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Background Notes For Venezuela

U.S. Department of State

Background Notes: Venezuela, March 1998

Released by the Bureau of Inter-American Affairs.

Official Name: Republic of Venezuela

PROFILE

Geography

Area: 912,050 sq. km. (352,143 sq. mi.); about the size of Texas and Oklahoma combined.
Cities: Capital--Caracas (metropolitan area pop. est. 2.8 million, 1990 census). Other major cities--Maracaibo, Valencia, Barquisimeto.
Terrain: Varied.
Climate: Varies from tropical to temperate, depending on elevation.

People

Nationality: Noun and adjective--Venezuelan(s).
Population (1997 est.): 22.4 million.
Annual growth rate (1988-97 est.): 2.1%.
Ethnic groups: Spanish, Italian, Portuguese, Arab, German, African, indigenous people.
Religions: Roman Catholic 96%.
Languages: Spanish (official), numerous indigenous dialects.
Education: Years compulsory--9. Literacy--90.7%.
Health: Infant mortality rate--28.5/1,000. Life expectancy--73.31 yrs.
Work force (about 8.8 million in 1996): Services--64%. Manufacturing--13%. Agriculture--13%. Construction--8%. Other--2%.

Government

Type: Federal republic.
Independence: July 5, 1811.
Constitution: January 23, 1961.
Branches: Executive--president (head of government and chief of state; five-year term); Council of Ministers (cabinet). Legislative--bicameral congress (203-member Chamber of Deputies, 53-member Senate) elected for five-year term. Judicial--18-member Supreme Court.
Subdivisions: 22 states, one federal district (Caracas), and one federal dependency (72 islands).
Major political parties: Democratic Action (Accion Democratica--AD), Social Christian (Comite Organizador Politico por Elecciones Independientes--COPEI), Convergencia (President Caldera's party), the Radical Cause (Causa R), and the Movement to Socialism (Movimiento al Socialismo--MAS).

Economy

GDP (1997 est.): $72.1 billion.
Growth rate (1997): 4.5%.
GDP per capita: $3,164.
Natural resources: Petroleum, natural gas, coal, iron ore, gold, other minerals, hydroelectric power, bauxite.
Agriculture (4.7% of GDP): Products--rice; coffee; corn; sugar; bananas; dairy, meat, and poultry products.
Petroleum industry (27.6% of GDP): Oil refining, petrochemicals.
Manufacturing (15.6% of GDP): Types--iron and steel, paper products, aluminum, textiles, transport equipment, consumer products, and petroleum refining.
Trade (1997 est.): Exports--$23.7 billion: petroleum ($18.3 billion), iron ore, coffee, steel, aluminum, cocoa. Major markets--U.S. (Jan.-Oct.1997, 55%), Japan, Germany, Colombia, Netherlands, Brazil, Italy. Imports--$10.6 billion: machinery and transport equipment, manufactured goods, chemicals, foodstuffs. Major suppliers--U.S. (Jan.-Oct. 1997, 38%), Japan, Germany, France, Canada, Italy, Colombia, Brazil.
Exchange rate (Dec. 1997): 504.25 bolivars=U.S.$1.

U.S.-VENEZUELAN RELATIONS

U.S. relations with Venezuela are close and we share a strong mutual commitment to democracy. As our number-one supplier of foreign oil, U.S.-Venezuelan commercial ties are close. Major U.S. interests in Venezuela include protection and promotion of U.S. exports and investment; continuation of the economic reform program; preservation of constitutional democracy; closer counternarcotics cooperation; and maintaining access to a leading source of foreign petroleum. Underscoring the importance of this bilateral relationship, President Clinton's October 1997 visit launched a "Partnership for the 21st Century" to promote common solutions for energy development, trade and investment, and protecting the environment, as well as a strategic alliance against crime and drug trafficking.

The United States is Venezuela's most important trading partner, representing approximately half of both imports and exports. In turn, Venezuela is our-third largest export market in Latin America, purchasing U.S. machinery, transportation equipment, agricultural commodities, and auto parts. Venezuela's opening of its petroleum sector to foreign investment in 1996 created tremendous trade and investment opportunities for U.S. companies. The Department of State is committed to promoting the interests of U.S. companies in overseas markets. For contact information and a list of government publications, please refer to the last page of this document.

Venezuela is a minor source country for opium poppy and coca, but a major transit country for cocaine and heroin. Money laundering and judicial corruption are major concerns. The United States is working with Venezuela to combat drug trafficking. In FY 1998, the United States earmarked $600,000 for counternarcotics assistance and about $400,000 through the International Military Education and Training program. In addition, the United States plans to deliver excess U.S. military equipment worth $13.25 million to the Venezuelan armed forces for counternarcotics use. There is no USAID or Peace Corps mission in Venezuela.

