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Bolivarian Revolution

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Chávez extols the anti-imperialist aspects of Bolivarianism, 
which were first kindled during his college years, in an address to hundreds of thousands of chavistas along Caracas's  Avenida Bolívar on May 16, 2004.
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Chávez extols the anti-imperialist aspects of Bolivarianism, which were first kindled during his college years, in an address to hundreds of thousands of chavistas along Caracas's Avenida Bolívar on May 16, 2004.

The Bolivarian Revolution refers to a mass social movement and political process active in Venezuela. Its most prominent leader is Hugo Chávez, the founder of the Movement for the Fifth Republic and the current President of Venezuela. The Bolivarian Revolution seeks the implementation of Bolivarianism in Venezuela. Proponents of Bolivarianism trace its roots to an avowedly democratic socialist interpretation of the ideals of Simón Bolívar, an early 19th century Venezuelan and Latin American revolutionary leader, prominent in the South American Wars of Independence. Other historical figures often invoked by Chávez as emblematic of the Bolivarian Revolution are Simón Rodríguez (Bolivar's lifelong mentor) and Ezequiel Zamora.

Ideology

Chávez has used his charismatic aura and rhetorical skill to invigorate supporters of the Bolivarian Revolution during both electoral campaigns and rallies. Here Chávez addresses a fiery lecture to red-shirted chavistas at the Worker's Day march on January 05, 2005 in downtown Caracas.
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Chávez has used his charismatic aura and rhetorical skill to invigorate supporters of the Bolivarian Revolution during both electoral campaigns and rallies. Here Chávez addresses a fiery lecture to red-shirted chavistas at the Worker's Day march on January 05, 2005 in downtown Caracas.

Chávez is the most prominent exponent of Bolivarianism, which functions as the root ideology of the Bolivarian Revolution. Chávez has listed a number of ideological streams that he sees as having contributed significantly to Bolivarianism. Most notable of these are the ideas of Noam Chomsky and his libertarian socialist and anarcho-syndicalist sympathies. Bolivarianism's vehement opposition to corporate state globalism and endorsement of populism also derive from Chomsky's writings.

Chávez asserted in his September 2005 speech at the Bronx's Latino Pastoral Action Center that Jesus of Nazareth was a radical activist who purportedly emphasized and sought redistributive social justice and democratic socialism--Chávez has stated that such emphases also characterize Bolivarianism. Chávez has repeatedly claimed that--in line with his own thinking--Jesus was a social, as opposed to an individual, savior and liberator who was active in class struggle, social justice, and human rights both individual and collective. These controversial statements imply that Chávez deems the ideologies and goals of Bolivarianism as entirely coterminous with those of Christian socialism and liberation theology.

Such statements on Bolivarian ideology made by Chávez have attracted the ire of some evangelical and conservative groups, who traditionally place almost exclusive emphasis on Jesus as a personal, as opposed to a social, savior. Such groups promote the idea that Jesus's teachings did not address issues such as class conflict and exploitation. Margaret Thatcher's so-called Sermon on the Mound expressly articulated these anti-liberation theology sentiments by attempting to offer theological justification for capitalism. In it, she claimed "Christianity is about spiritual redemption, not social reform".

Chávez's administration has sought to strengthen the Venezuelan government's control over the nation's vital oil industry while seeking to better redistribute the revenues earned from petroleum exports. Bolivarianism has continually evolved as a coherent ideology since Hugo Chávez was elected president in late 1998.

