Population: 25,375,281

EOverview:

Venezuela continues to be highly dependent on the petroleum sector, accounting for roughly one-third of GDP, around 80% of export earnings, and over half of government operating revenues. A disastrous two-month national oil strike from December 2002 to February 2003, temporarily halted economic activity. The economy remained in depression in 2003, declining by 9.2% after an 8.9% fall in 2002. Despite continued domestic instability, output recovered strongly in 2004, aided by high oil prices. Both inflation and unemployment remain fundamental problems. The Bolivarian Republic of Venezuela, as it is officially known, is located in the northern part of South America, a spot to which it owes its triple identity as an Andean, Amazonian and Caribbean country. Strategically located, the country has access to both the Caribbean Sea and the Atlantic Ocean along its 2,813 km (1,749 miles) of northern and eastern coastlines. Covering an area of 916,445 square kilometers (353,841 square miles), Venezuela shares borders with Colombia to the west and south, Brazil to the south and Guyana to the east. This federal republic is divided into 23 states, a Capital District (that includes the city of Caracas), 72 federal territories (islands, islets and keys, most uninhabited) and Guayana Esequiba. Venezuela has been claiming this latter 167,830 square kilometer area from Guyana for the past 150 years. The governments of both countries are still working on a settlement to the territorial dispute. Located in the tropics, Venezuela benefits from a warm, rainy climate, with variations depending on location, topography, prevailing winds and proximity to the sea. Because of its two mountain chains, the Andes and the Coastal chain, it has more moderate temperatures that vary depending on the altitude.

Close to 80% of the population lives in urban areas in the northern part of the country, while the half of the country located south of the Orinoco River is home to the other 20%. Most Venezuelans are descendents of Spaniards, native Indians and Africans from the colonial era; these groups were later joined by immigrants of German, Croatian, Italian, Spanish, Portuguese, Syrian, and Lebanese origin, as well as a great many Latin Americans, during the 20th century.

Although the official language is Spanish, there are also some thirty native languages that are officially used in the respective communities, among others guajiro, warao, pemón and kariña. English is the second language for most professionals, scholars and middle- and upper-class Venezuelan. Many people in the large immigrant communities (Arabs, Portuguese and Italian, mainly) continue to speak their native tongue.

The country is home to vast mineral resources, although it is best known for its hydrocarbons, and rightly so given that it ranks fifth in the world in oil reserves and seventh in natural gas, according to BP’s World Energy Statistics Report (June 2005). Thanks to this, Venezuela plays a key role in the world market for these commodities

From 1984 to 2004 extraction of oil and gas and refining accounted for 24% of the country’s gross domestic product (GDP). Most activities in the non-oil economy are in the services sector, which accounts for 46% of the non-oil GDP, with trade and real estate standing out above the rest. In the case of production of goods, manufacturing holds first place, contributing 15%, followed by construction with 6% and agriculture with 5%.

Venezuela is also very rich in minerals such as iron, bauxite, coal, gold and diamonds, especially in the Guayana region. The state holds a large interest in the basic industries and in the oil sector, since both are considered of strategic importance for the nation.

There is a strong fishing industry all along the sea coast, while the country’s forestry resources and farmlands are located