Bolivarian Republic of Venezuela

Venezuela became an independent nation in 1830, and was mostly ruled by military leaders until the mid-twentieth century saw democratic governments take hold. The country has tremendous natural resources, including major oil deposits, but has long struggled with widespread poverty. Following elections that brought Hugo Chávez to power in 1999, Venezuela used its oil revenue to reduce poverty by 20 percent and bolster other leftist regimes in Latin America.

Political polarization—of the rural and poor versus the urban and rich—brought Chávez to power. Chávez transformed the government, writing a new constitution, nationalizing hundreds of companies, and receiving temporary authority from the legislature to rule by decree. In foreign policy, Chávez founded the Bolivarian Alternative for the Americas (ALBA), a trade group to unite socialist countries against domination by the United States.

When Chávez died in 2013, his vice president, Nicolas Maduro, succeeded him and inherited the economic consequences of a long-term drop in global oil prices, including high inflation, shortages of consumer goods, and electrical outages. Protesters filled the streets in Caracas and other cities, expressing a level of fury against the socialist government not seen since 2002. As hunger and desperation swept the country and Venezuelans began leaving by the thousands, Maduro blamed fascists and US agents for Venezuela's troubles, and his government became increasingly authoritarian. In January 2019, the opposition-led legislature, the National Assembly, declared Maduro's 2018 reelection illegitimate, and National Assembly president Juan Guaido declared himself the rightful president of the country, creating a political standoff.

Vital Statistics

Geography, Topography, Climate: Venezuela lies on the Caribbean Sea, with Guyana to the east, Brazil to the southeast and south, and Colombia to the west. With 352,144 square miles, Venezuela is about 30 percent larger than Texas. The broad central plain (llano) is bounded by the Guyana highlands and by a northeastward reach of the Andes. Beyond the Andes are the northwestern lowlands around Lake Maracaibo. The climate is tropical except at higher elevations.

Population: 28,644,603 (2020 estimate); major self-identified ethnic groups include mestizo (mixed), white, indigenous, and African-descent. Average life expectancy is 71 years (2020 estimate). Literacy is 97.1 percent (2016 estimate). Urban dwellers account for 88.3 percent of the population (2020 estimate).

Religion: Roman Catholic (96 percent); Protestant (2 percent); other (2 percent).

Gross Domestic Product (GDP, purchasing power parity): According to Statista, in 2022, Venezuela’s GDP had plunged to a paltry $93.11 billion, down from $372.59 billion as recently as 2012. Its 2022 per capita level of $3,459 was a fraction of its high-water mark of $12.688, also in 2012. The deepening economic crisis is such that in many cases the Venezuelan government no longer maintains statistics. Nonetheless, despite its tremendous natural resources, government policies have created a near-total dependency on petroleum for income generation and government revenue. The government has sought to manage the economy through state control of the national oil company and through nationalization of large companies in agribusiness, construction, steel, and finance.

Risk Factors: Ongoing political and economic crisis manifesting in extreme inflation, shortages of basic goods, sporadic electrical outages, and rampant street crime.

Key Figures

• Nicolas Maduro, chosen by Hugo Chávez to be his successor; he became president in 2013 and stayed true to the principles of "chavismo" but has lacked his predecessor's charisma. Starting as a bus driver and union activist, Maduro rose in the ranks of the United Socialist Party of Venezuela (PSUV), won a seat in the legislature in 1998, and served as foreign minister from 2006 to 2013.
• Juan Guaido, president of the National Assembly and self-declared president of Venezuela since January 2019. Though supported by the United States and other Western powers, the Venezuelan military has remained loyal to Maduro, meaning Guaido has little real power.

