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CRS Report for Congress
Congressional Research Service 7-5700/RL32488
Summary Under the populist rule of President Hugo Chávez, first elected in 1998 and reelected to a six-year term in December 2006, Venezuela has undergone enormous political changes, with a new constitution and unicameral legislature, and a new name for the country, the Bolivarian Republic of Venezuela. U.S. officials and human rights organizations have expressed concerns about the deterioration of democratic institutions and threats to freedom of expression under President Chávez, who has survived several attempts to remove him from power. The government benefitted from the rise in world oil prices, which sparked an economic boom and allowed Chávez to increase expenditures on social programs associated with his populist agenda. After he was reelected, Chávez announced new measures to move the country toward socialism, but his May 2007 closure of a popular Venezuelan television station (RCTV) that was critical of the government sparked protests, and his proposed constitutional amendment package was defeated by a close margin in a December 2007 national referendum. State and local elections held in November 2008 were a mixed picture of support for the government. While Chávez supporters won the governorships of 17 out of 22 contested states, the opposition won contests in three of the most populous states as well as mayoral races in the largest cities of Caracas and Maracaibo. A controversial constitutional referendum scheduled for February 15, 2009 would abolish term limits, and allow Chávez to run for re-election in 2012 and beyond. Polls indicate that the vote could be close. The United States traditionally has had close relations with Venezuela, the fourth major supplier of foreign oil to the United States, but there has been friction with the Chávez government. U.S. officials have expressed concerns about human rights, Venezuela’s military arms purchases, its relations with Cuba and Iran, and its efforts to export its brand of populism to other Latin American countries. Declining cooperation on anti-drug and anti-terrorism efforts has also been a concern. From, 2005-2008, President Bush has annually designated Venezuela as a country that had failed demonstrably to adhere to its obligations under international narcotics agreements, and since 2006, the Department of State has prohibited the sale of defense articles and services to Venezuela because of lack of cooperation on anti-terrorism efforts. On September 11, 2008, bilateral relations worsened when President Chávez expelled the U.S. Ambassador to Venezuela. It is unclear at this juncture whether U.S.-Venezuelan relations will improve under the Obama Administration. During her confirmation hearing for Secretary of State, Hillary Clinton maintained that the new Administration believed that bilateral cooperation on a range of issues would be in each country’s mutual interest, although she maintained that it remains to be seen whether there is any tangible sign that Venezuela wants an improved relationship. President Chávez has said that he would like relations to be restored to the same level as during the Clinton Administration. Just as over the past several years, concerns regarding Venezuela in the 111th Congress will likely focus on the state of democracy and human rights, energy, and terrorism issues. For additional information, see CRS Report RL33693, Latin America: Energy Supply, Political Developments, and U.S. Policy Approaches; and CRS Report RS21049, Latin America: Terrorism Issues. CONTENTS Major Developments Political Situation Background Chávez’s Brief Ouster in April 2002 Continued Opposition and Strike in 2002 and 2003 August 2004 Presidential Recall Referendum December 2005 Legislative Elections December 2006 Presidential Election Political Developments in 2007 RCTV Closure and Public Reaction December 2, 2007 Constitutional Reform Referendum Political Developments in 2008 November 2008 State and Local Elections Political Developments in 2009 February 15, 2009 Term Limits Referendum Human Rights Concerns Trafficking in Persons Economic Conditions Venezuela’s Social Missions U.S. Policy Overview of U.S.-Venezuelan Relations Bush Administration Policy 2005-2008 Obama Administration U.S. Funding for Democracy Projects Oil Issues Counternarcotics Cooperation Venezuela’s Military Purchases Venezuela’s Activities in Latin America Chávez Role in Release of FARC Hostages March 2008 Ecuador-Colombia Border Crisis Terrorism Issues Allegations of Venezuelan Support for the FARC State Sponsors of Terrorism List Iran and Hezbollah Venezuela’s Extradition Requests Legislative Initiatives 111th Congress 110th Congress 109th Congress 108th Congress End of Preview.
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