Figure 1.--Venezuela was the home of Simón Bolívar, el Libertador. It also participated in the Latin American shift from Caudilismo to democracy. Trafically for the Venezuelan people the turned to socialim which has ecoled into a brutal Communist dictatorship. Despite Hugo Chavez's assurances, socialism, and Communism did not work any better in Venzuela than it has anywhere else. Chavez, Maduro, and their Communist associates have managed the almost impossible -- turning an oil rich country into a country whre people are starving. Here under Chavez's fading image, stand in line to get into grocery stores with emptied out shelves. Importants items for children and parents are particularly difficult to obtain (milk, foruma, diappers, and pharecuticals).

Venezuela was populated by many different Native American groups. There were three main groups: the Carib, Arawak, and the Chibcha.Experts now differ on the pre-Conuest population and the level of cultutre. Christopher Columbus was the first European to see Venezuela which he encountered on his Third Voyage (1498). He landed on the Paria Peninsula in western Venezuela. He also explored the Orionoco Delta in eastern Venezuela. He concluded that he had reached more than another Caribbean island, but still did not believe he had reached Asia. Venezuela proved to be a backwater of the Spanish colonial Empire. The Spanish did not find the gold and silver that made Mexico and Peru so important. Administratively it was part of Nuevo Granada. For three centuries in languished within the Spanish colonial empire. It proved to be a hot bed of the independence movement, it part because Simon Bolívar was born there. Despite repeated setbacks he the independence movement in the north. In a famed march across the Andes, he achieved his first success, liberating Colombia (1819). This was followed by Venezuela (1821), and Ecuador, Peru, and Bolivia (1825). Bolívar's dream was a united Gran Colombia, but this could not withstand regional differences. Gran Colombia split up into modern Colombia, Ecuador, and Venezuela. The independent history of Venezuela was not a tranquil one. Venezuela was racked with civil strife, wars, dictatorships, and economic mismanagement. raged in the country well into the next century. Though some dictators sought real reform, most milked their positions for personal gain. The illdefined border resulted in a serious proble with Britain over the border ith British Guiana (modern Guyana) (1840s). That dispute is still not fully resolved. The discoveryof oil in the Gulf of Maricaibo provided an important new resource (early 20th century). The country continued to be plagued with dictators. The oil wealth went primarily to the ruling oligarchy. Romulo Betancourt led a popular revolt ushering in anew concern with democracy expressed within a new constitution (1947). Venezuela held its first real democratic election--the respected novelist Romulo Gallegos. He did not, however, serve out his term. Another in a long-line of dictators seized power--Perez Jimenez. Democracy was slowly taking route. Venezueal achieved its first non-violent presidential succession (1963). The rise in oil prices during the 1970s greatly increased oil revenue. While democratic governments used the oil revenue better than the dictators, Venezuela did not develop a vibant econonomy. The county was increasingly dependent on oil. Whatever the price of oil, oil exports alone can not provide a decent life for all Venezuelans. And the country's poor received little benefit from the oil-based econoy. The drop in oil prices (late-1980s) hit Venezuela hard setting off domestic turbulence. Riots in Caracas were put down violently. Two attempted coups occurred (1992). One of the coup instigators, Col. Hugo Chavez, was later to win election as president running a populist campaign. He is turing Venezuela a Socialist state and is intent on making himself Venezuela's permanent president.

Native Americans

Venezuela was populated by many different Native American groups. There were three main groups: the Carib, Arawak, and the Chibcha. Experts now differ on the pre-Conuest population and the level of cultutre. Christopher Columbus was the first European to see Venezuela which he encountered on his Third Voyage (1498). He landed on the Paria Peninsula in western Venezuela. He also explored the Orionoco Delta in eastern Venezuela. He concluded that he had reached more than another Caribbean island, but still did not believe he had reached Asia. Venezuela proved to be a backwater of the Spanish colonial Empire. The Spanish did not find the gold and silver that made Mexico and Peru so important. The initial Spanish interest was slave raiding. Venezuelaas the site of Father Bartolmea de las Casas failed effort to set up a humane settlement for Native Americans. Unlike the other Andean countries, Native Americans are a very small part of the Venezuelan population. There was limited inter-marriage before the Native American population collapsed (16th century). The Native Americans not in contact with the Spanish because they lived in remote Amazonian areas survived. Their numbers may have been augmented by Native Americans fleeing the Spanish. A small numbers of Native Americans still live in remote areas today.

