![]() Furthermore, in light of some of the changes that have been made, there are reasonable doubts as to the model’s viability over the long term. Although this money flow has facilitated changes in the economy, the pattern of development has not changed substantially. However, the new model remains dependent on an external source of revenue. It aims to be more encompassing in all realms but so far it has provided few benefits, even though some are significant. Oil policy certainly serves to shore up a new socio-political model –the so-called Socialism of the 21st century–. ![]() He has thus ended the industry’s traditional autonomy, more than a decade of opening in the sector and a considerable decline in revenue in the 1990s. To do this, Chávez has resorted to advocating high prices, institutional and legal reforms and political control over the State-run company Petróleos de Venezuela (PDVSA). ‘ Rentismo’ –from the Spanish word ‘ renta’, ie, income or revenue– or ‘rentierism’ is the practice whereby a government uses a single resource, or source of revenue, as the pillar of the economy and its main tool to manage the country, rather than develop and diversify the economy with an eye to long-term growth and stability. The central argument of this article is that the Chávez government has accentuated the practice of ‘ rentismo’ and strengthened the Petro-State in comparison to earlier periods. Therefore, this contrast between the two periods facilitates an analysis of longer-term trends and allows us to discern a few keys as to what is happening in that country. However, the new increase in oil prices seems to be structural, and Venezuela’s ruling elite of civilian and military leaders are pushing a political agenda that is different from the one applied in the previous four decades. These issues are nothing new for the people of Venezuela, who lived through oil booms in the 1970s and 80s. This increase forces us to ask questions about how oil revenue is used to develop the country, the way this revenue has affected relations between the State and society, its influence on the nature and evolution of the political regime and, last but not least, the role of petro-dollars in Chávez’sforeign policy. Last year it fetched an average of US$56.70. ![]() When Hugo Chávez came to power in 1999, the price of Venezuelan oil did not exceed US$10/barrel. ![]() The vast oil revenues that Venezuela has received in recent years have re-opened a debate on the destination and impact of this source of income. ![]()
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