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Venezuela

vnzw´l, Span. vnsw´lä, officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. Venezuela has a coastline 1,750 mi (2,816 km) long on the Caribbean Sea in the north. It is bordered on the south by Brazil, on the west and southwest by Colombia, and on the east by Guyana. Dependencies include Margarita Island, Tortuga Island, and many smaller island groups in the Caribbean. The capital and largest city is Caracas.

Land and People

Geographically Venezuela is a land of vivid contrasts, with four major divisions: the Venezuelan highlands, the coastal lowlands, the basin of the Orinoco River, and the Guiana Highlands. An almost inaccessible and largely unexplored wilderness south of the Orinoco, the Guiana Highlands occupy more than half of the national territory and are noted for scenic wonders such as Angel Falls. Iron ore, gold, diamonds, and other minerals are found near Ciudad Bolívar and Ciudad Guayana. The dense forests of the region yield rubber, tropical hardwoods, and other forest products. The boundary with Brazil is mostly mountainous; its rain forests are home to thousands of indigenous inhabitants. The Orinoco, one of the great rivers of South America, has its source in this region. The Orinoco basin is a great pastoral area. North of the Orinoco and about the Apure River and its tributaries are the llanos, the vast, hot Orinoco plains, where there is a great cattle industry.

Oil is found north of the Orinoco in Anzoátequi and Guárico states, but it is thick and was not easily extracted and refined. Prior to the 1990s the most vital oil region economically was an area in the coastal plains, the lowlands around Lake Maracaibo. There, since 1918, foreign and, later, Venezuelan interests have developed astonishingly rich oil fields. The coastal lowlands are exceedingly hot, but coastal ranges rise abruptly from the Caribbean to cool altitudes of 6,000 to 7,000 ft (1,830–2,130 m). These ranges soon become a region of hills, intermontane basins, and plateaus known as the Venezuelan highlands and are a spur of the Andes. Further to the southwest, close to Barquisimeto, the mountains rise to their greatest height at Pico Bolívar (16,427 ft/5,007 m) in the Sierra Nevada de Mérida.

Densely populated, the highland region is the political and commercial hub of the nation. Coffee, the keystone of the economy before the oil boom, comes from the slopes and cocoa from the lower foothills. Valencia and Maracay are, next to Caracas, the chief cities of the mountain basins. Economically dominant in the 19th cent., they are still major urban centers, despite some loss of power because of the oil boom along the coast. Cattle from the llanos are fattened on the rich valley grasses near Lake Valencia. Field crops are intensively cultivated in the vicinity.

The politically and economically dominant landowning class is mainly of Spanish descent. About 65% of the population is mestizo, 20% white, 10% black, and 2% indigenous. Spanish is the official language. There is no established church, but nearly all Venezuelans are nominally Roman Catholic. There are 20 universities in the country.

Economy

About 13% of Venezuelans are engaged in farming. The chief crops are corn, sorghum, sugarcane, rice, bananas, vegetables, and coffee. There is also extensive livestock raising and fishing. Venezuela's mountains long impeded the nation's economic development because of the communications problems they presented. The country has developed a fine highway system, but goods are still carried primarily by ship. Oil accounts for about 90% of the export income, 50% of government earnings, and 30% of the gross domestic product. Venezuela is the largest foreign supplier of oil to the United States. Other exports are bauxite, aluminum, steel, chemicals, iron ore, coffee, cocoa, rice, and cotton. Imports include raw materials, machinery, transportation equipment, and construction materials. The main trading partners are the United States, Colombia, and Brazil. A large amount of oil is exported to the Netherlands Antilles and Aruba for refining. Maracaibo, Puerto Cabello, La Guaira, and Cumaná are the important ports.

The government has used oil revenues to stimulate manufacturing industries. Food processing, automobile assembly, and the manufacture of construction materials, textiles, steel, and aluminum have become well established. Heavy-metalworks have been built on the Orinoco near Ciudad Guayana. Venezuela also uses its rivers to great advantage as sources of hydroelectric power. Despite government reform programs, Venezuela's wealth remains in the hands of a small minority. A disproportionately high percentage of the population lives in poverty; after the end of the oil boom in the early 1980s, the percentage of poor Venezuelans has increased dramatically, from 28% to 68% in 2003. Many cities have squalid shanty towns, and in the countryside many people are still tenant farmers.