Approximately 23,000 U.S. citizens living in Venezuela have registered with the U.S. Embassy, an estimated three-quarters of them residing in the Caracas area. An estimated 12,000 U.S. tourists visit Venezuela annually. About 500 U.S. companies are represented in the country.

PEOPLE AND HISTORY

The Venezuelan people comprise a combination of European, indigenous, and African heritages. About 85% of the population lives in urban areas in the northern portion of the country. While almost half of Venezuela's land area lies south of the Orinoco River, this region contains only 5% of the population.

The indigenous people ranged from agriculturists to less advanced groups living on islands offshore. The first permanent Spanish settlement in South America--Nuevo Toledo--was established in Venezuela in 1522. However, Venezuela was a relatively neglected colony in the 1500s and 1600s as the Spaniards focused on extracting gold from other areas of their empire in the Americas.

The Venezuelans began to grow restive under colonial control toward the end of the 18th century. After several unsuccessful uprisings, the country achieved independence from Spain in 1821 under the leadership of its most famous son, Simon Bolivar. Venezuela, along with what are now Colombia, Panama, and Ecuador, was part of the Republic of Gran Colombia until 1830, when it separated and became a sovereign country.

Much of Venezuela's 19th century history was characterized by periods of political instability, dictatorial rule, and revolutionary turbulence. The first half of the 20th century was marked by periods of authoritarianism--including dictatorships from 1908-35 and from 1950-58. The Venezuelan economy shifted from a primarily agricultural orientation to one centered on petroleum production and export after the first world war.

Since the overthrow of Gen. Marcos Perez Jimenez in 1958, Venezuela has enjoyed an unbroken tradition of civilian democratic rule marked by the military's withdrawal from direct involvement in national politics. Until 1993, when Rafael Caldera won the presidential election on a coalition "Convergence" ticket, the presidency had passed back and forth between the country's main political parties, Accion Democratica (AD) and the Christian Democratic (COPEI) Party.

GOVERNMENT

The president is elected by a plurality vote with direct and universal suffrage. The term of office is five years, and a president cannot be re-elected until at least two terms have been served by others. The president decides the size and composition of the cabinet and makes appointments to it with the involvement of the Congress. The executive branch initiates most legislation, which the legislature debates and approves, alters, or rejects. The Congress has the authority to override a presidential veto, but the president can also ask the Congress to reconsider the portions of bills found objectionable.

The Congress is bicameral, and elections for the Senate and the Chamber of Deputies are held at the same time every five years. Until 1993, voters cast ballots for a party list of candidates. The 1993 national election permitted, for the first time, the direct election of one-half of the Chamber of Deputies by name and district. When the Congress is not in session, its delegated committee acts on matters relating to the executive and in oversight functions.

All courts in Venezuela are part of the federal system. The 18 members of the Supreme Court of Justice are elected by a joint session of the Congress to nine-year terms; one-third of the court is elected every three years, and each justice can serve only one term. The Judicial Council oversees the selection of judges to the lower civilian courts, which include district courts, municipal courts, and courts of first instance.

National Security

The armed forces number 80,000 personnel in four service branches--army, navy (including the marine corps), air force, and the Armed Forces of Cooperation (FAC), commonly known as the national guard.

Principal Government Officials

President--Rafael Caldera
Foreign Minister--Miguel Angel Burelli Rivas
Ambassador to the United States--Pedro Luis Echeverria
Ambassador to the United Nations--Ramon Escovar-Salom
Ambassador to the OAS--Francisco Paparoni

The Venezuelan Embassy in the United States is located at 1099 30th St. NW, Washington, DC 20007 (tel. 202-342-2214). Venezuela maintains consulates in Boston, Chicago, Houston, Miami, New Orleans, New York, San Francisco, and Puerto Rico.

POLITICAL CONDITIONS

Venezuela's history of free and open elections since 1958 and its prohibition of military involvement in national politics earned it a reputation as one of the more stable democracies in Latin America. But the country suffered a series of political and economic crises at the beginning of this decade, which culminated in a temporary suspension of constitutional rights in 1994-95. The current government has returned political stability and social peace to Venezuela.

Venezuela experienced political turbulence in response to a 1989 economic austerity program launched by then-President Carlos Andres Perez. Disgruntled military officers unsuccessfully mounted two coup attempts in 1992 and, in 1993, Congress impeached Perez on corruption charges. President Rafael Caldera was elected in December 1993. His administration's primary concerns were economic problems, particularly a financial crisis in 1994 and, in 1996, it introduced a new economic plan, the "Agenda Venezuela," to liberalize Venezuela's economy and promote economic growth.

The economic and financial crisis in 1994 led to restrictions on some civil liberties. President Caldera gave the police the power to detain people and enter homes without warrants, and to seize property without compensation.

