Petroleum model trap: Venezuela lessons

Using the example of Venezuela, the article analyzes the impact of oil rent on socio-political processes. An analysis of the political history of Venezuela throughout the 20th century indicates that one of the main factors in changing the political system was the size of the country's revenues from oil exports, as well as the parameters of the distribution of these revenues. Periods of falling world oil prices led to the emergence of political instability in Venezuela and, in some cases, to a change in the political regime. In order to maintain social stability and ensure electoral support for the current political regimes, the Venezuelan authorities resorted to the redistribution of resource rent. The circle of recipients of resource rent was constantly expanding. At the first stage, in the first half of the 20th century, these were large landowners and the country's political elite. In 1960s-1970s, the middle class became the main recipient of the rent. During this period, Venezuelan society has reached the highest level of its stability and prosperity. At the turn of the 20th and 21st centuries, the poorest strata of Venezuelan society have become the new beneficiaries of the resource rent. At the same time, a social conflict was growing in the country between strata of the population who received their share of the resource rent and citizens who did not receive their share. The possibilities for further development of this model have already been exhausted. The social crisis led to the degradation of the country's economy and oil industry. The amount of oil rent is already insufficient to ensure broad electoral support for the current government. The socio-political model of Venezuela has entered the stage of a deep crisis.