Rubio (Venezuela), 1922 – Miami (Estados Unidos), 2010
By Gilberto Maringoni
Carlos Andrés Pérez served as president of Venezuela twice (1974-1979 and 1989-1993). In 1938, he joined the National Democratic Party, the precursor to Acción Democrática (AD), which was founded in 1941. At a young age, he became secretary of the governing board and secretary of the Council of Ministers. He was elected as a state legislator in 1946, serving until 1949, when he was expelled from the country during the dictatorship of Pérez Jiménez (1948-1959). With the end of the regime, he was elected as a federal deputy and appointed Minister of the Interior in the government of Rómulo Betancourt (1959-1964). From 1968, he became a member of the AD executive, until he was elected president in 1974. He was also vice president of the Socialist International.
When he first led the country, Pérez found a climate of prosperity due to the high international oil prices. As a result, there was a significant improvement in public services, low unemployment, and rapid economic growth. Additionally, this period was marked by the founding of PDVSA, the powerful Venezuelan state-owned oil company.
When he ran for president for the second time in 1988, the situation was very different. Due to a sharp decline in oil prices in the previous years, the Central Bank’s reserves, which were $13.75 billion in 1985, had fallen to $6.67 billion by the year of the election. Inflation reached 40.3% annually, unemployment was in double digits, and real wages had drastically fallen. A sharp capital flight further compounded the crisis. Nevertheless, his electoral campaign was centered around promises of returning to the days of prosperity.
Two weeks after taking office, Pérez announced a severe structural adjustment plan, guided by the IMF. The package included the devaluation of the national currency (the bolívar), reductions in public spending and credit, price liberalization, wage freezes, and increases in the prices of essential goods. Gasoline would undergo an immediate 100% price hike, which would result, as announced, in a 30% increase in public transport fares. In practice, these adjustments also reached 100%.
The consequence was a popular rebellion that spread throughout Caracas and the major cities of the country starting on February 27, 1989. The protests were harshly repressed by the military, resulting in over 300 deaths – according to official figures – and thousands of injuries. The event, known as the Caracazo, marked the breaking of a pattern of coexistence and tolerance between the Venezuelan population and the loss of legitimacy of the government and the political system. Pérez would also face two failed coup attempts by military sectors, as a manifestation of the prevailing discontent, in 1992. The first occurred on February 4, led by sectors of the Army, including Hugo Chávez. The second involved factions of the Navy and Air Force on November 27. Despite being defeated, the leaders of these movements became popular, highlighting the government’s wear and tear.
Pérez’s government would drag on until he faced impeachment proceedings following the confirmation of several corruption allegations, which culminated in his removal from office on May 20, 1993. In 1996, he was sentenced by the Supreme Court of Justice to two years and four months of house arrest. During Hugo Chávez’s presidency, without a mandate and removed from direct political engagement, Pérez became an active advisor to the opposition, even encouraging attempts at a coup.
