Venezuela: Politics and History

Venezuela is situated in South America next toDirectors at Petroleos de Venezuela, the national oil
Colombia, Brazil and Guyana and was originallycompany. This move was deeply unpopular with oil
inhabited by Carib, Arawak and Chibcha peoples whocompany executives, right wing media interests, the
farmed and hunted along the coast, the AndeanFedecámaras business group, and opposition trade
mountain range and the Orinoco River. The firstunions.
permanent Spanish settlement was established in 1522A national strike and lockout was called which lasted
and Venezuela became a Spanish colony untilnine weeks. The military leadership sided with the
independence in 1811 as part of Gran Colombia, fromstrikers and took the president into military custody.
which it later seceded.However, Hugo Chavez resumed his presidency when
Venezuela was governed by a series of militarythe interim dictatorship collapsed after two days.
dictatorships until 1958 when Romulo Betancourt wonAmidst a background of growing popular opposition to
the first democratic presidential election. The 1970s oilthe forces attempting to depose the president, the
crisis brought windfall profits to Venezuela's oil industryOrganisation of American States (OAS) brokered a
but created further social tensions due to unequaldeal with the government and opposition forces to hold
wealth distribution. Unrest grew during the 1980s, whena referendum on the continuation of the presidency.
oil prices fell and social programmes were cut, andMillions signed two petitions demanding that the
resulted in an historic agreement between government,referendum be held, and finally the interim government
business and trades unions.agreed.
Further economic problems were exacerbated by anFinally in August 2004 the referendum was called to
International Monetary Fund (IMF) loan and drasticdecide whether Hugo Chavez should continue his
austerity programme that led to riots, a general strike,presidency or leave office immediately. The result was
martial law and many fatalities. Carlos Andres Perez58% in support of the president, 42% against. This
was elected president in 1989 and survived tworepresented a convincing public endorsement of the
military coups in 1992, before being ousted andreform programme and five months later Hugo
imprisoned seven years later for embezzlement andChavez signed a land decree intended to break up
corruption.large estates and redistribute them to the landless.
In 1998 Hugo Chavez, who lead the first coup againstSupport for the reform programme translated into
Perez, was elected and introduced a new constitution.electoral success in 2005, and a boycott of the
Hugo Chavez was re-elected in 2000 for a further sixelections by opposition groups led to a national
years, on a radical reform mandate covering the landassembly filled with Chavez supporters.
and oil industries known as the Bolivarian revolutionThe Confederation of Workers of Venezuela
after the independence hero Simon Bolivar. Reforms in(Confederación de Trabajadores de Venezuela)
the oil industry prompted a national strike and(CTV) and National Workers' Union of Venezuela
management lockout in 2002 which led to a 48 hour(Unión Nacional de Trabajadores de Venezuela)
military coup. A popular uprising followed and a(UNT) are the two main rival trade union federations.
referendum held in August 2004 returned a victory forHistorically, CTV actively fought against military coups
Chavez and his reform programme.and represented a symbol of democracy. However it
The last election results returned a clear victory for thehas become increasingly dominated by members
Fifth Republic Movement (MVR) headed by Hugosupportive of Democratic Action (AD) and
Chavez Frias who received 59% of the vote. Thesympathetic to the interests of the oil industry and the
next presidential election is scheduled for 3 Decembermedia.
2006. Other influential political organisations include theCTV called the general strike in April 2002 in protest
Venezuelan Federation of Chambers of Commerceagainst the president and in collaboration with the lock
(Federación de Cámaras y Asociaciones deout organised by Fedecámaras. Subsequently
Comercio y Producción de Venezuela) alsomany trade unions broke away from CTV and set up
known as Fedecámaras. This organisationUNT. This new federation supports the reform
represents the interests of twelve industry sectors:programme and leadership style of the president.
banking, agriculture, commerce, construction, energy,Venezuelan society remains deeply divided on the
manufacturing, media, mining, ranching, insurance,reform agenda and further non democratic attempts
transportation and tourism.to depose the president are possible. Powerful
Fedecámaras sets wages and working conditionsdomestic and foreign interests are deeply opposed to
within these sectors and enforces these throughthe reform programme and supporters will need to
management strikes and lock outs. It was heavilysee real results in alleviating poverty and inequality in
involved in the failed coup attempt in 2002 and itsVenezuela if they are to continue voting for Hugo
leader, Pedro Carmona, briefly assumed theChavez and MVR. In the meantime oil revenues are
presidency before seeking sanctuary in Colombia. Inbeing used to finance domestic social programmes
2002 the president appointed a new Board ofaimed at poverty reduction and foreign policy initiatives.