Under President Hugo Chávez, the government has held down the price of staples with price controls (since 2003), and has increased state control over and participation in the economy generally. The government has also emphasized the use of microloans to develop small businesses and the formation of cooperatives in an attempt to improve the lives of poorer Venezuelans, has seized factories, farmland, and other assets it has determined to be unproductive, and has forced multinational oil companies to cede a controlling stake in their Venezuelan ventures to the government. Since late 2005, price pressures on wholesalers and other middlemen due to inflation and price controls has led to shortage of many staples in retail stores.

Government

Venezuela is governed under the 1999 constitution. The president is popularly elected for a six-year term and may be elected to a second term. Members of the 167-seat unicameral National Assembly are elected for five-year terms. The major parties are the Fifth Republic Movement (MVR), the Democratic Action party, and the Social Christian party (COPEI). Administratively, Venezuela consists of 23 states, a federal district, of which Caracas is a part, and a federal dependency, which includes 11 island groups.

History

Early History and the Colonial Era

The Arawaks and the Caribs were the earliest inhabitants of Venezuela, along with certain nomadic hunting and fishing tribes. Columbus discovered the mouths of the Orinoco in 1498. In 1499 the Venezuelan coast was explored by Alonso de Ojeda and Amerigo Vespucci. The latter, coming upon an island off the Paraguaná peninsula (probably Aruba), nicknamed it Venezuela (little Venice) because of native villages built above the water on stilts; the name held and was soon applied to the mainland. Spanish settlements were established on the coast at Cumaná (1520) and Santa Ana de Coro (1527).

The major task of the conquest was accomplished by German adventurers—Ambrosio de Alfinger, George de Speyer and especially Nikolaus Federmann—in the service of the Welsers, German bankers who had obtained rights in Venezuela from Emperor Charles V. During part of the colonial period the area was an adjunct of New Granada. Cocoa cultivation was the mainstay of the colonial economy. From the 16th to the 18th cent. the coastline was attacked by English buccaneers, and in the 18th cent. there was a brisk smuggling trade with the British islands of the West Indies.

Independence and Civil Strife

In 1795 there was an uprising against Spanish control, but it was only after Napoleon had taken control of Spain that a real revolution began (1810) in Venezuela, under Francisco de Miranda. In 1811 complete independence was declared, but the revolution soon encountered difficulties. An earthquake in 1812 destroyed cities held by the patriots and helped to forward the cause of the royalists. Later, however, Simón Bolívar (born in Venezuela) and his lieutenants, working from Colombia, were able to liberate Venezuela despite setbacks administered by the royalist commander, Pablo Morillo. The victory of Carabobo (1821) secured independence from Spain.

Venezuela and other territories became part of the federal republic of Greater Colombia. Almost from the beginning, however, Venezuela was restive. José Antonio Páez, who had conquered the last Spanish garrison at Puerto Cabello in 1823, favored independence. He was a caudillo with a strong following among the hardy cattlemen, the llaneros. In 1830 the separatists gained the upper hand, and Venezuela became an independent state. Páez was the leading figure. Although conservative and liberal parties appeared, the actual control of Venezuela was held mainly by caudillos from the landholding class. After Páez, José Tadeo Monagas and his brother entrenched (1846) themselves in power, but not before a bitter struggle was waged to prevent the refractory Páez from keeping a large measure of political control.

The Monagas brothers were overthrown in 1858, and civil war among caudillos became chronic. A brief liberal regime under Juan Falcón created the decentralized United States of Venezuela in 1864. From 1870 to 1888, Guzmán Blanco dominated Venezuela. He improved education, communications, and finances, crushed the church, and enriched himself. He was overthrown in 1888, but dictatorship was resumed four years later under Joaquín Crespo. During Crespo's regime began the Venezuela Boundary Dispute with Great Britain over the border with British Guiana (now Guyana). Cipriano Castro, a new dictator, came to power in 1899. The financial corruption and incompetence of his administration helped to bring on a new international incident, that of the Venezuela Claims.

