Venezuela

Venezuela, officially called the Bolivarian Republic of Venezuela  República Bolivariana de Venezuela, is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south. Its northern coastline of roughly 2,800 kilometres 1,700 mi includes numerous islands in the Caribbean Sea, and in the north east borders the northern Atlantic Ocean. Caribbean islands such as Trinidad and Tobago, Grenada, Curaçao, Bonaire, Aruba and the Leeward Antilles lie near the Venezuelan coast. Venezuela's territory covers around 916,445 square kilometres (353,841 sq mi) with an estimated population of 29,105,632. Venezuela is considered a country with extremely high biodiversity, with habitats ranging from the Andes mountains in the west to the Amazon Basin rainforest in the south, via extensive llanos plains and Caribbean coast in the center and the Orinoco River Delta in the east.

Venezuela was colonized by Spain in 1522, overcoming resistance from indigenous peoples. It became the first Spanish American colony to declare independence (in 1811), but did not securely establish independence until 1821 (initially as a department of the federal republic of Gran Colombia, gaining full independence in 1830). During the 19th century Venezuela suffered political turmoil and dictatorship, and it was dominated by regional caudillos (military strongmen) into the 20th century. It first saw democratic rule from 1945 to 1948, and after a period of dictatorship has remained democratic since 1958, during which time most countries of Latin America suffered one or more military dictatorships. Economic crisis in the 1980s and 1990s led to a political crisis which saw hundreds dead in the Caracazo riots of 1989, two attempted coups in 1992, and the impeachment of President Carlos Andrés Pérez for corruption in 1993. A collapse in confidence in the existing parties saw the 1998 election of former career officer Hugo Chávez, and the launch of a "Bolivarian Revolution", beginning with a 1999 Constituent Assembly to write a new Constitution of Venezuela.

Venezuela is a federal presidential republic consisting of 23 states, the Capital District (covering Caracas), and Federal Dependencies (covering Venezuela's offshore islands). Venezuela is among the most urbanized countries in Latin America; the vast majority of Venezuelans live in the cities of the north, especially in the capital, Caracas, which is also the largest city. Venezuela is a founder member of the United Nations (1945), the Organization of American States (1948), the Organization of the Petroleum Exporting Countries (OPEC) (1960), the Group of 15 (1989), the World Trade Organization (1995), the Bolivarian Alliance for the Americas (ALBA) (2004) and the Union of South American Nations (UNASUR) (2008). Since the discovery of oil in the early 20th century, Venezuela has been one of the world's leading exporters of oil. Previously an underdeveloped exporter of agricultural commodities such as coffee and cocoa, oil quickly came to dominate exports and government revenues. The 1980s oil glut led to an external debt crisis and a long-running economic crisis, which saw inflation peak at 100% in 1996 and poverty rates rise to 66% in 1995 as (by 1998) per capita GDP fell to the same level as 1963, down a third from its 1978 peak. The recovery of oil prices after 2001 boosted the Venezuelan economy and facilitated social spending, although the fallout of the 2008 global financial crisis saw a renewed economic downturn.

Economy of Venezuela

The 20 Venezuelan bolívar fuerte banknote featuring a portrait of Luisa Cáceres de Arismendi.

Venezuela has a mixed economy dominated by the petroleum sector, which accounts for roughly a third of GDP, around 80% of exports and more than half of government revenues. It suffers high levels of corruption. Per capita GDP for 2009 was US$13,000, ranking it 85th in the world. About 30% of the population of the country live on less than US $2 per day. Venezuela has the least expensive petrol in the world because the consumer price of petrol is so heavily subsidised.

Manufacturing contributed 17% of GDP in 2006. Venezuela manufactures and exports heavy industry items such as steel, aluminium and cement, with production concentrated around Ciudad Guayana, near the Guri Dam, one of the largest in the world and the provider of about three quarters of Venezuela's electricity. Other notable manufacturing includes electronics and automobiles, as well as beverages, and foodstuffs. Agriculture in Venezuela accounts for approximately 3% of GDP, 10% of the labor force, and at least one-fourth of Venezuela's land area. Venezuela exports rice, corn, fish, tropical fruit, coffee, beef, and pork. The country is not self-sufficient in most areas of agriculture; Venezuela imports about two-thirds of its food needs.

