CAPITAL: Caracas.

FLAG: The national flag, adopted in 1930, is a tricolor of yellow, blue, and red horizontal stripes. An arc of seven white stars on the blue stripe represents the seven original states.

ANTHEM: Himno Nacional, beginning "Gloria al bravo pueblo" ("Glory to the brave people").

MONETARY UNIT: The bolívar (b) is a paper currency of 100 céntimos. There are coins of 5, 25, and 50 céntimos and 1, 2, and 5 bolívars, and notes of 5, 10, 20, 50, 100, 500, and 1,000 bolívars. b1 = $0.00212 (or $1 = b472.25).

WEIGHTS AND MEASURES: The metric system is the legal standard.

HOLIDAYS: New Year's Day, 1 January; Declaration of Independence and Day of the Indian, 19 April; Labor Day, 1 May; Army Day and Anniversary of the Battle of Carabobo, 24 June; Independence Day, 5 July; Bolívar's Birthday, 24 July; Civil Servants Day, 4 September; Columbus Day, 12 October; Christmas, 25 December; New Year's Eve, 31 December. Movable holidays are Carnival (Monday and Tuesday before Ash Wednesday), Holy Thursday, Good Friday, and Holy Saturday. Numerous other bank holidays and local festivals are observed.

TIME: 8 am = noon GMT.

Source Database: Junior Worldmark Encyclopedia of the Nations
Table of Contents
AGRICULTURE | ARMED FORCES | CLIMATE | DOMESTICATED ANIMALS | ECONOMY | EDUCATION | ENERGY AND POWER | ENVIRONMENT | ETHNIC GROUPS | FAMOUS VENEZUELANS | FISHING | FORESTRY | FURTHER READINGS | HEALTH | HISTORY | HOUSING | INCOME | INDUSTRY | JUDICIAL SYSTEM | LABOR | LANGUAGES | LOCATION AND SIZE | MEDIA | MIGRATION | MINING | PLANTS AND ANIMALS | POLITICAL PARTIES | POPULATION | RELIGIONS | SOCIAL DEVELOPMENT | SOURCE CITATION | TOPOGRAPHY | TRANSPORTATION | VIEW MULTIMEDIA FILE(S)

LOCATION AND SIZE

Venezuela, located on the northern coast of South America, covers an area of 912,050 square kilometers (352,144 square miles), slightly more than twice the size of the state of California. It has a total boundary length of 7,609 kilometers (4,729 miles). There are 72 offshore islands. Venezuela's capital city, Caracas, is located in the northern part of the country on the Caribbean Sea coast.

TOPOGRAPHY

Venezuela has four principal geographical divisions. In the north emerges a low extension of the Andes mountain chain; to the west lies the hot basin of Lake Maracaibo (Lago Maracaibo); to the southeast spread the great plains (llanos) and forests; and south of the Orinoco River lie the unoccupied and largely unexplored Guiana Highlands, accounting for about half the country's total area. The Orinoco River, which is more than 2,900 kilometers (1,800 miles) long, drains four-fifths of Venezuela. There are more than 1,000 other rivers.

Outstanding geographical features include Angel Falls (979 meters/3,212 feet high) in the Guiana Highlands of southeastern Venezuela, the highest waterfall in the world, and Bolívar Peak, the highest peak in Venezuela (5,007 meters/16,427 feet).

GEOGRAPHIC PROFILE

Arable land: Land used for temporary crops, like meadows for mowing or pasture, gardens, and greenhouses. Permanent crops: Land cultivated with crops that occupy its use for long periods, such as cocoa, coffee, rubber, fruit and nut orchards, and vineyards. Permanent pastures: Land used permanently for forage crops. Forests: Land containing stands of trees. Other: Any land not specified, including built-on areas, roads, and barren land.

The measurements for precipitation and average temperature were taken at weather stations closest to the country's largest city. Precipitation and average temperature can vary significantly within a country, due to factors such as latitude, altitude, coastal proximity, and wind patterns.

