonnes), plantains (546,000 tonnes), oranges (454,000 tonnes), sorghum (498,000 tonnes), and cassava (490,000 tonnes). Stock-raising is carried on chiefly on the llanos and east of Lake Maracaibo. In 2007 the livestock population numbered some 16.7 million head of cattle, 1.4 million goats, 3.3 million pigs, 536,000 sheep, and 120 million poultry.

Although forests cover much of Venezuela, the timber industry is underdeveloped largely because of the inaccessibility of the forest areas. Timber is used mainly as fuel and by the building, furniture-manufacturing, and paper industries. In 2007 about 6.1 million cu m (214 million cu ft) of roundwood were produced.

The rich fish resources of Venezuela include a wide variety of marine life. The most important commercial catch is shrimp, followed by tuna and sardines. Important pearl fisheries are located off Margarita Island. The fish catch in 2007 was 482,210 tonnes.

B.

Mining

Oil, located mainly in the Lake Maracaibo Basin and in the eastern part of the country, dominates the Venezuelan economy, although production has steadily declined in line with conservation policies. Crude and refined oil are the main source of government revenue and provide more than 75 per cent of all export revenue. Venezuela was among the leading producers of crude oil in the world in 2004, when it produced about 2,335,191 barrels a day. Much of its oil is exported to the Netherlands Antilles for refining. Venezuela is a founding member of the Organization of Petroleum Exporting Countries (OPEC). The country is a major producer of natural gas; output in 2003 was about 1,049 billion cubic feet annually. Venezuela has tapped its vast reserves of bitumen to produce liquid coal, an emulsion of bitumen and water principally for use in power plants.

Other commercially exploited minerals include aluminium, bauxite, diamonds, gold, silver, coal, salt, copper, phosphates, titanium, and mica. Iron ore, in extensive deposits, was discovered near the Orinoco River in the 1940s. In 2006 about 15.2 million tonnes of iron ore were mined. Margarita Island, off the northern coast, has substantial magnesite reserves.

C.

Manufacturing

Manufacturing contributed about 18 per cent of GDP in 2003, and employed almost 14 per cent of the workforce. Since the early 1960s the government of Venezuela has given high priority to the development of the manufacturing sector of the economy. Ciudad Guayana is a major centre for industrial development. The leading manufactures of Venezuela include petroleum products, steel, aluminium, tyres, paper, motor vehicles, and food products.

D.

Energy

About 75 per cent of Venezuela’s electricity is produced in hydroelectric facilities. A major installation is at the Raúl Leoni Dam, part of the Guri hydroelectric project on the Caroní River. About 7.2 billion kWh of electricity was generated in Venezuela in 1993.

E.

Currency and Banking

The monetary unit of Venezuela is the bolívar fuerte of 100 centímos (2 bolívars equalled US$1; early 2009). The Banco Central de Venezuela, founded in 1940, is the government banking agent, the sole bank of issue, and the clearinghouse for commercial banks. The country’s principal stock exchange is in Caracas.

F.

Commerce and Trade

The principal exports of Venezuela are petroleum and petroleum products, which together account for more than 75 per cent of foreign sales. Other exports include natural gas, metals (particularly aluminium), petrochemicals, and basic manufactures. Total annual exports were worth about US$69,165 million in 2007. Main imports include machinery, transport equipment, chemicals, foodstuffs, raw materials, and basic manufactured goods. Imports cost about US$45,463 million in 1995. The principal trade partners are the United States, the Netherlands Antilles, Japan, Colombia, Italy, Germany, Brazil, Suriname, and Canada.

G.

Labour

In 2007 the employed workforce of Venezuela was estimated at about 12.7 million people. About 11 per cent of the workforce was employed in agriculture, 69 per cent in services, and 20 per cent in industry. Organized labour in Venezuela consists of trade unions and peasant leagues. The largest and most powerful organization is the Confederation of Venezuelan Workers, with a membership of about 1.5 million.

H.