Due to petroleum exports, Venezuela usually posts a trade surplus. The United States is Venezuela's leading trade partner, whilst trade with the People's Republic of China has grown so rapidly since 1999 that in 2009 China was Venezuela's second-largest trade partner.

Since the discovery of oil in the early 20th century, Venezuela has been one of the world's leading exporters of oil, and it is a founder member of OPEC. Previously an underdeveloped exporter of agricultural commodities such as coffee and cocoa, oil quickly came to dominate exports and government revenues. The 1980s oil glut led to an external debt crisis and a long-running economic crisis, which saw inflation peak at 100% in 1996 and poverty rates rise to 66% in 1995 as (by 1998) per capita GDP fell to the same level as 1963, down a third from its 1978 peak. The 1990s also saw Venezuela experience a major banking crisis in 1994. The recovery of oil prices after 2001 boosted the Venezuelan economy and facilitated social spending, although the fallout of the 2008 global financial crisis saw a renewed economic downturn.

Venezuela has some of the largest oil and natural gas reserves in the world, and consistently ranks among the top ten crude oil producers in the world. The country's main petroleum deposits are located around and beneath Lake Maracaibo, the Gulf of Venezuela (both in Zulia), and in the Orinoco River basin (eastern Venezuela), where the country's largest reserve is located. Besides the largest conventional oil reserves and the second-largest natural gas reserves in the Western Hemisphere, Venezuela has non-conventional oil deposits (extra-heavy crude oil, bitumen and tar sands) approximately equal to the world's reserves of conventional oil. The electricity sector in Venezuela is one of the few to rely primarily on hydropower, and includes the Guri Dam, one of the largest in the world.

In the first half of the 20th century, US oil companies were heavily involved in Venezuela, initially on the basis of purchasing concessions. In 1943 a new government introduced a 50/50 split in profits between the government and the oil industry. In 1960, with a newly installed democratic government, Hydrocarbons Minister Juan Pablo Pérez Alfonso led the creation of OPEC, the consortium of oil-producing countries aiming to support the price of oil. In 1973 Venezuela voted to nationalize its oil industry outright, effective 1 January 1976, with Petróleos de Venezuela (PDVSA) taking over and presiding over a number of holding companies; in subsequent years, Venezuela built a vast refining and marketing system in the U.S. and Europe. In the 1990s PDVSA became more independent from the government and presided over an apertura (opening) in which it invited in foreign investment. Under Hugo Chávez a 2001 law placed limits on foreign investment.

The state oil company PDVSA played a key role in the December 2002-February 2003 national strike which sought President Chávez' resignation. Managers and skilled highly paid technicians of PDVSA shut down the plants and left their posts, and by some reports sabotaged equipment, and petroleum production and refining by PDVSA almost ceased. Activities eventually were slowly restarted by returning and substitute oil workers. As a result of the strike, around 40% of the company's workforce (around 18,000 workers) were dismissed for "dereliction of duty" during the strike.

Venezuela is connected to the world primarily via air (Venezuela's airports include the Simón Bolívar International Airport near Caracas and La Chinita International Airport near Maracaibo) and sea (with major sea ports at La Guaira, Maracaibo and Puerto Cabello). In the south and east the Amazon rainforest region has limited cross-border transport; in the west, there is a mountainous border of over 1,375 miles (2,213 km) shared with Colombia. The Orinoco River is navigable by oceangoing vessels up to 400 km inland, and connects the major industrial city of Ciudad Guayana to the Atlantic Ocean.

Venezuela has a limited national railway system, which has no active rail connections to other countries; the government of Hugo Chávez has invested substantially in expanding it. Several major cities have metro systems; the Caracas Metro has been operating since 1983. The Maracaibo Metro and Valencia Metro were opened more recently. Venezuela has a road network of around 100,000 km (placing it around 47th in the world); around a third of roads are paved.