Key Events

• 1998—Chávez is elected president, accusing elites of having squandered the nation's oil wealth.
• 2003—Oil industry resists takeover with a two-month lockout, sending the economy into a tailspin.
• 2007—Voters narrowly reject constitutional amendments for "21st century socialism."
• 2012—Chávez is elected to a third term as president, despite treatment for abdominal cancer.
• April 2013—Maduro wins special election for the presidency following Chávez 's death, defeating Henrique Capriles by 1.49 percent of the vote.
• February 2014—Police crackdown on anti-Maduro protesters leads to 17 deaths by the end of the month.
• December 2015—Opposition coalition wins parliamentary majority, taking power from Socialist Party for the first time in over fifteen years. However, the Venezuelan Supreme Court soon pressures several members of parliament to resign, breaking the clear majority.
• 2016—Economic crisis worsens, leading to further mass protests that occasionally turn violent.
• July 2017—Maduro installs a Constituent Assembly to replace the National Assembly and write a new constitution, despite widespread opposition and international criticism.
• May 2018—Maduro is reelected in an election denounced nationally and internationally as seriously flawed.
• January 2019—Maduro was inaugurated for a second term; the National Assembly declares him illegitimate and National Assembly president Juan Guaido declares himself president.
• June 2019—The number of Venezuelans who have fled the country to escape the economic crisis tops 4 million, according to the United Nations High Commissioner for Human Rights and the International Organization for Migration.

Status

Following Maduro's inauguration to a second term in January 2019, the National Assembly and its president, Juan Guaido of Popular Will, declared him illegitimate, invoking provisions in the Venezuelan Constitution such as Article 350, which says that citizens shall "disown any regime, legislation or authority that violates democratic values, principles and guarantees or encroaches upon human rights." Then, citing Article 233, which states that the president of the National Assembly shall become interim president when the office of the president becomes vacant, Guaido declared himself president. The United States and other Western powers, as well as most of the governments of Latin America, immediately recognized him, while socialist countries and countries antagonistic to the United States, such as China, Cuba, Iran, and Russia, continuing to support Maduro. Crucially, however, the Venezuelan military also continued supporting Maduro, meaning little changed on the ground.

Meanwhile, Venezuela continued to struggle with extreme hyperinflation, which reached beyond 100,000 percent in 2018, according to official statistics. International organizations including the United Nations (UN) warned that Venezuela's ongoing economic difficulties were driving a migrant crisis, with, by some estimates over 5 million citizens—possibly up to a fifth of the population—fleeing the country since 2014. Countries including Brazil, Colombia, Ecuador, and Peru took on most of the refugees. The United States has also become a primary destination location. Venezuelan refugees and immigrants, however, are now subjected to the changing winds of American politics. As of 2023, both major political parties are now taking unprecedented steps to discourage undocumented immigration into the United States. In October 2023, the Biden presidential administration announced it would be returning undocumented Venezuelan immigrants.

In-Depth Description

In pre-Colombian times, indigenous peoples of various independent tribes inhabited Venezuela's central plains, with some practicing settled agriculture and others moving periodically to new fields. Venezuela was colonized by Spain in 1522 and remained a Spanish colony until a declaration of independence in 1811 and a subsequent war led by Simon Bolivar. Venezuela became part of the Republica de Gran Colombia, which also included today's Colombia, Panama, Ecuador, Peru, and Bolivia, until 1830, when it declared itself an independent republic led by General Jose Antonio Paez.

For the next century, Venezuela was marked by political instability and dictatorial rule, with military strongmen in control for the first half of the 20th century (a system referred to as caudillismo, characterized by a small oligarchy of landowners who supported authoritarian rule). In 1959, the military withdrew from direct involvement in politics, resulting in a period of nominally democratic rule. For most of Venezuela's history, government power has been wielded by the wealthy, mostly of European descendency, with little power or economic benefit flowing to the country's larger population.

Chávez Comes to Power

In 1992, Lieutenant Colonel Hugo Chávez attempted a coup to remove President Carlos Andres Perez; the coup failed and its supporters were sentenced to prison. Shortly afterward, Perez was impeached and convicted of corruption; his successor, Rafael Caldera, released the coup leaders in 1994. Chávez had become popular for his role in the coup, which led to his successful election campaign in 1998 under the banner of the Movement for the Fifth Republic. His platform, which he called the Bolivarian Revolution, led to a new constitution in 1999, and Chávez was elected president again under the new constitution in November 2000.

The National Assembly authorized Chávez to rule by decree for one year. In November 2001, he introduced significant policy changes in Venezuela's petroleum and agriculture industries, which led to increased popularity among the poor, but also to an attempted coup. An alliance of the National Chamber of Commerce (Fedecamaras), the petroleum workers' union, and the Confederation of Workers called a general strike to protest the policies of President Chávez. Four months later, in April 2002, the military refused to carry out a plan to restore order as strikers marched on the presidential palace. In the melee that followed, 18 people were killed. Chávez was taken prisoner and forced to sign a letter of resignation. The president of Fedecamaras took power, initially with support by senior military officers. When he began dissolving democratic institutions installed under Chávez, he lost the support of the military, some members of which then helped restore Chávez to power. Over the next two years, opponents of Chávez remained persistent. Eventually, they obtained enough signatures to force a recall election. Chávez prevailed with about 60 percent of the vote. The election was declared fair by international observers and certified by the Organization of American States (OAS).