Components of Chávez's Bolivarianism

In recent years, its most significant political manifestation is in the government of Venezuela's president Hugo Chávez, who since the beginning of his presidency has called himself a Bolivarian patriot and sought to apply several of Bolívar's ideals to everyday affairs. That included the 1999 Constitution, which changed Venezuela's name to the Bolivarian Republic of Venezuela, and other ideas such as the Bolivarian Schools, Bolivarian Circles, and the Universidad Bolivariana de Venezuela. Often, the term Bolivarianism is used specifically to refer to Chávez's rule. The central points of Bolivarianism, as extolled by Chávez, are:
1. Venezuelan economic and political sovereignty (anti-imperialism).
2. Grassroots political participation of the population via
popular votes and referenda (participatory democracy).
3. Economic self-sufficiency (in food, consumer durables, et cetera).
4. Instilling in people a national ethic of patriotic service.
5. Equitable distribution of Venezuela's vast oil revenues.
6. Eliminating corruption.

Historical development into a democratic socialist movement

Popular support for the Bolivarian Revolution and its leader, Hugo Chávez, helped defeat a 2004 recall referendum. Here red-shirted Revolution supporters urge a “No” vote in the 2004 recall referendum as they march through the streets of Caracas on August 8, 2004.
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Popular support for the Bolivarian Revolution and its leader, Hugo Chávez, helped defeat a 2004 recall referendum. Here red-shirted Revolution supporters urge a “No” vote in the 2004 recall referendum as they march through the streets of Caracas on August 8, 2004.

Subsequent to the 2002 coup attempt, the attempted lockout and work stoppage by Venezuela's oil industry, and an unsuccessful and internationally verified 2004 Venezuelan recall referendum on Chávez's presidency, political and social policies and developments popularly associated with the Bolivarian Revolution began to accelerate in development and number, and involved increased participation by the Venezuelan poor.#redirect [[Template:Fact]] Following the example of the Cuban Revolution, Chávez began to organize Bolivarian Circles in Venezuelan communities with the purpose of promoting the Revolution. After the coup, many in the movement, including Chávez himself, began advocating socialism as being the correct direction that the Bolivarian Revolution should progress in. This has historical significance, being the first time since the fall of the Berlin Wall that such a statement of intention has come from a popular leader. Chávez has also stated that we must forget the "ghosts" with which socialism has been associated in the 20th century, developing a new "Socialism of the 21st Century".#redirect [[Template:Fact]]

Troops at Miraflores, April 13, celebrate the return to office of Chávez.
Troops at Miraflores, April 13, celebrate the return to office of Chávez.

The recent political history of Venezuela has been marked by clashes - often violent - between supporters of Mr. Chávez and his opponents. The proclamation of 49 laws by Chávez in late 2001 under powers granted to him by the country's National Assembly, the supreme legislative power, led to opposition. At the same time, the price of oil, Venezuela's principal export and the main source of government funds, fell, forcing the government to sharply curtail spending, which led to a decline in support for the government amongst Venezuela's poor, who make up the majority of voters. The resulting political tension that ensued led to an increasingly tense political situation in the country, that culminated in the violent attempted coup of 11 April 2002.

Hugo Chávez, surrounded by resolute supporters, makes a dramatic return to power on April 13, 2002 after the collapse of the first Latin American coup of the twenty-first century.
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Hugo Chávez, surrounded by resolute supporters, makes a dramatic return to power on April 13, 2002 after the collapse of the first Latin American coup of the twenty-first century.

Chávez was returned to the presidency on 13 April 2002 and promised national reconcilliation, but the president ultimately refused to make concessions on his economic plans. The breakdown in dialogue between the government and the opposition eventually led to the calling of a "national strike" in December 2002 designed to force early presidential elections. As part of the strike, thousands of employees of PDVSA, the state-owned oil company, walked off the job, shutting down oil production in the world's fifth largest oil exporter. The strike was eventually broken by the government in January 2003. As a result of the strike, some 19,000 PDVSA employees were fired. The Opposition media has since consistently claimed that PDVSA has failed to return oil production to pre-strike levels. A delayed Audited financial statement submitted by PDVSA in october 2005 showed this opposition claim to be false, with oil production returning to pre-strike levels during April 2003, three months after the 2003 opposition strike ended.

