Venezuela, country located at the northern end of South América. It occupies a roughly triangular area that is larger than the combined areas of France and Germany. Venezuela is bounded by the Caribbean Sea and the Atlantic Ocean to the north, Guyana to the east, Brazil to the south, and Colombia to the southwest and west. The national capital, Caracas, is Venezuela’s primary centre of industry, commerce, education, and tourism.
By Britannica – Jennifer L. McCoy
Dec 18, 2022
Venezuela administers a number of Caribbean islands and archipelagos, among which are Margarita Island, La Blanquilla, La Tortuga, Los Roques, and Los Monjes. Since the early 19th century Venezuela has claimed jurisdiction over Guyanese territory west of the Essequibo River totaling some 53,000 square miles (137,000 square km)—nearly two-thirds of the land area of Guyana. Venezuela also has had a long dispute with Colombia over the delimitation of maritime boundaries in the Gulf of Venezuela and around the archipelago of Los Monjes.
A physiographically diverse country, Venezuela incorporates the northern Andean mountain chains and interior highlands, the main portions of the Orinoco River basin with its expansive Llanos (plains), Lake Maracaibo, which is the largest lake in South América, and the spectacular Angel Falls, the world’s highest waterfall. The republic’s development pattern has been unique among Latin American countries in terms of the speed, sequence, and timing of economic and demographic growth. In the 20th century Venezuela was transformed from a relatively poor agrarian society to a rapidly urbanizing one, a condition made possible by exploiting huge petroleum reserves. These changes, however, were accompanied by imbalances among the country’s regions and socioeconomic groups, and Venezuela’s cities swelled because of a massive and largely uncontrolled migration from rural areas, as well as mass immigration, much of it illegal, from Colombia and other neighbours.
Venezuela, like many other Latin American countries, has a high percentage of urban poverty, a massive foreign debt, and widespread governmental patronage and corruption. Venezuela’s social and political ills have been compounded by natural disasters such as the floods that devastated sections of Caracas, La Guaira, and other coastal areas in late 1999. On the other hand, from 1958 to the early 21st century the republic was more democratic and politically stable than most other Latin American nations, and its economy benefited from a thriving petroleum industry that capitalized on the world’s largest known oil reserves. Venezuela’s position in the world became more precarious during the second decade of the 21st century as a result of the controversial rule of revolutionary leader Hugo Chávez, a significant decline in the fortunes of its petroleum industry, and the increasing authoritarianism of Chávez’s successor, Nicholás Maduro.
The Venezuelan landscape includes towering mountains, tropical jungles, broad river plains, and arid coastal plains, all of which provide a diversity of natural habitats and a range of challenges to social integration and economic development.
Relief
Venezuela’s topography can be divided into three broad elevational divisions: the lowland plains, which rise from sea level to about 1,650 feet (500 metres), the mountains, which reach elevations of some 16,400 feet (5,000 metres), and the interior forested uplands, with scattered peaks above 6,550 feet (2,000 metres). Within these broad divisions, seven physiographic regions can be distinguished: the islands and coastal plains, including the Orinoco delta; the Lake Maracaibo Lowlands; the Mérida and Perijá ranges of the Andes Mountains; the coastal mountain system (with its Coastal and Interior ranges); the northwestern valleys and hill ranges, also called the Segovia Highlands; the Llanos; and the Guiana Highlands.
The islands and coastal plains are located in the north. They include the Caribbean “Islands to the Leeward,” such as Margarita and La Tortuga, and several peninsulas, including the head-shaped Paraguaná in the northwest and, in the northeast, Araya and Paria, the latter a finger of land pointing at Trinidad. The coastal plains extend from the Colombian border and the Gulf of Venezuela eastward to the foothills of the coastal mountains, which are broken in the east by the Unare River basin. Farther east is the Orinoco delta, which opens onto the Atlantic Ocean through a number of distributaries (caños); an early gateway to the settlement of the interior, it is a low, dank, and swampy area heavily dissected by streams.
The two branches of the Andes that traverse northwestern Venezuela, including the country’s highest peaks, are northeastward extensions of the Colombian Andes’ Cordillera Oriental. The western branch, known as the Perijá Mountains (Sierra de Perijá, or Serranía de los Motilones), runs along the border with Colombia, whereas the eastern branch, the Cordillera de Mérida, extends from the border to Lara state and divides the Lake Maracaibo basin from that of the Orinoco River. Physiographically, the Segovia Highlands, northwest of Barquisimeto, and the coastal ranges may also be considered parts of the Andes chain. The highest point in the Venezuelan Andes is Bolívar Peak (La Columna), which rises to 16,332 feet (4,978 metres) in the Cordillera de Mérida. Between the high Andean ranges are Lake Maracaibo and its associated lowlands; this basin is one of the main oil-producing regions of the country.
The coastal mountain system, in effect two parallel ranges—the Coastal Range and the Interior Range—contains Venezuela’s greatest concentration of population, although it covers only a tiny fraction of the national territory. In the intermontane valleys are the major cities of Caracas, Valencia, and Maracay, and all but the steepest slopes are populated. Naiguatá Peak, at 9,072 feet (2,765 metres), is the highest point in the coastal system.
The valleys and hill ranges of the northwest lie east of Lake Maracaibo and form, in part, a transitional upland zone between the Coastal and Andean mountains. Elevations there range from 1,600 to 5,500 feet (490 to 1,680 metres). Within this region is the only desert in Venezuela—the sand dunes around the city of Coro.
Along the course of the Orinoco River lie the Llanos, a relatively level region of savannas and tropical rainforests, where the land undulates only between low mesalike interfluves and shallow, meandering, braided river courses. Cattle raising and oil exploration predominate in this sparsely populated region, which experiences river flooding in summer and drought in winter. From the Andean foothills to the Orinoco delta, the Llanos extend for some 800 miles (1,300 km), varying in width from about 100 miles (160 km) in the east to 300 miles (500 km) in the west.
From the Orinoco through the southernmost (Amazonas) territory bordering Colombia, Brazil, and Guyana are the vast Guiana Highlands, or Guayana, largely an upland surface of rounded hills and narrow valleys formed from ancient crystalline rocks. Occupying more than two-fifths of the country’s land area, it is the most remote and least explored part of Venezuela. Along the southern border with Brazil are groups of massive plateaus and steep-sided mesas, known as tepuis (tepuyes), capped with erosion-resistant sandstone and covered with intermingled savanna and semideciduous forest. Among the larger tepuis in the southeast are Camón, Chimanta, and the famous Mount Roraima, which rises to 9,094 feet (2,772 metres) along the Guyanese border. Like the lowland savannas of the Llanos, the tepuis experience extreme rainy and dry seasons.