Chávez won re-election to another six-year term in December 2006, garnering 62 percent of the vote. His only electoral setback came in December 2007, when voters rejected a set of 69 constitutional amendments proposed by Chávez. Among the proposed amendments were the abolition of term limits, presidential power to declare a state of emergency for an unlimited time, and an increased role for the government in the economy. The amendments were defeated by a vote of 51 percent to 49 percent, indicating that the opposition was still strong and active, despite Chávez 's personal popularity.

Domestic Policies under Chávez

In his 2006 inauguration speech, Chávez proposed nationalizing the telecommunications and electricity industries, placing the Venezuelan national bank under political control, and rewriting the commercial code—a program he called socialism for the 21st century. In January 2007, he was authorized by the legislature to rule by decree for 18 months, the second time he had received such powers, which he had earlier used to radically reform Venezuela's petroleum and agricultural industries, redirecting profits to benefit the people. Although a national oil strike from December 2002 to February 2003 temporarily hobbled the economy, oil output recovered strongly in 2004-2005 and rising prices drove GDP (gross domestic product) up 18 percent. Annual GDP growth averaged 8 percent through 2008, enabling generous social programs in housing, health care, nutrition, education, and culture. Between 2002 and 2008, the number of people living in poverty fell from 48.6 percent of the population to 27.6 percent.

These government actions, always broadcasted as acts of social justice, were in most cases, cosmetic and illusionary. Chávez revealed himself to be inept and impetuous at macroeconomic management on a national level. He was more attuned to dispensing cash in very public ways than its investment for actual structural change and economic development. Much of Venezuela’s relative prosperity in Chávez’s heyday was a facade. Government coffers were inflated by historic high prices for petroleum, brought on in part by the U.S. invasion of Iraq in 2003. Simultaneously, Chávez increased his hold on the Venezuelan government by increasingly autocratic means as billions of its funds were squandered in mismanaged social projects and government corruption. Inflation began to skyrocket, and direct foreign investment plunged. Chávez-led policies of government expropriations destroyed entire industries. As petroleum prices began to fall, so did the economic outcome of both the country and individual citizens.

Despite resistance by business interests, Chávez continued to expand government control of the economy, taking over the country's largest steel maker and nationalizing hundreds of other companies. In 2007, the government shut down a popular television station, Radio Caracas Television, because of its hostility to the Chávez regime. In 2009, Chávez sought and received voter approval to run for a third term. In 2010, the legislature once again granted him the authority to rule by decree—this time for 18 months.

Foreign Relations under Chávez

Chávez used oil exports as well as oil revenues to support other socialist leaders in Latin America. He organized the Bolivarian Alliance of the Americas (ALBA, originally called the Bolivarian Alternative for the Americas) in 2004 as an aid and trade group for countries resisting domination by the United States (US). In addition to Venezuela, ALBA members included Bolivia, Cuba, Ecuador, and Nicaragua as well as a handful of Caribbean island nations. In December 2007, he and six other South American leaders launched the Banco del Sur, or Bank of the South, offering loans to Latin American countries with fewer conditions than required by the World Bank or International Monetary Fund.

Chávez cultivated close relationships with leaders known for defying the US, particularly Fidel Castro, Evo Morales of Bolivia, and Iran's Mahmoud Ahmadinejad. Ahmadinejad's visit to Venezuela in 2007 and subsequent visits by Iranian officials and military delegations raised concerns in the US that the two countries might be cooperating secretly on the development of nuclear weapons by Iran. However, contacts between Iran and Venezuela had dwindled by the time of Chávez 's death in March 2013.

Relations with Colombia were contentious while Alvaro Uribe, a close US ally, was president. Uribe accused Chávez of providing refuge for leftist guerillas—particularly the Revolutionary Armed Forces of Colombia (FARC)—and facilitating cross-border drug traffic. The mood changed after 2010, when Juan Manuel Santos became president. Chávez played an important role in persuading FARC to enter peace negotiations with the Colombian government in 2012.