Following his 2004 referendum victory, Chávez embraced a more concretely leftist social, economic and foreign policy. Chávez now advocates "socialism of the 21st century" although there is debate among both supporters and critics as to the meaning of such a term.

Authoritarian versus Democratic

There is an ongoing debate among scholars whether Hugo Chávez has rescued Venezuela from the corruption of the Pacto de Punto Fijo, or if he has damaged the very foundations of the nation’s democracy.

The Authoritarian Position Some believe that there is too much power in Chávez's hands. Some scholars perceive Chávez’s new constitution as contradictory and authoritarian. Although it is comprehensive in it sections concerning human rights, some argue that the strength and power that is given to the highest branch of the government could violate human rights anyhow. Also, Chávez’s new Constitution allows the president to be in office considerably, which some argue supports authoritarianism. The most disturbing element of the Constitution to some is that it only expects that the military be nonpartisan and compliant. This is interpreted by some to mean that the army could have major role in society and the state. Scholars also criticize the manner in which Chávez gained power and his conduct just after his election. When Chávez organized a new constituent assembly, some perceived his real motivation was not to create a more democratic nation, but merely to settle the score with Venezuela’s traditional political parties and to remove them from all positions of influence. These scholars view Chávez’s attempt to overthrow the government in 1992 as equal to the corruption of the traditional parties, which seized power by military intervention in 1945, and disbanded Venezuela’s Congress and Supreme Court.

Furthermore, Chávez’s use of inflammatory and exclusionary language against his opponents mimics the more authoritarian qualities of the traditional Venezuelan political leaders. Some even believe that the army could go against Chávez, since they detest that he wears their uniform and that he reintegrated some 2002 coup conspirators into the military. Other scholars even view Chávez as a fascist. Some believe that Chávez is a follower of the Argentinean neo-fascist Norberto Ceresole [link], who advocated that an excellent leader was one who could subordinate all other branches of government. These scholars argue that like Ceresole, Chávez uses military metaphors in his speeches and categorizes the world into friends and enemies.

The Democratic Stance On the other hand, some scholars argue that Chávez is the protector of democracy. In their view, although Chávez's government does emphasize the mobilization of the masses and confrontational speeches, Chávez cannot be equated to fascism since his ideology is left wing and egalitarian and, most importantly, he respects the autonomy of other countries. Others are more pronounced in their views that Chávez is a benefit to democracy. These scholars believe that Chávez liberated Venezuela from the corruption of the Pacto de Punto Fijo and that he stands for a much needed deep transformation in Venezuelan society. They perceive that since Chávez does not belong to any particular political body, he is more capable to meet the interests of Venezuelans.

While some scholars label Chávez as an “authoritarian nationalist” similar to Gamal Abdul Nasser of Egypt, others compare him to a “neopopulist” similar to Alberto Fujimori. However, some perceive Chávez’s democratic rise to power, and the new constitution, which outlines new democratic procedures, as evidence to make comparisons with Nasser and Fidel Castro and other leaders of neo-liberal states invalid. Some critics of Chávez compare him to Fujimori but this comparison is also incorrect because unlike Fujimori, Chávez has an independent foreign policy, a radical discourse, and he did not endorse massive privatization. While those who argue that Chávez is too authoritarian in his policies, other scholars praise him for his avoidance in repressing the media, which is extremely hostile to his government and for his abstinence from using force against demonstrations that demanded his removal from presidency.

Women in the Bolivarian Revolution

Chávez sought the opinions of women in the drafting of the 1999 Bolivarian Constitution. Women of various socio-economic backgrounds were involved in the drafting of portions of the Constitution including former guerilla fighters, professionals, housewives and members from Women’s organizations such as Women for Venezuela and United Women Leaders. It discusses sexual discrimination, sexual harassment and domestic violence. It recognizes domestic housework ‘as an economically productive activity’ thus entitling housewives to social benefits (Article 88). In most countries, domestic work does not have economic value (with exceptions such as Germany). Furthermore, the Constitution explicitly states women’s position in society as well as removes class distinctions.