Along the southeastern Guiana Highlands, in the region called La Gran Sabana, are Angel Falls (Parecupá Merú), the highest waterfall in the world, measuring 3,212 feet (979 metres) from the cliffs of the massive Auyán tepui (Auyantepui) to the valley floor below. Other major waterfalls in the region are Torón, Karuay, and Yuri. The highlands are sparsely settled but have tremendous resources; they abound in deposits of iron ore, gold, and diamonds, and they possess considerable hydroelectric potential, as well as hardwood forest resources. The Venezuelan military has long been concerned with the highlands because of the long-standing territorial dispute with Guyana, as well as illegal crossings of people, cattle, and narcotics over the Colombian and Brazilian borders.
Drainage of Venezuela
The Venezuelan drainage network consists almost entirely of two watersheds, the largest emptying into the Atlantic Ocean and the other into the Caribbean Sea.
The Orinoco River and its main tributary, the Caroní, carry approximately four-fifths of the country’s surface runoff and occupy a basin of some 366,000 square miles (948,000 square km). The Orinoco’s source is in the southern Guiana Highlands; it first flows northwestward, then north, and finally eastward to its delta, emptying into the Atlantic Ocean across some 275 miles (440 km) of coastline. In the Orinoco’s middle course, where it flows eastward through the wide Llanos, it is joined by tributaries from the Llanos interior, such as the Apure and Meta, and by other tributaries originating in the Guiana Highlands to the south, such as the Caroní. One unusual configuration occurs near the river’s source, where, because of the almost level gradient, the Orinoco channel divides: one branch discharges southwest into the Casiquiare River, which joins the Negro, a tributary of the Amazon, whereas the other branch continues its northward flow through Venezuela.
The intermontane basins and valleys of the Andes and coastal mountains are drained mainly by other tributaries of the Orinoco. The Caracas valley is an exception, however; there the Tuy River runs eastward to the Caribbean. Landlocked Lake Valencia is Venezuela’s only example of interior drainage.
Covering an area of 5,130 square miles (13,280 square km) in northwestern Venezuela, Lake Maracaibo is considered by some sources to be the largest natural lake in South América. It is approximately 75 miles (120 km) wide from east to west and 100 miles (160 km) long from north to south, excluding a channel 25 miles (40 km) long that connects the northern end of the lake to the Gulf of Venezuela, an inlet of the Caribbean. Because of this connection to the sea and the resulting brackish water in the northern part of the lake, Maracaibo is sometimes described as a gulf or a lagoon, and as a result, some sources identify Lake Titicaca (which lies astride the Peru-Bolivia border) as the continent’s largest lake. Lake Maracaibo’s southern waters are fresh, however. Maracaibo is fed by some 10 large rivers, including the Catatumbo, Chama, Escalante, and Santa Ana, as well as by dozens of small rivers and streams. Thousands of oil derricks and pumps jut from a vast area of the lake’s surface. (See Researcher’s Note: Lake Titicaca versus Lake Maracaibo.)
Soils
Relatively infertile, reddish latosols are common in Venezuela’s Llanos and in the Guiana Highlands. Abundant moisture leaches some soils of all but the most insoluble minerals, including iron and aluminum sesquioxides, which are collectively known as laterite. The country’s most fertile soils are formed by such well-drained, transported material as river alluvium or recent volcanic deposits. Alluvial soils are found in the southern Maracaibo Lowlands, along the fringes of the Llanos, and in broad valley bottoms in the northern mountains. The Orinoco delta and adjacent plains are also rich in alluvium, although poor drainage in these low areas impedes agricultural development and discourages settlement. Volcanic soils cover the slopes of many of the northern mountains, but these fertile soils are often severely eroded because of deforestation associated with logging and the practice of shifting agriculture.
Climate
Venezuela lies well within the tropics, and the country’s temperatures are relatively uniform with little seasonal variation. Elevation, however, produces significant local differences in temperature, precipitation, and vegetation. More than nine-tenths of Venezuela has a mean annual temperature above 75 °F (24 °C). The average mean temperature for Caracas, lying in a high valley, is about 72 °F (22 °C), whereas the nearby port of La Guaira averages some 81 °F (27 °C). Mérida, at more than 4,900 feet (1,500 metres), averages 66 °F (19 °C), while low-lying Maracaibo, at sea level, averages 82 °F (28 °C). A considerable part of the mountain region has temperate conditions, but the cold (arctic) zone of higher elevations is much smaller than in other Andean countries. Diurnal temperature ranges are more pronounced than month-to-month variations, a characteristic trait of the tropics.
Venezuela’s climatic year is divided into two seasons: the wet season, which lasts from May to October and even continues sporadically through November; and the dry season, which begins in December and continues until the end of March. Regional variations in precipitation are marked, however. Only the northeastern coastal areas receive appreciable rainfall in the summer. The northwestern coast is more arid, with some places receiving less than 20 inches (500 mm) of precipitation annually. La Guaira, for example, receives an average of only 11 inches (280 mm). Rain shadow areas behind coastal and upland ranges are also quite dry, while their corresponding windward slopes are generally well watered. Inland the Llanos and the southern interior of the country generally receive sufficient rainfall to support tropical savanna, lush tropical rainforest (selva), and cropland and pastures. Seasonal cycles of flood and drought are common in the Llanos region, and tropical conditions occasionally bring heavy downpours to other areas, such as the northern coast, which experienced deadly floods and mud slides in December 1999.