CLIMATE

Although Venezuela lies entirely within the torrid zone, generally there are four climatic regions, based mainly on altitude. In the tropical region, mean annual temperatures range from 24° to 35°c (75° to 95°f). In the subtropical region, where Caracas is situated, the means range from 10° to 25°c (50° to 77°f). During the wet season (May to October), the llanos and forest areas are swampy, green, and lush. At the beginning of the dry season, the same areas become dry, brown, and parched. The temperate and cold regions are located above elevations of 1,830 meters (6,000 feet). There is perpetual snow on several peaks of the mountain chain, Cordillera de Mérida.

PLANTS AND ANIMALS

The natural vegetation of the tropical zone varies from the rainforest regions of the lower Lake Maracaibo Basin to the grasslands of the llanos. The subtropical zone was originally almost covered by a luxuriant forest and is now the nation's principal agricultural region. In the temperate region, wild vegetation is sparse and scrubby. In the higher altitudes, from about 2,740 to 4,880 meters (9,000 to 16,000 feet), vegetation becomes even thinner. Above 3,050 meters (10,000 feet), the only vegetation seen is the espeletia, similar to the century plant, which grows to a height of 1.8-2.1 meters (6-7 feet).

The wild animals of Venezuela are abundant because of their relative isolation from human disturbance. The forests are populated with tapirs, sloths, anteaters, and a variety of monkeys. In the mountains are puma, margay, vampire bats, and deer. Semiwild horses, donkeys, and cattle are found in the plains. The forests are rich in tropical birds such as the cacique, crested coquette, heron, umbrella bird, manakin, cock-of-the-rock, parrot, macaw, and aigrette. Aquatic fowl include the pelican, heron, flamingo, and a muscovy duck weighing up to 9.1 kilograms (20 pounds). More than 32 species of eagles are found in Venezuela. There are numerous reptiles, including the rattlesnake, coral snake, bushmaster, anaconda, and boa. Crocodiles are found in the lowland rivers. Fish, shellfish, tortoises, and sand tortoises are also plentiful.

ENVIRONMENT

Power plants, industry, and transportation vehicles contribute to air pollution; Venezuela's waterways have been polluted by untreated industrial wastes and by mining activity. Between 1983 and 1993, Venezuela's forests and woodlands decreased 8.2%. In the Andes mountain area, Venezuela loses up to 300tons of soil per hectare (120 tons per acre) due to land erosion by rivers. Pressing environmental problems led the government in 1976 to establish the Ministry of Environment and Renewable Natural Resources. Measures designed to prevent forest depletion include suspension of logging permits and a large-scale afforestation program.

In 1994, 19 of the nation's mammal species and 34 bird species were endangered, as well as 106 plant types. As of 1987, endangered species in Venezuela included the tundra peregrine falcon, giant otter, and five species of turtle.

HISTORY

Venezuela received its name, meaning "Little Venice," from Alonso de Ojeda, who sailed into the Gulf of Venezuela (Golfo de Venezuela) in August 1499 and was reminded of the Italian city by the native huts built on stilts over the water. Except for a brief period of control by German commercial interests, Venezuela was a colonial territory of Spain.

Under the Spanish, eastern Venezuela was governed under the audiencia (region under a royal court) of Santo Domingo, and the western and southern regions became a captaincy-general under the viceroyalty of Peru. Settlement of the colony was hampered by constant wars with the Amerindians, which did not stop until after a smallpox epidemic in 1580. In 1717, the western and southern provinces were incorporated into the viceroyalty of New Granada, and in 1783, the area of present-day Venezuela became a captaincy-general of Caracas.

Beginning in 1811, Venezuela struggled for independence from Spain for 10 years, first under Francisco de Miranda, then led by Simón Bolívar. The end of the Venezuelan war of independence came with Bolívar's victory in June 1821. Under Bolívar's leadership, Gran Colombia (Greater Colombia) was formed from Colombia, Ecuador, and Venezuela, with Bolívar as its president and military dictator.

In 1830, Venezuela seceded from Gran Colombia. A period of civil wars lasted from 1846 to 1870, when Antonio Guzmán Blanco assumed power. After this, Venezuela was ruled by dictatorships for nearly a century. When Cipriano Castro, who ruled from 1899 to 1908, refused to repay Venezuela's international loans, Germany, Great Britain, and Italy sent gunboats to blockade the Venezuelan coast. During the dictatorship of Juan Vicente Gómez (1908-35), agriculture was developed and oil was discovered, making Venezuela one of the richest countries in Latin America. Oil concessions attracted American, British, and Dutch companies, initiating an era of oil wealth that continues today.

