Political pressure groups and leaders: FEDECAMARAS, a conservative business group; Venezuelan Confederation of Workers (CTV, labor organization dominated by the Democratic Action); VECINOS groups
International organization participation: AG, BCIE, Caricom
(observer), CCC, CDB, ECLAC, FAO, G- 3, G-11, G-15, G-19, G-24, G-77,
IADB, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IFAD, IFC, IFRCS, IHO, ILO,
IMF, IMO, Intelsat, Interpol, IOC, IOM, ISO, ITU, LAES, LAIA, MINURSO,
NAM, OAS, OPANAL, OPEC, PCA, RG, UN, UNCTAD, UNESCO, UNHCR, UNIDO,
UNIKOM, UNU, UPU, WCL, WFTU, WHO, WIPO, WMO, WToO, WTrO
Diplomatic representation in the US: chief of mission: Ambassador Pedro Luis ECHEVERRIA chancery: 1099 30th Street NW, Washington, DC 20007 telephone : [1] (202) 342-2214 FAX: [1] (202) 342-6820 consulate(s) general: Boston, Chicago, Houston, Miami, New Orleans, New York, San Francisco, and San Juan (Puerto Rico)
Diplomatic representation from the US: chief of mission : Ambassador John Francis MAISTO embassy: Calle F con Calle Suapure, Colinas de Valle Arriba, Caracas 1060 mailing address: P. O. Box 62291, Caracas 1060-A; APO AA 34037 telephone: [58] (2) 977-2011 FAX: [58] (2) 977-0843
Flag description: three equal horizontal bands of yellow (top), blue, and red with the coat of arms on the hoist side of the yellow band and an arc of seven white five-pointed stars centered in the blue band
Economy
Economy - overview: The petroleum sector dominates the economy, accounting for roughly 25% of GDP, 70% of export earnings, and 50% of central government revenues. It is likely to become even more important as the state petroleum company plans to double its production over the next ten years. The non-petroleum sectors have been contracting, however, with GDP shrinking by 1.6% during 1996. Realizing the failure of interventionist policies, the CALDERA administration embarked on a comprehensive reform program and successfully negotiated a $1.4 billion stand-by agreement with the IMF. The state eliminated price and exchange controls, reduced the long-standing subsidy on gasoline, and revitalized its stalled privatization program. Foreign investors reacted positively and the Caracas stock exchange ended 1996 as the world's best performing stock market. The influx of foreign investment and a windfall of oil revenues resulting from higher-than-expected international oil prices raised Venezuela's reserves to over $15 billion. As a result, Venezuela used only the first tranche of the IMF credit - $400 million. The currency depreciated sharply following the exchange liberalization, and caused an inflationary burst that led to a 103% yearly rate of inflation, the highest in Venezuelan history. The bolivar has since strengthened and inflation fell near the end of the year. The macroeconomic adjustments should take hold in 1997, and the economy is expected to grow by 4% or more. Increased salary demands by public and private sector workers, however, threaten a renewal of inflationary pressures.
GDP: purchasing power parity - $197 billion (1996 est.)
GDP - real growth rate: -1.6% (1996)
GDP - per capita: purchasing power parity - $9,000 (1996 est.)