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Summary:
An oil-exporting South American nation with a population of about 25 million, Venezuela has been wracked by several years of political turmoil under the populist rule of President Hugo Ch�vez who was first elected in 1998. Under Ch�vez, Venezuela has undergone enormous political changes, with a new constitution in place, a new unicameral legislature, and even a new name for the country, the Bolivarian Republic of Venezuela. Ch�vez was re-elected President with a new sixyear term in July 2000 under the new constitution. Although Ch�vez remained widely popular until mid-2001, his popularity eroded considerably after that, amid concerns that he was imposing a leftist agenda on the country and that his government was ineffective in improving living conditions. In April 2002, massive opposition protests and pressure by the military led to the ouster of Ch�vez from power for a brief period. The military ultimately restored him to power, but political opposition to Ch�vez's rule continued. From early December 2002 until early February 2003, the opposition orchestrated a general strike that severely curtailed Venezuela's oil exports, but was unsuccessful in getting President Ch�vez to agree to new elections. After months of negotiations facilitated by the OAS and the Carter Center, the Ch�vez government and the political opposition signed an agreement in May 2003 that set forth mechanisms to resolve the political crisis. This led to an August 15, 2004 presidential recall referendum that Ch�vez won convincingly by a margin of 59.3% to 40.7%. Ch�vez's rule was further strengthened when his allies won a majority of gubernatorial and municipal posts in elections held in October 2004. The country's next presidential elections are set for late 2006, and there is a strong chance that Ch�vez could win another six-year term. The Ch�vez government has benefitted from the rise in world oil prices, which has increased government revenues, and sparked an economic growth rate of 17% for 2004. Some observers are concerned that Ch�vez will use his political strength to push toward authoritarian rule. The United States traditionally has had close relations with Venezuela, but there has been friction in relations with the Ch�vez government. The Bush Administration expressed strong support for the work of the OAS in resolving the crisis, welcomed the May 2003 political accord, and supported its implementation. After the recall referendum, the Administration congratulated the Venezuelan people for their commitment to democracy. At the same time, U.S. officials stressed the importance of reconciliation on the part of the government and the opposition in order to resolve their political differences peacefully. A dilemma for U.S. policymakers has been how to press the Ch�vez government to adhere to democratic principles without taking sides in Venezuela's polarized political conflict. Since Venezuela is a major supplier of foreign oil to the United States , a key U.S. interest has been ensuring the continued flow of oil exports at a reasonable and stable price. Despite friction in U.S.-Venezuelan relations and despite past threats by President Ch�vez to stop selling oil to the United States, Venezuela has remained a steady supplier of oil to the United States. In 2005, Administration officials have used increasingly strong language to express concerns about President Ch�vez's actions in Venezuela and in Latin America.