When the Congress voted to restore civil liberties in July 1994, the President signed a decree suspending them again. He then challenged the Congress to put the matter to a national referendum; congressional leaders agreed to uphold the President's decree. Full civil liberties were restored in July 1995, except in some border areas.

Despite these conditions, Venezuela's political and electoral system in recent years has become more open. The 1993 presidential elections, won by Caldera's coalition, were the first since democracy was re-established in 1958 that were not won by the two major political parties. In addition, half the members of the Chamber of Deputies were elected directly for the first time in 1993. This reform resulted in a national Congress comprised of five main political forces of roughly equal size, in contrast to the AD- and COPEI-dominated political system of the recent past.

Venezuela's armed forces have rejected a direct role in national politics since 1958. Civil-military relations in Venezuela are good. The two 1992 coup attempts failed because senior military commanders remained loyal to civilian authorities and suppressed the rebels.

On the local level, the decentralization of power from the national government to state and municipal authorities began in 1989 with the direct election of governors, state legislators, mayors, and city council members every three years. Until that year, governors had been appointed by the president.

ECONOMY

Venezuela is rich in oil and other mineral resources. Its per capita income is about average for Latin America. The country's public external debt (excluding the obligations of the central bank and PDVSA, the parastatal oil company) stood at approximately $26.5 billion in 1996. The economy grew by 4.5% in real terms in 1997. Consumer prices rose only 37.6% in 1997 compared to the record 103% of 1996. The government is hoping for inflation of 24% during 1998.

The Venezuelan economy is making a comeback under the Agenda Venezuela, propelled primarily by the opening of the petroleum sector to foreign investment (the "apertura"), a far-reaching privatization program, and plans to reform public sector operations. Oil prices have shown a continual decline since 1996, which is serving to erode the budgetary surplus from 4.5% in 1996 to an estimated 1.5% in 1997.

In July 1996, the Venezuelan Government and the IMF formally announced a $1.4 billion stand-by loan. The World Bank and Inter-American Development Bank are also contributing to efforts to promote fundamental structural reforms--in the judiciary, electoral system, and social security/severance pay programs.

Petroleum and Other Resources

Venezuela's economy is dominated by petroleum, and the country is a founding member of the Organization of Petroleum Exporting Countries (OPEC). In 1997, this sector accounted for more than one-quarter of GDP, almost three-quarters of export earnings, and almost half of central government's revenues. Most of Venezuela's energy exports consist of crude oil, but the country is also the United States' leading foreign source of refined petroleum products.

The Government of Venezuela has opened up much of the hydrocarbon sector to foreign investment, promoting the establishment of massive new petrochemical joint ventures and reactivation of inactive fields. The Venezuelan petroleum corporation and foreign oil companies signed eight contracts for exploration and production joint ventures in July 1996. These contracts are expected to generate over $15 billion in foreign investment.

A range of other natural resources, including iron ore, diamonds, coal, bauxite, hydroelectric power, gold, and nickel are in various stages of development. In 1996, CVG, the state-owned mining firm, announced its first joint venture with a foreign company to develop the Las Cristinas gold mine. Congress is also considering legislation which would update Venezuela's 1945 mining law in an effort to encourage greater private sector participation in mineral extraction.

Manufacturing, Agriculture, and Trade

Manufacturing contributed 15.6% of GDP in 1997. The manufacturing sector grew slightly (2.2%) in direct contrast with the contraction in 1996. Venezuela manufactures and exports steel, aluminum, textiles, apparel, beverages, and foodstuffs. It also produces cement, tires, paper, and fertilizers, and assembles cars for both the domestic and export market. The "Agenda Venezuela" envisions the privatization of a range of state-owned enterprises, including banks.

Agriculture accounts for 4% of GDP, 12% of the labor force, and 24% of Venezuela's land area. Venezuela exports beef, rice, coffee, and cocoa. However, the country is not self-sufficient in most areas of agricultural production and imports about 60% of food consumed. In 1996, U.S. firms exported approximately $475 million of agricultural products including wheat, soybeans, corn, soymeal, and cotton to Venezuela, our third-largest agricultural export market in Latin America. The U.S. usually accounts for slightly more than a third of Venezuela's food imports.

Thanks to petroleum exports, Venezuela usually posts a trade surplus. In recent years, non-traditional (i.e. non-petroleum) exports have been growing rapidly but still constitute only about one-fourth of total exports. The United States is Venezuela's leading trade partner. During the first 10 months of 1997, the United States registered $3.0 billion in exports (about 38% of Venezuela's total) and purchased $12.9 billion in imports (about 55% of Venezuela's total). Venezuela's trade with other Andean Pact members, particularly Colombia, is growing in importance.

