Wayzata World Factbook 1994/World Factbook - 1994 Edition - Wayzata Technology (1994).iso/pc/text/txtfiles/venezuel.bkg

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#CARD:Venezuela:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  VENEZUELA

November 1990
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
population est. 4.5 million).  Other major cities-Maracaibo, Valencia.
Terrain:  Varied.  Climate:  Varies from tropical to temperate,
depending on elevation.

People
Nationality:  Noun and adjective-Venezuelan(s).  Population (1988):
18.9 million.  Annual growth rate:  3%.   Ethnic groups:  Spanish,
Italian, Portuguese, Arab, German, Amerindian, African.  Religions:
Roman Catholic 96%. Languages:  Spanish (official), Indian dialects
spoken by some of the 200,000 Amerindians in the remote interior.
Education:  Years compulsory-9.Literacy-88.4%.  Health:  Infant
mortality rate-27.3/1,000.  Life expectancy-70 yrs. Work force (about
6.8 million):  Agriculture-6%.  Industry and commerce-35%.
Services-26%.  Other-33%.

Government
Type:  Federal republic.  Independence:  July 5, 1821.  Constitution:
January 23, 1961. Branches:  Executive-president (head of government and
chief of state); 26-member Council of Ministers (cabinet).
Legislative-bicameral congress (201-member Chamber of Deputies,
49-member Senate).  Judicial-18-member Supreme Court. Subdivisions:  20
states, 2 federal territories, one federal district, and 1 federal
dependence (72 islands). Political parties:  Democratic Action (Accion
Democratica-AD), Social Christian (Comite Organizador Politico pro
Elecciones Independientes-COPEI) and the Movement to Socialism
(Movimiento al Socialismo-MAS) are the major parties in the Venezuelan
congress.  Nine smaller parties are also represented in the legislature.
Flag:  Three horizontal bands-yellow, blue, and red, with a crest in a
corner of the yellow band and a semicircle of seven stars in the middle
of the blue band.  The colors come from the banner flown by Simon
Bolivar; the stars represent the 7 provinces.

Economy
Real GDP (1989):  $38.9 billion.  Rate of Growth (1989-90):  -8%.  Real
per capita income:  $2,058.  Avg. inflation rate (1989):  81%. Natural
resources:  Petroleum, natural gas, coal, iron ore, gold, other
minerals, hydroelectric power, bauxite. Agriculture (6% of GDP):
Products-rice, coffee, corn, sugar, bananas, and dairy, meat, and
poultry products. Industry (17% of GDP):  Types-petrochemicals, oil
refining, iron and steel, paper products, aluminum, textiles, transport
equipment, consumer products. Trade (1989):  Exports-$12.9 billion:
petroleum ($10 billion), iron ore, coffee, steel, aluminum, cocoa.
Major markets-US, Canada, Italy, Japan, Spain, FRG.  Imports-$7.1
billion:  machinery and transport equipment, manufactured goods,
chemicals, foodstuffs.  Major suppliers-US, Japan, Canada, FRG, France,
Italy, Brazil. There is no official exchange rate.  In February 1989,
Venezuela eliminated a multi-tiered exchange rate system adopted in
1983; the bolivar floats against the dollar.  Fiscal year: Calendar
year.

Membership in International Organizations
 UN and some of its specialized and related agencies; Organization of
American States (OAS); International Coffee Agreement; Andean Pact; Rio
Pact; Organization of Petroleum Exporting Countries;  Non-aligned
Movement ; Rio Group (informal group of Latin American states which
deals with multilateral regional issues).

PEOPLE
 Most Venezuelans are of European, Amerindian, and/or African descent.
The most recent period of European immigration dates to the early 1950s,
when many Spanish, Italian, and Portuguese immigrants arrived.  The 1981
census showed that 94% of the people are native born; of foreign born,
most came from Spain, Italy, Portugal, Africa, and Colombia. Venezuela
is sparsely populated.  Most of the population is concentrated in the
Andes and along the coast.  Although almost half of the land area lies
south and east of the Orinoco River, that area contains only 4% of the
population.

HISTORY
 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 the Caracas, proved formidable 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).