Aside from drafting the Constitution, women have also lent their hand in formulating legislation about health care, education, the environment and indigenous and reproductive rights.

The Women's Development Bank, also referred to as Banjumer, attempts to empower women politically, economically and socially.

Women’s organizations such as INAMUJER, have also played a role in the Bolivarian Revolution. It performs functions such as educating women about what their political rights are and how to defend them. It also informs women about their sexual reproductive rights and how to prevent abuse against women. It provides telephone hotlines for victims of abuse to report crimes as well as shelters, such as Casa de Abrigo for victims of spousal abuse. INAJUMER also attempts to mobilize marginalized women into their organizations and involve them in the political discourse.

Challenges to the Women's Movement

Although the Feminist movement has achieved success, there remain challenges to the viability of the Women’s Movement. Criminal, civil and labour laws have reinforced women’s subordination.#redirect [[Template:Fact]] Poverty is another obstacle to the viability of the Women's Movement. Women are at a greater risk to be impoverished compared to their male counterparts.  According to the United Nations (UN) 70% of women internationally live in poverty.#redirect [[Template:Fact]] This phenomenon has been referred to as the ‘feminization of poverty.’ 

Racism in Venezuela

History of Racism in Venezuela: Venezuela During the Colonial Period

Over three centuries, about 100, 000 slaves aged 15-20 were brought over to Venezuela. Slaves were treated inhumanely -- they were rubbed with coconut oil to give them a black shine so as to attract slave buyers. Also, their mouths were forced open to inspect their teeth before being purchased, something similarly done to horses.

The theologians of the Spanish empire legitimized the slave trade through the Bible – suggesting that the Ethiopians find their origins in Ham who came from a light skinned ancestry but was born dark skinned. Ham symbolized the impression the Spaniards had of the slaves– drunk, and ignoble. Therefore, it was easy to blame those of African descent for society’s troubles; the indigenous peoples were also blamed.

The Royal Certificate of Special Dispensation of 1795 allowed those of mixed race to purchase the classification of being “white.” However, there was strong opposition by the white criollos. The whites feared social and economic equality among the races. The large cacao plantations they had come to own represented a large source of their wealth. These plantations had been developed through slave labour and indigenous servitude. Therefore equality among the races would mean the abolishment of slave labour, and indigenous servitude and thus the abolishment of plantations.

The African slave trade ended in 1797 however, it did not abolish servitude among the Afro-Venezuelans and the indigenous.

In later years, a national identity of a “mixed” race known as mestizo was formed. The mestizo identity was a way to marginalize the Afro-Venezuelans and the indigenous because now their race was no longer recognized. Simply, it was a way to exclude an entire social class of Afro-Venezuelans and indigenous people. The result for the indigenous was that they lost their rights to their land.

Racism in Venezuela Today

There is obvious racism in Venezuela today, however when asked, the majority of Venezuelans will state that racism does not exist in their country. Racism is apparent in several different sectors of the country. For example, mainly lighter skinned people live in the upper-class neighbourhoods whereas darker skinned people live in the barrios. In addition, according to Jesus “Chucho” Garcia, and James Early, the Afro-Venezuelan population represents a large portion of the 67% of Venezuelans who live under the poverty line. This would suggest that there is a class structure based on race in Venezuela.


Other forms of racism are even more overt in Venezuelan media; the media is predominantly controlled by the white elites. For example, Venezuelan television often portrays Afro-Venezuelans or dark skinned individuals as criminals or servants. Also, President Hugo Chávez who considers himself from African and indigenous descent is often portrayed as a monkey by the political opposition.  

