Venezuela's Economic and Social Development in the Era of Chavism

This article analyzes the economic and social development of Venezuela during the Chavism period, considering the main political events, institutional changes, economic and social policies, and evolution of economic and social indicators from 1999 to 2016. The article's conclusion is that the Chavism development project, based on so‐called socialism of the 21st century, was not useful to overcome the crisis of the oil‐rent‐based capital‐accumulation model. Despite the increase in oil revenue throughout most of the Chavism era, institutional changes and economic policies of socialism of the 21st century have worsened the crisis of the oil‐rent‐based development model. The outcome has been a setback in the main leading economic and social indicators and in democratic institutions, and increased discontent among the population. The regime has evolved toward authoritarianism, with less respect for democratic principles. Today, the crisis in Venezuela is worse than the one experienced during the period preceding Chavism, and the country faces the challenge of recovering democracy, stabilizing the economy, and changing the extremely oil‐rent‐dependent capital‐accumulation model.