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VENEZUELA

Venezuela was one of three countries that emerged from the collapse of Gran Colombia in 1830 (the others being Ecuador and New Granada, which became Colombia). For most of the first half of the 20th century, Venezuela was ruled by generally benevolent military strongmen, who promoted the oil industry and allowed for some social reforms. Democratically elected governments have held sway since 1959. Hugo CHAVEZ, president since 1999, has promoted a controversial policy of "democratic socialism," which purports to alleviate social ills while at the same time attacking globalization and undermining regional stability. Current concerns include: a weakening of democratic institutions, political polarization, a politicized military, drug-related violence along the Colombian border, increasing internal drug consumption, overdependence on the petroleum industry with its price fluctuations, and irresponsible mining operations that are endangering the rain forest and indigenous peoples.

LOCATION

Northern South America, bordering the Caribbean Sea and the North Atlantic Ocean, between Colombia and Guyana. Sightly more than twice the size of California. On major sea and air routes linking North and South America; Angel Falls in the Guiana Highlands is the world's highest waterfall.

POPULATION

26,023,528 (July 2007 est.).  Ethnic groups: Spanish, Italian, Portuguese, Arab, German, African, indigenous people. Religions: Nominally Roman Catholic 96%, Protestant 2%, other 2%

NATURAL RESOURCES

Natural resources:

petroleum, natural gas, iron ore, gold, bauxite, other minerals, hydropower, diamonds

NATURAL CHALLENGES

Natural hazards: subject to floods, rockslides, mudslides; periodic droughts

Environment - current issues:

sewage pollution of Lago de Valencia; oil and urban pollution of Lago de Maracaibo; deforestation; soil degradation; urban and industrial pollution, especially along the Caribbean coast; threat to the rainforest ecosystem from irresponsible mining operations

ECONOMICS

Venezuela remains highly dependent on oil revenues, which account for roughly 90% of export earnings, more than 50% of the federal budget revenues, and around 30% of GDP. Tax collection - Venezuela's primary source of non-oil revenue - is expected to surpass $23 billion in 2006, exceeding the yearend collection goal by more than 20%. A nationwide strike between December 2002 and February 2003 had far-reaching economic consequences - real GDP declined by around 9% in 2002 and 8% in 2003 - but economic output since then has recovered strongly. Fueled by higher oil prices, record government spending helped to boost GDP growth in 2004 and 2005 to approximately 18% and 11%, respectively. Economic growth in 2006 reached about 9%. This spending, combined with recent minimum wage hikes and improved access to domestic credit, has fueled a consumption boom - car sales in 2006 increased by around 70% - but has come at the cost of higher inflation. Despite government attempts to withdraw liquidity from the economy, Venezuela's money supply set a record in June 2006, approximately 70% higher than the previous year. Imports have also jumped significantly.

GDP - per capita (PPP):

$6,900 (2006 est.)

Budget:

revenues: $52.24 billion
expenditures: $52.9 billion; including capital expenditures of $2.6 billion (2006 est.)

Public debt:

28.4% of GDP (2006 est.)

Agriculture - products:

corn, sorghum, sugarcane, rice, bananas, vegetables, coffee; beef, pork, milk, eggs; fish

Industries: petroleum, construction materials, food processing, textiles; iron ore mining, steel, aluminum; motor vehicle assembly.

Oil - proved reserves:

75.27 billion bbl (2006 est.)

Natural gas - proved reserves:

4.276 trillion cu m (1 January 2005 est.)

Debt - external:

$35.63 billion (2006 est.)

Economic aid - recipient:

$74 million (2000)

Internet Service Providers (ISPs):

16 (2000)

Internet users:

3.04 million (2005)

GOVERNMENT AND POLITICS

Government type:

federal republic

Capital:

name: Caracas
geographic coordinates: 10 30 N, 66 56 W
time difference: UTC-4 (1 hour ahead of Washington, DC during Standard Time)

Administrative divisions:

23 states (estados, singular - estado), 1 capital district* (distrito capital), and 1 federal dependency** (dependencia federal); Amazonas, Anzoategui, Apure, Aragua, Barinas, Bolivar, Carabobo, Cojedes, Delta Amacuro, Dependencias Federales**, Distrito Federal*, Falcon, Guarico, Lara, Merida, Miranda, Monagas, Nueva Esparta, Portuguesa, Sucre, Tachira, Trujillo, Vargas, Yaracuy, Zulia
note: the federal dependency consists of 11 federally controlled island groups with a total of 72 individual islands

Independence:

5 July 1811 (from Spain)

National holiday:

Independence Day, 5 July (1811)

Constitution:

30 December 1999

Legal system:

open, adversarial court system

Suffrage:

18 years of age; universal

Executive branch:

chief of state: President Hugo CHAVEZ Frias (since 3 February 1999); Vice President Jorge RODRIGUEZ Gomez (since 3 January 2007); note - the president is both the chief of state and head of government
head of government: President Hugo CHAVEZ Frias (since 3 February 1999); Vice President Jorge RODRIGUEZ Gomez (since 3 January 2007)
cabinet: Council of Ministers appointed by the president
elections: president elected by popular vote for a six-year term (eligible for a second term); election last held 3 December 2006 (next to be held in December 2012)
note: in 1999, a National Constituent Assembly drafted a new constitution that increased the presidential term to six years; an election was subsequently held on 30 July 2000 under the terms of this constitution
election results: Hugo CHAVEZ Frias reelected president; percent of vote - Hugo CHAVEZ Frias 62.9%, Manuel ROSALES 36.9%