Transport

Venezuela has 96,155 km (59,748 mi) of roads, of which 34 per cent is paved. Highway density is greatest in the north-central area, with an extensive highway system under construction to connect major urban centres and remote rural areas. In 1997 there was a ratio of 88 motor vehicles per 1,000 people. The country has only about 336 km (209 mi) of railway track, principally a line from Puerto Cabello to Barquisimeto; a new rail network of 2,000 km (1,240 mi) is to be constructed by the year 2000. The leading seaports of Venezuela include La Guaira, Puerto Cabello, and Maracaibo. Transport on interior waterways, particularly the Orinoco River, is also important. The chief port on the Orinoco is Puerto Ordaz. Venezolana Internacional de Aviación (Viasa), the country’s international airline, was privatized in 1991. Simon Bolívar Airport serves Caracas and there is also an international airport at Maracaibo.

I.

Communications

In 1993 Venezuela had about 2 million telephones, and in 2000 an estimated 4 million televisions and 7 million radios were in use. Influential daily newspapers included Ultimas Noticias, El Mundo, Meridiano, El Universal, and El Nacional, all published in Caracas. Panorama and El Carabobeno are published in Maracaibo and Valencia respectively.

V.

Government

Venezuela is a federal republic governed under a constitution adopted in 1999, replacing a 1961 charter.

A.

Executive and Legislature

The chief executive of Venezuela is a president, who is popularly elected to a six-year term (extended from a five-year term under the 1999 constitution), and may be elected for two consecutive terms. A council of ministers assists the president. A referendum held in February 2009 voted to end presidential terms, sanctioning the indefinite rule of President Chávez.

Until the dissolution of the 1961 constitution in December 1999, Venezuela's legislature was the national congress, made up of a senate and chamber of deputies. The senate included 50 popularly elected members as well as living former presidents of the country, and the chamber had at least 2 popularly elected members from each state, usually totalling 205. All elected legislators served five-year terms and all citizens over the age of 18 were able to vote. The new constitution provides for a single chamber National Assembly of 167 members, directly elected for five-year terms.

B.

Political Parties

In the early and mid-1990s, the leading political parties in Venezuela were the Social Christian Party (known as COPEI) and the Democratic Action Party (AD; Acción Democrática). In the 2000 legislative elections, the Fifth Republican Movement (MVR; Movimiento V República), the Movement Towards Socialism (MAS; Movimiento al Socialismo), and the Democratic Action Party gained significant representation. By 2005 the Fifth Republican Movement had tightened its hold on power, with the major opposition party, COPEI, boycotting the election.

C.

Judiciary

The highest tribunal in Venezuela is the Supreme Tribunal of Justice, divided into six branches. Each of the country’s states has a superior court as well as several lesser tribunals.

D.

Local Government

Each of Venezuela’s 22 states, and its federal district, has a governor and legislature which are popularly elected.

E.

Health and Welfare

The Venezuelan government sponsors a limited programme of health, accident, and retirement insurance. Life expectancy at birth is 70.5 years for men and 76.8 years for women (2009). The infant mortality rate is 21.5 deaths per 1,000 live births (2009), and there is a ratio of 516 people for every doctor (2004). In 1990 the government spent 3.6 per cent of GDP on health care.

F.

Defence

All Venezuelan males between the ages of 19 and 45 are liable for 30 months of military service. In 2006 Venezuela maintained an army of 34,000 people, a navy of 18,300, and an air force of 7,000.

G.

International Organizations

Venezuela is a member of the United Nations (UN), the Organization of American States (OAS), Mercosur, the World Trade Organization (WTO), the Latin American Integration Association (LAIA), and the Andean Community.

VI.

History

A variety of Native Americans lived in the area of present-day Venezuela before the Spanish explorers arrived. They included advanced farmers in the Andes and fishing communities on the coast. Venezuela was first sighted by Christopher Columbus in 1498, and settlement in the country was begun by the Spanish in 1520; the first important settlement was that of Caracas in 1567. Until the Viceroyalty of New Granada was established in 1717, what is now Venezuelan territory was divided between the Viceroyalty of Peru and the Audiencia of Santo Domingo. The Superintendency of Venezuela, more or less the present territory, was created in 1783.

In 1728 the Spanish government chartered the Guipuzcoana Company and gave it a monopoly of trade in Venezuela, with the additional duties of patrolling the coast to prevent smuggling. The company was very unpopular and did much to stir up political discontent in the colony.

A.