Plant and animal life
Flora
Most of Venezuela’s vegetation is tropical and evergreen or semideciduous. Forests cover some two-fifths of the land, and savanna grasses cover about half. Variations in elevation and rainfall create differences in vegetation. True tropical species generally do not flourish above 1,500 feet (460 metres), although the selva intermingles with tall savanna grasslands in transitional zones in the interior; mangrove swamps are found in the Orinoco delta. The selva gives way to semitropical vegetation that reaches up to about 5,000 feet (1,500 metres) and characteristically includes tree ferns and epiphytes such as orchids. Higher up the Andean slopes, fern forests give way to mountain vegetation, culminating above 9,800 feet (3,000 metres) in páramo vegetation, which has few trees but a variety of small alpine shrubs and lichens. The southern Maracaibo basin is covered by dense tropical rainforest, but closer to the Caribbean the basin is characterized by xerophytic scrub woodland and grasses; this type of plant life formerly covered the entire northwestern region, but since the mid-20th century much of that land has been cleared, denuded, and overcultivated. Except in the remoter interior areas, indigenous and introduced species coexist on the forested slopes and around the settled lowland plains and valleys.
Fauna
Venezuela’s wildlife exhibits considerable variety. Seven species of the cat family inhabit the forested interior, including jaguars, ocelots, jaguarundis, pumas, and margays. Several types of monkeys also live in forested territories, among them howler and spider monkeys, long-tailed capuchins, and nocturnal douroucoulis. Other forest animals include bears, peccaries, deer, opossums, wild dogs, agoutis, and skunks. Among the more unusual species are tapir, which are large, cloven-hoofed quadrupeds with prominent snouts. Herbivorous manatees are aquatic mammals that survive in the coastal estuaries.
A wide range of reptiles inhabit the remoter rivers, coastal lagoons, and swamps, including caimans, alligators, lizards, and several species of turtles. Many types of snakes, too, are found in the forested interior, including such venomous species as coral snakes, striped rattlesnakes, and bushmasters and such nonvenomous varieties as boa constrictors and anacondas.
Birds, both migratory and nonmigratory, are plentiful and diverse. The coastal swamps are the tropical venue for migratory cranes, herons, storks, and ducks. There are vast ibis colonies in the Orinoco mangrove delta, and bellbirds are prevalent in the Orinoco basin’s forests. Birds of prey are found throughout the country.
Pelagic and coral reef fish are plentiful off the Caribbean coast and along the delta of the Orinoco River, and the deltaic channels foster mollusks and shrimps. Swarming freshwater species in the interior rivers include electric eels and piranhas. A wide array of catfishes are caught for food.
Conservation
Venezuela has numerous national parks and other protected areas. Canaima National Park (1962), encompassing some 11,600 square miles (30,000 square km) in La Gran Sabana of southeastern Venezuela, was designated a UNESCO World Heritage site in 1994; the park’s numerous rivers and tepuis support a wide range of plant and animal life. Parks within the Llanos region include Aguaro-Guariquito (1974) and Cinaruco y Capanaparo (1988), each of which has an area greater than 2,250 square miles (5,800 square km). Los Roques archipelago, famous for its bird and marine species, was made a national park in 1972. El Avila National Park (1958) is popular among hikers and campers from the Caracas area; including Naiguatá Peak and other formations in the Coastal Range, the park supports a variety of wildlife at elevations ranging from about 400 to more than 9,000 feet (120 to 2,750 metres).
Settlement patterns
Sprawling metropolitan centres, densely populated mountain valleys, aboriginal log houses along riverbanks, and open, sparsely settled plains are among the diverse developmental patterns in Venezuela, and the nation’s network of towns and cities reflects a hierarchy of social and economic ties.
Regional disparities
Agricultural development stimulated the settlement and unification of Venezuela during the Spanish colonial period, when towns grew up as centres for markets and transportation. Short-lived gold rushes in the mountainous interior also prompted boomtowns to develop. Rural populations were, however, always small and dispersed because of the limited amount of arable and pasture land. Insect-borne diseases severely hindered European settlement in the Orinoco region and in other low-lying river basins. As a result, population densities were greater in the mountain valleys, where the climate and threat of disease were moderated by elevation. Andean towns prospered and grew on the profits of exported hides, cacao, and indigo.
During the first century of independence, the nation consolidated its system of coastal ports and the hinterland administrative cities, and Caracas grew dominant as the hub of power, authority, and national wealth. The rural sector stagnated, while the northern urban network served as a conduit for the export of bulky raw materials and the import of manufactured goods and foodstuffs. Modern technologies, including the telegraph and telephone, tramways, and railroads, were selectively adopted in Caracas and La Guaira. Populations grew slowly in both rural and urban sectors, in part because of the prevalence of endemic diseases and the occurrence of natural disasters, but also because the sluggish economy attracted few immigrants.
Urbanization
A major urbanized corridor formed in the northern highlands of Venezuela during the period 1920–40. The oil boom in the Maracaibo Lowlands during the 1930s and ’40s attracted some population from the Andean highlands, while elsewhere migrants concentrated in such flourishing agricultural and commercial centres as Barquisimeto, San Cristóbal, and Barcelona. Greater Caracas, however, was the primary focus of urban migration and of foreign immigration, both legal and illegal. The pace of urbanization between 1940 and 1970 was the most rapid in Latin América. In the early oil-producing years of the 1940s, this phenomenon caused mass rural depopulation in some regions. Some sparsely settled areas such as the southern interior grew rapidly after the eradication of many diseases, but most rural communities in the densely settled highlands suffered sharp population declines. These latter regions became marginally productive agricultural zones, their stagnating communities offering few if any opportunities to the rural youth, who chose the apparent prosperity of city life over the hardships of rural life. Paramount among these hardships were the persistent inequalities of land ownership—large estates (latifundios) were owned by a wealthy few who underutilized their lands, while small farms (minifundios) were overcultivated yet barely sufficed for a family’s basic needs.
The urban population doubled during the period 1940–49 and continued to grow rapidly in the 1950s. The government responded by spending vast sums on public housing, although only a fraction of the demand for urban shelter could be met. The majority of the poor typically created ramshackle quarters in hillside ranchos (shantytowns). These burgeoning illegal settlements were initially viewed with alarm by the upper and middle classes, but the ranchos have become accepted, if not promoted, as an inevitable consequence of rapid urban growth. Many ranchos have acquired more permanent housing structures, and services, neighbourhood facilities, and political representation have improved; however, others continue to suffer from high population densities, low-quality housing, deficient services, crime, and malnutrition and disease. In addition, rancho communities on steep hillsides are especially vulnerable to natural disasters; the floods and accompanying mudslides that swept through Venezuelan coastal settlements in 1999 killed a disproportionately large number of rancho dwellers.
