C1C Dos Santos

Prof Constance Leonard

EAP 109 – Introduction

Nov. 2, 2018

Crisis in Venezuela

The origin of the financial crisis in Venezuela has its roots in the 1950’s, period known as

Venezuelan Democratic era. Since the beginning of the 20th century, after the discovery of oil

reserves in the country, which is the current biggest proven oil reserve in the world, the

economical and political strategies traced by each government was closely tied to the prices of

oil. In 1980, the world has suffered with the greatest oil crisis in the 20th century, and Venezuela

government started to reduce its financial aid and socialist programs, which always filled the gap

between the low wage farmers and the millionaire owners of oil companies.

In 1993, after two military coup attempts, the President Carlos Perez was accused for the

embezzlement of 250 million bolivars, originally destined to a discretionary fund. After that the

Supreme Court validated the accusation and the Congress voted to invalidate the immunity of

Perez. He was removed of his chair and he was sentenced to 2 years in prison.

The main military leader behind the two coups and the public manifestations for a best

distribution of wealth was the General Hugo Chavez, a very charismatic leader and symbol of the

resistance of the poor against the Elite in Venezuela. In 1998, Chavez was elected with 72% of

the votes with the proposal of changing the Constitution, renewal of the Congress and

distribution of the lands and wealth to help the people under low conditions of living.