After the death of Gómez, Venezuela began to move toward democracy. The first free election for president in Venezuelan history was held in 1947, and Rómulo Gallegos, a distinguished novelist and candidate of Democratic Action (Acción Democrática--AD), was elected overwhelmingly. However, Gallegos was replaced by a military junta, followed by another dictatorship in the 1950s. Venezuela took its last steps toward full democracy in 1958, when Rómulo Betancourt was chosen president. Venezuela has had fair and free elections ever since.

The Betancourt government (1959-64) instituted modest financial and agricultural reforms, built schools, and eliminated illiteracy. In spite of attempts by the military to return to power, and the activities of pro-Castro guerrillas, the AD was reelected in December 1964, when Raúl Leoni won the presidency over five other candidates. In 1968, Venezuela passed another test of democracy by transferring power peacefully from AD to the opposition Social Christian Party.

In 1979, Venezuela received a rude awakening when demand for oil dropped, threatening the foundations of its economic and political systems. The crisis climaxed with the devaluation of the national currency, the bolívar, which dropped to one-third of its previous value against the dollar. Venezuelan consumers responded angrily, and the early 1980s were years of unrest. In the elections of December 1983, the AD returned to power behind presidential candidate Jaime Lusinchi.

While the economy floundered through the 1980s, the government maintained public confidence by stressing a "social pact" with guarantees of housing, education, and public health. Some progress has been made in boosting non-oil exports, particularly in agriculture and mining. The 1988 elections brought back Carlos Andrés Pérez, who had been elected president 15 years earlier. When Pérez removed government subsidies on a number of consumer goods, including gasoline, prices rose and Caracas was rocked by rioting on a scale not seen since 1958. The military was called in to stop the disturbances, but when the trouble finally died down, thousands had been killed or injured.

In 1992 Venezuela was shocked by two military coup attempts, and Pérez was suspended from office on embezzlement and theft allegations. In the regularly scheduled presidential elections of December 1993, Venezuelans chose former president Rafael Caldera, who ran under a coalition of four parties. Even though Venezuela remained one of the wealthiest countries in Latin America, its government is increasingly unstable.

The economy fell into recession in 1993, and President Caldera suspended a number of civil rights in 1994-95. The inflation rate hit 103% in 1995, and poverty affected Venezuela's middle class. Doctors, professors, and national telephone company workers all went on strike in 1997.

In 1994, 108 inmates were killed by National Guard troops in a protest over prison crowding and poor living conditions. In 1996, 25 prisoners at another overcrowded facility were burned to death by National Guard troops.

MIGRATION

In the decades immediately before and after World War II (1939-45), nearly 500,000 Europeans--mostly from Italy, Spain, and Portugal--came to Venezuela. By 1990, however, only 5.7% of the resident population was of foreign birth. In 1989 there were 18,893 immigrants and 9,643 emigrants. An estimated 300,000 illegal immigrants, most of them Colombians, were living in Venezuela in 1985. Internal migration is chiefly eastward from the far northwest. During 1990-97, 1,630 persons in Venezuela were given refugee status by the United Nations.

ARMED FORCES

Venezuela's armed forces are professional and well equipped. In principle, all male Venezuelans 18 years of age are required to serve two years (or 30 months in the navy) and then to remain in the reserve until the age of 45. In practice, however, many males, including workers in essential occupations, students, and heads of households, are exempted from service.

Total armed strength in 1995 was 79,000, including 23,000 volunteers in the Fuerzas Armados de Cooperacion, an internal security force. The army had 34,000 regulars, including 6 infantry divisions and 12 specialized brigades, and 2,000 airmen. The navy had 15,000 members, including 5,000 marines; naval strength included 2 submarines and 6 frigates. The air force had 7,000 personnel, 102 combat aircraft, and 27 armed helicopters. Defense expenditures in 1995 were $683 million, or 1.5% of the gross domestic product (GDP).

