Economic and social policy that has been adjusted for inflation
Sources:
International Monetary Fund,
World Bank From his election in 1998 until his death in March 2013, Chávez's administration proposed and enacted
populist economic policies. The social programs were designed to be short-term, though after seeing political success as their result, Chávez made the efforts central to his administration and often overspent outside of Venezuela's budget. Due to increasing oil prices in the early 2000s which raised funds not seen in Venezuela since the 1980s, Chávez created the
Bolivarian Missions, aimed at providing public services to improve economic, cultural, and social conditions, using these populist policies to maintain political power. According to Corrales and Penfold, "aid was disbursed to
some of the poor, and more gravely, in a way that ended up helping the president and his allies and cronies more than anyone else". The Missions, which were directly overseen by Chávez and often linked to his political campaigns,
Teresa A. Meade wrote that Chávez's popularity strongly depended "on the lower classes who have benefited from these health initiatives and similar policies". Following elections, social programs saw less attention from the government and their overall effectiveness decreased. 95% of Venezuelans aged 15 and older could also read and write, though some scholars have disputed the claim that literacy improvements during Chavez's presidency resulted from his administration's policies. The poverty rate fell from 48.6% in 1999 to 32.1% in 2013, according to the Venezuelan government's National Statistics Institute (INE). The drop of Venezuela's poverty rate compared to
poverty in other South American countries was slightly behind that of Peru, Brazil and Panama with the poverty rate becoming higher than the Latin American average in 2013 according to the UN. In the two years following Chávez's death, the poverty rate returned to where it had been before his presidency, In 2012, the World Bank also explained that Venezuela's economy was "extremely vulnerable" to changes in oil prices since in 2012 "96% of the country's exports and nearly half of its fiscal revenue" relied on oil production, while by 2008, according to
Foreign Policy, exports of everything but oil "collapsed". The Chávez administration then spent governmental proceeds from the high oil prices on his populist policies to gain the approval of voters. Such occurrences, especially the risk of
default and the unfriendliness toward private businesses, led to a lack of foreign investment and stronger foreign currencies, In January 2013 near the end of Chávez's presidency,
The Heritage Foundation and
The Wall Street Journal gave Venezuela's economic freedom a score of 36.1, down from 56.1 in 1999, ranking its freedom very low at 174th of 177 countries, with freedom on a downward trend. According to some analysts, the economic problems Venezuela has suffered under President
Nicolás Maduro would likely have emerged even if Chávez had remained president.
Food and products In the 1980s and 1990s, health and nutrition indexes in Venezuela were generally low, and social inequality in access to nutrition was high. Chávez made it his stated goal to lower inequality in access to basic nutrition, and to achieve
food sovereignty for Venezuela. The main strategy for making food available to all economic classes was the controversial policy of creating fixed price ceilings for basic staple foods, which was implemented in 2003. Between 1998 and 2006, malnutrition related deaths fell by 50%. Chávez also
expropriated and
redistributed 5 million acres of farmland from large landowners. store Price controls initiated by Chávez created product shortages since merchants could no longer afford to import necessary goods. Chávez blamed "speculators and hoarders" for these scarcities and strictly enforced his price control policy, denouncing anyone who sold food products for higher prices. The price controls increased the demand for basic foods while making it difficult for Venezuela to import goods, causing increased reliance on domestic production. Economists believe this policy increased shortages. Shortages of food then occurred throughout the rest of Chávez's presidency with food shortage rates between 10% and 20% from 2010 to 2013. One possible reason for shortages is the relationship between inflation and subsidies, where a lack profitability due to price regulations affects operations. In turn, the lack of dollars made it difficult to purchase more food imports. Chávez's strategy in response to food shortages consisted of attempting to increase domestic production through nationalizing large parts of the food industry, though such nationalizations allegedly did the opposite and caused decreased production instead. As part of his strategy of food security Chávez started a national chain of supermarkets, the
Mercal network, which had 16,600 outlets and 85,000 employees that distributed food at highly discounted prices, and ran 6,000 soup kitchens throughout the country. Simultaneously Chávez expropriated many private supermarkets. The Venezuelan government often failed to construct the number of homes they had proposed. According to Venezuela's
El Universal, one of the Chávez administration's outstanding failures was the inability to meet its goals of constructing housing. This limit to foreign currency led to a creation of a currency
black market economy since Venezuelan merchants rely on foreign goods that require payments with reliable foreign currencies. As Venezuela printed more money for their social programs, the bolívar continued to devalue for Venezuelan citizens and merchants since the government held the majority of the more reliable currencies. The implied value or "black market value" is what Venezuelans believe the
hard bolívar is worth compared to the United States dollar. The high rates in the black market make it difficult for businesses to purchase necessary goods since the government often forces these businesses to make price cuts. This leads to businesses selling their goods and making a low profit. Since businesses make low profits, this leads to shortages since they are unable to import the goods that Venezuela is reliant on. Chavez used exchange rate subsidies to underwrite imports; this policy was not welfare-maximizing, but rather benefited special interests.