Conquest

Christopher Columbus was the first European to see Venezuela which he encountered on his Third Voyage (1498). He landed on the Paria Peninsula in western Venezuela. He also explored the Orionoco Delta in eastern Venezuela. He concluded that he had reached more than another Caribbean island, but still did not believe he had reached Asia. News of Columbus' voyages excited interest throughout Spain and a number of adventurers set out for what was called the Indies--meaning the Caribbean. One of these Spanish adventurers was Alonso de Ojeda who was responsibe for the country's name. Ojeda explored the Lake Maracaibo area (1499). There he was struck by the stilted houses that the Native Americans built above the lake and called the area Venezuela -- "Little Venice" in Spanish. The Spanish established their first settlement, Nueva Cadiz (1500). It was subsequently destroyed by a tsunami.

Spanish Colony

Venezuela proved to be a backwater of the Spanish colonial Empire. The Spanish did not find the gold and silver that made Mexico and Peru so important. Administratively it was part of Nuevo Granada. Spanish colonization efforts were less intense than in Mexico and Peru where they found gold and silver. Venezuela was loosly ruled from Bogota. For three centuries in languished within the Spanish colonial empire. Independent settlers tamed the lawlessness of the llanos which developed an ethic similar to the American West. Spanish landowners in central highlands worked the Native American and later african slaves growing sugar, cotton, cacao, indigo, tobacco, and coffee. Venezuela was one of the poorest Spanish colonies. Spanish pfficials complained that they were spending more money on governing the colony than the taxes they collected,

Independence Struggle

Venezuela proved to be a hot bed of the independence movement. The nature of the llanos helped to mold Venezuelans of independent character. Also Spanish inattention to its poor colony helped to build an independent spirit. Spanish colonial regulations prohibited trade with other countries than spain. Venezuelans wanted greater cintrol over their country. The Napoleonic Wars in Europe and the disruptions in Spain itself helped created an opportunity to free Venezuela and other Spanish colonies from colonial rule. Spain became a major battlefied od the War. The British supported Spain in the Peninsular Wars while for largely commercual reasons supported the independence movements in the colonies. Símon Bolivar and Francisco de Miranda were two of the major figures in the independence movement. Simon Bolívar was born in Venezuela. The Venezuelans launched their revolution (1802). Francisco de Miranda (1750-1816) was born in Caracas. He was the major force in laubching the independence movement. Miranda organized two independence campaigns. Both failed. He also participated in both the American Revolution and the French Revolution. He organized an invasion (1806). The Venezuelan flag was unfurled for the first time. The National Congress declared a Declaration of Independence and the first Constitution (1811). Miranda ruled as a virtual dictator (1812). Spanish forces retook Caracas and crushed the First Republic. They arrested Miranda who died at a prisoner in Cadiz, Spain (1816). Simon Bolívar (1783-1830) was also born in Caracas. Bolívar from an early age devoted himself to the independence movement. He began the fight (1804). Despite repeated setbacks he the independence movement in the north. Bolivar's army primarily consisted of native Venezuelans. He and his followers were aided by British mercenaries. Bolívar retook Caracas and established the Second Republic (1813). The Spanish recaptured Caracas (1814). In a famed march across the Andes, he achieved his most notable success, liberating Colombia (1819). Bolívar became Columbia's first president. This was followed by Venezuela. Bolívar and his troops defeated the Spanish at Carabobo (1821). He became dictator of Peru and Angostra (1822). And finally Ecuador, Peru, and Bolivia were defeated (1825).

Gran Colombia

Bolívar's dream was a united Gran Colombia, but this could not withstand regional differences. Bolícar died (1830). Gran Colombia split up into modern Colombia, Ecuador, and Venezuela.