GOVERNMENT

Venezuela is a republic governed under the constitution of 23 January 1961, which stresses social, economic, and political rights. The president is elected by direct popular vote for a five-year term. Presidential duties include the selection and removal of cabinet ministers and all other administrative officers and employees of the national government, as well as the appointment of state governors.

The president is commander-in-chief of the armed forces, directs foreign affairs, and may make and ratify international treaties, conventions, and agreements. He may veto legislation, but a two-thirds majority of Congress can override it. There is no vice-president, and if the president cannot complete a term of office, the Congress, meeting in joint session, must select a new president by secret vote.

The Congress has two chambers, a 47-member Senate and 200-seat Chamber of Deputies. Both houses are elected concurrently with the president for five-year terms. A bill may be introduced in either house but must be passed by both in order to become law. There is compulsory adult voting at age 18.

Venezuela is divided into 21 states, 1 federal territory, the Federal District, and 72 offshore islands. The states are subdivided into 156 districts and 613 municipalities.

JUDICIAL SYSTEM

The Supreme Court, which organizes and directs the other courts and tribunals of the republic, is the nation's highest tribunal, and there is no appeal of its decisions. It can declare a law, or any part of a law or any regulation or act of the president unconstitutional. The Court determines whether there are grounds for the trial of the president, a member of Congress, members of the Court itself, or certain executive officials.

The lower branches of the judiciary include courts of appeal and direct courts, whose judges and magistrates are appointed by the Supreme Court. Each state has its own supreme court, superior court, district courts, and municipal courts. The territories have civil and military judges. The jury system is not used. The justice system in general is inefficient, backlogged, and open to corruption.

POLITICAL PARTIES

Since 1958, the dominant force in Venezuelan politics has been the Democratic Action Party (Acción Democrática--AD), formed from the nationalist and democratic-socialist faction of the socialist movement. The most recent development from the left has been the emergence of the Movement for Socialism (Movimiento al Socialismo--MAS), which took 10% of the vote for the Chamber of Deputies in 1988.

The right has been characterized by small parties, some of which have been able to form coalitions with larger parties to achieve some success within the system. COPEI is a center-right Christian Democratic party that has succeeded as an opposition party to the AD, occasionally taking advantage of splits in the AD's governing coalition or within the AD itself.

Agreements between AD and COPEI in 1970 and 1973 called for cooperation in appointive posts, so that the competition has been controlled. AD and COPEI have dominated the system since, although the 1994 election of Caldera as the candidate of a four-party coalition suggests a movement away from the two-party arrangement.

TOURISM AND RECREATION

Since the early 1970s, Venezuela has sought foreign investors for the construction, rehabilitation, and management of top-ranking hotels. The number of foreign visitors in 1994 was an estimated 428,811. Of these, 53% came from the Americas and 45% from Europe. Tourism receipts totaled $540 million.

Tourist attractions include Angel Falls, the world's highest waterfall; the many memorials to Simón Bolívar; numerous beach resorts; and the duty-free shopping and superb water sports facilities of the Isla de Margarita. Cultural life in the national capital offers, among other attractions, the Ballet Nuevo Mundo de Caracas. The most popular sports are baseball, soccer (called football), bullfighting, cockfighting, horse racing, and water-related activities.

SOCIAL DEVELOPMENT

The social security system covers medical care, maternity benefits, disability, retirement and survivors' pensions, burial costs, and a marriage bonus. In July 1982, a reform of the Venezuelan civil code extended women's rights. Women comprise roughly half the student body of most universities, and have advanced in many professions, but women are still underrepresented in political and economic life.

ETHNIC GROUPS

The original inhabitants of Venezuela were Amerindians, mainly Caribs and Arawaks. The bulk (about 68%) of the present population is mestizo (mixed race); an estimated 21% is unmixed white, 8-10% black, and 2% Amerindian.

LANGUAGES

The official language is Spanish, with marked regional variations.

RELIGIONS

In 1993, an estimated 92.1% of the population was Roman Catholic. In 1987, there were about 350,000 Protestants, 200,000 tribal religionists, 122,000 Afro-American spiritists, and 20,000 Jews.

