US-VENEZUELAN RELATIONS By Erik Bakke INTRODUCTION three approaches are: realism, rational functionalism, and constructivism. The realist Oil makes up 95% of Venezuela’s approach suggests countries make their exports. It accounts for 45% of the federal decisions based on what is in their best interest budget, and 12% of the national GDP. Since in order to increase their own power and 1912, oil drilling has shaped Venezuelan security. The rational functionalist approach culture, economics, and foreign relations. also argues that countries’ decisions are made Industrialization has been neglected in favor of with their own interests in mind, but they also new plants. Unions and interest groups have emphasize the importance of reputation, which centered on the energy sector. Venezuela has is crucial for long-term alliances and successful formed alliances across oceans with other oil negotiations. The constructivist approach views exporters and continues to find new trading state actions as an extension of their ideologies partners and potential importers for their and values. States go to war because values and goods. cultures clash, and they join together to However, oil fails to depict the entire cooperate when shared principles unite them. story of this Latin American nation. Founded in Determine which of these approaches 1830, Venezuela shares a long history of best suits your own congressperson and use it in colonialism and plantation-centered economies determining what might be important in US- with the United States and much of the Venezuelan relations. These theories will assist Western Hemisphere. Almost a fifth of the you in determining what the significant issues population lives in the capital city of Caracas, are in our relations with this Latin American many tied in some way to the oil industry. country: drugs, natural resources, relations with There is a great deal of poverty, however, other countries, immigration, security, etc. among those living in the Andes mountain range in the interior of the country. EXPLANATION OF THE PROBLEM Politically, Venezuela is a democracy with moderately fair elections. It works under a Historical Background Presidential system with a unicameral National Assembly. There are several problems, like Colonialism corruption and patronage, endemic within the government, and issues of inequality. Colonization of Venezuela and the rest Understanding the economy, culture, of Latin America occurred around the same and society of Venezuela will assist in your time as the colonization of what would become research of the country’s relations with the the United States. However, while occurring United States and abroad. In addition, concurrently, the results of settlement in each understanding the three approaches to of these two areas could not have been more international relations will give a fuller meaning different. This difference left a lasting impact to the goals in Venezuelan relations. These on the region 1 HARVARD MODEL CONGRESS 2014 In the 13 American colonies, families would not be mobilized until the rise of the invested in farms and businesses. Their goals Democratic Action (AD) party to power, and were farsighted. They planned to settle the when they did, the entrenched elite would clash colonies to make a home. This meant creating with this movement in an attempt to cling to an economy that could support generations to their old power structure. come. People became involved their own government and in making decisions for the The AD and Oil community. Civil society, associations outside of government, also blossomed in these Venezuela would never be the same Northern colonies. again after its 1912 oil boom. With The Spanish colonization of Latin improvements in oil drilling and refinement, as America, however, was mercantilist. In well as an increase in demand, the resource mercantilist colonies, wealth is extracted from quickly became the country’s chief commodity. the land, often in the form of minerals, natural With oil production jumping 150 times the rate resources, or plantations, for the purpose of of agricultural production, the latter industry supplying the colonizing country, in this case lost its relevance, farmers moved to the cities, Spain. and the landowning elite lost power. The old Because there was no focus on clientele based network decayed and a new settlement or long-term development in the network between industries relying on oil colonies, Spanish colonies on the continent formed. never formed the institutions of their northern The weakening of the old elite and the neighbor, and a centralized Spanish new associations in Venezuela allowed for the bureaucracy discouraged such development rise of the AD, a left wing anti-oligarchic party. because it might threaten its extraction of By the 1940’s, the AD was winning seats in the wealth. Moreover, Iberian culture stunted the national assembly and a vast number of local growth of grassroots organization and positions. Uniting much of the working class meaningful government participation. and middle class behind its populist movement, Originating in its earliest settlement, Venezuela, the AD was able to start pushing its party like many of its neighbors, has been agenda: expansion of the state, expansion of characterized as a society that is corporatist, welfare, the elimination of malaria, land reform, centralized, and controlled. and further democratization. These reforms A corporatist society, like Venezuela, would greatly expand the bureaucracy and often has only a single entity for any interest or secure living conditions for much of the activity. For example, there is usually only one country. At the same time, land reform and union for each industry, as opposed to several increased civil rights would deal another blow competing unions. These organizations receive to the already crippled old oligarchy. instructions and operating orders from one The elite, conservatives, and Church centralized command, rather than individual pushed back against this new government, branches and local leaders choosing how to eventually calling upon the military to topple it operate. Often times organization, unions, and instate Perez Jimenez as dictator. Jimenez interest groups, and even companies are owned banned the AD, repressed unions, and stripped or controlled by the government. Decades of away reforms. However, this conservative elite control stemming from this colonial government could not last under pressure from history stymied the growth of civil society, much of the population to reinstate the AD and widespread civic engagement, and strong allow for open elections again. Conceding to opposition movements. Much of the country public demand, the Jimenez government 2 – US-VENEZUELA HARVARD MODEL CONGRESS 2014 stepped down and negotiated the 1958 Punto oil dipped, these excess funds dried up and Fijo Pact. The AD agreed to move towards the people — especially those in the Andes and political center, and once again regained control interior not working in the oil industry or for of the government. the government — were left with an economy From 1958 to the 1990s the AD unable to support little other than oil dominated Venezuelan political life and production and an impotent government. continued to pursue involvement in the oil As the AD began to resemble the old industry. Developments continued in the oil clientele network and the party continued to fall industry, but because there was so much wealth short of expectations, the people looked to available in this one area, other industries were some other body to represent them. Unlike in neglected. Further, the government developed a other countries, such as the US, there was no tendency to spend increased revenues when oil other party to take the reigns in Venezuela. prices rose. When those prices then fell, the Thus, when conditions got worse, the people government was left with a serious deficit. looked for a political outsider. With support for Deficits, inflation, and poor the party system falling from 70% to just 20%, managements of resources would eventually the impoverished masses wanted a man they lead to frustration with the old party. While the could see themselves in, a revolutionary ready AD nationalized the oil industry in 1976 and to throw off the old system. reshaped the face of the Venezuelan economy, An attempted military coup in 1992 its old supporters eventually turned on it. The would reveal that revolutionary. Hugo Chávez, old, cumbersome party found itself challenged a military officer from modest roots, attempted by a new competitor, Hugo Chávez. to overthrow the national government in order to create a “true democracy.” His attempt The Rise of Chávez failed, and Chávez was consequentially arrested. The arrest, however, only fueled the growing The AD’s system of politics and mass support for Chávez. Furthermore, many governance allowed for corruption and civilian politicians attempted to ride the growing inefficiency. The dominance of the party wave to re-election and stood behind his efforts. allowed politicians in many districts to establish By the 1998 presidential election, all of clientele networks with a small number of the candidates were outsiders, including powerful unions and organizations. Chávez, having returned from a short exile. The tremendous upsurge in wealth and Running under his own party banner, the Fifth the dominance of a single party also allowed for Republic Movement, and promising to do away inefficiency in the government. By the 1980s, with the old party elites, the former military over a quarter of the population worked in the officer soon became a frontrunner in the public sector. Because oil created the revenue election. Backed by the Chavismo (pro-Chávez) to continue to pay these individual’s salaries, movement popular among the poor and middle and because public sector jobs were a common class, Chávez won the presidential election and way of garnering political support, the soon reached a 90% approval rating. bureaucracy grew unreasonably large. His party, however, could only win a Growing expectations from the public third of the seats in the National Assembly, and could not be met.