GOVERNMENT
 Venezuela's history of periodic competition for political power based
on free and open elections has earned Venezuela a reputation as one of
the more stable democracies in Latin America. In December 1989,
governors in 20 states and mayors in 269 municipalities were elected for
the first time in the country's history.  This election also was the
first to use a system allowing the voter to choose individual candidates
by name, rather than selecting only among party slates.  Opposition
parties won nine gubernatorial contests. As Venezuela pursues political
and economic reform, it maintains an influen-tial role in foreign
affairs.  Venezuela, joined by Colombia, Mexico, and Panama, sought a
regional solution to Central America's problems through the Contadora
process.  Venezuela's political parties played a prominent role in
helping Nicaragua organize its own elections in 1990.  Caracas has
hosted peace talks between the El Salvador and the rebel Farabundo Marti
National Liberation Front.  Venezuela also is active in international
fora such as the Non-aligned Movement.

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 inter-vention, 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 February 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.

ECONOMY
 Rich in oil and other mineral resources, Venezuela has the highest per
capita income in Latin America.  More than 80% of its citizens live in
cities along the coast, where most industry is concentrated.  The
economy is dominated by the petroleum industry, which accounts for 80%
of exports and more than 50% of government revenue.  Other resources,
such as iron ore, coal, bauxite, and gold are in various stages of
development.  The Guasare coal field is one of the larger underdeveloped
fields in the Americas, and the government hopes to produce 10 million
metric tons a year by the mid-1990s, making Venezuela a leading exporter
of coal.  Venezuela discovered large bauxite deposits near its eastern
border in 1977 and is rapidly developing an aluminum industry; seven
smelters are planned.  As projects come on line over the next 5 years,
mineral exports are expected to at least double in volume. Agriculture
accounts for only 6% of GDP, 12% of the labor force, and 20% of the land
area.  The sector is highly inefficient and depends on a network of
subsidies and trade barriers.  Venezuela's main export crops are coffee
and cocoa.  The staple crops are maize and sorghum; most of Venezuela's
wheat is imported. Venezuela manufactures and exports petrochemicals,
steel, aluminum, textiles, apparel, beverages, and foodstuffs.  It also
produces cement, tires, paper, and fertilizers, and assembles cars for
the domestic market.  Manufacturing accounts for 17% of GDP but is
highly inefficient, having been protected by high tariff walls and
import quotas. Small and undercapitalized, the financial sector has been
declining as a percentage of GDP in recent years because of unrealistic
exchange rates and negative domestic interest rates.  Total banking
assets at the end of 1989 were the equivalent of $18 billion, of which
the public sector controls 25% through 8 mixed or public banks.  Three
of the smaller banks are targeted for privatization this year.  Of the
41 commercial banks, 6 hold more than 50% of commercial bank assets.
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.  Caracas has a modern subway, but only one
functioning rail line serves the rest of the country. The labor force of
about 6.8 million is growing at more than 3% a year.  High demand for
labor in the 1970s ensured near full employment and attracted large
numbers of immigrant workers, parti-cularly from Colombia.  Unemployment
rose from 5.9% in 1980 to more than 12% in 1989.  The informal sector's
participa-tion in total employment rose to an estimated 38% in 1988,
reflecting rising underemployment.  The public sector employs 19% of the
work force, while less than 1% work in the capital intensive oil
industry.  The labor force is 35% unionized. The government hopes to get
more than $16 billion in new multilateral financing (excluding
commercial bank lending) for the next 5 years.  Venezuela has secured
$4.7 billion in International Monetary Fund (IMF) and $750 million in
World Bank financing and hopes that Japan will match the IMF's 3-year
extended fund facility. For more economic information, write the US
Department of Commerce, International Trade Administration,
Publications, Sales & Distribution Room 1617M, Washington, DC  20230, to
obtain the semiannual Foreign Economic Trends report.  For additional
commercial information, call 202-377-4303.

DEFENSE
 The armed forces total 58,000 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, whose primary
mission is to enforce internal security.  Since 1959, the armed forces
have come to reject a direct role in national politics. In general,
civil-military relations in Venezuela are good.

