First Presidential Term: 1999–2000
Although he publicly used strong revolutionary rhetoric from the beginning of his presidency, the Chávez government's initial policies were moderate, capitalist and centre-left, having much in common with those of contemporary Latin American leftists like Brazil's president Lula da Silva.[132][133] Chávez initially believed that capitalism was still a valid economic model for Venezuela, but that it would have to be Rhenish capitalism or the Third Way that would be followed rather than the neoliberalism which had been implemented under former governments with the encouragement of the United States.[134] He followed the economic guidelines recommended by the capitalist International Monetary Fund and continued to encourage foreign corporations to invest in Venezuela,[135] even visiting the New York Stock Exchange in the United States in an attempt to convince wealthy investors to do so.[136][137] To increase his visibility abroad, Chávez spent fifty-two days of his first year as president outside of Venezuela, travelling the world meeting various national leaders, such as American President Bill Clinton, Governor of Texas George W. Bush and Chinese Premier Jiang Zemin.[138]
Whilst he was remaining fiscally conservative, he introduced measures in an attempt to alleviate the poverty of the Venezuelan working class. Chávez immediately set into motion a social welfare program called Plan Bolívar 2000, which he organised to begin on 27 February 1999, the tenth anniversary of the Caracazo massacre. Costing $113,000,000, Plan Bolívar 2000 involved 70,000 army officers going out into the streets of Venezuela where they would repair roads and hospitals, offer free medical care and vaccinations, and sell food at cheap prices.[139][140][141] Chávez himself described the Plan by saying that "Ten years ago we came to massacre the people. Now we are going to fill them with love. Go and comb the land, search out and destroy poverty and death. We are going to fill them with love instead of lead."[142] In order to explain his latest thoughts and plans to the Venezuelan people, in May he also launched his own Sunday morning radio show, Aló Presidente (Hello, President), on the state radio network, as well as a Thursday night television show, De Frente con el Presidente (Face to Face with the President). He followed this with his own newspaper, El Correo del Presidente (The President's Post), founded in July, for which he acted as editor-in-chief, but which was later shut amidst accusations of corruption in its management.[143] In his television and radio shows, he answered calls from citizens, discussed his latest policies, sung songs and told jokes, making it unique not only in Latin America but the entire world.[144]
Constitutional reform
Following this, Chávez called for an election to take place on 25 July, in which the members of the constitutional assembly would be voted into power.[147] Of the 1,171 candidates standing for election to the assembly, over 900 of them were opponents of Chávez, but despite this, his supporters won another overwhelming electoral victory, taking 125 seats (95% of the total), including all of those belonging to indigenous tribal groups, whereas the opposition were voted into only 6 seats.[145][148][149] On 12 August 1999, the new constitutional assembly voted to give themselves the power to abolish government institutions and to dismiss officials who were perceived as being corrupt or operating only in their own interests. Whilst supporters of the move believed that it could force reforms that had been blocked by corrupt politicians and judicial authorities for years, many opponents of the Chávez regime argued that it gave Chávez and the Bolivarians too much power at the expense of their political opponents, and was therefore dictatorial.[150][151]
The elected members of the constituent assembly put together a new constitution, and a referendum on the issue of whether to adopt it was held in December 1999; the referendum saw an abstention vote of over 50%, although amongst those voting, 72% approved the new constitution's adoption.[149][152][153] The new constitution included increased protections for indigenous peoples and women, and established the rights of the public to education, housing, healthcare and food. It added new environmental protections, and increased requirements for government transparency. It increased the presidential term from five to six years, allowed people to recall presidents by referendum, and added a new presidential two-term limit. It converted the bicameral legislature, a Congress with both a Senate and a Chamber of Deputies, into a unicameral one comprising only a National Assembly.[154][155][156][157] The constitution gave greater powers to the president, not only by extending their term but also by giving them the power to legislate on citizen rights as well as the economic and financial matters that they were formerly able to do.[158] It also gave the military a role in the government by providing them with the mandated role of ensuring public order and aiding national development, something they had been expressely forbidden from doing under the former constitution.[158] As a part of the new constitution, the country, which was then officially known as the Republic of Venezuela, was renamed the Bolivarian Republic of Venezuela (República Bolivariana de Venezuela) at Chávez's request, thereby reflecting the government's ideology of Bolivarianism and the influence of Simón Bolívar on the nation as a whole.[148][149]
