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 ( )

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 ( ) – Transitional Andeans ( ) 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 : 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 ( ) 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 : 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 ( ) Second Caldera government ( ) 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)