Independence

The history of the war of independence against Spain in Venezuela is largely the record of the careers of Simón Bolívar and Francisco de Miranda. The revolution began in 1810 and independence was formally proclaimed on July 5, 1811. In 1819 the republic of Gran Colombia was established, with its capital in Bogotá. Independence was assured with the decisive victory of Bolívar over the Spanish royalist army in 1821. Federated at first with Colombia and Ecuador, Venezuela constituted itself an independent republic in 1829.

B.

Series of Dictatorships

The early history of independent Venezuela was characterized by revolutions and counter-revolutions climaxed by the rigid dictatorship of Antonio Guzmán Blanco from 1870 to 1888. In 1886 a border dispute arose between Venezuela and British Guiana (now Guyana). The United States persuaded Britain to submit the case to an arbitration tribunal that subsequently awarded the larger share of the territory to British Guiana. During the rule of Cipriano Castro in 1902 Britain, France, Germany, and several other European powers blockaded Venezuelan ports because of the government’s failure to meet its debts. On two occasions, European warships bombarded the ports. On February 13, 1903, negotiations that had been taking place in the United States were concluded with a formal request to The Hague Tribunal for a decision. The tribunal decided in favour of the allies in 1904, and by July 1907 Venezuela had met the obligations to the three powers. The following year Castro was deposed by General Juan Vicente Gómez. He reversed Castro’s foreign policies, which had involved Venezuela in still other difficulties with the European powers and with the United States; internally, he ruled tyrannically from 1908 until his death in 1935, with two interruptions from 1915 to 1922 and from 1929 to 1931. Oil was discovered in Venezuela in 1917 and quickly became important to the country’s economy.

C.

World War II and Post-War Politics

Venezuela broke off diplomatic relations with the Axis Powers at the end of 1941, but did not declare war on them until February 1945 in order to qualify as a charter member of the UN. In 1945, following the overthrow of the dictatorship of General Isaías Medina Angarita, Dr Rómulo Betancourt, of the moderately socialist AD Party, became the provisional president. A new constitution, promulgated in 1947, provided for popular vote by means of a secret ballot. Later in the same year, after the first democratic election in Venezuela, Rómulo Gallegos Freire, novelist and founder of the AD, was elected president. He took office in February 1948. In November the government was overthrown by an army revolt, the leaders of which immediately formed a provisional government headed by Lieutenant-Colonel Carlos Delgado Chalbaud.

The junta suppressed the opposition and employed other dictatorial methods, including censorship of news. On November 13, 1950, Delgado Chalbaud was assassinated. The junta appointed the diplomat Germán Suárez Flámerich as provisional president. Suárez promised that national elections for a constituent assembly would be held in the near future. In the elections, held on November 30, 1952, the junta-backed government party, the Independent Electoral Front (FEI), was declared the winner. Colonel Marcos Pérez Jiménez, the government candidate, then became president; leaders of the opposition had to flee the country.

D.

The Pérez Jiménez Regime

On April 11, 1953, after three months of deliberation, the constituent assembly gave final approval to a new constitution which was formally promulgated on April 15. The country, known officially since 1864 as the United States of Venezuela, was proclaimed the Republic of Venezuela.

The government maintained generally good contacts with other American countries, and the Tenth International Conference of American States was held in Caracas in March 1954. Venezuela, however, broke off diplomatic relations with Argentina in July 1957 after having rejected numerous Argentine complaints concerning the activities in Caracas of the former Argentine dictator Juan Perón. In December the government held a plebiscite which showed that 2,353,935 of a total of 2,900,543 voters approved of Pérez Jiménez and his regime. However, several weeks after the plebiscite, a rebellion led by air force officers was suppressed by army troops, and on January 21, 1958, a general strike in Caracas signalled the start of a popular uprising. Pérez Jiménez fled the country on January 23, and the same day a group of military officers and civilians, known as the Patriotic Junta and led by Rear-Admiral Wolfgang Larrazábal, seized control of the government.

E.

Democratic Governments

The Larrazábal government thwarted attempted right-wing coups d’état on July 22 and September 7, 1958. In the December elections, former President Betancourt of the AD was re-elected. On June 24, 1959, Betancourt was injured in an assassination attempt, which the Organization of American States said had been instigated by the government of the Dominican Republic. Anti-government rioting by Larrazábal supporters occurred in Caracas in November and December.