Marginalization of Afro-Venezuelans

Under the new Bolivarian constitution, drafted in 1999, indigenous Venezuelans’ rights were recognized. For example, Article 121 of the constitution states: “Indigenous peoples have the right to maintain and develop their ethnic and cultural entity, worldview, values, spirituality, and sacred places of worship. The state shall promote the appreciation and dissemination of the cultural manifestations of the indigenous peoples, who have the right to their own education and an education system of an intercultural and bilingual nature, taking into account their special social and cultural characteristics, values, and traditions.”

Although Hugo Chávez is considered to be partly of African descent, Afro-Venezuelans continue to be marginalized and have yet to be recognized or mentioned in anyway under the Bolivarian constitution.

Role of Social Groups in the Bolivarian Movement

Afro-Venezuelan social groups such as La Red Afro-Venezolana advocate a change of legislation so that Afro-Venezuelans’ rights are legally recognized under the constitution. Groups such as La Red Afro-Venezolana are working toward implementing Afro-Venezuelan education into the educational system, for example. In addition, these grassroots groups state that democracy in Venezuela cannot exist if Afro-Venezuelans are not included in the constitution. Afro-Venezuelans are working toward obtaining their rights through the Bolivarian movement’s concept of participatory democracy. Through participatory democracy, they are able to have a say in policies that affect them. Many Afro-Venezuelans are optimistic about their future under the Bolivarian movement.

Other positive steps toward recognition of Afro-Venezuelan rights are conferences that have been held in Venezuela to eradicate racism. For instance, the International Afro-Descendent Conference took place in Caracas, May 6-8, 2005. The conference focused on Latin American unity on this sensitive subject, as well as ways to promote inclusion and visibility of Afro-Venezuelans.

Policies and aspects

Military’s Role in Social Missions

Origins “Go house to house combing the terrain. The enemy. Who is the enemy? Hunger!” (Hugo Chávez, 2005). As a youth, Hugo Chávez only dreamed of becoming a pitcher in the Major Leagues. At the age of seventeen, he became a soldier in order to leave his poverty stricken life behind, and get to Caracas to attend high school and educate himself. It was his drive to learn and study the history of his people that often brought him to conflict with the life he was leading as a soldier. Accordingly in October 1977, as a twenty-three year old Lieutenant, Chávez secretly formed “The Bolivarian Army of the Liberation of the Venezuelan People”, which consisted of just five members. In 1982, as Captain of the paratroopers, he and his growing army swore an oath under the “saman”, which is a tree that Bolívar once camped under. This oath accelerated the movement of a Bolivarian army within the Venezuelan army. Here Chávez stated, “If I am here, this is where I will engage in struggle”, speaking of Caracas. Chávez was elected 1998 on three main promises: (i) to break the old political system of "puntofijismo"; (ii) to end corruption; and (iii) to alleviate poverty in Venezuela. Once Chávez gained power he began to replace institutionalized civilian control of armed forces with direct presidential control. In 1999 the new constitution expanded military judicial boundaries, and Chávez took ultimate control of the military including promotions of personnel. He quickly appointed officers who supported him in the 1992 coup to prominent positions and the military became a vital force in the government’s social policy. Theoretical Framework and Social Crisis Civil relations theorist have long cautioned of the armed forces partaking in domestic missions in democratic societies. They warn that this participation can politically bolster the military and lead to the overthrow of the government. However, history has shown that military involvement can be conducted without risk to democracy if elected officials who will limit their missions properly supervise it. Such increased military involvement in social missions will occur to compensate for the states inability to provide public services and goods demanded by the people. In addition, it is argued that political intervention by the military is just one outcome of internal conflict induced by crisis. This can be seen in 1999, when Venezuela fell under severe economic crisis. At this time oil prices fell to $7.00 per barrel, even though the budget planned for $14.00. This led to the immediate cut back of oil production, massive external debt, low wages, inflation of over 35% and 20% unemployment. The state weakness induced military immersion in the many domestic affairs and social missions. These missions were a product of the long-term deterioration of institutions of civilian control and short-term upsurges of political crisis involving citizens, and not the armed forces. Another period of crisis hit in 2002. There was a coup attempt; three general strikes, led by emplyers; and the sabotage and shut-down of the oil industry. This limited the resources available for many of the ongoing missions, but also increased military involvement throughout the country.