Crime and punishment * Express kidnappings may not be included in data. During the 1980s and 1990s there was a steady increase in crime in Latin America. The countries of Colombia, El Salvador, Venezuela, and Brazil all had homicide rates above the regional average. During Chávez's terms as president, hundreds of thousands of Venezuelans were murdered due to violent crimes occurring in the country. Gareth A. Jones and Dennis Rodgers stated in their book
Youth violence in Latin America: Gangs and Juvenile Justice in Perspective that, "With the change of political regime in 1999 and the initiation of the
Bolivarian Revolution, a period of transformation and political conflict began, marked by a further increase in the number and rate of violent deaths" showing that in four years, the murder rate had increased to 44 per 100,000 people. Kidnappings also rose tremendously during Chávez's tenure, with the number of kidnappings over 20 times higher in 2011 than when Chavez was elected. He further explained that common criminals felt that the Venezuelan government did not care for the problems of the higher and middle classes, which in turn gave them a sense of impunity that created a large business of kidnapping-for-ransom. Homicide rates in Venezuela more than tripled, with one NGO finding the rate to have nearly quadrupled. The majority of the deaths occur in crowded slums in Caracas. The NGO found that the number of homicides in the country increased from 6,000 in 1999 to 24,763 in 2013. In 2010 Caracas had the highest murder rate in the world, having more deaths than
Baghdad during the
Iraq War. According to the
United Nations Office on Drugs and Crime, in 2012 there were 13,080 murders in Venezuela. In leaked government INE data for kidnappings in the year 2009, the number of kidnappings were at an estimated 16,917, contrasting the CICPCs number of only 673, According to the leaked INE report, only 1,332 investigations for kidnappings were opened or about 7% of the total kidnapping cases, with 90% of the kidnappings happening away from rural areas, 80% of all being express kidnappings and the most common victim being lower-middle or middle class Venezuelans and middle-aged men. At that time, they would advise families not to report the murder of their family member to the media in exchange for expediting the process of releasing the victim's body. An
International Crisis Group report that same year stated that when Chávez took office, there were some factors beyond his control that led to the crime epidemic throughout Venezuela, but that Chávez ignored it as well as corruption in the country; especially among fellow state officials. The report also stated that international organised crime filters between Colombia and Venezuela with assistance from "the highest spheres of government" in Venezuela, leading to higher rates of kidnapping, drug trafficking, and homicides. Chávez supporters stated that the
Bolivarian National Police had reduced crime and also said that the states with the highest murder rates were controlled by the opposition.
Prisons During Chávez's presidency, there were reports of prisoners having easy access to firearms, drugs, and alcohol. Carlos Nieto, head of Window to Freedom, alleged that heads of gangs acquire military weapons from the state, saying: "They have the types of weapons that can only be obtained by the country's armed forces. ... No one else has these." Use of internet and mobile phones were also commonplace, allowing criminals to take part in street crime while in prison. One prisoner explained how, "if the guards mess with us, we shoot them" and that he had "seen a man have his head cut off and people play
football with it". Edgardo Lander, a sociologist and professor at the Central University of Venezuela with a PhD in sociology from Harvard University, explained that Venezuelan prisons were "practically a school for criminals" since young inmates come out "trained and hardened" compared to before their incarceration. He also explained that prisons are controlled by gangs and that "very little has been done" to restrain their activities.
Elections under Chávez The electoral processes surrounding Venezuela's democracy under Chávez were often observed controversially. According to
Bloomberg, he changed Venezuela from a democracy to "a largely authoritarian system". However, there were limits to his authoritarianism, and he thought of the electoral system as a key way to make himself more effective as a leader. As New York University historian
Greg Grandin has pointed out, Chávez "submitted himself and his agenda to 14 national votes, winning 13 of them by large margins, in polling deemed by
Jimmy Carter to be ‘best in the world.’" Francisco Toro, editor of
Caracas Chronicles, an opposition-friendly news and analysis site, said "Chávez was always careful to maintain electoral legitimacy". Since 1998,
elections in Venezuela have been automated using
touch-screen DRE voting machines, which provide a
Voter Verified Paper Audit Trail and administered by the
National Electoral Council.
