The indigenous peoples of Venezuela ranged from sophisticated agriculturalists--the Timotes, who used irrigation and terracing--to primitive groups living on islands offshore. Coastal Carib tribes, especially the Teques and Caracas, proved formidible enemies to the Spanish who followed Columbus after his 1498 visit. Carib leader Guarcaipuro mobilized as many as 10,000 warriors to resist Spanish settlement. The first permanent Spanish settlement in South America--Nuevo Toledo--was established in Venezuela in 1522.

Spanish explorers noted natives using a black, oily liquid--petroleum--in their daily chores and took some of it to Spain as a curiosity in 1500. The Spanish were interested in yellow, rather than black, gold, however, and looked for treasure elsewhere in their colonial empire. Even Venezuela's agricultural potential was not appreciated by the Spanish. Other Europeans, especially English adventurers and Dutch and French traders took an interest in the region and developed important commercial connections there. Eventual efforts by Spain to limit these inroads and develop the colony proved counterproductive, and Venezuelans began to grow restive under colonial control.

Armed uprisings broke out in 1795, 1797, and 1799. In 1806, Francisco de Miranda--a Venezuelan aristocrat who was also a lieutenant general in the French Revolution and an acquaintance of Washington, Hamilton, Adams, and Paine--launched an unsuccessful rebellion. Independence was not achieved until 1821 and then under the leadership of Simon Bolivar, Venezuela's native son and continental hero. 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.

Venezuela's 19th-century history is characterized by frequent periods of political instability, dictatorial rule, and revolutionary turbulence. The 20th century has been marked by long periods of authoritarianism: dictatorships of Gen. Juan Vicente Gomez (1908-35) and Gen. Marcos Perez Jimenez (1950-58), and a democratic interlude between 1945 and 1948. Since the overthrow of Perez Jimenez on January 23, 1958, democratic elections have been held every 5 years, and democratic institutions are flourishing. Action Democratica (AD) won five of these elections (1958, 1963, 1973, 1983, 1988), and the Social Christian (COPEI) Party won two (1968 and 1978).

Political Conditions

After a 10-year, constitutionally mandated hiatus from power, Carlos Andres Perez took office again as president on February 2, 1989, for an unprecedented second 5-year term. He has abandoned economic nationalism, import substitution, and state intervention, the trademarks of his first term (1974-79). The decline of oil prices in the mid-1980s and changes in policy have forced austerity on consumers accustomed to subsidies. Perez is trying to diminish the role of the state in economic affairs and the country's dependence on oil exports. To reduce the scope of public sector intervention in the economy, authorities have moved to a floating exchange rate and eliminated many interest rate and price controls, as well as the level of subsidies for consumer goods. This adjustment is likely to be painful in the short term and already has resulted in inflation and economic contraction.

Economic hardship and the austerity program sparked violence in February 1989. On Februray 27-28, crowds, reacting to a sharp increase in bus fares, began burning buses. The violence grew when mobs, frustrated by reduced food supplies, began widespread looting of groceries and other businesses. When police no longer could maintain order, the government temporarily suspended some constitutional rights and used military force to restore order and to feed the population.

Source: U.S. Department of State, Bureau of Public Affairs, April 1989.