Venezuela

Situated on the Northern coast of South America, the indigenous people of Venezuela were colonized by the Spanish Empire in 1522. In 1811 Venezuela declared independence and was ruled by an array of military leaders. The 1935 discovery of oil in Venezuela proved to be a major source of income and spurred the nation’s economy. In 1958 Venezuela first utilized the democratic system. However, since its inception the democracy has been unstable, with various coups both successful and defeated. In 1999 Hugo Chavez ascended to the presidency and implemented his Bolivarian Revolution. This included vast spending on public infrastructure and the reduction of poverty. This spending slowed the development of Venezuela and resulted in a coup attempt and a debilitating national strike. President Nicolas Maduro ascended to power after the death of Chavez in 2013. Maduro has continued to mismanage the economy. As a result, inflation is nearing 100% and there has been mass civil unrest. The Department of State has issued a warning to avoid travel to Venezuela and the nation owns the world’s second highest homicide rate behind Honduras. 

Social

Overview: The ascension of Hugo Chavez to power in 1999 spurred a massive round of public funding that drastically expanded state spending on the impoverished, sanitation, education, and health care. The funding has helped the general public but stymied the development of Venezuela. Many of the upper and middle class, especially in the oil industry, have emigrated from Venezuela due to the repressive economy. Still, other impoverished populations continue to flood into Venezuela due to its lax immigration policies. As of 2014 there has been mass social unrest due to inflation and a poor economy.

Demographics:
0 - 14 years of age: 28.2%
15 - 25 years of age: 18.8%
25 - 54 years of age: 39.6%
55 - 64 years of age: 7.5%
65 and older: 5.9%
Roman Catholic: 96%
Protestant: 2%
Other: 2%
Population: 28,868,486     
(Numbers from CIA World Fact Book)            

​Trends: The past 15 years have seen an increase in public spending due to the socialist leanings of the Bolivarian Revolution. This spending has hurt Venezuela’s development and spurred a major brain drain. In the past two years there has been continued unrest over inflation and the inability to purchase everyday products. This trend is likely to continue with Venezuela’s severely mismanaged economy. 

Economy

Economic System: Venezuela’s is a capitalist mixed economy with extensive state controls. Many of the state controls involve currency controls that significantly damage the operations of importers. Ultimately, the economy has been extremely poorly managed and faces a retracting GDP and inflation nearing 100%.

Economic Trends: The economy of Venezuela is firmly entrenched in a downward spiral. The country has failed to diversify and remains dependent on oil. The volatility of oil has led to economic crises throughout Venezuela’s history. Today, Venezuela may be in its worse economic crisis facing both falling oil prices and an extremely mismanaged economy. Government controls of currency have led to the departure of numerous foreign companies operating in Venezuela and have spiked inflation. Inflation in Venezuela is steadily growing with estimates from 60 to 100% There is shortages of basic goods such as toilet paper and milk. The GDP is retracting and the IMF sees little hope the Venezuelan economy rebounding in the near future. The economic situation has caused social unrest that has spurred riots and mass protests.

​Economic Resources: Petroleum, construction materials, food processing, iron ore mining, steel, aluminum; motor vehicle assembly. 

Infastructure

Roads: Generally decent for a still developing country. May experience gravel and dirt roads as well. Extreme driving. May still encounter potholes, etc.
Railways: Not a viable way of transportation.
Maritime (Rivers, Lakes,) Few waterways. Mostly for oceangoing vessels.
Power: High electricity consumption.
Internet: Increasingly available. Often must rely on internet cafes.
Phone: Mobile networks growing, coverage improving in cities. 

Political

Political System: Venezuela is a federal republic led by the president, currently Nicolas Maduro, who serves as both head of state and head of government. The president is elected for a six-year term but there is no limit for amount of terms a president may preside. The legislative branch of Venezuela consists of unicameral parliament known as the Asamblea Nacional (National Assembly). Members of parliament are elected to single five-year terms. The judicial branch’s highest court is the Supreme Tribunal of Justice that consists of 32 judges appointed for non-renewable 12-year terms. The Supreme Court judges are divided into 6 divisions that include constitutional, political administrative, electoral, civil appeals, criminal appeals, and social. 