Corruption In December 1998, Hugo Chávez declared three goals for the new government; "convening a constituent assembly to write a new constitution, eliminating government corruption, and fighting against social exclusion and poverty". However, according to the
libertarian Cato Institute, during Hugo Chávez's time in power, corruption has become widespread throughout the government due to impunity towards members of the government, bribes and the lack of transparency. In 2004, Hugo Chávez and his allies took over the Supreme Court, filling it with supporters of Chávez and made new measures so the government could dismiss justices from the court. According to the Cato Institute, the
National Electoral Council of Venezuela was under control of Chávez where he tried to "push a constitutional reform that would have allowed him unlimited opportunities for reelection". The
Corruption Perceptions Index, produced annually by the Berlin-based NGO
Transparency International (TNI), reported that in the later years of Chávez's tenure, corruption worsened; it was 158th out of 180 countries in 2008, and 165th out of 176 (tied with
Burundi,
Chad, and
Haiti). Most Venezuelans believed the government's effort against corruption was ineffective; that corruption had increased; and that government institutions such as the judicial system, parliament, legislature, and police were the most corrupt. In
Gallup Poll's 2006 Corruption Index, Venezuela ranked 31st out of 101 countries according to how widespread the population perceive corruption as being in the government and in business. The index listed Venezuela as the second least corrupt nation in Latin America, behind Chile. Some criticism came from Chávez's supporters, as well. Chávez's own political party,
Fifth Republic Movement (MVR), had been criticized as being riddled with the same cronyism, political patronage, and corruption that Chávez alleged were characteristic of the old "Fourth Republic" political parties. Venezuela's trade unionists and indigenous communities participated in peaceful demonstrations intended to impel the government to facilitate labor and land reforms. These communities, while largely expressing their sympathy and support for Chávez, criticized what they saw as Chávez's slow progress in protecting their interests against managers and mining concerns, respectively.
Aiding FARC According to the
International Institute for Strategic Studies (IISS), "Chavez's government funded
FARC's office in Caracas and gave it access to Venezuela's intelligence services" and said that during the 2002 coup attempt that "FARC also responded to requests from [Venezuela's intelligence service] to provide training in urban terrorism involving targeted killings and the use of explosives". The IISS continued saying that "the archive offers tantalizing but ultimately unproven suggestions that FARC may have undertaken assassinations of Chavez's political opponents on behalf of the Venezuelan state". Venezuelan diplomats denounced the IISS' findings saying that they had "basic inaccuracies". In 2007, authorities in
Colombia declared that through laptops they had seized on a raid against
Raúl Reyes, they found in documents that Hugo Chávez offered payments of as much as $300 million to the FARC "among other financial and political ties that date back years" along with other documents showing "high-level meetings have been held between rebels and Ecuadorean officials" and some documents arguing that FARC had "bought and sold
uranium". In 2015, Chávez's former bodyguard
Leamsy Salazar stated in the book
Bumerán Chávez that Chávez met with the high command of FARC in 2007 somewhere in rural Venezuela. Chávez created a system in which the FARC would provide the Venezuelan government with drugs that would be transported in live cattle and the FARC would receive money and weaponry from the Venezuelan government. According to Salazar, this was done to weaken Colombian President
Álvaro Uribe, an enemy of Chávez. In 2019, federal prosecutors from the
Southern District of New York further provided documents outlining that in 2005 Chávez ordered top lieutenants to discuss plans to ship cocaine to the United States with the help of the FARC and "flood" the country with the drug, as part of his policy objectives to combat the United States.
Human rights Human rights in Venezuela has been an ongoing issue and has been criticized by
human rights organizations such as
Human Rights Watch and
Amnesty International. Concerns include poor prison conditions, torture, attacks against journalists, political persecution, extrajudicial executions by death squads,
forced disappearance and harassment of human rights defenders.
Criticisms Shortly after Hugo Chávez's election, ratings for freedom in Venezuela dropped according to political and human rights group
Freedom House and Venezuela was rated "partly free". In 2004, Amnesty International criticized Chávez's administration of not handling the 2002 coup in a proper manner, saying that violent incidents "have not been investigated effectively and have gone unpunished" and that "impunity enjoyed by the perpetrators encourages further human rights violations in a particularly volatile political climate". Amnesty International also criticized the
Venezuelan National Guard and the
Direccion de Inteligencia Seguridad y Prevención (DISIP) stating that they "allegedly used excessive force to control the situation on a number of occasions" during protests involving the
2004 Venezuela recall. Subsequently, over a hundred Latin American scholars signed a joint letter with the
Council on Hemispheric Affairs, a leftist NGO that would defend Chávez and his movement, with the individuals criticizing the Human Rights Watch report for its alleged factual inaccuracy, exaggeration, lack of context, illogical arguments, and heavy reliance on opposition newspapers as sources, among other things. The
International Labour Organization of the United Nations had also expressed concern over voters being pressured to join the party. She was moved to house arrest in Caracas in February 2011, but she is still barred from practicing law, leaving the country, or using her bank account or social networks. Human rights groups accused Chávez of creating a
climate of fear that threatened the independence of the judiciary.