The year 1908 marked the beginning of the rule of one of the longest-lasting of all Latin American dictators, Juan Vicente Gómez, who stayed in power until his death in 1935. His regime was one of total and absolute tyranny, although he did force the state (with the help of foreign oil concessions) into national solvency and material prosperity. His death was followed by popular celebration. Eleazar López Contreras became president (1935–41) and increased Venezuela's share of the oil companies' profits; under his legally elected successor, Isaías Medina Angarita, Venezuela sympathized with the Allies and finally entered World War II on the Allied side in 1945.

Postwar Venezuela

Later in 1945 a military junta committed to democracy and social reform gained control of the government, which was then headed by Rómulo Betancourt of the Democratic Action party. A new constitution promulgated in 1947 provided, for the first time in Venezuelan history, for the election of a president by direct popular vote. The first president elected under the new constitution was the eminent novelist Rómulo Gallegos. His administration, however, was short-lived.

A military coup in Nov., 1948, overthrew the Gallegos government, and a repressive military dictatorship was established. By 1952, Col. Marcos Pérez Jiménez had become dictator, and he made wide use of police state techniques. A popular revolt, supported by liberal units of the armed forces, broke out early in 1958; Pérez Jiménez fled. Elections held that year restored democratic rule to Venezuela. Rómulo Betancourt adopted a moderate program of gradual economic reform and maintained friendly relations with the United States despite the association of U.S. interests with Pérez Jiménez. A new constitution (1961) was adopted.

The country, long out of debt because of the oil revenues, reached a peak of prosperity, but the new administration was nevertheless gravely challenged. Left-wing groups, particularly the Communists, bitterly opposed the administration, and their activities, combined with the restiveness of the poorer classes and the dissidence of leftist elements in the military, led to numerous uprisings. Extreme right-wing elements also plotted against the Betancourt regime. Betancourt was succeeded in 1964 by Raúl Leoni. In 1968 the Social Christian party came to power when Rafael Caldera Rodríguez won a close presidential election. The boundary dispute with Guyana flared up again in the 1960s, with Venezuela laying claim to some 60% of Guyana's territory.

The 1973 presidential election was won by Carlos Andrés Pérez Rodríguez of the Democratic Action party. That same year Venezuela joined the Andean Group (later the Andean Community), an economic association of Latin American nations. In 1976, Venezuela nationalized its foreign-owned oil and iron companies. Luis Herrera Campíns replaced Pérez in 1978. A decrease in world oil prices during the early 1980s shocked the Venezuelan economy and massively increased Venezuela's foreign debt.

Democratic Action candidate Jaime Lusinchi defeated Campíns in 1983. He renegotiated the national debt and introduced austerity budgets and cuts in social services, but inflation and unemployment continued to plague the country. Pérez was returned to office in 1989 amid demonstrations and riots sparked by deteriorating social conditions. In 1992 Pérez survived two attempted military coups, but the following year he was removed from office on corruption charges; he was later convicted and sentenced to jail for misuse of a secret security fund. In 1994 Rafael Caldera Rodríguez again became president, this time under the banner of the National Convergence party. He unveiled austerity measures in 1996 and privatized some state-run companies.

Venezuela's economy sagged and its budget deficit grew as oil prices fell again in the late 1990s. Relations with Colombia, long strained over control of offshore oil reserves and the illegal movement of many Colombians into Venezuela to work, deteriorated in the 1990s as Venezuela claimed that Colombian guerrillas were trafficking drugs and arms across the border. In 1999, Hugo Chávez Frías, a former army colonel who had participated in a failed coup attempt against Pérez, became president after running as an independent. He called for a halt to privatization of state assets and approved a law enabling him to rule by decree in economic matters for six months. He also cut Venezuela's oil production to force up prices, and pushed for other OPEC members to do the same.

A referendum in Apr., 1999, called for a national constituent assembly to draft a new constitution; the assembly was elected in July and convened a month later. The assembly and Chávez engaged in a contest for power with the congress and judiciary; the assembly declared a national emergency and stripped the congress of its powers. A constitution establishing a strong president with a six-year term in office and the ability to run for immediate reelection and a unicameral National Assembly was approved in referendum in December; the new constitution also reduced civilian control of the military and increased the government's control of the economy. In the same month Venezuela experienced its worst natural disaster of the century, as torrential rains caused huge, devastating mudslides along the Caribbean coast; perhaps as many as 5,000 people were killed.