Embattled Maduro

Diagnosed with abdominal cancer in June 2011, Chávez traveled to Cuba for two surgeries. The following year, he was well enough to campaign actively for a third term as president, receiving 55 percent of the vote in October 2012. By December, the disease had returned, and Chávez died on March 5, 2013. He endorsed Vice-President Nicolas Maduro as his successor. As a loyal advocate of "chavismo," Maduro was expected to win easily in the April 2014 election. However, the opposition sensed an opportunity and campaigned vigorously. The Democratic Unity Roundtable (MUD, Mesa de la Unidad Democratica), a coalition of about 40 groups, ranging from centrists to extreme right-wingers, backed Henrique Capriles as their candidate, a highly recognizable moderate who had run against Chávez the previous October. Maduro won by a scant margin, gaining 50.61 percent of the vote. Capriles received 49.12 percent.

Maduro's slim victory was attributable in part to worsening economic and social conditions in Venezuela. High inflation reduced consumers' buying power, and shortages of consumer good, from margarine to automobile tires, made daily life harder. Street crime rose dramatically (murders increased from 10,000 in 2005 to nearly 25,000 in 2013), and there were breakdowns in basic services. In September 2013, a blackout cut power to 70 percent of Venezuela for several hours. The opposition blamed the incompetent management of the state-owned electrical utility. Maduro blamed a conspiracy by fascist enemies. Maduro's popularity fell to 41 percent in opinion polls, and 73 percent of the survey participants said they were pessimistic about the country's future, a nearly 20 percent rise from responses in April.

The underlying problem for the economy continued to be dependence on oil. Production had been in decline for some years due to a lack of investment in facilities and technology by the state-controlled PDVSA (Petroleos de Venezuela SA). In December 2013, oil prices sank to a 16-month low at $94 per barrel (revenue to Venezuela drops $700 million per year for every $1 decline in price). Government commitments to social-benefit programs strained the national budget, as government controls on the economy limited business growth. With municipal elections due in December 2013, Maduro denounced store owners for setting the prices of consumer electronics too high. He imposed deeply discounted price controls on these products. Maduro's party (PSUV, Partido Socialista Unido de Venezuela) went on to win 242 mayoral races in December, compared to 95 for MUD and independent candidates. However, MUD dominated in the major cities, reflecting a rural versus urban split in Venezuela's highly polarized politics.

Crisis in Venezuela

Defeated at the ballot box, opposition groups continued to challenge the Maduro government with new tactics. Student protests against rising crime spread suddenly after February 12, 2014, and turned into anti-Maduro demonstrations in cities across the country. Leopoldo Lopez, head of the vehemently anti-socialist Voluntad Popular (Will of the People) party, emerged as the spokesperson for the protesters, with support from Maria Corina Machado, an independent member of the legislature. The demonstrations led to counter-demonstrations by Maduro supporters. Crowd violence and excessive force by police led to three deaths in the first demonstration. The violence continued into March, and the number of deaths climbed. Maduro accused the US of inciting violence in Venezuela and expelled three consular officials, charging that they had visited universities to offer student leaders training and financing for anti-government activities. He also revoked the accreditation of CNN reporters covering the protests. A warrant was issued for the arrest of Leopoldo Lopez. Maria Machado was expelled from the legislature for giving a speech in Panama about the violence.

Fears about the effects of instability in Venezuela prompted Panama's President Jose Miguel Insulza to call for a meeting of the OAS to discuss the crisis. Maduro rejected this attempted intervention, breaking off diplomatic ties with Panama. However, there was concern throughout the region, among Venezuela's close allies as well as among more US-friendly governments. A stable Venezuela was considered important for Cuba, which relied on subsidized oil from Caracas. The 17 members of Petrocaribe, an association of island nations formed by Chávez in 2005, also receive billions of dollars worth of oil each year. Former president of Brazil Luiz Inacio Lula da Silva met with Raul Castro about possibilities for mediation in Venezuela. Uruguayan President Jose Mujica, a former guerilla and respected figure among socialist leaders, also met with Maduro in March.