Although Venezuela’s overall population density is about average for Latin America, it has one of the region’s more metropolitan societies. Nearly nine-tenths of its population is classified as urban, with about one-third concentrated around the four largest cities (all of which are located in the north and northwest). About one-seventh of the population lives in Greater Caracas. The second largest city is Maracaibo, followed by Valencia and Barquisimeto. Ciudad Guayana is in the eastern interior and is the largest industrial centre on the Orinoco.
Decentralization
The spatial arrangement of population and production in Venezuela has changed profoundly since the 1950s. During that decade modern road building began, and the main Andean axis of population was extended from San Cristóbal and Caracas to Lake Maracaibo in the west and through Valencia to the lower Orinoco River valley in the east. The Caracas-Valencia corridor’s centrality was further entrenched by the building of express highways (autopistas) from Caracas to La Guaira and Maracay. Paved highways also linked this northern axis to other coastal regions and to the interior.
In the 1960s Venezuela embarked on an ambitious program to promote economic diversification and decentralization outside the Caracas-Valencia core region. The government created a unique heavy industrial complex and residential centre, known as an urban growth pole, on the southern bank of the Orinoco River at its confluence with the Caroní. That complex, centred on Ciudad Guayana, included steel and aluminum mills in proximity to mining sites. Hundreds of thousands of Venezuelans subsequently moved to the city, but few of them came from Caracas. The area is now linked via pipeline to oil and natural gas refineries on the coast. National parks, forest reserves, and ecotourism have also been promoted in the region.
Progress has been made in creating a national electric power grid, and bridges and tunnels have been built to improve contact between regions. Domestic airports have also helped to open up the interior and improve trade, but in spite of these efforts, the vastness and complexity of the Venezuelan landscape have caused regional imbalances to persist.
People
This section discusses migration, ethnic groups, population growth, and the languages and religions of Venezuela. For treatment of the lifestyles and artistic achievements of the Venezuelan people, see Cultural life.
Immigration and ethnic composition
Venezuela is a country of immigrants. About two-thirds of the population is mestizo (of mixed European and indigenous [Amerindian] ancestry) or mulatto-mestizo (African, European, and indigenous); about one-fifth of Venezuelans are of European lineage, and one-tenth have mainly African ancestry. The indigenous population is statistically small.
Prior to 1948 Venezuela had never openly encouraged non-Hispanic immigration, except for selective influxes of merchants, sailors, and entrepreneurs from neighbouring West Indian islands. As the petroleum industry grew, however, the government attempted to attract a wider range of people. During a 10-year period of open immigration (1948–58), Venezuela recruited agricultural and skilled workers from Spain, Italy, and Portugal; at the same time migration from Colombia to Venezuela also increased. Approximately one million immigrants entered the country during that time, although many of them eventually returned home. After 1958 the government tightened immigration controls to favour foreigners with high-level skills, yet during the 1960s Colombian labourers continued to move into the rural sector as replacements for Venezuelans who were leaving farms for the cities.
The government again shifted immigration policies in response to the mid-1970s petroleum boom, because there was a large demand for semiskilled and skilled labour in all sectors of the economy. At the same time, professional and technical workers and their families were leaving Argentina, Chile, and Uruguay because of political instability and persecution there, and many of them relocated to Venezuela. After 1976 the government again tightened its controls on immigration from other South American countries, instead favouring professionals from the United States, Italy, Spain, and Portugal. Throughout that period of relative prosperity and economic expansion, the volume of illegal immigration (mainly unskilled workers and their families) matched that of legal entry. Most illegal immigrants came from Colombia, with smaller numbers arriving from Brazil and other neighbouring countries. Prior to the extended economic downturn of the 1980s, as many as 1.5 million undocumented Colombians resided in Venezuela, and more than a decade later hundreds of thousands remained. The influx of foreigners generated xenophobic sentiments in the late 1980s.
Ethnic groups are commonly identified with particular regions. Venezuelans of largely European and mestizo ancestry are concentrated in the major cities of the north. Peoples of African ancestry and mulatto-mestizo groups predominate along the Caribbean coast. Many mestizos from the highlands are physically distinct from those of the lowlands because of the different levels of intermarriage between Hispanic and indigenous populations in the two regions. The indigenous minorities survive mainly in the sparsely inhabited interior: three-fifths live in Zulia state (primarily in the forests near Lake Maracaibo), one-seventh inhabit Amazonas state in the far south, and smaller numbers live in such remote areas as the Guiana Highlands and the Orinoco delta region in the east. According to government estimates, there are some 38 distinct Amerindian peoples within Venezuelan territory. The Goajiro (Wayuu) are the largest indigenous group, followed by the Warao (Warrau).
Venezuela’s 20th-century population growth was among the most rapid in Latin América, averaging nearly 3 percent annually during the period 1970–95. This increase was prompted by high birth rates, declines in mortality rates, and successive waves of immigration. The population growth rate has declined significantly, however, since the early 1990s. After World War II Venezuela’s mortality rate began to drop as advances in medicine and technology combated malaria, yellow fever, and other ailments; in addition, hygiene and diet were improved, and housing conditions were upgraded. While birth rates remained at high levels, mortality rates, which had been as high as 30 per thousand before 1920, dropped below 10 per thousand by the 1960s. By the late 20th century the mortality rate had stabilized, and demographic changes were being influenced mostly by immigration rates and by reductions in fertility levels, which nevertheless had remained relatively high. More than half of the population is under 30 years of age. Life expectancy rates have also been rising, a trend contributing to rapid population growth.
Languages
The indigenous groups speak more than 25 different languages, most of which belong to three linguistic families—Cariban, Arawakan, and Chibchan. Spanish is the national language of the majority. Local idioms, colloquial phrases, and simplified verb usage distinguish Venezuelan Spanish from other Latin American and Iberian variants. In Caracas and other major commercial centres, English is often favoured in business communications, and private schools in Caracas encourage bilingualism. The presence of English-speaking professionals in the oil centres and in the major cities has made English the country’s most popular second language.
Religion
Freedom of religion in Venezuela is guaranteed by the constitution, although the vast majority of the people are at least nominally adherents of Roman Catholicism. Religious tolerance is generally observed. Various Protestant sects form the largest minority group, and there are small groups of Jews and Muslims. Some indigenous peoples continue to practice their traditional religions, but many have converted to Catholicism, especially those in settlements clustered around riverside mission stations. The Roman Catholic Church is officially apolitical, but many priests and bishops have become involved in political events—some by espousing liberation theology and agitating for socioeconomic reforms, others by reacting against liberal or radical government policies.