Reuters said Afiuni is "considered by opponents and jurists as one of the most emblematic political prisoners" in Venezuela, because Chávez called for her to be imprisoned. In 2009, the Attorney General announced the creation of an investigative team to examine 6,000 reports of extrajudicial killings between 2000 and 2007. at the
Summit of the Americas on 19 April 2009. In 2010,
Amnesty International criticized the Chávez administration for targeting critics following several politically motivated arrests.
Freedom House listed Venezuela as being "partly free" in its 2011 Freedom in the World annual report, noting a recent decline in civil liberties. A 2010
Organization of American States report found concerns with freedom of expression, human rights abuses, authoritarianism, press freedom, threats to democracy, as well as erosion of separation of powers, the economic infrastructure and ability of the president to appoint judges to federal courts. OAS observers were denied access to Venezuela; Venezuelan ombudswoman
Gabriela Ramírez said the report distorted and took statistics out of context, and said that "human rights violations in Venezuela have decreased". In November 2014, Venezuela appeared before the
United Nations Committee Against Torture over cases between 2002 and 2014. Human rights expert of the UN committee,
Felice D. Gaer, noted that in "only 12 public officials have been convicted of human rights violations in the last decade when in the same period have been more than 5,000 complaints". The United Nations stated that there were 31,096 complaints of human rights violations received between 2011 and 2014. Of the 31,096 complaints, 3% of the cases resulted in only in an indictment by the Venezuelan Public Ministry.
Allegations of antisemitism Chavez's
opposition to Zionism and
close relations with Iran led to accusations of
antisemitism. Such claims were made by the Venezuelan Jewish community at a
World Jewish Congress Plenary Assembly in
Jerusalem, after Venezuela's oldest synagogue was vandalised by armed men. In 2006, the
Simon Wiesenthal Center published a shortened version of a speech by Chávez, which significantly changed its meaning to make it appear that he had made anti-Semitic remarks. The
New York Daily News, the
Los Angeles Times, and the
Wall Street Journal published the Wiesenthal Center's claim. The Confederation of Jewish Associations of Venezuela, the
American Jewish Committee and the
American Jewish Congress said that Chavez's comments were not aimed at Jews, but rather at "the white oligarchy that has dominated the region since the colonial era". In 2009, attacks on a synagogue in Caracas were alleged to be influenced by "vocal denunciations of Israel" by the Venezuelan state media and Hugo Chávez, even though Chavez promptly condemned the attacks, blaming an "oligarchy".
Media and the press Under Chávez, press freedom declined while
censorship in Venezuela increased. He used state-run bodies to silence the media and to disseminate
Bolivarian propaganda. Other actions included pressuring media organizations to sell to those related to his government or to face closure.
Human Rights Watch criticized Chávez for engaging in "often discriminatory policies that have undercut journalists' freedom of expression".
Reporters Without Borders criticized the Chávez administration for "steadily silencing its critics". In 2004, Chávez used the
National Commission of Telecommunications and the Social Responsibility in Radio, Television and Electronic Media law to officially censor media organizations. and the United States–based
CNN en Español. In 2006, Chávez inaugurated a state-funded movie studio called
Villa del Cine (English: Cinema City). In the group's 2009 Press Freedom Index, Reporters Without Borders noted that "Venezuela is now among the region's worst press freedom offenders." Chávez also had a Twitter account with more than 3,200,000 followers as of August 2012. A team of 200 people sorted through suggestions and comments sent via Twitter. Chávez said Twitter was "another mechanism for contact with the public, to evaluate many things and to help many people", and that he saw Twitter as "a weapon that also needs to be used by the revolution".
Foreign policy in Brasília, 6 June 2011 Though Chávez inspired other movements in Latin America to follow his model of
chavismo in an attempt to reshape South America, it was later seen as being erratic and his influence internationally became exaggerated. Domestic mishandling of the country under Chávez prevented Venezuela from strengthening its position in the world. He refocused Venezuelan foreign policy on Latin American economic and social integration by enacting bilateral trade and reciprocal aid agreements, including his so-called "oil diplomacy" making Venezuela more dependent on using oil, its main commodity, and increasing its longterm vulnerability. Chávez also aligned himself with authoritarian nations and radical movements that were seen as being anti-Western, opposing the U.S.-led
2003 invasion of Iraq and condemning the NATO-led
2011 military intervention in Libya. Relations thawed somewhat under President
Barack Obama in June 2009, only to steadily deteriorate once again shortly afterwards. ==Personal life==