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Venezuela's Descent: From Oil Boom to Humanitarian Crisis

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  Published in Politics and Government on Wednesday, January 7th 2026 at 10:14 GMT by CNN

From Oil Boom to Broken State: A History of Venezuela's Tumultuous Descent

Venezuela, a nation once lauded as a beacon of prosperity in Latin America, is currently mired in a profound humanitarian and economic crisis. The CNN documentary, “Venezuela: A Brief History,” meticulously details the complex trajectory of this dramatic downfall, tracing the roots from an initial oil boom to the current state of widespread poverty, political instability, and mass emigration. This article summarizes the key historical events and contributing factors detailed in the piece, drawing on linked sources to provide a comprehensive overview.

For much of the 20th century, Venezuela enjoyed relative stability and economic growth, largely due to its vast oil reserves – the largest proven reserves in the world. The discovery of oil in the early 1900s transformed the country, attracting foreign investment and fueling modernization. However, this wealth was not evenly distributed. While an elite benefited greatly, significant portions of the population remained in poverty, creating underlying social tensions. The documentary highlights how this early pattern of inequitable distribution sowed the seeds for future unrest.

Following a period of military rule, Venezuela transitioned to a democratic system in 1958, known as the “Pacto de Punto Fijo.” This agreement established a two-party system – Acción Democrática (AD) and COPEI – that dominated Venezuelan politics for decades. While initially fostering stability, this system also became increasingly plagued by corruption and patronage. The documentary points out that the two parties, despite rotating power, often failed to address deep-seated socio-economic issues. This lack of meaningful reform contributed to growing public dissatisfaction.

The 1980s saw a decline in oil prices, impacting Venezuela’s economy significantly. The subsequent economic hardship, coupled with existing social problems, led to widespread protests and the "Caracazo" of 1989 – violent riots sparked by rising transportation costs in Caracas. This event, brutally suppressed by the government, marked a turning point and underscored the fragility of the democratic system. The CNN report underscores the Caracazo as a key moment of popular anger and a loss of faith in traditional political institutions.

The election of Hugo Chávez in 1998, promising a "Bolivarian Revolution," marked a radical shift in Venezuelan politics. Riding a wave of popular discontent, Chávez implemented socialist policies, nationalizing key industries (including oil) and launching ambitious social programs aimed at reducing poverty and inequality. Initially, these programs saw some success, funded by high oil prices in the early 2000s. The documentary acknowledges the initial gains made in areas like healthcare and education, but also highlights the growing authoritarian tendencies under Chávez.

However, Chávez's increasingly autocratic rule, his suppression of dissent, and his weakening of democratic institutions raised concerns both domestically and internationally. He survived a coup attempt in 2002, which, while short-lived, further polarized the country. The CNN report details how Chávez used the narrative of foreign intervention to consolidate his power and silence opposition voices. Furthermore, the reliance on oil revenue made the Venezuelan economy vulnerable to price fluctuations.

Following Chávez’s death in 2013, Nicolás Maduro assumed power. Under Maduro, the situation deteriorated rapidly. Oil prices plummeted, exacerbating existing economic problems. Crucially, Maduro lacked Chávez’s political skills and charisma, and his administration was riddled with corruption and mismanagement. The documentary presents compelling evidence of widespread embezzlement and the stripping of state assets.

The economic crisis spiraled into a full-blown humanitarian disaster. Hyperinflation rendered the currency worthless, leading to shortages of food, medicine, and basic necessities. The healthcare system collapsed, resulting in a surge in preventable diseases and a massive exodus of Venezuelans seeking refuge in neighboring countries and beyond. As reported by the UNHCR (linked in the CNN piece), over seven million Venezuelans have fled the country, creating one of the largest migration crises in the world.

The political situation also worsened, with Maduro accused of rigging elections and cracking down on opposition figures. Juan Guaidó, the leader of the National Assembly, declared himself interim president in 2019, gaining recognition from several countries – including the United States. However, Maduro remained in power, backed by the military and support from countries like Russia and Cuba.

The documentary concludes that Venezuela's crisis is a complex outcome of historical factors, including its dependence on oil, political corruption, authoritarian leadership, and economic mismanagement. It emphasizes that the current situation is not simply the result of recent events, but a culmination of decades of flawed policies and unaddressed inequalities. While international sanctions have played a role, the report highlights that internal factors were the primary drivers of the crisis.

Ultimately, “Venezuela: A Brief History” offers a sobering account of a nation that squandered its potential. It serves as a stark reminder of the dangers of unchecked power, economic dependence, and the importance of strong democratic institutions. The future of Venezuela remains uncertain, but the documentary powerfully illustrates how a once-prosperous nation descended into a state of profound crisis.