The disaster slowed plans for new elections, but the congress was replaced with a 21-member interim council. In July, 2000, Chávez won election to the presidency under the new constitution; his coalition, the Political Pole, won 99 of the 165 seats in the assembly, short of the two-thirds majority needed to rule without constraints. Chávez won approval from the assembly to legislate by decree, and won passage of a Dec., 2000, referendum that ousted Venezuela's labor leaders, a move denounced by the International Labor Organization. Chávez also revived the dormant boundary dispute with Guyana, declaring that a satellite-launching facility being built by an American company in the territory claimed by Venezuela was a cover for a U.S. military presence.

In 2001, Chávez became somewhat more unpopular with the increasingly polarized Venezuelan people, although he still retained significant support among the lower classes. His attempts to assert control over the state oil company led to strikes and demonstrations in early 2002, and in April he was briefly ousted in a coup attempt. Latin American nations refused, however, to recognize a self-proclaimed interim government under business executive Pedro Carmona Estanga, and poorer Venezuelans mounted counter-demonstrations in his support. Chávez was restored to office and called for reconciliation; a subsequent cabinet shakeup gave his government a less ideological cast.

The ongoing political turmoil, which led to a prolonged, polarizing antigovernment strike in the vital oil industry (Dec., 2002–Feb., 2003), sent the country into recession and reduced oil exports. Although Chávez outlasted his striking opponents, the crisis further eroded public support for his government. An agreement between the two sides, negotiated by the Organization of American States in May, 2003, called for an end to violence and a referendum on Chávez's presidency later in the year. An opposition petition calling for a referendum on Chávez was rejected in September, however, because of procedural errors.

A new petition for a recall referendum was presented in December, but so many of the signatures were rejected by the electoral commission that the petition was unsuccessful. Negotiations ultimately led to a compromise in which the opposition was allowed three days in May, 2004, to reaffirm disputed signatures, and the petition was validated. Also in May, a number of civilians and military officers were arrested on charges of plotting a coup against Chávez. In the referendum, held in August, 58% voted to retain Chávez, and despite opposition denunciations of the result, foreign observers strongly endorsed it. Several opposition leaders were later charged (July, 2005) with conspiring to undermine Venezuela's government because their organization, Súmate, which played a major role in the petition drive, had received U.S. funds that were alleged to have been used to fund the referendum effort.

In Jan., 2005, the president signed a decree establishing a national land commission that would begin the process of breaking up the country's large estates and redistributing the land. During the same month relations with Colombia were tense after a Colombian rebel in Venezuela was kidnapped (Dec., 2004) by bounty hunters and turned over to Colombia authorities, but the dispute was resolved by the time both nations' presidents met in Caracas in February. National assembly elections in Dec., 2005, resulted in a sweep for parties supporting the president, but only a quarter of the electorate voted. Most opposition candidates withdrew from the contest before the vote in protest against what they said were biases and flaws in the electoral process, ceding complete control of the legislature to Chávez.

Chávez has used Venezuela's increased oil revenues to fund social programs, to create a large military reserve and expanded militia, and to establish programs designed to reduce the effects of high energy prices on Caribbean nations. Chávez also has publicly accused the United States of planning an invasion to overthrow him, while U.S. officials have accused him of supporting antidemocratic forces in Bolivia, Colombia, and Ecuador. His public support, in 2006, for one candidate in the Peruvian presidential race and criticisms of the ultimate winner, Alan García, led Peru to recall its ambassador. Venezuela became a full member of Mercosur in mid-2006; at the same time it withdrew from the Andean Community, whose members included Peru and Colombia.

Chávez was handily reelected in Dec., 2006, benefiting from an economic boom due to high petroleum prices and from the social programs he had instituted for the poor, but the strong win masked the continuing polarization of Venezuelan society along class lines, with the poorer classes overwhelmingly favoring the president. Proclaiming socialism or death at his inauguration (Jan., 2007), Chávez moved to nationalize all energy and power companies and the country's largest telecommunications firm. He also moved to consolidate some two dozen parties supporting him into a unified socialist party, which was only partially successful, and secured the right to rule by decree for 18 months. His closure (May, 2007) of a popular television station that was critical of his government sparked a serious of large demonstrations; the move was unpopular even with his supporters.

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