FOREIGN RELATIONS
 The government traditionally has said that its international conduct
will be governed by:
 --  respect for human rights;
 --  the right of all peoples 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 peoples to peace and security;
 --  support for the elimination of colonialism; and
 --  higher export prices for developing countries' primary
products.
 Venezuela has numerous border disputes with its neighbors but seeks to
resolve them peacefully.  Relations with Guyana are complicated by
Venezuela's claim to the area up to the Essequibo River, more than half
the area of Guyana.  With the concurrence of both parties, the border
issue was referred to the UN Secretary General for a determination of
suitable means for settlement in 1987.  Since 1970, Venezuela and
Colombia have held sporadic talks about the maritime border in the Gulf
of Venezuela.  Bilateral mediation efforts were recently reinvigorated
by the presidents of both nations.  A maritime boundary settlement with
Trinidad and Tobago has been submitted to the legislatures of both
countries for approval. Despite economic challenges, Perez has remained
active on the international stage.  Venezuela has joined the Non-aligned
Movement.  In the Western Hemisphere, he helped monitor preparations for
elections in Nicaragua and tried to rally hemispheric support behind a
plan to oust former Panamanian military strongman General Manuel
Noriega.

US-VENEZUELAN RELATIONS
 The United States and Venezuela have similar global views-of
strengthening democratic institutions around the world; furthering human
rights; accelerating sound economic, social, and cultural development
through orderly and progressive change within the framework of a free
society; and cooperating in the defense and security of the Western
Hemisphere against aggression or subversion. Venezuela not only endorses
the theoretical goals of democracy but also works with the United States
to promote democracy and human rights.  For example, Venezuela has

adopted the American Convention on Human rights and supports the
Inter-American Commission on Human Rights.  Along with the United
States, Venezuela supports the goals of nuclear non-proliferation in the
hemisphere, conventional arms restraint, anti-terrorism, and the
promotion of hemispheric economic development.  Venezuela and the United
States  have similar views on the importance of democratization as a key
element in a solution to the long-term problems of Central America.
President Perez made a state visit to the United States in April 1990,
at which time he and President Bush continued their frequent discussions
on a broad range of issues. The United States is Venezuela's most
important trading partner, representing more than 45% of its
international trade.  The United States exports machinery,
transportation equipment, agricultural commodities and auto parts in
exchange for oil and other natural resources. The United States budgeted
$700,000 in fiscal year 1990 for anti-narcotics assistance to Venezuela,
which also receives $125,000 in International Military Educational
Training (IMET) funds.

Principal US Officials
Ambassador-Michael M. Skol
Deputy Chief of Mission-Robert C. Felder
Political Counselor-William W. Millan
Economic Counselor-Frank S. Parker
Commercial Attache-Kenneth Moorefield
Labor Attache-Robert A. Millspaugh
Consul General-Daniel R. Welter
Administrative Counselor-Michael A. Boorstein
Regional Security Officer-Kevin M. Barry
Public Affairs Counselor-Stephen M. Chaplin

Principal Government Officials
President-Carlos Andres Perez
Foreign Minister-Reinaldo Figueredo Planchart
Ambassador to the United States-Simon Alberto Consalvi
Ambassador to the United Nations-Andres Aguilar Madslewy
Ambassador to the OAS-Guido Grooscors

 Venezuela's embassy in the United States is at 1099 30th St. NW,
Washington, DC 20007 (tel. [phone]). Consulates are in Baltimore,
Boston, Chicago, Houston, Los Angeles, Miami, New Orleans, New York,
Philadelphia, Portland, and San Francisco.  Only consulates issue visas.

 The US Embassy is on Avenida de Miranda and Avenida Principal de la
Floresta, Caracas (tel. [phone]).  Office hours are 8 am to 5 pm,
Monday through Friday.  The consulate in Maracaibo is in Edificio
Sofimara, Piso 3, Calle 77 con Avenida 13 (tel. [phone]).
Office hours are 8 am to noon and 2 pm to 4 pm, Monday through Friday.

 Published by the United States Department of State -- Bureau of Public
Affairs -- Office of  Public Communication -- Washington, DC November
1990 -- Editor: Jim Pinkelman.
 Department of State Publication 7749. Background Notes Series  --  This
material is in the public domain and may  be reprinted without
permission; citation of this source is appreciated.  For sale by the
Superintendent of Docu-ments, US Government Printing Office,Washington,
DC  20402.  (###)


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