Second Presidential Term: 2000–2006
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Under the new constitution, it was legally required that new elections be held in order to relegimatize the government and president. This presidential election in July 2000 would be a part of a greater "megaelection", the first time in the country's history that the president, governors, national and regional congressmen, mayors and councilmen would be voted for on the same day.[159][160][161] For the position of president, Chávez's closest challenger proved to be his former friend and co-conspirator in the 1992 coup, Francisco Arias Cárdenas, who since becoming governor of Zulia state had turned towards the political centre and begun to denounce Chávez as autocratic.[162] Although some of his supporters feared that he had alienated those in the middle class and the Roman Catholic Church hierarchy who had formerly supported him, Chávez was re-elected with 59.76% of the vote (the equivalent of 3,757,000 people), a larger majority than his 1998 electoral victory,[163][164] again primarily receiving his support from the poorer sectors of Venezuelan society.[165]
That year, Chávez helped to further cement his geopolitical and ideological ties with the Cuban government of Fidel Castro by signing an agreement under which Venezuela would supply Cuba with 53,000 barrels of oil per day at preferential rates, in return receiving 20,000 trained Cuban medics and educators. In the ensuing decade, this would be increased to 90,000 barrels a day (in exchange for 40,000 Cuban medics and teachers), dramatically aiding the Caribbean island's economy and standard of living after its "Special Period" of the 1990s.[166] However, Venezuela's growing alliance with Cuba came at the same time as a deteriorating relationship with the United States: in late 2001, just after the American-led invasion of Afghanistan in retaliation for the 11 September attacks against the U.S. by Islamist militants, Chávez showed pictures of Afghan children killed in a bomb attack on his television show. He commented that "They are not to blame for the terrorism of Osama Bin Laden or anyone else", and called on the American government to end "the massacre of the innocents. Terrorism cannot be fought with terrorism." The U.S. government responded negatively to the comments, which were picked up by the media worldwide.[167]
At the start of the 21st century, Venezuela was the world's fifth largest exporter of crude oil, with oil accounting for 85.3% of the country's exports, therefore dominating the country's economy.[170][171] Previous administrations had sought to privatise this industry, with U.S. corporations having a significant level of control, but the Chávez administration wished to curb this foreign control over the country's natural resources by nationalising much of it under the state-run oil company, Petróleos de Venezuela S.A. (PdVSA). In 2001, the government introduced a new Hydrocarbons Law through which they sought to gain greater state control over the oil industry: they did this by raising royalty taxes on the oil companies and also by introducing the formation of "mixed companies", whereby the PdVSA could have joint control with private companies over industry. By 2006, all of the 32 operating agreements signed with private corporations during the 1990s had been converted from being primarily or solely corporate-run to being at least 51% controlled by PdVSA.[170]
Growing opposition and the CD
During Chávez's first term in office, the opposition movement had been "strong but reasonably contained, [with] complaints centring mainly on procedural aspects of the implementation of the constitution".[161] However, the first organized protest against the Bolivarian government occurred in January 2001, when the Chávez administration tried to implement educational reforms through the proposed Resolution 259 and Decree 1.011, which would have seen the publication of textbooks with a heavy Bolivarian bias. The protest movement, which was primarily by middle class parents whose children went to privately run schools, marched to central Caracas shouting out the slogan "Don't mess with my children." Although the protesters were denounced by Chávez, who called them "selfish and individualistic," the protest was successful enough for the government to retract the proposed education reforms and instead enter into a consensus-based educational program with the opposition.[172] That year, an organization known as the Coordinadora Democrática de Acción Cívica (CD) was founded, under which the Venezuelan opposition political parties, corporate powers, most of the country's media, the Venezuelan Federation of Chambers of Commerce, the Frente Institucional Militar and the Central Workers Union all united to oppose Chávez's regime.[168][173] The prominent multimillionaire businessman Pedro Carmona (1941–) was chosen as the CD's leader.[168] They received support from various foreign sources, including from the United States government, which disliked the Bolivarian government's implementation of the new Hydrocarbons Law, and which funded the CD through the state-funded National Endowment for Democracy.[174][175]