Labor and Infrastructure

Venezuela's labor force of about 8.8 million is growing faster than total employment. At the end of 1997, official unemployment was 12.8%, but unofficial estimates are higher. The public sector employs 14% of the work force, while less than 1% work in the capital-intensive oil industry. About 25% of the labor force is unionized. Unions are particularly strong in the public sector.

Venezuela has an extensive road system. With the exception of air service, transportation and communications have failed to keep pace with the country's needs. Much of the infrastructure suffers from inadequate maintenance. Caracas has a modern subway, but only one functioning rail line serves the rest of the country.

FOREIGN RELATIONS

Venezuela traditionally has said that its international conduct will be governed by:

  • Respect for human rights;
  • The right of all people to self-determination;
  • Non-intervention in the internal affairs of other nations;
  • Peaceful settlement of disputes between nations, including border disputes;
  • The right of all people to peace and security; and
  • Support for democracy.

The Caldera Government has made hemispheric cooperation and integration its foreign policy priorities. Venezuela worked closely with its neighbors following the Summit of the Americas in many areas, particularly energy integration, and championed the OAS decision to adopt an Anti-Corruption Convention. Venezuela also participates in the UN Friends of Haiti, of El Salvador, and of Guatemala groups. It is pursuing efforts to join the Mercosur trade bloc to expand the hemisphere's trade integration prospects.

Venezuela has long-standing border disputes with Colombia and Guyana, but seeks to resolve them peacefully. Bilateral commissions have been established by Venezuela and Colombia to address a range of pending issues, including resolution of the maritime boundary in the Gulf of Venezuela. Relations with Guyana are complicated by Venezuela's claim to over half of Guyana's territory. Since 1987, the two countries have held exchanges on the boundary under the auspices of the "good offices" of the United Nations.

Principal U.S. Embassy Officials

Ambassador--John Maisto
Deputy Chief of Mission--John Keane
Political Counselor--Thomas Shannon, Jr.
Economic Counselor--Perry Ball
Commercial Attache--Eric Sletten
Consul General--Marilyn Jackson
Administrative Counselor--John Collins
Regional Security Officer--Harold Jenkins
Public Affairs Counselor--Nicholas Robertson

The U.S. Embassy is on Calle F and Calle Suapure, Colinas de Valle Arriba, Caracas (tel. 58-2-977-2011). Office hours are 8 a.m. to 5 p.m., Monday through Friday.

OTHER GOVERNMENT CONTACTS:

Department of State
Inter-American Affairs, Venezuela Desk 202-647-3023
Overseas Citizens Services 202-647-5225

Department of Commerce
14th and Constitution Avenue, NW
Washington, DC 20230
Venezuela Desk: 202-482-0475
800-USA-TRADE
Home page: http://www.ita.doc.gov

Venezuela-American Chamber of Commerce
Torre Credival, Piso 10
2nda Avenida de Campo Alegre
Campo Alegre, Apartado 5181
Caracas 1010A, Venezuela
Tel: 582-263-0833
Fax: 582-263-1829/0586
E-mail: Venam@ven.net
Home page: http://www.venamcham.org

U.S. Government Publications:

Consular Information Sheet 202-647-3000 (by fax)
Economic Trends Report 202-736-7760 (fax on demand)
Country Commercial Guide 202-736-7760 (fax on demand)

These publications are available through the State Department's World Wide Web page (www.state.gov).

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the country.

Public Announcements are issued as a means to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas which pose significant risks to the security of American travelers. Free copies of this information are available by calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-on-demand system: 202-647-3000. Travel Warnings and Consular Information Sheets also are available on the Consular Affairs Internet home page: http://travel.state.gov and the Consular Affairs Bulletin Board (CABB). To access CABB, dial the modem number: (301-946-4400 (it will accommodate up to 33,600 bps), set terminal communications program to N-8-1 (no parity, 8 bits, 1 stop bit); and terminal emulation to VT100. The login is travel and the password is info (Note: Lower case is required). The CABB also carries international security information from the Overseas Security Advisory Council and Department's Bureau of Diplomatic Security. Consular Affairs Trips for Travelers publication series, which contain information on obtaining passports and planning a safe trip abroad, can be purchased from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954; telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000.

Passport Services information can be obtained by calling the 24-hour, 7-day a week automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648).

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at (404) 332-4559 gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). Registering with the embassy may help you to replace lost identity documents or help family members contact you in case of an emergency.

Further Electronic Information:

Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official magazine of U.S. foreign policy; daily press briefings; Country Commercial Guides; directories of key officers of foreign service posts; etc. DOSFAN's World Wide Web site is at http://www.state.gov.

U.S. Foreign Affairs on CD-ROM (USFAC). Published on an annual basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Contact the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 or fax (202) 512-2250.

National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information.

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Venezuela History

  • Historical Setting


    Venezuela Government

  • Government and Politics