Chávez believes that the perfect government is one that strives to guarantee the greatest degree of happiness for it people. As a reaction to state weakness, Plan Bolivar 2000 was devised to empower the poor, end poverty, and solidify political support. Consequently, Plan Bolivar 2000 began to use the armed forces as servants of the people on February 27th, 1999. The military of Venezuela, with civilian volunteers flooded the streets and began to work, repair schools, build markets, provide food, and educate the people. Chávez said, “We are going to fill them with bursts of life instead of gunshots of death.”

Social justice aspects

Venezuela under the Chávez administration has deployed numerous national social welfare programs (Misiónes or "Missions") of massive scale:

Poster publicizing Barrio Adentro medical services: "The Bolivarian Revolution with its people ... National Program Barrio Adentro".
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Poster publicizing Barrio Adentro medical services: "The Bolivarian Revolution with its people ... National Program Barrio Adentro".

Official Misión Barrio Adentro logo.
Official Misión Barrio Adentro logo.

In particular, the literacy programs that comprise Misión Sucre are centered on encouraging and facilitating ordinary Venezuelans' literacy and comprehension of the 1999 Venezuelan Constitution and their inherent human rights as Venezuelan citizens therein. These programs have been criticized as inefficient and incomplete by opposition figures, but are widely heralded and appreciated by Chávez backers and by many international observers.

These are just a few of the many missions taking place in Venezuela today. These missions help promote social justice and social welfare. They are anti-poverty and work effectively to promote education and empower the large poor population of Venezuela. They work to refurbish infrastructure and provide health care for the poor. Moreover, they combat illiteracy and unemployment. With regards to the oil price crisis discussed above, by the end of 1999, Chávez was able to raise prices up to $16.00 per barrel, after meeting with OPEC leaders. The military has played a vital role in the building of over 600,000 schools. Also, by the end of 1999 the government more than doubled the health and education budgets. Over 60% of the population is now studying and there are now doctors in villages with medicine, which is free for the people. A scholarship fund has been created where 400,000 people receive $100.00 per month to study. The military’s increased role in domestic social policy has played a large role in the improvement of many of Venezuela’s problems. Chávez sums this up in an interview he gave in January 2003: “All this…would not have happened without the profound contact between the army and the people. That is Mao. The water and the fish. The people are to the army what the water is to the fish. In Venezuela today we have fishes in the water…”

Many of these programs involve importing expertise from abroad; Venezuela is providing Cuba with 53,000 barrels of below-market-rate oil a day in exchange for the service of thousands of physicians, teachers, sports trainers, and other skilled professionals. [(BBC)]

Oil profits -- about 25 billion dollars in 2004 -- allowed the Chávez administration to carry out what he calls a "new socialist revolution." The leftist platform involves a remarkable increase in spending on social programs. The Chávez administration has thus built free health care clinics, subsidized food and created small manufacturing cooperatives. Political scientist Michael Shifter says these projects have galvanized his core supporters -- the poor -- who make up around 60 percent of the country's population.

More contraversaly, Venzeuela has been involved in the purchase of a large number, 300,000, Russian assault rifles as well as military helicopters. As well, "neighborhood defense units" has been established to protect the nation against a purported American invasion.

Market socialist aspects

Venezuelan President Hugo Chávez Frías addressing Venepal workers during a ceremony celebrating the expropriation decree.
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Venezuelan President Hugo Chávez Frías addressing Venepal workers during a ceremony celebrating the expropriation decree.