Economy of Venezuela
The Venezuelan economy is based primarily on the production and exploitation of petroleum. From the late 1940s to 1970 the country was the world’s largest petroleum exporter, and it was long one of the principal exporters of oil to the United States. Venezuela’s economy has relied on earnings from the petroleum sector to modernize and diversify other economic sectors; thus, “sembrando el petróleo” (“sowing the oil”) has been a national slogan since the 1940s. The development of rich deposits of iron ore, nickel, coal, and bauxite (the ore of aluminum), as well as hydroelectric power, further expanded the economy.
During the 1960s Venezuelan governments stressed import-substitution policies, using protective tariffs to limit imports of manufactured goods and subsidies to promote the growth of domestic manufacturing. As a result, export-oriented enterprises expanded. In the mid-1970s the government nationalized Venezuelan iron ore, oil, and gas industries, and it then used earnings from fossil fuel exports to fund major infrastructure improvements and other public works. By the end of the 20th century, Venezuelan industries had diversified, and the country had developed additional natural resources.
Nevertheless, Venezuela’s “sowing the oil” was considerably slowed because of fluctuations in international petroleum prices and global economic recessions in the 1980s and ’90s, as well as domestic problems such as inflation, inefficient management, corruption, and a lack of skilled personnel. The economy was pressured by a massive foreign debt, high unemployment, rapid population growth, and illegal immigration; however, early in the 21st century the economy recovered enough that by 2007 the country had paid off its foreign debt. Pres. Hugo Chávez, first elected in 1998, forged a socialist economic and political agenda that included a program of increasing nationalization, which was introduced after his landslide victory in the 2006 election. Determined to reduce U.S. economic influence in Venezuela and the rest of Latin América, he also drew upon the country’s oil wealth to grant generous loans to its neighbours.
During Chávez’s presidency, however, mismanagement contributed to significant declines in oil production and profits. Even as oil exports increasingly dominated the economy and efforts at economic diversification waned, the government failed to adequately invest in the oil industry’s maintenance and growth. At the same time, it continued to expand social programs and borrowed heavily. When world oil prices plummeted in 2014, the Venezuelan economy began to free-fall: between 2014 and 2019 GDP declined by some 75 percent. Authoritarian practices begun by Chávez and intensified by his successor, Nicolás Maduro, worsened the problem by prompting economic sanctions from the United States and other Western democracies. Deep shortages of food and medicine resulted, leading to a humanitarian crisis in Venezuela that grew more desperate when the coronavirus SARS-CoV-2 global pandemic reached the country in 2020.
Resources
Minerals
Venezuela’s most economically significant natural resources are petroleum and natural gas, which traditionally account for about nine-tenths of exports. Coal is also important, and there are largely unexploited deposits of iron ore, bauxite, and other minerals. Some of the largest proven petroleum reserves in the world exist in the Orinoco delta and offshore, as well as in the eastern Llanos, in Guarico, Anzoategui, and Monagas states, in the Lake Maracaibo Lowlands (mainly Zulia state), and in the western Llanos, particularly in the states of Barinas and Apure. Before the government nationalized the industry, multinational firms accounted for more than four-fifths of production. Refining was primarily accomplished offshore in Aruba, Curaçao, and elsewhere in the Caribbean. After nationalization, a state-owned company, Petróleos de Venezuela, SA (PDVSA), assumed responsibility for production, but PDVSA still depended heavily on foreign oil companies to refine, transport, and market the oil and natural gas and to provide technical assistance. The government, faced with economic difficulties, adopted reforms in the late 1980s and ’90s that included reopening the petroleum sector to foreign investment, notably to further explore and develop heavy crude oil deposits in the Orinoco basin, to upgrade refineries, and to streamline production through joint ventures. In a reversal of this trend, the oil industry became the focus of Chávez’s nationalization efforts in 2006, and in 2007 he completed the takeover of the sector by seizing operational control of the last privately run oil operation in the country—the Orinoco basin oil projects—from foreign-owned companies. Having fired thousands of experienced PDVSA administrators and technicians who had participated in a strike in 2002–03, the Chávez government replaced them principally with inexperienced political appointees, who contributed to the egregious mismanagement of the oil industry that, along with tumbling world oil prices, brought the Venezuelan economy to its knees in the 2010s.
Still, Venezuela also has abundant deposits of natural gas, again among the world’s largest proven reserves, and PDVSA has formed joint ventures for its exploration and production. In addition, a PDVSA subsidiary, Carbozulia, has developed major coal reserves in the Guasaré River basin.
Modern iron-ore mining in Venezuela began in the mid-20th century in the region surrounding present-day Ciudad Guayana, based on deposits at Cerro Bolívar and El Pao. In 1975 the U.S.-owned mining operations were nationalized, and the government-owned Venezuelan Guayana Corporation assumed control. Production of iron ore has grown substantially since the mid-1980s.
In the mid-1970s large deposits of bauxite were discovered in the Guiana Highlands, much of it high-grade ore suitable for alumina smelting in the Ciudad Guayana complex. Other important nonferrous minerals include gold and diamonds in the Guiana Highlands, coal northwest of Lake Maracaibo, salt deposits in the Araya Peninsula, and scattered deposits of industrial-grade limestone. There are also economically important quantities of nickel, phosphates, copper, zinc, lead, titanium, and manganese, and surveys indicate the existence of substantial deposits of uranium and thorium.
Power
Hydroelectricity is the source of about half the country’s electric power. The most important generating centre is the Guri Dam on the Caroní River, which supplies Ciudad Guayana and its nearby mining complexes. The Santo Domingo River and other shorter Andean rivers are additional power resources. Thermal generators fired by oil, gas, or coal account for the remainder of electrical generation. More than nine-tenths of Venezuelans have access to electricity in their homes, making the country one of the better-provisioned in this regard in Latin America. The national electrical grid requires costly repairs and upgrades, however, and power outages are frequent.
