Venezuela

9/1/2024

Overview

The July 2024 presidential election in Venezuela creates an opportunity to reflect upon the leadership of President Nicolas Maduro who presides over a crumbling economy and the flight of nearly 8 million (25%) of his citizens. Join Active Minds as we explore how this once promising economy and evolving democracy has wound up in shambles. We will look at how the price of oil, the policies of the late President Hugo Chavez, and other factors converged to create this crisis and explore what the future holds for this important South American country.

Key Lecture Points

  • In 1811 Venezuela declared its independence from Spanish colonial control. Although it would only last one year, the Venezuelan Republic of 1811 set the stage for full independence of the South and Central American Spanish colonies.
    Simon Bolívar led the South American wars of independence, finally defeating the Spanish in 1821. Bolívar aspired to free and unify all of the former Spanish colonies. After liberating the areas including Ecuador, Peru and Bolivia from Spanish rule, Bolívar ruled briefly as a dictator over the vast region.
  • By 1829, Bolívar’s efforts had failed, and the various elements of his state split off into separate states. Venezuela became an independent country in 1829 when elites in Caracas deposed and exiled Bolívar. Since then, Venezuela has had a long history of strongmen dictators. Additionally, US involvement in the hemisphere has greatly influenced Venezuelan history. In 1895, the US intervened directly, negotiating a border dispute between Britain and Venezuela. At the time, the US Secretary of State, Richard Olney stated “Today the US is practically sovereign on this continent.”
  • In 1999, Hugo Chávez was elected president and led the country until his death in 2013. Chávez’s vision of “21st Century Socialism” included alleviating the social ills of his people while attacking capitalism and globalization. He nationalized Venezuela’s key economic sectors and industries, including oil. He labeled the United States as a dangerous force with imperialistic designs on controlling Venezuela and Latin America. Chávez used oil income to consolidate his power at home by providing subsidized goods and services and to buy influence abroad (e.g. subsidized oil to Cuba). He was criticized for anti-democratic efforts, including the nationalization of media and his use of rule by decree. In 2013, Chávez’ hand-picked successor, Nicolas Maduro, was elected president and has continued the socialist programs of Chávez.
  • Since 2014, under the leadership of Maduro Venezuela has faced a spiraling economic and political crisis caused by the collapse of oil prices with US sanctions exacerbating these problems. The result has been widespread shortages of food, medicine, sanitation, and electricity, leading a humanitarian crisis and the flight of nearly 25% of the population (7.7 million people) from Venezuala.
  • Efforts to topple Maduro from power via the ballot have been thwarted.  In 2018, Maduro claimed a victory that was widely disputed and opposed by emerging opposition leader Juan Guaido who led a failed effort to claim power in 2019.  After claiming a narrow victory in 2024 presidential elections, Maduro’s reelection was judged to be undemocratic by the Carter Center and UN observers.

Discussion Questions

  • What are the causes of the current Venezuelan economic crisis and what is the proper way for the US to respond?
  • Have you ever lived under food rationing and serious food shortages? What was most difficult about the experience?
  • If Maduro survives the opposition to his reelection, how will he do so and what will the future hold for Venezuela?  If Maduro is forced to step down, how will that be achieved and what will the future hold?

More to Explore

Books for Further Reading

  • Tinker-Salas, Miguel.  Venezuela: What Everyone Needs to Know.  Oxford University Press, USA, 2015. 264 pages.  The author provides a concise history of Venezuela to include the role oil has played in the country’s history and the legacy of the Chavez years.
  • Corrales, Javier, Michael Penfold. Dragon in the Tropics: Venezuela and the Legacy of Hugo Chavez. Brookings Institute Press, 2015. 224 pages.  The authors describe how Chavez revamped Venezuela’s political and economic systems, the current economic crisis and the new realities of Venezuelan politics.