Political Groups: The political groups in Venezuela coalesce around two major voting blocks. United Socialist Party of Venezuela (PSUV) is the leftist leaning bloc that currently holds the presidency. Its major voting partners include Fatherland for All (PPT) and the Communist Party of Venezuela. The opposition bloc is Mesa de la Unidad Democratica. Its allies include A New Era (UNT), Project Venezuela, Justice First, and Movement for Socialism. 

Political Conflicts: Venezuela possesses a history rife with coup d’etats and political turmoil. From the discovery of oil in 1935 to the election of Hugo Chavez in 1998, Venezuela’s political stability was often extremely volatile, often vacillating in accordance to the economy. In 1998, after years of government scandal, Hugo Chavez was elected president. Chavez promised an agenda of change dubbed the Bolivarian Revolution. This revolution aimed to implement popular democracy, economic independence, equal distribution of income, and an end to corruption. Chavez’s attempted revolution failed to bring stability as a failed coup attempt occurred in 2002 and a national strike debilitated the nation from late 2002 to early 2003. In 2013 Hugo Chavez died and was succeeded by Nicolas Maduro after a recall election. Since 2014 large-scale demonstrations and riots have occurred in Venezuela to protest poor conditions. Over 40 have died in the disturbance and Maduro has responded by arresting opposition leaders and clamping down on civil rights.

Allies & Adversaries: Relations between the United States and Venezuela have deteriorated since 2002 when the US briefly recognized the leaders of a coup against Hugo Chavez as the rightful government. As a result, Venezuela has attempted to strengthen ties with countries not traditionally close to the United States such as China and Russia. Venezuela maintains stable relations with all other South American nations. 

Military & Intelligence

Overview: The military of Venezuela has a long history of involvement in political affairs. Although it has maintained stability by stopping the 2002 coup attempt, there is grave concern that the formulation of the National Militia will pervert the armed forces power. The militia is seen as a personal army for the President and has been accused of human rights abuses. The Armed Forces of Venezuela’s relevance only exists within the nation as the United States has embargoed sale of any military equipment. Still, Venezuela has attempted modernization through arms deals with Russia and China.

Branches: The military of Venezuela consists of 5 branches. The Bolivarian Army, Navy, Military Aviation, National Guard, The National Militia.

​Reach: The Venezuelan Armed Forces have undergone a rapid process of modernization since the election of Hugo Chavez in 1998. However, this build up precipitated the United States to place a military embargo on Venezuela. Numerous military purchases have been stopped by the embargo. Thus, Venezuela turns to nations such as China and Russia for its military hardware. With the embargo Venezuela remains somewhat strong regionally but not a substantial world power. 

Information

Freedom of the press: Although freedom of the press is guaranteed by the 1999 Constitution, Venezuela lacks open and unbiased media. In 2004, the government of Hugo Chavez passed legislation that restricted media outlets from showing content that could “promote hatred” and “disrespect authorities” among other vague rules. This law has been used to hinder media outlets in opposition of the government. Similarly, harassment of journalists is not uncommon with many reporters now practicing a form a self-censorship to avoid potential harassment. The government also funds many media outlets causing them to be unabashedly pro-government and propagandistic. The government also has restricted access to various events for opposition reporters. The official monitoring board of the Venezuelan government, CONATEL, has failed to effectively censor social media. Thus, this outlet is growing rapidly as an open place for dialogue in Venezuela.

​Media institutions: Venezuela has over 265 community based media outlets, but these are funded by the government and thus biased towards pro-government. The government has national stations that includes 6 television stations, four radio stations, a new agency, and three newspapers. Newspapers are mostly privately owned and can be used for opposition reporting. In addition, social media is a rapidly expanding platform for non-government influenced information. 

Analysis: Country Trajectory
Venezuela projects to continue experiencing its current problems in the coming years. The economy shows no sign of improvement under government control. Inflation remains high and it is nearly impossible to exchange currency. This economic despair has led to civil unrest, crime, and thriving black markets. This all looks to continue. Additionally, its unlikely the relations with the United States will improve while Nicolas Maduro, the heir to Hugo Chavez, is in power. The country will remain in a bleak position and more social unrest can be expected.