In an effort to stabilize the bolivar after Venezuela President Hugo Chavez “floated” it last Wednesday, the Central Bank has spent the equivalent of millions of extra dollars per day.  The repercussions of Chavez’s decision to part with the fixed exchange rate established eight years ago have been severe.  An overall sentiment of frustration pervades the public as prices rise and fall hourly, and banks and other business are closed.  Some analysts speculate that the pressure of uncertainty will cause consumers to overcompensate and stock up on essential items before prices become even higher.  This sort of uneven action reflects general theories of supply and demand creating more instability for the economy of Venezuela.

---

Country Journal Entry Two
"Venezuela Oil Managers On Strike"
 by Fabiola Sanchez
3/8/02
( article from www.washingtonpost.com)

Top management of Petroleos de Venezuela SA, the Venezuelan oil company which is the 3rd largest supplier of the US, protested President Chavez's political action surrounding new management.  In the past 27 years, since the company's creation in 1975, it has attempted to deny political interference.  With Chavez as president, however this proves practically impossible.  He has appointed new members to the company's board and even replaced the president of PDVSA with a "leftist economist".  Chavez has not received much support in the business world, as he has boasted a desire for a redistribution of wealth.  Chavez wishes to exert more control over the company to allow for more control over the revenue gained. With oil being such a huge part of Venezuela's  economy (the company accounts for 80% of the country's revenue from exports ), an absence of politics in the PDVSA is unlikely.  Although management agrees to discuss the matter with officials, the vice president of the company, Diosdado Cabello, says he will not give in to threats made by the government.  It is clear, however, that protesters run the risk of being fired.

---

Country Journal Entry Three
" Venezuela Oil Execs Shun Protests"
by Alexandra Olson
3/13/02
( article from www.washingtonpost.com)

A new division of opinion of  PDVSA ( Petroleos de Venezuela ) workers exists in Caracas.  One official, Mary Lizardo, expresses confidence that new officials appointed by Chavez will resign due to the negative opinions surrounding the politics of the issue.  With resignation would come increased worker morale and hopefully less tension in the company.  The higher ups of the PSVSA show less support for a standoff than the original management protesters have shown.  Lizardo does not out rule the possibility of a full blown strike, but higher management officials do not support such action.  The issue continues unresolved due to its complicated political nature.  The PDVSA holds such high economic importance in Venezuela that almost all issues related to the company become highly political.

---

Country Journal Entry Four
"Reporters Tour Venezuela Border"
by Fernando Llono
4/1/02
( article from www.washingtonpost.com)
Colombian officials requested a search of the Venezuela-Colombia border due to suspicion of secret guerilla attacks by Venezuela.  During the helicopter search no troops were found.  The search, lead by Venezuelan officials Lucas Rincon (inspector general of the armed forces), Jose Viecente Rangel (defense minister), and Luis Alfonso Davila ( foreign minister), was granted to reporters investigating these claims.  Tensions between Venezuela and Colombia have been intense regarding such issues as illicit drug smuggling and boundary issues.  For these reasons any suspicion can be blown out of proportion, or indeed be true, causing fear and reaction on both sides. Volatile relationships between/among neighboring countries cause much tension due to close proximity and the ability to clearly identify with the idea of the "other".  If danger is suspected the closeness of the countries exacerbates fears.

---

Country Journal Entry Five
“Labor Group Joins Protest Against Venezuelan Oil Policies”
News Services
April 7, 2002
(article from www.washingtonpost.com)

In support of protesters fighting against President Chavez’s attempts to increase control over the country's largest oil company, Venezuela's largest labor group ( Venezuelan Workers Confederation) plans to hold a day long strike Tuesday.  To support Petroleos de Venezuela, the president of the labor group says the strikers will strike for as long as necessary.  This large group effectively gained attention and “paralyzed” the country with its striking.  This group represents the large contingency within the country that opposes Chavez and his leftists approach to rule.

---

Country Journal Entry Six
“Venezuela Calls Strike a Conspiracy to Topple Chavez”
by Scott Wilson
April 11, 2002
(article from www.washingtonpost.com)

Strikes held Tuesday are being categorized by government officials as acts of conspiracy in an attempt to end the rule of Hugo Chavez.  Petroleos de Venezuela contributes to most of the government's revenue creating much controversy surrounding both President Chavez’s control over the company.  Labor strikes impact this economic and political situation severely, explaining the upheaval within the country.  Supposedly unrest within the country is less lately as strikes have ceased, but as a result of chaos and revolt several deaths have occurred.