President Betancourt promulgated a new constitution on January 23, 1961. Despite constitutional provisions guaranteeing various rights to labour and expressing opposition to large landed estates, social unrest and rioting continued throughout 1961. Diplomatic relations with Cuba were severed on November 11, following charges by the Venezuelan government that Cuba had in large part fomented the disorders. During 1962 and 1963 leftist groups attempted unsuccessfully to overthrow the government.

On December 1, 1963, Raúl Leoni of the ruling AD was elected President. Lacking a congressional majority, Leoni formed a coalition government. For the next few years Venezuela enjoyed a large measure of political stability. In October 1966, however, a military uprising broke out, led by the national guard garrison near Caracas. It was crushed by the government, which had also been combatting guerrilla activity in the countryside and the capital throughout the year.

F.

Nationalization Measures

Towards the end of the decade, the political life of the nation gained some tranquillity. In December 1968, Rafael Caldera Rodríguez, leader of COPEI, won a narrow election victory over Leoni. Caldera was inaugurated in March 1969; it was the first time in the 140-year history of Venezuela that the ruling party had peacefully handed over power to the opposition. Despite his narrow support, Caldera governed effectively and virtually eliminated the guerrilla and terrorist activities of the late 1960s. Economically, he pursued a policy of nationalizing foreign enterprises. In 1973 Venezuela joined the increasingly effective Andean Common Market.

Political activity was brisk in 1973 as the presidential elections neared. In May the congress ratified a constitutional amendment barring the candidacy of former president Pérez Jiménez. In the December elections, the winner was Carlos Andrés Pérez, the leader of the AD. He attempted to improve relations with Venezuela’s neighbours but took an increasingly independent line from the United States. He expressed open hostility to the military dictatorship in Chile and resumed diplomatic relations with Cuba. Pérez nationalized the iron and steel industry in 1975 and the oil industry in 1976.

G.

Stable Democracy

The 1978 elections were won by COPEI and its presidential candidate, Luís Herrera Campíns. During his term, Campíns sought to cool down the economy as the market for oil exports weakened. The elections of December 1983 resulted in a sweeping victory for the AD, and its candidate, Jaime Lusinchi, took office as president. The AD also won the 1988 elections, resulting in a second presidency for Carlos Andrés Pérez. In February 1989 consumer-price increases imposed as part of an austerity programme triggered violent protests in Caracas. Emergency loans from the United States and other countries helped ease the crisis, as did increased revenue from oil exports. However, continued popular discontent with government policies, including attempts at privatization, led to defeats in local elections. In 1991 Venezuela and the other members of the Andean Group signed a treaty that would establish the Andean Common Market by 1995.

In February and November 1992 two military coup attempts were crushed. Pérez was suspended from office in May 1993 after the senate voted unanimously to have him stand trial on charges of embezzlement and misuse of public funds. Senator Ramón José Velásquez was elected as an interim president, pending elections in 1993. In December 1993 Rafael Caldera was again elected president. The banking crisis of 1994 forced Caldera to introduce economic austerity measures in 1994 and 1996 and agree on a large loan from the IMF. The formation of the Andean Community, to replace the Andean Group, was announced by Venezuela and its fellow members in March 1996. The community was modelled on the EU. In July 1997 the retired military leader Hugo Rafael Chávez Frías, who had led one of the abortive military coups of 1992, launched his own political party, the Fifth Republican Movement.

H.

The Chávez Presidency

In the December 1998 presidential election, Chávez won more than 56 per cent of the vote. He received most of his support from the majority of Venezuelans who live below the poverty line and were drawn to his promises to improve the standard of living, maintain stability, rework the old constitutional system, and clean up corruption. His planned reforms were hampered by low oil prices (less than US$10 per barrel) and a budget deficit of 9 per cent of the country's GDP. Chávez immediately announced plans for a referendum on a new constituent assembly. In February 1999 he introduced an austerity programme with tax reforms that would more than halve the deficit. In March Congress granted him special decision-making powers (for six months) that would allow him to introduce his economic measures by decree. Dissatisfied with these measures, Chávez threatened to declare a state of emergency to deal with the crisis. Chávez's position was justified by the April constitutional referendum, which resulted in a landslide vote in favour of his proposed reforms.