TRANSPORTATION

The most important mode of domestic cargo and passenger transport is shipping over the country's more than 16,000 kilometers (9,900 miles) of navigable inland waterways. In 1995, the merchant fleet had 32 vessels of over 1,000 gross tons, for a total of 612,645 gross registered tons. Puerto Cabello handles the most cargo, and Maracaibo is the main port for oil shipments.

Highway and railroad construction is both costly and dangerous because of the rough mountainous terrain in the areas of dense population. Nevertheless, the government has undertaken massive highway construction projects throughout the country. By 1993, Venezuela had 29,954 kilometers (18,612 miles) of paved highway. In 1995 there were 1.5 million passenger cars and 511,800 commercial vehicles in Venezuela.

Venezuela's two railroads carry mostly freight. There were 584 kilometers (362 miles) of track in 1996. Much of the equipment is out of date, and the linking of lines is difficult because of the different gauges in use. In the early 1980s, the government planned to build a 3,900-kilometer (2,420-mile) railroad network by the end of the decade; however, the financial crisis that began in 1983 has scaled the program down to 2,000 kilometers (1,200 miles) over 20 years.

Cities and towns of the remote regions are linked principally by air transportation. Venezuela has three main airlines, the government-owned Aerovías Venezolanas S.A. (AVENSA), Línea Aeropostal Venezolana (LAV), and Venezolana Internacional de Aviación, S.A. (VIASA). The government has expanded Simón Bolívar International Airport at Maiquetía, near Caracas, to accommodate heavy jet traffic. In 1995, over 4.4 million passengers traveled through Venezuela on scheduled flights.

FAMOUS VENEZUELANS

No one in Venezuelan history is as well known, both nationally and internationally, as the great "Liberator" of the South American revolution, Simón Bolívar (1783-1830), renowned for his military genius and his ability to lead and to inspire. Simón Rodríguez (1771-1854), called the "American Rousseau," was the leading liberal scholar of the prerevolutionary period.

Teresa Carreño (1853-1917) won world fame as a concert pianist. The first painter of note in Venezuela was Juan Llovera (1785-1840). Important Venezuelan painters of the nineteenth century were Martín Tovar y Tovar (1828-1902) and Arturo Michelena (1863-98).

The outstanding pioneer of Venezuelan science was José María Vargas (1786-1854).

EDUCATION

Venezuela has made considerable progress in education in recent years. The illiteracy rate was approximately 9% in 1995. Public education from kindergarten through university is free, and education is compulsory for children aged 7 through 13. Approximately 20% of the national budget is assigned to education.

After nine years of elementary school, children attend two to three years of secondary school. In 1993, there were over 4.2 million students enrolled in elementary schools; 311,209 in secondary schools; and 550,873 in colleges and universities.

There are 17 universities, both national and private, including the University of Venezuela, Los Andes University, Simón Bolívar University, and the Open University. Over 74 institutes of higher learning, colleges, and polytechnic institutes exist where students pursue at least 180 different fields or professions.

HEALTH

Despite strenuous government efforts in the field of public health, Venezuela does not have enough physicians for its booming population. In 1992 there were 639 people per physician, with a nurse-to-doctor ratio of 0.5.

Great strides have been made in improving public health conditions. The infant mortality rate, 50.2 per 1,000 live births in 1971, fell to 23.2 in 1990-95. Life expectancy averaged 73 years. Venezuela is virtually free of malaria, typhoid, and yellow fever. To maintain this status, the Department of Health and Social Welfare continues its drainage and mosquito control programs. It also builds aqueducts and sewers in towns of fewer than 5,000 persons. In 1991-93, 68% of the population had access to safe water, and 55% had adequate sanitation.

HOUSING

During 1977-81, the public sector built 167,325 housing units, and private business built 71,922. In 1981, the government introduced new low-interest housing loans, but that policy did not prevent a housing slump that persisted from 1982 through 1986 as a result of the general recession; housing units built by the public sector in 1986 totaled 91,666. The total number of housing units in 1992 was 3.4 million.

