Texas History Minute: How history, oil, and politics shaped Venezuela’s crisis

By Ken Bridges, Texas History Minute

Venezuela is a land of 28 million people, rich in resources but deep in poverty.  It has a long history but faces many challenges.

The country has been inhabited for 15,000 years.  Christopher Columbus briefly explored its coastline in 1498, and Spanish colonization began in 1502.  Like other Spanish colonies, it was under the dictatorial control of the king for centuries.  When the Napoleonic Wars erupted across Europe in the early 1800s, the people of South America saw an opportunity to break away.  

Simon Bolivar became a pivotal figure for South America.  He rallied the people against Spain, calling for independence and leading the fight in the field against the Spanish army.   In 1811 and 1813, colonists briefly wrested away control from Spain, only to lose it again shortly afterward. 

After these stinging defeats, Bolivar fell back and issued the “Jamaica Letter” in 1815, calling for the people to continue the fight.  Jungle battles and mass uprisings would become a common feature of Venezuelan history.  Bolivar declared that Spain’s policies had prevented the colonies from developing their own economies, blocked trade with each other, and prevented the people from having any voice in their own affairs.  He called on the people to resist the “insatiable greed” of Spain and take charge of their own lands.  By 1819, he decisively defeated Spanish forces in Colombia and in Venezuela after the Battle of Carobodo in 1821.  

To this day, Bolivar is hailed in the region as the great liberator, with his face on the money and schools and cities named for him.  His Jamaica Letter and other works are routinely taught in schools across the region.  Venezuela would later call itself the “Bolivarian Republic of Venezuela” in honor of the man who had become a George Washington-like figure.

Upon independence, a republic was established as Colombia, Panama, Venezuela, and later Ecuador were brought together as “Gran Colombia.”  However, serious differences emerged and Venezuela broke away by 1831.  A small group of elites controlled the land and the economy, which consisted mostly of agriculture and mining, while stinging poverty plagued the majority of the country.  Though nominally a republic, freedoms and opportunities were limited for the bulk of the people. This led to uprisings, civil wars, and rebellions in the ensuing decades, forcing authorities to clamp down on dissent.  Debates raged over centralized control from the capital at Caracas versus local and regional control, social services, education, and taxpayer support for the Roman Catholic Church.  However, antagonism against foreign intervention became a staple feature of its politics.  

In 1895, Great Britain tried to take advantage of the chaotic situation, threatening a land war with Venezuela using a border dispute over their neighboring colony of British Guyana as a pretext.  U. S. President Grover Cleveland threatened war with Britain to protect Venezuela, forcing the British to back down.  In 1902, Venezuela’s inability and unwillingness to pay its debts threatened another foreign intervention.

The discovery of oil in the early 1900s transformed its economy.  As it turned out, Venezuela has among the world’s largest reserves.  Oil became its leading export by 1927, and Venezuela was the world’s largest oil exporter by 1929 (some years before large reserves were found in Saudi Arabia).  The U. S. and others quickly moved in to invest.  However, foreign corporations controlling oil, mining, agriculture, and railroads became increasingly unpopular across Latin America as foreign control meant the wealth of their nation disappeared to foreign lands while their poverty persisted.  

As economic and social problems persisted in the twentieth century, political opinions were pulled to the extreme ends of the spectrum.  In 1935, Eleazar Lopez Contreras rose to power and faced a labor strike among oil workers.  He declared the strike illegal but worked with the oil companies to improve working conditions but limited political parties.

A 1945 coup briefly brought democracy to Venezuela under Romulo Betancourt, only to be lost in another coup in 1948.  Betancourt introduced many education reforms and redistributed lands to the poor.  He arranged the “50-50” agreement with oil companies, making sure that at least half of all oil revenue would stay in the country.  The military allowed elections in 1952 but overthrew the elected government again in 1958.  A new election brought Betancourt back to power.  In 1960, he spearheaded the effort to create OPEC, the Organization of Petroleum Exporting Countries.  When he left office in 1964, he was the first president to leave office peacefully.

In 1976, Venezuela nationalized its oil industry but allowed foreign corporations to operate.  Increasing prices on gas and food led to a series of riots in 1989.  This sparked coup attempts in 1992 and 1993. 

By 1998, socialist and 1992 coup leader Hugo Chavez was elected on a platform of a new constitution and new economic and political opportunities for the poor. He was briefly overthrown in 2002 in a coup initially supported by the U. S., but mass protests brought Chavez back to power two days later.  Chavez was re-elected in 2006 and 2012.  Angry at what he saw as foreign interference in its government and economy, Chavez kicked out all foreign oil companies in 2007 and clamped down on opposition.

When Chavez died in 2013, Nicolas Maduro, his vice-president, rose to power.  The economy disintegrated and oppression increased.  Elections continued but were increasingly marred by allegations of fraud.

The removal of Maduro from power by the U. S. still leaves serious questions.  Political and economic problems remain.  Deep poverty and political violence haunt the land.  As the new year begins, Venezuela confronts a bloody past and an uncertain future.

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Before creating Bluebonnet News in 2018, Vanesa Brashier was a community editor for the Houston Chronicle/Houston Community Newspapers. During part of her 12 years at the newspapers, she was assigned as the digital editor and managing editor for the Humble Observer, Kingwood Observer, East Montgomery County Observer and the Lake Houston Observer, and the editor of the Dayton News, Cleveland Advocate and Eastex Advocate. Over the years, she has earned more than two dozen writing awards, including Journalist of the Year.

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