Venezuela: Political Conditions and U.S. Policy

Publication Date: February 2009

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Coverage: Venezuela

Abstract:

Under the populist rule of President Hugo Chávez, first elected in 1998, Venezuela has undergone enormous political changes, with a new constitution, a new unicameral legislature, and even a new name for the country, the Bolivarian Republic of Venezuela. Although Chávez remained widely popular until mid-2001, his popularity eroded considerably after that, amid concerns that he was imposing a leftist agenda. In April 2002, massive opposition protests led to the ouster of Chávez from power for a brief period, but the military restored him to power after an interim government resorted to such hardline measures as dismantling the National Assembly and suspending the Constitution. After months of negotiations, the Chávez government and the political opposition signed an agreement in May 2003 that ultimately led to an August 2004 presidential recall referendum. Chávez survived the vote by a margin of 59% to 41%. In December 2005 legislative elections, proChávez parties won all 167 seats in the National Assembly after opposition parties pulled out of the race just days before the vote. The country's next presidential elections are set for the end of 2006, and there is a strong chance that Chávez could win another six-year term. The government has benefitted from the rise in world oil prices, which has sparked an economic boom. As a result, Chávez has been able to increase government expenditures on anti-poverty and other social programs associated with the populist agenda of his Bolivarian revolution.

The United States traditionally has had close relations with Venezuela, but there has been friction in relations with the Chávez government. In 2005, relations deteriorated markedly, with Venezuela's cancellation of a bilateral military exchange program in April and its suspension of cooperation with the Drug Enforcement Administration in August. On September 15, 2005, President Bush designated Venezuela as a country that has failed demonstrably to adhere to its obligations under international narcotics agreements, although he waived economic sanctions that would have curtailed U.S. assistance for democracy programs in Venezuela. A dilemma for U.S. policymakers has been how to press the Chávez government to adhere to democratic principles without taking sides in Venezuela's polarized political conflict. Since Venezuela is the fourth major supplier of foreign oil to the United States, a key U.S. interest has been ensuring the continued flow of oil exports.

In the first session of the 109th Congress, the FY2006 Foreign Operations appropriations measure (P.L. 109-102, H.Rept. 109-265) provided $2 million in FY2006 for democracy programs in Venezuela, and $2.252 million in assistance under the Andean Counterdrug Initiative. In the second session, Congress will likely continue to focus on concern about the status of democracy in Venezuela and President Chávez's support for leftist movements and governments in the region. Pending legislation includes the House-passed version of H.R. 2601, which would authorize $9 million for each of FY2006 and FY2007 for democracy programs in Venezuela and authorize funds for U.S.-government broadcasting to Venezuela; H.Con.Res. 224 (Fortuño), which calls on the Venezuelan government to uphold the human rights and civil liberties of the people of Venezuela; and H.Con.Res. 328 (Mack), which condemns President Chávez's "anti-democratic actions" and expresses strong U.S. support for democratic forces in Venezuela.