Venezuelan Foreign Policy

Background, Institutions, Policy Toward OPEC and USA

Caribbean Basin

After Independence

• Bolivarian dream– Gran Colombia plus– Death of the dream

• Nineteenth century chaos

• Recentralization & fleeting order under Gen. Antonio Guzmán (1870-1884)

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

Tactics

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

• Why?

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

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

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

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

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.

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

Instituto de Comercio Exterior

• Created by COPEI to increase “non-traditional” Venezuelan exports to South America and the Caribbean

• Tensions with the Chancillería

Business and Labor• Both groups lobbied against entry into the Andean

Pact in early 1970’s • 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.

Venezuela and the Formation of OPEC

• Pérez Alfonso; a founding father • Less aggressive than most Arab states

throughout the 1960’s• Venezuela benefited from OPEC decisions

following the Yon Kippur War.

Carlos Andrés Pérez and Venezuela´s 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

Declining influence of OPEC Mandates Changes in

Venezuela’s 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 Venezuela’s OPEC quota

Business and Labor• Both groups lobbied against entry into the Andean

Pact in early 1970’s • 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.

Venezuela and the Formation of OPEC

• Pérez Alfonso; a founding father

• Less aggressive than most Arab states throughout the 1960’s

• Venezuela benefited from OPEC decisions following the Yon Kippur War.

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

• Changes in Venezuela’s 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 Venezuela’s OPEC quota

Hugo Chávez Reinvigorates OPEC

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

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

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