In late March and April 2014, the Maduro government took steps that looked like progress toward calming the conflict in the streets. The military acknowledged publicly that reports of excessive force in the February protests had been verified, and 97 soldiers and police were charged with cruelty and torture. In a gesture toward the business sector, the government launched a new currency exchange program, called Sicad II, which allowed trading at open-market rates. The government controlled the rate of exchange since 2002, and the resulting shortage of dollars in Venezuela has been a major impediment to business expansion. Sicad II was interpreted by some as a means to win over centrist elements of the opposition, represented by Capriles and the Primero Justicia party. Capriles had previously said that he did not want to overthrow "chavismo" but to improve it.

In April 2014, Maduro completed his first full year as president, and protesters continued to stage violent demonstrations demanding his resignation. In response the government increased its crackdown, accusing opposition factions of plotting a coup. Over twenty-five people were killed in the ensuing violence. Behind the scenes, some moderates sought negotiations with the government. Their aim was to work out reforms to revive business in Venezuela and address the country's dependence on its declining oil enterprise. In November 2014 the government did make cuts to public spending due to the continued fall of oil prices.

In late 2015 the Socialist Party's longtime hold on power in the Venezuelan parliament came to an end when the Democratic Unity opposition won a two-thirds majority. However, the Maduro-aligned Supreme Court quickly pressured a number of Democratic Union members of the National Assembly to resign, which dropped the party's majority below the threshold it needed to unequivocally block as legislation proposed by the president. Further protests ensued into 2016. These were also motivated by the continued economic crisis in the country driven by low oil prices, which Maduro attempted to address with measures such as the first gasoline price increase in two decades. By mid-2017 mass protests again erupted after Maduro proposed the replacement of the National Assembly with a Constituent Assembly, widely seen as a way to consolidate his hold on power. Opponents called for an early presidential election and held a referendum that they claimed found seven million people opposed Maduro's proposed government restructuring; several people were killed in fights with government forces.

Despite the widespread opposition within Venezuela and much criticism from the international community, the Constituent Assembly was approved and elected in July 2017. Continued government crackdowns on opposition figures caused several prominent figures to flee the country, as did many citizens due to economic distress. In May 2018 Maduro was reelected, although international human rights observers widely condemned the election as unfair.

Shortly after Maduro's reelection in 2018, he survived an apparent assassination attempt by drones carrying bombs that approached him during a speech aired on live television. He subsequently claimed that the incident was connected to right-wing operatives from Colombia and the United States. However, no proof of these allegations was presented, and some analysts even suggested the attack may have been staged. By the 2020s Venezuela, once a country with the longest tradition of democratic rule in Latin America, was routinely described as a failed state. Significant portions of its population have taken to migration to other countries to seek an existence. Large numbers of Venezuelans now make the dangerous and long trek into the United States. In 2023, the Biden administration announced its intention to deport illegal immigrants from Venezuela.

By the 2020s Venezuela, once a country with the longest tradition of democratic rule in Latin America, was routinely described as a failed state. Significant portions of its population immigrated to other countries to seek existence. Large numbers of Venezuelans now make the dangerous and long trek into the United States. Venezuelan refugees and immigrants, however, are now subjected to the changing winds of American politics. As of 2023, both major political parties are now advocating unprecedented steps to discourage undocumented immigration into the United States. In October 2023, the Biden presidential administration announced it would be returning undocumented Venezuelan immigrants. In 2023, the Biden administration announced its intention to deport illegal immigrants from Venezuela.

2024 Presidential Elections

On July 28, 2024, Venezuelans once again headed to the polls to determine their president. As in many other elections, as the government of President Niclas Maduro held the levers of power, it was able to engage in questionable activities to weaken its electoral opposition. The most popular of Maduro's opponents, María Corina Machado, was disqualified from participating in 2023 by the Maduro government. This move was decried by many human rights groups. Nonetheless, the Venezuelan opposition rallied around Edmundo González Urrutia.

According to independent media accounts, Urrutia won the election by a sizeable number of votes. Instead, the government-controlled National Election Council (CNE) publically declared that Maduro had won a narrow victory. The CNE did not provide official election results to buttress its claims of a Maduro win. International organizations were quick to counter government claims of victory with most such organizations decrying the lack of credibility of most government electoral actions. By all accounts, the 2024 Venezuelan elections were among the most fraudulent of its kind in regional history.

Large-scale protests immediately developed after the government pronouncement. Countries such as the United States began to take punitive actions against the Maduro government. In September 2024, a Venezuelan government jet used to transport Maduro was seized by the United States in the Dominican Republic.

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