Venezuelan Foreign Policy

1
Venezuelan Foreign Policy

• Background, Institutions, Policy Toward OPEC and
  USA

2
Caribbean Basin
3
After Independence

• Bolivarian dream
• Gran Colombia plus
• Death of the dream
• Nineteenth century chaos
• Recentralization fleeting order under Gen.
  Antonio Guzmán (1870-1884)

4
Historic Goals

• Better prices for exports to North Atlantic
• Attract foreign investment to facilitate
  development
• Minimalize political autonomy enjoyed by North
  Atlantic interests inside of Venezuela
• Protect territorial integrity
• Colombia (Guajira peninsula)
• Guyana
• Brazil and the Amazon

5
Tactics

• Venezuela generally assumed a defensive posture
  in pursuing its historic goals
• Why?

6
Early Twentieth Century

• The Andeans
• Cipriano Castro
• Gen. Juan Vicente Gómez (1908-35)
• Transitional Andeans (1935-45)
• Military presidents
• Supported the United States in World War II

• Gómez López 1935

7
Gen. Pérez Jiménez and the Rationalization of
Foreign Policy

• Events leading to the Pérez Jiménez government
• Beginning of professional foreign service
• Petroleum policy
• Support for the United States in the Cold War

8
Institutions and Actors in the foreign policy
process of Venezuela

• President
• overall coordinator
• Names the foreign minister
• Personality important in determining how much
  attention the president devotes to foreign policy

9
Gen. Pérez Jiménez and the Rationalization of
Foreign Policy

• Events leading to the Pérez Jiménez government
• Beginning of professional foreign service
• Petroleum policy
• Support for the United States in the Cold War

10
Military

• Role unclear
• Utility as defense force limited in view of the
  military power of the United States
• Developing a capability to defend the state of
  Zulia against a Colombian invasion
• Navy purchased Vietnam era swift-boats frontier
  defense.

11
Fifth Republic

• Much of pro-USA military purged after
  unsuccessful coup of April 2002
• Chavez has involved the military to a greater
  extent in policy making and policy implementation

12
Instituto de Comercio Exterior

• Created by COPEI to increase non-traditional
  Venezuelan exports to South America and the
  Caribbean
• Tensions with the Chancillería

13
Business and Labor

• Both groups lobbied against entry into the Andean
  Pact in early 1970s
• Business can usually count on subsidies to offset
  economic difficulties that derive from
  presidential decisions
• 1958-1998 ties of union to the political parties
  meant that workers would usually accept the party
  line on foreign policy decisions.

14
Venezuela and the Formation of OPEC

• Pérez Alfonso a founding father
• Less aggressive than most Arab states throughout
  the 1960s
• Venezuela benefited from OPEC decisions following
  the Yon Kippur War.

15
Carlos Andrés Pérez and Venezuelas new militancy
within OPEC

• Pushed for high prices
• Venezuelan liquid reserves not as large as middle
  eastern reserves
• Venezuelan identification with OPEC became more
  important that membership in the Andean Bloc
• Luis Herrera Campins presides over the second
  petroleum bonanza

16
Declining influence of OPEC Mandates Changes in
Venezuelas OPEC Policy

• Exhaustion of the Pérez policy under Lusinchi
• Reduced Importance of OPEC During the Second
  Pérez government (1989-93)
• Second Caldera government to exceed Venezuelas
  OPEC quota

17
Business and Labor

• Both groups lobbied against entry into the Andean
  Pact in early 1970s
• Business can usually count on subsidies to offset
  economic difficulties that derive from
  presidential decisions
• 1958-1998 ties of union to the political parties
  meant that workers would usually accept the party
  line on foreign policy decisions.

18
Venezuela and the Formation of OPEC

• Pérez Alfonso a founding father
• Less aggressive than most Arab states throughout
  the 1960s
• Venezuela benefited from OPEC decisions following
  the Yon Kippur War.

19
Democratic Venezuelan militancy within OPEC

• President Carlos Andrés Pérez takes advantage of
  high prices
• Venezuelan liquid reserves not as large as those
  of Middle East
• Identification with OPEC became more important
  that membership in the Andean Bloc

• Luis Herrera Campins presides over second
  petroleum bonanza

20

• Changes in Venezuelas OPEC Policy
• Exhaustion of the Pérez policy under Lusinchi
• Price spike from first Gulf war is temporary
• Reduced Importance of OPEC During the Second
  Pérez government (1989-93)

• Second Caldera government (1994-99) exceeded
  Venezuelas OPEC quota

21
Hugo Chávez Reinvigorates OPEC
22
Changes in Attitude toward USA by Hugo Chávez

• Visiting U.S.S Yorktown in Netherland Antilles

• UN Smell of Sulfur
• impact of April 2002 coup

23
Chavez Policy Toward U.S.

• Determination to reduce global influence of USA
• Use of other powers to balance U. S. influence in
  South America
• Iran
• China
• Brazil
• Opposition to NATO/USA Libyan actions

24
Support for Fidel Castro (100,000 barrels a
month)
25
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