The pro-Chávez political analyst Gregory Wilpert argued, in his study of the Bolivarian administration, that the opposition movement was dominated primarily by members of the middle and upper classes. He further argued that this wealthy elite was particularly furious at the Bolivarian government because they themselves had lost much of their dominance over Venezuelan politics with the introduction of the 1999 constitution and the relegitamization of all areas of government that it required.[179] He went on to argue that this wealthy elite subsequently used its control of the country's mass media to create an anti-Chávez campaign aimed primarily at the middle classes, stirring up the latent racism and classism that existed in Venezuelan culture.[180][181] One of the most prominent examples of this was through the popularization of the racist term ese mono ("that monkey") which began to be applied to Chávez by his opponents,[146][182][183] who would also often accuse him of being "vulgar and common".[163][182][184] Both Venezuelan and Western opposition media also characterized Chávez's supporters, who were known as the Chávistas, as being "young, poor, politically unsophisticated, antidemocratic masses" who were controlled, funded and armed by the state,[185] and they were regularly referred to as "hordes" in opposition media discourse, which also commonly referred to the Bolivarian Circles as "terror circles".[183] Such descriptions have been refuted by certain academics, such as Cristóbal Valencia Ramírez, who, after studying Chavista groups, have argued that they consist of people from many classes of society, and are educated and largely non-violent.[186] Chavista-run organizations have since claimed to have been the target of violent attacks from opposition groups: for instance, the Ezequiel Zamora National Farmers' Coordinator estimated that 50 Chavista leaders involved in the land-reform program had been assassinated during 2002 and 2003.[187]
Coup, strikes and the recall referendum
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Main articles: 2002 Venezuelan coup d'état attempt, Venezuelan general strike of 2002–2003, and Venezuelan recall referendum, 2004
Chávez's reaction to the coup attempt was to moderate his approach, implementing a new economic team that appeared to be more centrist and reinstated the old board of directors and managers of the state oil company Petróleos de Venezuela S.A. (PDVSA), whose replacement had been one of the reasons for the coup.[193][194] At the same time, the Bolivarian government began preparing for potential future uprisings or even a US invasion by increasing the country's military capacity, purchasing 100,000 AK-47 assault rifles and several helicopters from Russia, as well as a number of Super Tucano light attack planes from Brazil. Troop numbers were also increased, with Chávez announcing in 2005 the government's intention to increase the number of military reserves from 50,000 to 2,000,000.[195]
In December 2002, the Chávez presidency faced a two-month management strike at the PdVSA when he initiated management changes. As Wilpert noted, "While the opposition labelled this action a 'general strike', it was actually a combination of management lockout, administrative and professional employee strike, and general sabotage of the oil industry."[196] The Chávez government's response was to fire about 19,000 striking employees for illegally abandoning their posts, and then employing retired workers, foreign contractors and the military to do their jobs instead. This move further damaged the strength of Chávez's opposition by removing the many managers in the oil industry who had been supportive of their cause to overthrow Chávez.[196]
Following the failure of these two attempts to remove Chávez from power, the opposition finally resorted to legal means in order to try to do so. The 1999 constitution had introduced the concept of a recall referendum into Venezuelan politics, and so the opposition called for such a referendum to take place. A 2004 referendum to recall Chávez was defeated. 70% of the eligible Venezuelan population turned out to vote, with 59% of voters deciding to keep the president in power.[164][197] Unlike his original 1998 election victory, this time Chávez's electoral support came almost entirely from the poorer working classes rather than the middle classes, who "had practically abandoned Chávez" after he "had consistently moved towards the left in those five and a half years".[198] Meanwhile, some figures in the opposition movement began calling for the United States military to intervene and invade the country in order to topple Chávez.[197]
"Socialism of the 21st Century"
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[Bolivarian] socialism would be 'based in solidarity, in fraternity, in love, in justice, in liberty, and in equality' and would mean the 'transformation of the economic model, increasing cooperativism, collective property, the submission of private property to the social interest and to the general interest', created 'from the popular bases, with the participation of the communities'. This socialism was not a dogma, however, but 'must be constructed every day'.