In 2004, a group of trade unionists occupied the Venepal paper mill, the largest supplier of paper products in Venezuela, and called for its nationalization under workers' control. The company that oversaw the factory had previously been forced to declare bankruptcy as a result of financial losses stemming from its participation in the general lockout in 2003. Workers occupied the factory and restarted production, placing the factory under democratic worker management. Following a failed deal with the prior corporate management and amidst the company's threats to sell off equipment, the Chávez administration expropriated and nationalized the Venepal mill and extended a government line of credit to the factory for use in making repairs and installing upgrades.

The example of Venepal has inspired many of Chávez's supporters to call for the transformation of the Venezuelan economy to a fully market socialist model. However, other Chávez supporters fear that such expropriation firms the economy would incur retaliation from the United States, nonetheless the Bolivarian Revolution is quickly developing into a socialist movement.

Results

Domestic

Chávez, speaking at the 2005 World Social Forum convened in Porto Alegre, Brasil.
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Chávez, speaking at the 2005 World Social Forum convened in Porto Alegre, Brasil.

The changes brought about by the "Bolivarian Revolution" have altered the economic and cultural landscape of Venezuela. Most notably, although recent economic activity under Chávez has been robust[#endnote_latinbusinesschronicle_Oct2005], supported mainly by crude oil high prices, per-capita GDP in 2004 has [dropped over 25%] from [1998 levels]. According to Chávez's administration sources, there have also been significant drops since 1999 in both unemployment[#endnote_venezuelanalysis_14Oct2005_2]|more and government-defined poverty[#endnote_venezuelanalysis_14Oct2005_1], and marked improvements in national health indicators between 1998[#endnote_cia_1998] and 2005[#endnote_cia_2005]. Domestically, the Chávez administration has launched anti-poverty initiatives[#endnote_niemeyer36][#endnote_unicef2]|more, constructed thousands of free medical posts near shanty towns[#endnote_kuiper1]), instituted educational campaigns that have, alleged, taught more than one million adult Venezuelans to read[#endnote_niemeyer14], enacted deep food[#endnote_niemeyer15] and housing subsidies[#endnote_venezuelanalysis_01Aug2005_1], and promulgated the new progressive 1999 Bolivarian constitution. Chávez has also overseen state-supported experimentation in participatory economics as well as the granting of thousands of free land titles to formerly landless poor and indigenous communities[#endnote_wilpert_12sep2005]; in contrast, several large landed estates and factories have been — or are in the process of being — nationalized. Reportedly, at the end of 2005, the percentage of people living in extreme poverty was estimated 86% [link].

Foreign affairs

The Bolivarian Revolution under Chávez has also refocused Venezuelan foreign policymore on Latin American economic and social integration by enacting bilateral trade and reciprocal aid agreements, including his so-called "oil diplomacy". Chávez regularly portrays his movement's objectives as being in intractable conflict with neocolonialism and neoliberalism. As a result of his anti-capitalist and redistributive domestic policies combined with his strong relations with Cuba's Fidel Castro and other controversial figures, Venezuela-U.S. relations have deteriorated in recent years.

Chávez has also made a policy of spreading his ideas around the world and funding groups such as the International Bolivarian Circles and reaching out to Iran, Syria and Zimbabwe in the form of visits, symbolic acts and numerous trade agreements. Perhaps he is best known on the diplomatic scene for systematically opposing the United States numerous times.

Venezuelan Oil


Oil in the Venezuelan Society

Economically

In Economic terms, oil has brought wealth into one sector of the economy. This in turn causes problems for other sectors in the economy because they have to raise their prices to increase their income. Oil has brought problems within other sectors of the government. The government thought that oil could industrialize the country. This did not happen because, the government increased their spending and when demand for oil decreased the government could not change their spending. Thus, the increased spending produced debt and in 1996, the per capita income was lower than that of 1960.

Culturally

Due to the mass volumes of oil in Venezuela, citizens feel like they could succeed in Venezuela. To succeed in Venezuela, one would have to take initiative as an entrepreneur but, this did not happen. Instead, one would make contracts with the state. The contracts with the stated did not benefit them as the state had monopolized the oil industry.