Agriculture, fishing, and forestry
Prior to the 1950s and the initiation of large-scale oil exports, agriculture, fishing, and forestry were central to the Venezuelan economy, producing more than half the GDP. As the petrochemical industry rapidly expanded in the 1970s and ’80s, however, the proportion of the labour force in agriculture dropped from one-fifth to about one-tenth. Since the 1990s the government has supported the agricultural sector with subsidies and low-interest loans, but the overall contribution of agriculture, fishing, and forestry to the GDP has further decreased.
Venezuela’s main cash crop is coffee, and its staple food crops are corn (maize) and rice. Most of the cropland is in the northern mountains or in their foothills. Extensive cattle grazing is practiced in the Llanos and, in a more limited way, in the Maracaibo Lowlands. South of the Orinoco, the interior forests are farmed by shifting cultivation and in small, cleared riverine plots. Less than one-fourth of the national territory is used for grazing or crop production.
Agricultural landholdings in Venezuela include expansive latifundios and small, subsistence-based minifundios. Most farms can be organized broadly into three basic types. First are fincas comercializados (commercial crop farms), which usually cover more than 50 acres (20 hectares), employ wage labourers, have some farm machinery, and use fertilizers and pesticides. These modernized farms have benefited from government provisions of credit. In addition, they have had easy access to both local and export markets. The fincas produce sugarcane, cotton, and rice, often as plantation crops. The second type of holding is the conuco (family farm), which is typically leased by the farmer; it is usually small in size and includes a mixture of food crops such as corn and beans for local consumption and commercial crops such as coffee and cacao. The third type are the fincas granderas (large pastoral farms), which often encompass more than 6,000 acres (2,400 hectares). These are commonly found in the Llanos, where unenclosed land is used for grazing cattle on the low-quality grasses. The cattle are herded and traded in yearly meetings called rodeos (roundups).
Relics of the colonial encomienda system, which supported a type of feudal landholding, led to an uneven distribution of land that allowed some 2 percent of the owners to control roughly 80 percent of the land. Most rural workers could not own enough land to support their families. The government launched land reform programs in the late 1950s and early ’60s in an attempt to correct this imbalance, including distributing land to families, increasing the use of grazing lands (especially in the western Llanos), creating irrigation and drainage projects, and continuing government subsidies of agricultural production. However, the results have been mixed; Venezuela now imports more than half of the food it consumes.
Historically, Venezuelans have not eaten great amounts of fish, and they have only partly exploited inland and ocean fishing grounds. In the 1970s a government-sponsored enterprise attempted to develop the fishing industry and to increase the demand for fish, especially among lower-income groups, and there was a minor fishing boom in the 1980s. Venezuela was the world’s fourth largest producer of tuna during the early 1990s. Anchovies have become another major catch.
Although forests cover more than one-third of Venezuela’s land, forestry is poorly developed, mainly because the richest forestlands are so remote. Strict government conservation regulations and domestic environmental activism have further limited deforestation, which has been less serious in Venezuela than in other Latin American countries despite an increase in land exploitation. The timber industry was modernized in the 1980s, and foreign companies began to participate in joint ventures.
Industry
Until the 1950s Venezuela had little industrial capacity apart from food processing and petroleum extraction. Huge oil revenues, combined with low tariffs, permitted an array of items to be imported. Manufacturing has been transformed since that time, especially following the government’s increased efforts to diversify the economy in the 1960s. Among the factors contributing to the industrial base are an abundant supply of fossil fuels and hydroelectric power, a variety of raw materials, considerable available capital; and a relatively high purchasing power per capita. The consumer-goods and metalworking industries were established with the help of protective tariffs and import quotas. With the 1973–74 rise in world oil prices, revenues expanded, and the government directed its investment strategy toward large-scale resource-based projects such as iron and steel manufacturing, aluminum smelting, and the production of transport equipment and petrochemicals. Industrial growth slowed, however, when oil prices declined several years later.
Venezuela’s industries fall into three groups. The first and most important consists of oil storage, transportation, and refinery operations as well as associated petrochemical plants. The oldest and most developed petrochemical region is in the northwest. A refining centre at the western end of the Paraguaná Peninsula on the Gulf of Venezuela handles more than two-thirds of domestic oil refining. Pipelines supply the Paraguaná centre with oil and natural gas from Zulia state, notably from El Tablazo, on Lake Maracaibo. Morón, near Puerto Cabello, supports another major petrochemical complex. Smaller centres exist inland. The newest petrochemical region includes storage facilities and pipelines for heavy crude oil in the eastern Orinoco River basin and delta, as well as refining and port operations on the coast.
A second industrial group produces consumer goods, mainly for domestic use. It is concentrated in the Valencia-Maracay-Caracas area and to a lesser degree at Barquisimeto. Import-substitution items were the focus of this industry from the 1950s to the ’80s, including textiles, leather, paper, tires, tobacco, light engineering products, radios, television sets, washing machines, and automobiles. The free-trade agreement with the Andean Community (which Venezuela joined in 1973), economic reforms, and some efforts at privatization helped to increase manufacturing output during the 1990s. However, local industries have remained vulnerable to fluctuations in domestic demand and to competition from goods imported illegally—that is, without payment of import duties.
A third group comprises the complex of heavy industries at Ciudad Guayana in the Orinoco-Caroní region and a large integrated iron and steel works at Matanzas, near Puerto Ordaz, that serves domestic needs and the export market. Production of iron, steel, aluminum, and hydroelectric power has grown in this region since the 1980s.
Services of Venezuela
At the beginning of the 21st century, the service sector accounted for about half of GDP and provided more than half of employment; finance and trade each produced about one-sixth of GDP. Tourism became a growing component of Venezuela’s economy and was focused on the country’s cultural sites, beaches, and natural wonders, such as the tepuis of the Guiana Highlands and the world-famous Angel Falls.
Finance
Since 1958 the government has played a key role in the operation of Venezuela’s financial system, largely through its management of the Central Bank of Venezuela, which sets interest rates, regulates the money supply, issues currency (the bolívar fuerte), and grants loans to commercial banks. Other state banks include the Industrial Bank of Venezuela, the Workers’ Bank of Venezuela, and various regional banks. There are several privately owned commercial and investment banks, as well as insurance companies. Most of these institutions, as well as the national stock exchange, are based in Caracas.