Legislative branch:

unicameral National Assembly or Asamblea Nacional (167 seats; members elected by popular vote to serve five-year terms; three seats reserved for the indigenous peoples of Venezuela)
elections: last held 4 December 2005 (next to be held in 2010)
election results: percent of vote by party - NA; seats by party - pro-government 167 (MVR 114, PODEMOS 15, PPT 11, indigenous 2, other 25), opposition 0

Judicial branch:

Supreme Tribunal of Justice or Tribuna Suprema de Justicia (magistrates are elected by the National Assembly for a single 12-year term)

Political parties and leaders:

A New Time or UNT [Manuel ROSALES]; Christian Democrats or COPEI [Cesar PEREZ Vivas]; Democratic Action or AD [Henry RAMOS Allup]; Fatherland for All or PPT [Jose ALBORNOZ]; Fifth Republic Movement or MVR [Hugo CHAVEZ]; Justice First [Julio BORGES]; Movement Toward Socialism or MAS [Hector MUJICA]; Venezuela Project or PV [Henrique SALAS Romer]; We Can or PODEMOS [Ismael GARCIA]

Political pressure groups and leaders:

FEDECAMARAS, a conservative business group; VECINOS groups; Venezuelan Confederation of Workers or CTV (labor organization dominated by the Democratic Action)

MILITARY

Military branches:

National Armed Forces (Fuerzas Armadas Nacionales or FAN): Ground Forces or Army (Fuerzas Terrestres or Ejercito), Naval Forces (Fuerzas Navales or Armada; includes Marines, Coast Guard), Air Force (Fuerzas Aereas or Aviacion), Armed Forces of Cooperation or National Guard (Fuerzas Armadas de Cooperacion or Guardia Nacional)

Military service age and obligation:

18 years of age for compulsory and voluntary military service; conscript service obligation - 30 months; all citizens of military service age (between 18 and 50 years old) are obligated to register for military service (2007)

Manpower available for military service:

males age 18-49: 6,236,012
females age 18-49: 6,137,622 (2005 est.)

Manpower fit for military service:

males age 18-49: 4,907,947
females age 18-49: 5,151,843 (2005 est.)

Manpower reaching military service age annually:

males age 18-49: 252,396
females age 18-49: 237,300 (2005 est.)

Military expenditures - percent of GDP:

1.2% (2005 est.)

CONFLICTS

Claims all of the area west of the Essequibo River in Guyana, preventing any discussion of a maritime boundary; Guyana has expressed its intention to join Barbados in asserting claims before the United Nations Convention on the Law of the Sea (UNCLOS) that Trinidad and Tobago's maritime boundary with Venezuela extends into their waters; dispute with Colombia over maritime boundary and Venezuelan-administered Los Monjes islands near the Gulf of Venezuela; Colombian-organized illegal narcotics and paramilitary activities penetrate Venezuela's shared border region; in 2006, an estimated 139,000 Colombians sought protection in 150 communities along the border in Venezuela; US, France, and the Netherlands recognize Venezuela's granting full effect to Aves Island, thereby claiming a Venezuelan EEZ/continental shelf extending over a large portion of the eastern Caribbean Sea; Dominica, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines protest Venezuela's full effect claim.

OTHER CONSIDERATIONS

Trafficking in persons:-current situation: Venezuela is a source, transit, and destination country for women and children trafficked for the purposes of sexual exploitation and forced labor; women and children from Colombia, China, Peru, Ecuador, and the Dominican Republic are trafficked to and through Venezuela and subjected to commercial sexual exploitation or forced labor; Venezuelans are trafficked internally and to Western Europe, particularly Spain and the Netherlands, and to countries in the Caribbean region for commercial sexual exploitation; Venezuela is a transit country for illegal migrants from other countries in the region and for Asian nationals, some of whom are believed to be trafficking victims
tier rating: Tier 3 - Venezuela does not fully comply with the minimum standards for the elimination of trafficking and is not making significant efforts to do so

Illicit drugs:-small-scale illicit producer of opium and coca for the processing of opiates and coca derivatives; however, large quantities of cocaine, heroin, and marijuana transit the country from Colombia bound for US and Europe; significant narcotics-related money-laundering activity, especially along the border with Colombia and on Margarita Island; active eradication program primarily targeting opium; increasing signs of drug-related activities by Colombian insurgents on border

Illicit drugs:

small-scale illicit producer of opium and coca for the processing of opiates and coca derivatives; however, large quantities of cocaine, heroin, and marijuana transit the country from Colombia bound for US and Europe; significant narcotics-related money-laundering activity, especially along the border with Colombia and on Margarita Island; active eradication program primarily targeting opium; increasing signs of drug-related activities by Colombian insurgents on border.

Text and images: USCIA 31 May, 2007