---

Country Journal Entry Seven
“Venezuelan Military Says Chavez Is Ousted”
Generals Assert Control After Deadly Protests
by Scott Wilson
April 12, 2002
(article from www.washingtonpost.com)

Due to claims that President Chavez “abandoned [his] functions”, military leaders have asked him to resign.  With current chaos and violence in Venezuela, the National Guard has assumed a position to end this situation in an attempt to protect Venezuela's people.  This address, made by General Alberto Camacho Kairuz, was televised underscoring the severity of the issue. Differing interactions among censorship, government, and the media from country to country are also highlighted by the nature of this address.  This act on the part of the military (an act that is in essence against the president) tells of the extreme division within Venezuela ( those who support Chavez and those who do not).

---

 Country Journal Entry Eight
"Acting Leader Of Venezuela Steps Down"
Term Ends After One Day As Pro-Chavez Protests Grow
by Scott Wilson
April 14, 2002
( article from www.washingtonpost.com)

More unrest and protesting in the streets continues in Venezuela after the "ousting" of President Hugo Chavez. Protests of supporters of Chavez left several people dead and injured in Caracas and lead to the resignation of Pedro Carmona, the acting leader of the country.  Appointed by military officials, Carmona stepped down to avoid further conflict.  Diosdado Cabello, who was Chavez’s vice president, has assumed the position.  Such instability in the government not only reflects the unrest within the country, but arguably continues and exacerbates it.  Although there may be no clear solution to the problems Venezuela faces, the current situations clearly has political and economic repercussions.

---

Country Journal Entry Nine
"Oil Prices Surge on Turmoil in Venezuela”
by Kenneth Bredemeier
April 16, 200
( article from www.washingtonpost.com)

As Chavez reassumed presidency this weekend ( after spending a few days in military prison) oil prices have jumped considerably.  In order to increase prices, production is being slowed.  Due to heavy government control over Petroleos de Venezuela the unrest within the political arena of Venezuela is compensating by artificially causing oil price increases.  If politics is based on a struggle for and the control of, resources than this circumstance is classically political and economic. It is also impossible to avoid the economic implications of such political upheaval regarding the ousting of Chavez, his successors one day stint, and his recent and prompt return.  In order to gain some more economic stability, oil prices (something the government has control over) are being artificially forced higher.  This will not, however, create any long-standing benefits.  It is an exertion of political power by Chavez.

---

Country Journal Entry Ten
“Carmona Vilified After Failed Coup”
by Jared Kotler
5/3/02
(article from wwww.washingtonpost.com)

Accusations that businessman Pedro Carmona was part of plans to force Hugo Chavez out of office as he assumed his position for one day in the beginning of April are now flying.  Protesters who strongly support Chavez ( mostly the poor of Venezuela) believe Carmona to be evil and have accused him of murder and conspiracy. His status as a businessman does not make him accessible nor admirable to the population of Chavez’s supporters. His extreme actions while in office (denouncing the constitution, congress, and the supreme court) did not gain him support.  He now faces charges for these action.   For this more chaos is occurring in Venezuela among lawmakers and civilians alike.  The anarchic quality of last month has lessened, but tensions are still prevalent.  Officials are interested in who actually fired shots and caused violence during the several days of chaos in April.

---

Country Journal Entry Eleven
“Chavez Raises Idea of U.S. Role in Coup”
by Scott Wilson
5/5/02
(article from www.washingtonpost.com)

In an attempt to uncover details surrounding his “ousting”, President Chavez is looking to the US.  President Bush does not support many of Chavez’s views and Chavez has clearly stated his lack of support for US policies.  The mistrust is not substantiated by some of  Chavez’s recent statements. He claims he hopes to find these accusations to be false because he wants to believe in a country that so strongly represents democracy.  Bush has accused Chavez of planning the ousting himself.  As tensions may have lessened surrounding Chavez and recent upheaval, underlying tensions still exist. Accusations  leading to political upheaval have made for tumultuous times in Venezuela.  These tensions have transcended Venezuela's own borders.

---

 Main Menu