Venezuela was a leader in founding the Organization of Petroleum Exporting Countries (OPEC), and it signed the agreement in 1960 that led to the creation of the organization. When OPEC raised oil prices more than 400 percent in 1973–74, the country received windfall profits, and its oil income rose dramatically until the early 1980s. The huge oil revenues vastly increased Venezuelan influence in Latin América, and the country negotiated favourable trade agreements to supply its neighbours with oil and natural gas. Venezuela has also helped to finance international cartels in such other commodities as bananas and coffee.
Venezuela experienced severe economic problems following the Latin American debt crisis of 1982 and the collapse of world oil prices in 1986. Among its pressing concerns were a foreign-exchange crisis, the loss of international reserves, slowed economic growth, and rising inflation. In response to these issues, Venezuela in 1989 signed agreements with the International Monetary Fund (IMF) and the World Bank that were designed to stabilize the economy. The balance of payments and other factors subsequently improved, and the state again increased its expenditures. However, many of the country’s financial problems returned during the 1990s, brought on by fluctuating oil prices, political instability, a banking crisis in 1994, and mismanagement and overborrowing from the Central Bank. The government subsequently sold off many financial institutions, and by the end of the 1990s foreign investors controlled more than half of Venezuela’s banks.
The government was forced to institute additional stabilization measures, including the Agenda Venezuela plan (1996) that removed some financial controls and privatized several industries. These measures were only partially successful: state expenditures remained high, and oil price fluctuations continued to have dramatic effects on the economy. Venezuela had the highest rate of inflation in Latin America at the beginning of the 21st century; in an attempt to control it and to simplify financial transactions, the country introduced a new currency, the bolívar fuerte (“strong bolívar”), in 2008. On the other hand, in the early 2000s the economy had rebounded enough for Venezuela to have paid off its loans to the IMF and World Bank. Moreover, determined to assert its economic independence, the country withdrew from both organizations in 2007.
The collapse of world oil prices in 2014 sent the Venezuelan economy reeling and initiated a prolonged period of plummeting GDP, hyperinflation, endemic shortages of food and medicine, and political instability. Widely criticized abroad for its increasingly autocratic rule, the government of Pres. Nicolás Maduro sought to right the economy in the face of international economic sanctions. In February 2018 it introduced the petro, a cryptocurrency (similar to Bitcoin) whose value was tied to the price of one barrel of Venezuelan crude oil and was backed by the country’s reserves of gas, oil, gold, and diamonds. In August, against IMF projections that inflation would top one million percent by year’s end, the government re-denominated the currency, lopping five zeroes off the strong bolívar, which it renamed the bolívar soberano (“sovereign bolívar”). As the United States and other Western democracies sought to isolate Venezuela economically as part of a “maximum pressure” campaign to dethrone the Madura regime, Venezuela’s dependence on Russia and China for financial support and loans grew. Russia in particular became Venezuela’s lender of last resort, and its involvement in Venezuelan affairs increased.
Trade
The main feature of Venezuela’s external trade continues to be oil, which represents some nine-tenths of export earnings. Venezuela is a member of Mercosur (formerly known as the Latin American Integration Association), though it withdrew from the Andean Community in 2006. Prior to the souring of U.S.-Venezuelan relations during Maduro’s rule, the United States traditionally was Venezuela’s primary trading partner; other trading partners included Brazil, Colombia, China, Switzerland, the Netherlands, and Argentina. After Venezuela’s access to many of the world’s markets was blocked by sanctions against the Maduro regime, the country’s trade was reoriented largely toward a core of countries that included China, Russia, Cuba, Turkey, and Iran.
Transportation
The country’s transportation system is well developed, especially in the densely populated northern and northwestern regions. Domestic travel depends largely on roads, while freight and bulk transport is largely served by coastal shipping routes, inland waterways, and oil and natural gas pipelines. Air services provide access to regions without other means of communication.
The country maintains approximately 22,400 miles (36,000 km) of paved roads. There are three major trunk roads—a section of the Pan-American Highway that runs southwestward from Caracas through Valencia and Barquisimeto to San Cristóbal and then into Colombia; the northwestern highway, which runs from Valencia to Coro and on to Lake Maracaibo; and the Llanos Highway, which extends eastward from Caracas to Barcelona, Cumaná, and beyond. A branch also runs from Barcelona across the Llanos to Ciudad Bolívar. Bus routes connect most Venezuelan towns and cities. Highways can be dangerous, particularly in the evening: drivers rarely use headlights, and unlighted repairwork, livestock on the road, and other hazards are common.
Railways, both for passenger and freight transport, are relatively unimportant. One public line runs northeastward from Barquisimeto to Puerto Cabello on the coast and on to Caracas. Private railways serve the iron and steel industry, connecting mines in the Guiana Highlands region to Ciudad Guayana.
Almost all the country’s foreign commerce is carried by sea. The most important ports are Maracaibo (a major shipment centre for crude oil), Puerto Cabello, and La Guaira (the port of Caracas). Many small ports serve fishing fleets or coastal trade. Inland waterways are utilized principally around Lake Maracaibo and on the Orinoco River. A dredged channel between the Gulf of Venezuela and Lake Maracaibo allows oceangoing vessels to dock at the ports of Maracaibo, Bobures, and La Salina. A dredged channel through the Orinoco delta permits vessels to sail upriver to Ciudad Guayana.
Transoceanic and intercontinental air routes use Venezuelan international airports as a stopover. Simón Bolívar Airport, located at Maiquetía 10 miles (16 km) by road from Caracas, is the busiest, servicing international and domestic flights.
Administration and social conditions
Government
The Venezuelan constitution of 1999 prescribes a government based on republican, democratic, and federalist principles. Citizens age 21 and older are eligible to vote. All males have had this right since 1872, but universal suffrage was not instituted until 1946. The government is divided into executive, legislative, and judicial branches. During the period 1961–99, the constitution prescribed a government led by a directly elected president, who served a single five-year term, as well as a popularly elected bicameral legislature and a multitiered judicial branch headed by the Supreme Court. As economic difficulties mounted during the 1980s and ’90s, so, too, did criticism of political corruption. In 1999 Hugo Chávez Frías, the newly installed president, pushed for radical reforms, and a constituent assembly was soon elected to draft a new constitution; it was adopted by referendum in December of that year. The constitution was modeled on that of the Fifth French Republic. It fundamentally changed the executive and legislative branches by granting heightened powers to the president and reorganizing the legislature into a unicameral assembly; it also reformed the judiciary system, promised to expand personal liberties, formally acknowledged the rights of indigenous peoples, and changed the country’s name from Republic of Venezuela to Bolivarian Republic of Venezuela.
