History

From the moment Christopher Colombus hit the mouth of the Orinoco on the first of August 1498, he must have thought he had reached paradise. Sun drenched beaches, palm trees and Coconuts would have met the sailor`s eyes. Quickly colonised by the Spanish, it had initially less appeal, than the more southern parts in the search for gold. Alonso de Ojeda followed Colombus in 1499, naming it`s beauty "Little Venice." The Voyages of Columbus, 1492-1504. 2001. Venezuela - History & Culture

Latin America`s favourite son Simon Bolivar rebelled against the Spanish, removing them from Colombia in 1819, then from Venezuela in 1821, and finally in1825 freeing Ecuador, Peru and Bolivia.

Effect on Democracy

Bolivar may have restored 'local' rule and a Republic in 1830, but the country spent a further 100 years of violence and dictatorships, until Rómulo Betancourt gave the the country it`s first written constitution in 1947, offering stability to the new and first President Gallegos. It didn't last long with Jimenez seizing power in 1948 by coup until Betancourt himself took power (1959-64). Rafael Rodriguez followed the path of many South American countries into skirting with Communism / Socialism (1969-74). In 1976 Venezuela nationalised its oil and steel industries. The man at the helm, Perez, had a second term in office in the late 1980`s, but saw him facing corruption charges after his second term, following 2 military coups in 1992.

The people`s favourite Hugo Chavez was elected in December 1998, taking power in 1999, and re-elected in July 2000. His mandate to ensure local people (the masses) got a greater share of the oil revenues produced were met with suspicion and distrust by the immensely powerful Corporate community, which resulted in work stoppages and strikes.

Effect on Capitalism

The Spanish may not have found gold, but the Venezuelans did, black gold - oil, in the early part of the nineteenth century. The dictatorial J.M.Gomez oversaw the development to develop the oil industry between 1908-35, allowing the country to be later a founder member of OPEC and a global top ten oil producer. CIA - The World Factbook 2002 -- Venezuela


Today, oil accounts for 80% of all exports, with 60% of that going to North America, but crucially, delivery of oil takes only 5 days as opposed to the 5 weeks it takes to arrive from the Middle East to the United States. This has made Venezuela a highly prized strategic player on the global circuit.

In 1976, the oil and steel industries were nationalised, the former creating the Petroleos de Venezuela state company PdVSA The PdVSA also has multinational partners including B.P., Shell, ExxonMobil, Conoco, TotalFinaElf, and Statoil all having interests in the 77.7 billion barrels of the countries reserve. It is, however, in refining oil that Venezuela comes into its own as world leader. Current gas opportunities are also being explored with a suggested pipeline from Colombia to Western Venezuela finishing in 2005.

On the 2nd December 2002, an attempted strike took place trying to enforce the shutting down of oil supplies. Chavez enlisted military support in keeping supplies going. IEA: Venezuela Country Analysis Brief

Appointments to the PdVSA in February of 2002, brought civil unrest in February and March of the same year. By April 2002, the military was involved and a coup took place, explaining Chavez had "resigned" from office. Ali Rodriguez was installed as President by Carmona. Loyal military Chavez supporters and Civil protests led to the restoration of his Presidency and his unresignation. Muzi.com | Venezuelan Officers Explain Coup in Court 1205 Venezuela's Chavez Removes Coup Attempt Leader
Venezuela's Chavez Returns to Presidency 12049 On the 21st of April 2002, four Venezuelan Generals died in a mysterious helicopter crash. Muzi.com | LatelineNews : Four Venezuelan Generals Die in Helicopter Crash

Summary

Venezuela can boast a rich history in Latin American circles, with Simon Bolivar as a role model giving depth to self governance and the anti oppression culture which has been so prevalent in modern day Latin America.

Economically, as a strategically important oil supplier to the U.S., Venezuela has the opportunity to become a very wealthy country, due to its large levels of reserves in oil, gas and coal. A position which could be strengthened by a Colombian gas pipeline, but it will need to diversify into industry to delimit oil price fluctuations from affecting its economy.

The price for being a major oil producer to the U.S. is that Venezuela will suffer from the United States energy defense policy. The coup in April 2002 led to allegations of U.S. dirty tricks and exposing the American administrations old wounds ranging from the Cuban Bay of Pigs fiasco in 1961 Viva Cuba 24 - Miami Mafia - International Agents of Imperialism, to Oliver North and the Iran-Contras in Nicaragua and Noriega in Panama, all of which appeared to be represented by media claims that people involved in Venezuela had been involved in subversive activities across South America Accused Terrorist Helping to Supply the Contra Miami Herald
US debacle in Venezuela: Bush administration backtracks on coup FPIF Negroponte FPIF Reich
Iran-Contra gangsters resurface in Bush administration Operation Condor
Guardian Unlimited Observer | Venezuela coup linked to Bush team


Copyright S Coleman 2003 14 February 2003

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