Independent Republic

The independent history of Venezuela was not a tranquil one. Venezuela was racked with civil strife, wars, dictatorships, and economic mismanagement. raged in the country well into the next century. Though some dictators sought real reform, most milked their positions for personal gain.

Turmoil and Dictatorship

Like most South American countries, Venezuela during the late-19th century experienced political turmoil and dictatorial rule by a series of cauldillos (military strongmen). General Cipriano Castro, a strong military commander (caudillo) from the Andean state of Táchira, marched on the capial in Caracas with a provincial army and seized control of the country. What followed was rule by five successive Táchira caudillos whch became known as the Andinos. Theu would contril the country for nearly 60 years, except a brief democratic interlude (1945–48). Castro ruled Venezuela for a decade (1899-1909). Like many Latin American cudillos, Castro's rule was notable for autocratic administrative tyranny, financial irresponsibility, corruption, and domestic discension. This became the pattern for the first half of the 20th century. These caudillos dominated the country and trampeled on individual rights. Cipriano Castro, assisted by his ally Juan Vicente Gómez, seized power in Caracas (1899). Castro was overthrown by his ally, Gómez (1908). One author decribes President Gómez asparticularly tyranical because he attacked the press. Their autocratic policies led to serious interntional incidents.

International Incidents

Venezuela at the time of World War I was a poor South American.Caribbean country that unlike most of the region had been at the center of some serious international disputes. This jncluded one which had the potential to escalate into a serious confrontation between America and Britain.

Guyana crisis (1886)

The first major international event involving Venezuela erupted (1886). There was a long-standing dispute dispute with Britain concerning the border of British Guiana (modern Guyana) The ill defined border eastern border resulted in a serious problem with Britain (1840s). The border with British Guiana (modern Guyana) was a festering problem. Venezuela claimed two thirds of British colony of Guyana (1889). The dispute is still not fully resolved. . Gold had been discovered in the area. Modern diplmatic relations had not yet coalesed. Many Americans still saw Britain as a dangerous power. The British still had good relations with the now unified Germans and were suspicious of thee French. President Cleveland saw the dispute as a challenge to the Monroe Doctrine. There was danger a conflict between America and Britain might break out. Saner minds prevailed. The United States persuaded Britain to submit the case to an arbitration tribunal. The resulting award gave the the larger share of the disputed territory to Britain.

Venezuela Crisis (1902–03)

Castro's military chief, General Juan Vicente Gómez, brutally put down one of several rebellions asainst his autocratic regime. Castro dealt with foreigners as arbitrarly as he did his own people. treatment of foreign businessmen and diplomats was topped by his refusal to reimburse foreigners for properties that were damaged in domestic insurrections. Castro beset with financial pronlems, defaulted on Venezuela's sizeable foreign debts. He declined to pay compensation to European lenders for damage their national suffered as aesukt of domestic fighting. The result was the Venezuela Crisis of 1902–03. Britain, Germany and Italy imposed a naval blockade lasting several months to forece compensation. There was two incidents of shelling the blockded ports. Again the United States intervened leadingto the Roosevelt Coralary to the Monroe Doctrine. This time Germany inderKaiser Wilhelm was paticularlytruculent. President Roosevelt made it clear to Kaiser Wilhelm that the United States was prepared for war over the issue, but did so in non-public contcts gicing the Kaiser the opportuniy to back off without embarassment. Finally international arbitration at the new Permanent Court of Arbitration in The Hague reached a compromise arrangement. The ruling favored the Europeans.

Dutch dispute (1908)

A dispute broke out with the Netherlands (1908). The Dutch unlike the British, Germans, and Italianns did not have a powerful navy, but did have a few ships. Again rebels and unresloved issues with the Americans nd British resulted in naval displays and embargoes. This threatened the Curaçao economy and the Dutch sent a naval squadorn that seized a Venezuelan port and attacked the small, poorly equipped Venezuelan Navy. The dispute was was resolved when Castro left for medical treatment in Germany and was overthrown by his former ally, Juan Vicente Gómez. Gomez would retain power for nearly 30 years. Gómez deposed Castro nd set up a more stable dictatorship than his mentor. He began to pay off the country’s by now very sizeable debts. The small island of La Orchila north of Caracas was part of the Curaçao group, but the Dutch decided it was not worth it to challenge the Spnish/Venezuekan claim.