Executive power is vested in the president, who serves a six-year term and is eligible for reelection. As is typical among Latin American nations, the president wields a greater amount of power than either the judicial or legislative branches of government. In addition to acting as the head of state, the president is the commander in chief of the armed forces. The president appoints an executive vice president and a Council of State, the members of which act as advisers and ministers.
The unicameral National Assembly (Asamblea Nacional) consists of 167 members (deputies) who are popularly elected through a combination of proportional and direct representation, including three deputies elected by the nation’s indigenous peoples. Deputies serve five-year terms. The National Assembly creates laws, authorizes national expenditures, approves treaties, designates foreign ambassadors, and serves numerous other functions. Under certain circumstances the president may dissolve the assembly.
Civil and human rights are protected by an independent judiciary that is organized nationally, with no autonomous state courts. At the highest court level is the Supreme Court of Justice (Tribunal Supremo de Justicia), which adjudicates civil, criminal, and political cases. Its members are nominated by a civil commission and appointed to 12-year terms by the National Assembly. Venezuelans generally enjoy a high degree of individual liberty, but protests have grown over the lack of equal civil and human rights protection for the nation’s indigenous population.
Presidential and legislative elections are contested by several political parties, whose existence is guaranteed by the constitution; two major parties dominated Venezuelan politics until 1993: Democratic Action (Acción Democrática) and the Social Christian Party (Partido Social Cristiano; COPEI). In the 1998 presidential elections, these parties virtually collapsed, and the main presidential contenders represented new political movements. Chávez headed the Movement of the Fifth Republic (Movimiento de la Quinta República; MVR) until 2007, when it was replaced by Chávez’s new political party, the United Socialist Party of Venezuela (Partido Socialista Unido de Venezuela; PSUV).
The country is divided into 23 states and the federal district, which includes Caracas. Each state is headed by a directly elected governor and has a legislative assembly. The assemblies are unicameral bodies composed of representatives from each of the state’s districts. The federal district is administered by a mayor, and the day-to-day administration of local affairs elsewhere in the country is the responsibility of municipal councils and directly elected mayors.
Education of Venezuela
Basic education is free and compulsory between the ages of 6 and 15. Secondary education, which lasts for 2 years, is also free but not required. More than nine-tenths of Venezuelans age 15 and older are literate. The vast majority of Venezuelan children are enrolled in school, but nearly half the adults have no secondary education and a large number have no formal schooling. Most middle- and upper-class parents send their children to private elementary and secondary schools.
The number of institutions of higher education expanded rapidly in the latter part of the 20th century. Higher education is provided by private and public institutions, and approximately one-fourth of secondary school graduates attend them. Caracas is an educational centre with several notable universities, including the Central University of Venezuela (founded in 1721) and the National Open University (1977). Among the more prominent state schools are the University of Zulia (1946), the University of Carabobo (1852), and the University of the Andes (1810) in Mérida.
Modernization and urbanization in the 20th century brought considerable improvement in the educational system; however, the economic difficulties of the 1980s and ’90s and government mismanagement damaged the system. Although Venezuela greatly increased education spending in the latter part of the 20th century, nearly half the money allocated was spent on universities, while primary and secondary schools suffered from poorly trained teachers and high student dropout rates. In addition, students received on average only half the mandated days of instruction because of vacation days and time lost to strikes. In an attempt to remedy these problems, the government began to restructure the educational system in the late 1990s.
Health and welfare
The government greatly expanded health and welfare services during the 1970s, particularly in the cities. Both public (free) and private medical assistance were made available. The Ministry of Health is responsible for organizing and staffing the public hospitals and rural medical centres. Even before the onset of the economic crisis that began in 2015, the ministry had to dealt with numerous budgetary and management problems, including physician strikes and poorly maintained hospitals. Similarly, the Venezuelan Institute of Social Security, which offered medical and welfare assistance to urban workers and employees, also experienced difficulties, including large deficits, in advance of the crippling of the health care system that resulted from the economic collapse. In the area of housing, the metropolitan authorities have been unable to meet the needs of the urban poor. The problems of the ranchos persist, as public housing schemes mainly meet the needs of middle-income groups while largely leaving poorer urbanites to find employment and housing on their own.
Cultural life
As Venezuelans moved from the countryside to the cities, they developed a modern urban lifestyle; large middle-class neighbourhoods developed alongside burgeoning poor ranchos. Many middle- and upper-class Venezuelans acquired wealth from oil in the 1950s–70s, which enabled them to travel easily, especially to the United States, and to own cars and houses. The economic downturn since the 1980s has interrupted that easy lifestyle, however, and poverty has grown.
In Venezuela the admixture of African, European, and indigenous cultural traditions is often called criollo (“Creole”), although that term in most Latin American contexts denotes people of European ancestry. Venezuelans boast criollo foods, dances, and, especially, music. National foods include arepa (a cornmeal bread) and hallaca (sweet cornmeal dough cooked in banana leaves). Other typical foods include passion fruit and tamarinds, tequeños (cheese pastries), pabellón (a stew of beef, rice, and black beans served over fried plantains), and pulpo (“octopus”) cooked in citrus juice. During the pre-Lenten Carnival more elaborate dishes are served, such as paella and talkarí de chivo (“kid stew”). Locally produced beer and rum are popular, as is coffee served in many different styles, each with its own name reflecting the amount of milk added to the coffee.
Although North American music is popular and widespread in Venezuela, the Caribbean salsa and merengue forms are also commonly heard. The national Venezuelan folk dance and musical style is the joropa, but each region of the country has its own distinctive musical expression. (See also Native American arts: Northern South América.)
The arts
Since the 1920s the government has promoted artistic expression as a way to maintain cultural autonomy in the face of foreign influences. As greater freedom for writing and publishing was granted, a flourishing national literature emerged. Rómulo Gallegos, who became Venezuela’s best-known writer, was part of this nationalistic wave, gaining international recognition for his novel Doña Bárbara (1929). Such painters as Armando Reverón and Manuel Cabré also expressed nationalistic fervour. The architect Carlos Raúl Villanueva won international acclaim for his design of the Central University in Caracas, which featured asymmetrically arranged buildings complemented by freestanding murals and sculpture.
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Read More: Britannica – Venezuela
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