The Economy of Venezuela
Chávez and the Bolivarian Revolution
Hugo Chávez, in office from 1999, used rising oil revenue to fund social programmes while expanding state control over the economy.
A new political model took hold.
Social programmes
Missions provided health, education and food subsidies to poorer Venezuelans, reducing poverty in the 2000s.
State control
The government expropriated companies, farms and banks.
PDVSA
After a strike in 2002-03, thousands of oil workers were dismissed, and the company was used to fund social spending.
Dependence
With high oil prices, imports and consumption boomed.
A subsidised meal
A poor family bought cheap food from a state market.
Ignoring both the gains and the costs
Poverty fell, but the economy became fragile.
Key takeaways
- Chávez won in 1998 and took office in 1999.
- Social missions cut poverty.
- The state expanded control.
- Oil prices fuelled a boom.
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