Barry Cannon, Irish political analyst (2009)[52]
In May 2006, Chávez visited Europe in a private capacity, where he announced plans to supply cheap Venezuelan oil to poor working class communities in the continent. The leftist Mayor of London Ken Livingstone welcomed him, describing him as "the best news out of Latin America in many years".[199]
Third Presidential Term: 2006–present
In the presidential election of December 2006, which saw a 74% voter turnout, Chávez was once more elected, this time with 63% of the vote, beating his closest challenger Manuel Rosales, who conceded his loss.[197] The election was certified as being free and legitimate by the Organization of American States (OAS) and the Carter Center.[200][201][202] After this victory, Chávez promised an "expansion of the revolution."[203]United Socialist Party of Venezuela and domestic policy
On 15 December 2006, Chávez publicly announced that those leftist political parties who had continually supported him in the Patriotic Pole would unite into one single, much larger party, the United Socialist Party of Venezuela (Partido Socialista Unido de Venezuela, PSUV).[110] In the speech which he gave announcing the PSUV's creation, Chávez declared that the old parties must "forget their own structures, party colours and slogans, because they are not the most important thing for the fatherland."[110] According to political analyst Barry Cannon, the purpose of creating the PSUV was to "forge unity amongst the disparate elements [of the Bolivarian movement], providing grassroots input into policy and leadership formation, [and] uniting the grassroots and leadership into one single body."[204] It was hoped that by doing so, it would decrease the problems of clientelism and corruption and also leave the movement less dependent on its leadership:[204] as Chávez himself declared, "In this new party, the bases will elect the leaders. This will allow real leaders to emerge."[204]
In 2007, the Bolivarian government set up a constitutional commission in order to review the 1999 constitution and suggest potential amendments to be made to it. Led by the prominent pro-Chávez intellectual Luis Britto García, the commission came to the conclusion that the constitution could include more socially progressive clauses, such as the shortening of the working week, a constitutional recognition of Afro Venezuelans and the elimination of discrimination on the grounds of sexual orientation.[197] It also suggested measures that would have increased many of the president's powers, for instance increasing the presidential term limit to seven years, allowing the president to run for election indefinitely and centralizing powers in the executive.[197] The government put the suggested changes to a public referendum in December 2007.[209] Abstention rate was high however, with 43.95% of registered voters not turning out, and in the end the proposed changes were rejected by 50.65% of votes.[197][210] This would prove to the first electoral loss that Chávez had faced in the thirteen electoral contests held since he took power,[197] something analysts argued was due to the top-down nature of the changes, as well as general public dissatisfaction with "the absence of internal debate on its content, as well as dissatisfaction with the running of the social programmes, increasing street crime, and with corruption within the government."[211]
In order to ensure that his Bolivarian Revolution became socially engrained in Venezuela, Chávez discussed his wish to stand for re-election when his term ran out in 2013, and spoke of ruling beyond 2030.[212] Under the 1999 constitution, he could not legally stand for re-election again, and so brought about a referendum on 15 February 2009 to abolish the two-term limit for all public offices, including the presidency.[213] Approximately 70% of the Venezuelan electorate voted, and they approved this alteration to the constitution with over 54% in favor, allowing any elected official the chance to try to run indefinitely.[212][213][214]
Bolivarian Alliance for the Americas and the Bank of the South
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In 2007, the socialist Daniel Ortega and his Sandinista National Liberation Front were elected into government in Nicaragua, and his administration immediately entered into deals with the Venezuelan government. On Ortega's first day in power, Chávez announced plans to aid the impoverished Central American country by forgiving the $30 million it owed Venezuela, and agreed to supply them with a further gift of $10 million in aid, as well as providing them with a $20 million loan with little or no interest designed to benefit the country's poor.[216]
In 2004, Venezuela had been one of the founding states in the Bolivarian Alliance for the Americas (ALBA).
As of 26 September 2009, Chávez, along with allies such as Argentina, Brazil and Bolivia, has set up a regional bank and development lender called Bank of the South, based in Caracas, an attempt to distance himself from financial institutions such as the International Monetary Fund. Chávez first mentioned the project before winning the Presidential election in 1998.[217] Chávez maintains that unlike other global financial organizations, the Bank of the South will be managed and funded by the countries of the region with the intention of funding social and economic development without any political conditions on that funding.[218] The project is endorsed by Nobel Prize winning, former World Bank economist Joseph Stiglitz, who said: "One of the advantages of having a Bank of the South is that it would reflect the perspectives of those in the south," and that "It is a good thing to have competition in most markets, including the market for development lending."[219]
Cancer and further nationalisation
On 30 June 2011, Chávez confirmed in a televised address from Havana, Cuba that he was recovering from a 10 June operation to remove an abscessed tumor with cancerous cells.[224] Vice President Elías Jaua declared that the President remained in "full exercise" of power and that there was no need to transfer power due to his absence from the country.[225] A 2 July report in El Periódico de Catalunya reported that, according to Venezuelan diplomatic sources, Chávez had "colon cancer that has perforated the intestinal wall and has caused an infection in the abdomen."[226] On 3 July, the Venezuelan government denied, however, that Chávez had colon cancer, and stated that the tumour had been completely removed, further stating that Chávez was heading for "complete recovery".[227] On 17 July 2011, television news reported that Chavez had returned to Cuba for further cancer treatments.[228]Chávez gave a public appearance on his 57th birthday in which he stated that his health trouble had led him to radically reorient his life towards a "more diverse, more reflective and multi-faceted" outlook, and he went on to call on the middle classes and the private sector to get more involved in his Bolivarian Revolution, something he saw as "vital" to its success.[229] Soon after this speech, in August Chávez announced that his government would nationalise Venezuela's gold industry, taking it over from Russian-controlled company Rusoro, whilst at the same time also moving the country's gold stocks, which were largely stored in western banks, to banks in Venezuela's political allies like Russia, China and Brazil.[230]
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