World War I (1914-18)

Venezuela at the time of World War I was a poor South American.Caribbean country that unlike most of the region had been at the center of some serious international disputes. This jncluded one which had the potential to escalate into a serious confrontation between America and Britain. While Vezuela had serious issues with Britain, there were largely positive trading relations wih Germany. Like most South American countries, Venezuela during the late-19th century experienced political turmoil and dictatorial rule by a series of cauldillos (military strongmen). This continued into the early-20th century. These caudillos dominated the country and trampeled on individual rights. Their autocratic policies led to serious interntional incidents. Venezuela was strictly neutral throughout the War. President Juan Vicente Gomez is widely reported to have been pro-German. There was no way, however, he could join the Central Powers because of British comtrol of the seas. Strict neutrality was in a way helpful to the Germans. Some sources say that this was rumors spread by his political enemies. Strict Venezuelan neutrality irritated the Allies because the Government so rigidly insisted on its neutrality. The Government was determined to maintain relations with all belligerent countries. The government even allowed the Germans to use their radios at Maracaibo without any restriction. This was helpful because Germany without access to British controlled cabels and with losing its colonial outposts gradually lost communication with its oversseas posts and ships operationg around the world. The United States entered the War (1917). America's major concern in the Caribbean was the security of the Panama Canal. We note U.S. Navy ships to Venezuela at this time, perhaps as a show of naval power and with the French to search isolated locations to make sure German U-boats were not using them to resupply. We note naval calls to various ports throughout the Caribbean, both neutrl and Allied countries. The discovery of massive oil deposits in western Venezuela (Lake Maracaibo) during World War I would prove central to the country's future. It began the transformation of the economy, from a heavy dependence on agricultural exports to a reliance on petroleum--a single commodity, but a very important one. And as a result, the country would play an important role in World War II, supplying petroleum tgo the Allies war effort.

Oil

The discovery of massive oil deposits in western Venezuela (Lake Maracaibo) during World War I would prove central to the country's future. President Gómez learned that foreign geologists had discovered large quantities of petroleum. He met with foreign oil companies and asked for development projects. He made it clear that what he wanted a partnership with the government to produce petroleum. The oil began the transformation of the economy, from a heavy dependence on agricultural exports to a reliance on petroleum--a single commodity, but a very important one. Unfortunately, the oil money hs not ben used to develop the country's economy. Rather it has been used as an alternative to development. The size of the resource and price rises has enabled the country to survive on oil exports. Even so, relying just on oil will not allow Venezuelns to have decent lives unless other sectors of the economy develop and other sectors of the economy actually declined. And as a result of the oil, the country would play an important role in World War II, supplying petroleum to the Allied war effort. Venezuela started pumping and exporting oil (1920s). Venezuela became the leading oil exporter in the mid-1900s. The country continued to be plagued with dictators. The oil wealth went primarily to the ruling oligarchy.

Vicente Gómez (1908-35)

President Gómez used the Army to seuize control of Venezuela (1908). Venezuelan was a largely poor, agrarian country until the discovery of important oil resources in thw west of the country around Lake Maracaibo during World War I. fter the War, developmnt of this resource brought great wealth to the country for the first time and began to transform the economy, finncing an economic boom. Venezuela's per capita income became the highest in South America. Gomez benefited hugely from the oil income which he controlled. As a result of rampany corruption, the Venezuelan people as a whole saw relatively little benefit from the oil money. Gomez used the oil money to both centralize the Venezuelan Government and to increase his authority through well paid security forces. Thge Germans attracted by the country's oil resources attempted build their influence during the 1930s. Gomez died occasioning street celebrations (1935).