Over 90 per cent of seats in the new National Constituent Assembly (ANC) elections, held in July, were won by Chávez's supporters. In August, the Assembly declared judicial and then legislative emergencies, giving it authority over the Supreme Court and the Congress; as a result, the President of the Supreme Court resigned, and congressional powers were reduced to budget control and a few other administrative responsibilities. However, after public protests, the Assembly and Congress reached a compromise agreement: the deputies were allowed to return to legislative duties on their assurance that the work of the Assembly would continue unhindered. In the following months more than 150 judges were accused of corruption and suspended from duty, while in October, Venezuela revived a border disagreement with Guyana over land to the west of the Essequibo river.

A referendum on the proposed new constitution was held on December 15. There was overwhelming support for the changes, which included an extension of the president's term of office from five to six years, with the possibility of one consecutive re-election, a unicameral National Assembly, the creation of the post of vice-president, and the adoption of a new official country name, the Bolivarian Republic of Venezuela. On the same day, heavy mudslides and flooding in the capital and other northern coastal areas of the country were reported, caused by weeks of torrential rain. The estimated death toll eventually reached 30,000, although the true figure may have been almost double that number; it was Venezuela's worst natural catastrophe in the 20th century, with over 200,000 people made homeless. The disaster resulted in more than US$2 billion worth of infrastructural damage and warnings about the spread of disease.

The first elections under the new constitution were held in July 2000 (postponed from March as a result of the natural disaster); Hugo Chávez Frías was re-elected president, while his supporters also won a majority in the reformed National Assembly. In November 2001 President Chávez announced a series of financial and economic reforms, including a land law that gives the government authority to appropriate unused and unproductive land. The news was greeted with street protests in Caracas. Civil disobedience continued with a series of strikes in the spring after the government appointed a new board to the country’s oil monopoly, Petroleos de Venezuela. Over 100 protesters were injured and a number killed in violence in April. Chávez was forced to stand down as president but the replacement government lasted a matter of days before the return of Chávez; however, protests continued throughout the year followed by more general strikes which led to cuts in oil production. Former US president Jimmy Carter proposed a peace plan in early 2003 aimed at ending the violence between the government and opposition strikers.

In 2003 the opposition put forward two petitions (signed by millions of Venezuelans) demanding a referendum to decide the future of President Chávez. The failure of the petitions to force an immediate decision on a referendum by the electoral council led to an upsurge in violence in early 2004. The referendum was finally held in August 2004, with Venezuelans deciding that Chávez should complete his current term of office. The vote was adjudged fair by international observers. In January 2005 Chávez turned to the question of land reform, something he had promised since coming to office. He issued a decree establishing a national land commission, with the aim of redistributing land to poor farmers. The 1999 constitution gives the government the power to expropriate private property if the national interest is seen as being at stake, with compensation paid to the owners.

Parliamentary elections were held in December 2005, with Chávez’s party, the Fifth Republican Movement, winning 114 of the 167 seats. However, the turnout was very low at 25 per cent and the opposition to Chávez boycotted the election en masse. Chávez’s anti-US rhetoric grew in intensity: he described the US president George W. Bush as the “devil” in an address to the general assembly of the United Nations in September 2006 and, in an overt attempt to embarrass the US administration, was the first world leader to offer humanitarian aid after the devastation wrought by Hurricane Katrina. He also increasingly promoted links with countries such as Iran, Cuba, China, and Russia that were unsympathetic to US foreign policy. At the presidential election in December 2006, Chávez won a convincing victory over the challenger Manuel Rosales, the governor of the province of Zulia. Chávez took over 60 per cent of the vote.

In January 2007 the National Assembly voted to give Chávez wide-reaching powers to rule by decree for a period of 18 months. These powers strengthened the ambition of the president to continue his vast scheme to nationalize Venezuelan industry, including telecommunications, oil projects in the Orinoco Delta, and the Bank of Venezuela. He also took the opportunity to strengthen the country’s ties with Russia, signing several commercial and military accords. In December 2007 a national referendum voted against further extending the president’s powers but a subsequent referendum in February 2009 decided to abolish presidential terms, paving the way for Chávez to seek re-election in 2012.