Venezuela’s Political Evolution: Betancourt Era and Beyond
The Government of Rómulo Betancourt
According to the government of the Punto Fijo Pact, Betancourt and his party (Democratic Action) formed a government with the Republican Union Democratic (URD) and the Independent Personal Committee (COPEI). This government excluded the Communist Party of Venezuela (PCV), which had been allied with parties in the patriotic junta that ousted Pérez Jiménez. The PCV’s exclusion led to an openly anti-Betancourt stance, resulting in conflicts with various national sectors, including within his own government. Notably, the URD aimed to recognize the PCV’s role in the fight against the dictatorship.
The Punto Fijo Pact
This pact became an institutional agreement between Democratic Action (AD), COPEI, and a third party ranking third in votes (initially URD, then MAS). This arrangement lasted until March 2, 1996, when a new agreement excluded AD and other forces supporting President Rafael Caldera from congressional leadership.
Opposition Faced by Rómulo Betancourt
As a result of this political confrontation, Betancourt’s party experienced division. Important youth sectors formed the Revolutionary Left Movement (MIR), a Marxist, anti-imperialist, and anti-feudal party supporting a national revolution.
Reforms Under Rómulo Betancourt
- Land and Agricultural Reform: Aimed to improve farmers’ living conditions and increase their production participation, as well as boost agricultural output for domestic consumption.
- Administrative Reform: Sought to modernize public administration, improve services, and eliminate corruption. However, evidence suggests this reform faced significant challenges.
- Education Reform: Focused on creating an education system that fostered technical development, democratized access at all levels, and modernized teaching techniques and methods.
Economic and Social Policy of President Leoni
During his term, Dr. Leoni ratified the previous government’s oil policy, respecting existing concessions and service contracts as the basis for industry development. Dr. Pérez Alfonso, who had resigned as Minister of Mines and Hydrocarbons before the end of Betancourt’s term, played a key role in this continuity.
The Pentagon Action
In 1967, a new income tax law increased the state’s share of oil company profits to 70% and introduced a new pricing system, further boosting oil revenues. The federal executive also pursued reparations from companies evading payments by manipulating oil prices between 1951 and 1965.
Characteristics of Carlos Andrés Pérez’s Economic Policy
- Rising prices due to global trends, increasing import costs, and domestic supply limitations, coupled with industrial and commercial monopolies and speculation.
- Chronic unemployment among Venezuelan workers.
- Concentration of industrial growth in central Venezuela, neglecting the majority of the population.
- Accelerated inflation, worsening living conditions, particularly for the middle class and low-income sectors.
Rómulo Betancourt’s Oil Policy Measures
The Punto Fijo Pact (named after the Fifth Punto Fijo location in Caracas) established a coalition of diverse socio-political groups (AD, COPEI, URD) based on recognizing various interests. This alliance operated under ground rules to maintain institutional stability. When Rómulo Betancourt assumed power in 1959, foreign companies exploited hydrocarbons through 40-year concessions granted by previous governments, including the last concessions under Marcos Pérez Jiménez. This system limited the state’s control over oil resources.