World War II (1939-45)

The Gomecista dictatorship survived his death and the presidency passed first to to Eleazar López Contreras. Under Isaías Medina Angarita, dictatorial rule was relaxed somewhat and a range of reforms were initiated . These included increasing the country's share of the oil compony's profits and legalizing political party activity (1941). Isaías Medina Angarita was legally elected president (1941). He symphitized with the Allies. The Government after the Japanese attack on Pearl Harbor broke diplomatic relations with Axis powers (Germany, Italy, and Japan). As a result of the stunning German victories in Europe, there were wild rumors tht Germany might invade and seize the counytry's oil wells. The United States helped the country improve the defenses of the oil wells and porovided a range of assistance to the Venezuelan military. The Caribbean with its clear, rather shallow waters was not suitable for U-boat opetations, although there were sinkings after Germany declared war on America. As the Allies improved their ASW capbility, German U-boats withdrew from the Caribbean. Venezuela's primry role in the War was supplying oil to the Allied war effort. While Venezuela severed diplomatic relarions with the Axis powers and largely symphitized with the Allies, the country did not take an active role in the War and was essentially neutral. It did take a range of steps like seizing Axis bank accounts and expelling the Italian military mission. In the final year of the War the Government declared war on the Axis countries. A civilian-military coup overthrew Medina Angarita and ushered in a rare 3-year period of democratic rule. It would take some time for democracy to take hold, but it was a beginning.

Democratic Revolution

Romulo Betancourt led a popular revolt ushering in anew concern with democracy expressed within a new constitution (1947). Venezuela held its first real democratic election--the respected novelist Romulo Gallegos. He did not, however, serve out his term. Another in a long-line of dictators seized power--Perez Jimenez. Democracy was slowly taking route. Venezueal achieved its first non-violent presidential succession (1963).

Oil Economy

Venezuela before the discivery of oil had a largely agricultural economynand was elf sufgicient in dood productiin. The rise in oil prices during the 1970s greatly increased oil revenue. While democratic governments used the oil revenue better than the dictators, Venezuela did not develop a vibant econonomy. The county became increasingly dependent on oil. Who wanted to work hard producing things and be taxedby thevGovernment when you ncould get a Government job paying a high wage and requiring little work. whatever the price of oil, however, oil exports alone can not provide a decent life for all Venezuelans. And the country's poor received little benefit from the oil-based economy. The drop in oil prices (late-1980s) hit Venezuela hard setting off domestic turbulence. Riots in Caracas were put down vilontely. Two attempted coups occurred (1992). And the country's production of food steadily declined. Government officails were not particularly comcerned about this as with the oil wealth, food could be imported.

Hugo Chavez: Bolivarian Revolution (1998-2013)

Hugo Chavez came from the vast Llanos south of Venezuela's coastal mountain range, an eastern stub of the Andes. His parents were school teachers. He was born in Sabaneta, Barinas state (1954). His dream in life was to become a professional baseball player. He enrolled in Venezuela's military academy principally because he heard they had a good baseball team. He graduated (1975). He took to military life. And as a young officer he was involved as an army paratrooper in the last phase of defeating left-wing guerillas. He knew nothing about economics and vert little about history, in many ways similar to Fidel Castro. The ideas of the left-wing guerills that he came in contact with appealed to him. He was soon plotting against the Government. Col. Hugo Chavez first came into prominence as a leader of a failed coup (1992). His long-winded defense in his subsequent trial impressed some Venezuelans, particularly attacks on the country's politicall class and rich. He then ran a populist campaign and won the presidency at the ballot box (1998). A fall in international oil prices weakened the economy and as a result the standing of the traditional political parties. After winning election, President Chavez began to turn Venezuela in a Socialist 'paradice' by dismantaling the private economy. He called his program the Bolivarian Revolution, capitalizing on the prestige of Simon Bolívar in the country. He described his policies as 21st Century Socialism, but never explained how his policies were different than the traditional socialist policies that failed whereever tried. He wanted to make himself Venezuela's permanent president, but this was the one election he failed to win. President Chavez dismissed his critics and argueds that he needs more time for Venezuela's Socialist revolution to show results. Venezuelans continued, however, to elect him to 6-year terms as president, most recently (October 2012). He proved to be an affable and politically savy leader and became one of the most colorful and vocal leaders in Latin America. He learned he had cancer which he kept secret (2011). He announced he had cancer, but had recovered after trearment (2012). One serious mistake may have been his decesion to rely on the Cuban health care system where treatment could be done in secret rather than a probably more competent team in Brazil. Chavez and his Bolivarian Revolution is very controversial both within and outside of the country. A great deal has been written about him, but usually the assessment is contingent on the authors ideolgical point of view rather than a careful factual assessment. His supporters say he is concerned about the poor and disadvantaged and has heloped many rise from poverty. His critics say he has become increasingly autocratic and has wrecked the country's economy. Chavez was surely one of the most fortunate Latin American leaders. The country's vast oil wealth provided the needed capital to build a modern infrastructure and provide Venezuelans a first class education that would serve as the basis for a vibrant economy.