POPULATION

The last census, taken in 1990, placed the total population of Venezuela at 18.1 million. An estimated 22.8 million people lived in Venezuela in 1998. A population of 25.5 million was projected for the year 2005. Venezuela is one of the least densely populated countries in the Western Hemisphere with an estimated population density of 25 persons per square kilometer (65 per square mile). In 1995, 86% of the population was urban. The largest metropolitan areas in 1995 were Caracas, 3 million; Maracaibo, 1.6 million; and Valencia, 1.5 million.

MEDIA

Venezuela is covered by a network of telephone, telegraph, and radiotelephone services and is also served by international cable and radiotelephone systems. In 1995 there were 2.1 million telephones in use. There were 207 radio stations in 1995 and 59 television stations, and an estimated 9 million radios and 3.3 million television sets were in use.

Leading Venezuelan newspapers (all published in Caracas) with their 1995 circulations include Diario Ultimas Noticias (285,000), Meridiano (200,000), El Nacional (155,000), El Mundo (150,000), Diario 2001 (130,000), and El Universal (125,000).

AGRICULTURE

Venezuela does not have the rich soil of many other Latin American countries. In 1994, 3.9 million hectares (9.7 million acres), or 4.4% of the total land area, were used for temporary or permanent crops. The most highly developed agricultural region is a lake basin west of Caracas and inland from Puerto Cabello. The principal crop of this area is coffee.

The main field crops are sugarcane, rice, corn, and sorghum; and the chief fruits are bananas, plantains, oranges, coconuts, and mangoes. The most important agricultural items for industrial use are cotton, tobacco, and sisal. Two varieties of tobacco grow in Venezuela, black and Virginia blond; the latter is used for the most part to make certain popular brands of American cigarettes under license. Sisal is grown and widely used to make cords and sacks for grains and coffee. Thin strings of the fiber are also used in hammocks, household bags, doormats, hats, and sandals.

Agricultural production in 1995 (in tons) included sugarcane, 6.8 million; bananas, 1.2 million; corn, 902,000; rice, 568,000; sorghum, 398,000; plantains, 567,000; oranges, 451,000; potatoes, 169,000; tomatoes, 122,000; cotton, 58,000; and tobacco, 11,000.

DOMESTICATED ANIMALS

Since colonial days, cattle raising has been the dominant livestock industry in Venezuela. Chiefly criollos, or Spanish longhorns, the cattle are raised on unfenced ranges. Venezuela's livestock population in 1995 included 14.2 million head of cattle, 3 million goats, 2.9 million hogs, and 1.2 million sheep. Beef production increased from 147,000 tons in 1963 to 354,000 tons in 1996. In 1995, pork production was 140,000 tons; goat meat, 11,000 tons; mutton, 3,000 tons; and poultry, 572,000 tons. Milk production was over 1.2 billion liters in 1995. Venezuela is self-sufficient in beef, but it has to import 50% of the milk it consumes.

ENERGY AND POWER

With vast petroleum deposits, extensive waterways, and an abundance of natural gas, Venezuela possesses great electric power potential. In 1994, total electrical power generation was an estimated 71.3 billion kilowatt hours. Venezuela was the world's seventh-largest oil producer in 1995. Proven oil reserves were estimated at 64.5 billion barrels in 1996, the largest in the world outside the Middle East. Petroleum production rose to an estimated 2.8 million barrels per day in 1995. The output of natural gas was an estimated 30.2 billion cubic meters (1.1 trillion cubic feet) in 1995. Proven reserves totaled 4 trillion cubic meters (141 trillion cubic feet) in 1996.

FISHING

With its 2,816 kilometers (1,750 miles) of open coast, Venezuela has vast fishing potential. Fish and fish products currently play a relatively minor role in Venezuela's international trade, but fish are extremely important domestically. Venezuela has the highest per person fish consumption in Latin America, about three times that of the United States. Some of the main fishing areas are La Guaira, the Paraguaná peninsula, and the Cariaco--Margarita-Carúpano area. The total catch in 1994 was 423,979 tons, up from 284,235 tons in 1986.

FORESTRY

Partly because of the remoteness of forest areas, exploitation of Venezuela's high-quality wood is underdeveloped. Forest land is misused by small farmers, who clear land for farming by burning trees without replacing them. The greatest concentration of forests lies south of the Orinoco. Cedar and mahogany are the principal trees cut; rubber, dividivi, mangrove bark, tonka beans, oil-bearing palm nuts, and medicinal plants are also produced. Roundwood output was over 2.2 million cubic meters (2.9 million cubic yards) in 1995, with 40% used as fuel.

