Latitude: 9.4350000000 Longitude: -63.0183333000
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Baruta, Venezuela
Some random facts about Venezuela |
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| 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 |
| Labor force - by occupation: | agriculture: 13% industry: 23% services: 64% (1997 est.) |
| Political Turmoil | In July 2000, following a long and controversial process, voters re-elected President Hugo Chavez of the Fifth Republic Movement (MVR) in generally free and fair national and local elections. The MVR and pro-Chavez Movimiento a Socialismo (MAS) party won 92 seats in the 165-member legislature. Subsequent party splits reduced the pro-Chavez members to 84 seats. In April 2002, the country experienced a temporary alteration of constitutional order. When an estimated 400,000 to 600,000 persons participated in a march in downtown Caracas to demand President Chavez' resignation, gunfire broke out, resulting in as many as 18 deaths and more than 100 injuries on both sides. Military officers took President Chavez into custody, and business leader Pedro Carmona swore himself in as interim President. On April 14, military troops loyal to Chavez returned him to power. A national reconciliation process, with participation by the Organization of American States, the UN Development Program, and the Carter Center, was unsuccessful in stopping further conflict. Opposition leaders called a national work stoppage on December 2, 2002. Strikers protested the government and called for the resignation of President Chavez. The oil sector joined other sectors of the economy and effectively shut down all economic activity for a month. The OAS Permanent Council passed Resolution 833 on December 16, 2002, calling for a "constitutional, democratic, peaceful, and electoral solution" to the crisis in Venezuela. The strike formally ended in February 2003 as political opponents of Chavez sought a recall referendum to revoke the mandate of the president. |
| Suffrage: | 18 years of age; universal |
| ECONOMY | Real GDP increased by 8.3% in 2007. The economy recovered strongly in 2004 (18.3%), 2005 (10.3%), and 2006 (10.3%) after two consecutive years of deep economic recession (in 2003, Venezuelan GDP contracted 7.8%, after contracting 8.9% in 2002). The economic recovery has been driven by a large increase in government expenditures, based on an oil windfall, which in turn generated higher consumption levels. The Consumer Price Index increased 18.7% in 2007, following increases of 13.7% in 2006, 16.0% in 2005, and 21.7% in 2004. Early monthly statistics suggest that annual inflation could be as high as 30% in 2008. All foreign exchange requests must be approved by the National Exchange Control Administration (CADIVI), and the Central Bank (BCV) completes all legal purchase and sale of foreign currency. In January 2008, the Venezuelan Government adopted the "bolívar fuerte" as its new currency, effectively redenominating the previous currency, the "bolívar," by removing three zeroes (1 bolivar fuerte=1,000 bolívars). The current exchange control regime rate for U.S. dollar exchange is Bs.F. 2.145=U.S. $1.00. Unofficial exchange rates are far higher. Central Bank-held international reserves increased to over U.S. $36 billion at the end of 2006. The reserves would have been higher, but the BCV transferred $6 billion to the National Development Fund (FONDEN) during the last quarter 2005, as directed by the Central Bank Law (July 2005) and an additional $4.3 billion in 2006. The Venezuelan Government dominates the economy. The state oil company, PDVSA, controls the petroleum sector. Government companies control the electricity sector and important parts of the telecommunications and media sectors. In the spring of 2008, the government announced the nationalization of cement and steel producers, as well as select companies in the milk and meat distribution sectors. These and previous nationalizations, as well as other threats to property rights and an uncertain macroeconomic environment characterized by high inflation and foreign exchange controls, have led to reduced space for the private sector and low levels of private investment. There is considerable income inequality. The Gini coefficient was 0.42 during 2007. According to government statistics, the percentages of poor and extremely poor among Venezuelan population were 27.5% and 7.6%, respectively, for the first half of 2007. Although economic growth has been impressive, as a result of the oil windfall, many in the Venezuelan business community remain very concerned about President Chavez' vision for "21st Century Socialism" and what it portends for the private sector. |
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