After Chavez (2013- )

President Chavez died (2013). Vice President Nicolas Maduro seceeded him. A special presidential election was held. Maduro does not have Chavez's charisma, but with a control of most of the country's media and most Chavistas, he had a very narrow victory -- 50.6 percent. It is likely that ballot stuffing provided the margin of victory. Despite sitting on huge reserves the ecomomic decline underchavez has continued. Chavista economic policies have gutted the private economy. The producyive sector was targetted. Government regulationsrequired them to sell their out put for less than than it cost to produce. Needed imports became impossible to obtain. Business owners were forced to shut down. Agricultural production also declined becuse Chavusta poolicies drove the country's best farmers out of farming. He did not shoot them like Stalin, but he did seize their land. Maduro is now experiencung the consequences of these policies. Venezyelanms are starving. Chavez and Maduro expected that the oil income could just pay for everything. Inciompetent management has, however, resulting in falling output. Foreign oil companies were driven out of the country and competent employees of PEDEVESA were replaced by politicall relaible hires who knew nothing about the oil industry. Funds needed to maintain the oil infrastrucure were diverted to socialist projecrs Chavista politicial corruption. The result has been the destructioin of needed infrastructure. In addition oil prices fell. Oil now contributes 95 percen of exports. And because agricultural and other production has suffered. Under Chavez the country was having to use much of its oil income exports to import food and other basics. Under Maduro the Government no longer has the finfs to import nthe needed funds let alone other basics. Veneuyelanms are losing weight and some are actually starving. Brazilian and Colombian officials have met with their Venezuelan counterparts to try to obtain overdue paymnts. And Venezuelan foreign reserves have hemoraged. Maduro has sold off most of the subatantial gold reserves the country once had. Foreign resetves declined nearly 30 percent in 2013 alone.. Petro Caribe dispursements declined to $1.7 billion during the first 9 months of 2013, only a third of 2012 dispurements. Communist Cuba and Nicaragua which Chavez bankrolled are especially hurt by these cutbabcks. Inflation in 2013 is reportedly over 50 percent and the black market exchange rate for dollars is ten time the official rate. Consumers report shortages for even basic neceities such as toilet papt and cooking oil. Often they find empyu shelves in nstores. And if allm of this sonded bad in 2013. The situation has spiraled down much further. The Organization of American States (OAS) reports that crimes against humanity have been committed during his presidency. Under Maduro's administration, more than 9,000 people havenot just been arrested, but executed for 'resistance to authority'. Some 4 million Venezuelans have been forced to flee the country and the number is growing. The Venezuealan Congress has voted Juan Guaidó as interim president. Even so, in the face of massive demonstrations, President Maduro was sworn in for a nother 6-year term ( January 2019). The president of the National Assembly, Juan Guaidó, was declared the interim president by that body (January 2019). Venezuela's crude oil production now stands at its lowest level in more than 50 years. Output averaged only 1.4 million barrels (May 2019). Inflation has escalated from high to hyperinflation. The inflation rate reached 275 percent (2016), but then 860 percent (2017), 130,000 percent (2018), and it looks like the 2019 results will be even higher. And of course the country's poor are the ones most affected by this, the very prople Chavez and Muaduro say they were helping.

Created: 12:13 AM 1/14/2010
Last updated: 1:14 PM 2/26/2018