MINING

Principal mineral commodities are aluminum, cement, diamonds, ferroalloys, gold, and iron ore. The most important metal mined in Venezuela is iron. Iron ore production was an estimated 19.4 million tons in 1995. Gold, the first metal found in Venezuela, reached its production peak in 1890. Production was 7,259 kilograms (16,007 pounds) in 1995. In the same year, diamond production was an estimated 292,252 carats. Bauxite production was 5.2 million tons in 1995.

Other minerals extracted are sulfur, gypsum, limestone, salt (produced as a government monopoly), granite, clay, and phosphate rock. Minerals known to exist but not yet mined are manganese (with deposits estimated at several million tons), mercury, nickel, magnesite, cobalt, mica, cyanite, and radioactive materials.

ECONOMY

For over 40 years the economy has been completely dominated by the petroleum industry; in the mid-1980s, oil exports accounted for 90% of all export value. Weakening world oil prices contributed to economic stagnation in the 1980s, when Venezuela had difficulty meeting its payments on short-term loans accumulated by state-owned enterprises.

After severe adjustments during 1989 and 1990, the main economic indicators improved considerably in 1991 and 1992. Growth was led by the oil industry, due mainly to the Persian Gulf War (1991). Consumer prices rose by an average of 43.8% per year between 1990 and 1995.

In 1996, the government devalued its currency, got rid of foreign exchange controls, and raised gasoline prices. These moves helped reduce deficits, but brought about more inflation.

INCOME

In 1995, Venezuela's gross national product (GNP) was $65.38 billion, or approximately $3,020 per person. For the period 1985-95 the average inflation rate was 37.6%, resulting in a real growth rate in per person GNP of 0.5%.

INDUSTRY

Although much of Venezuela's petroleum is exported in crude form, petroleum refining is a major industry. Petroleum products amounted to 368.5 million barrels in 1995. The steel industry, operating at 48% of capacity, produced 3.6 million tons of steel in 1995. Other industries include shipbuilding, automobile production (96,403 vehicles in 1995), and fertilizer manufacture.

Valencia is a major new industrial center. A second major industrial development scheme has made Ciudad Guayana the hub of a vast industrial area with a 160-kilometers (100-miles) radius. There is a steel mill with a yearly capacity of 750,000 tons, and a bauxite-processing plant.

LABOR

Venezuela's economically active population in 1991 was 8.6 million. The distribution of employment among major economic areas was as follows: services, 34.2%; trade, restaurants, and hotels, 22.7%; manufacturing, 13.6%; agriculture, 13%; construction, 8%; transportation and communications, 6.2%; mining and quarrying, 1%; and other areas, 1.3%. The unemployment rate was 10.3% at the end of 1995. In 1996, about 25% of the labor force was unionized.

The constitution provides for a minimum wage, the right to strike, and the right of labor to organize into unions. Labor laws include provisions for an 8-hour day, a paid vacation of at least 15 workdays a year, compulsory profit sharing, severance pay, death and disability payments, medical services, and social security. For children under 16, there are restrictions on the number of hours and working conditions. These restrictions are enforced for formal jobs, but as many as 1 million children may be working outside the formal economy.

FOREIGN TRADE

In 1995, exports were officially reported at $18.3 billion, and imports were put at $11.6 billion. Oil accounted for 75% of exports that year. Aluminum, automobiles, iron and steel products, and alcohol were the main non-oil exports. Venezuela's principal imports were industrial supplies, machinery, transportation equipment, and food products.

The country's major export markets in 1996 included Colombia (26%), the United States (24%), the Netherlands (6%), and Japan (3%). The leading import suppliers that year were the United States (44%), Colombia (8%), Germany (5%), Brazil (4%) and Mexico (4%).

After several years of negotiations, the Group of Three (Colombia, Mexico, and Venezuela) signed a free-trade agreement. The agreement went into effect on 1 January 1995 and committed the countries to lift most trade restrictions over a 10-year period.