Politically

Oil had changed the political view of the country as well. The state believed that they would become more bureaucratic. Oil was seen as a mediator between opposing interests groups in society. Punto Fijo came from opposing groups working together to enjoy all the luxuries that the oil wealth brought to the country. The Punto Fijo ended with the Presidency of Hugo Chávez in 1998.


Oil Policy

Venezuelan Oil has been an asset to the country for many years. The relationship between oil and politics in Venezuela is a strong one. The oil crisis in Venezuela began to become apparent in the social and economic sphere in the 1990s as the Apertura Policy was put into place. The Apertura Policy was an attack on Venezuelan oil. The policy was to open Venezuela’s oil to a competitive sector. The Apertura gave oil consuming countries the ability to go against the state. The main focus of the policy was the globalization of oil. The strategy of the Apertura was to nationalize the oil industry in Venezuela and to gain control over the PDVSA. The policy would make it so that the oil could be readily accessible for the consuming countries. By having oil available, the consuming countries went against the nation and the Venezuelan state. The Apertura accounts for the fiscal collapse of the 1990s. The collapse was the beginning of the coup de Grace for the Fourth Republic. Venezuela had succeeded in rejecting the Apertura policy in three ways. The first was the Caracazo which occurred in 1989 in Caracas. The second was through the rebellions of 1992. Finally, Venezuela has succeeded in rejecting the Apertura policy through the Hugo Chávez Presidency of 1998.


Oil in Venezuela Today

Venezuela’s Oil is still a problem today. While many think that Venezuela makes a considerable amount of profit from Oil, in fact they do not. Venezuelan oil is still a problem today because the revenues from oil is less today than if was five years ago. For example, in 1997 Venezuela’s revenue was $13, 657 billion dollar whereas in 2003, the revenue was $10, 510 billion dollars (Oil Wars: 2006). The revenues for oil are constantly different as Venezuela has more than one form of oil. Therefore, with different types of oils, the prices will vary. Another factor to keep in mind is that Venezuela sells a lower quality of oil than other international oil companies sell thus, not all of the oil is sold at international prices. International prices are higher as the quality of oil is better. Therefore Venezuela’s has to make due with the oil they produce. In order to accumulate their revenue today, Venezuela produces different types of oil such as gasoline and cooking gas. One should be aware that this does not always increase revenues. In many cases, Venezuela actually loses money on the production of different types of oil as they have to market and transport the oil to consumers. The revenues that are made from these oils are minimal. Venezuela’s revenues today are dropping as oil consuming countries are looking for a better quality of oil.

Notes:

Venezuelanalysis.com, Rafael Ramirez A National, Popular, and Revolutionary Oil Policy for Venezuela, June 9, 2005 [link]

Venezuelanalysis.com, Gregory Wilpert The Economics, Culture, and Politics of Oil in Venezuela, August 30, 2003 [link]

Venezuelanalysis.com, Oil Wars How much money does Venezuela Really get from Oil?, January 17, 2006 [link]

See also

     Topics related to Hugo Chávez      
Biography Early life | Military career | Presidency
Political events Coup attempt of 1992 | Presidential election of 1998 | Presidential election of 2000 | Coup attempt of 2002 | Recall referendum of 2004 | Putative coup attempt of 2004
Governance Bolivarian Alternative for the Americas | Bolivarian Circles | Bolivarianism | Bolivarian Revolution | Cabinet | Constitution | Foreign policy
Bolivarian Missions Barrio Adentro | Guaicaipuro | Hábitat | Identidad | Mercal | Miranda | Piar | Plan Bolivar 2000 | Ribas | Robinson | Sucre | Vuelta al Campo | Vuelvan Caras | Zamora
Reactions Criticism | Media representation | The Revolution Will Not Be Televised | Súmate

Notes

References

External links

 


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