Rómulo Betancourt

Rómulo Ernesto Betancourt Bello (22 February 1908 – 28 September 1981; ), known as "The Father of Venezuelan Democracy", was a Venezuelan politician who served as the president of Venezuela, from and again from 1959 to 1964, as well as leader of the Democratic Action, Venezuela's dominant political party in the 20th century.

Betancourt, one of Venezuela's most important political figures, led a tumultuous career in Latin American politics. Periods of exile brought Betancourt in contact with various Latin American countries as well as the United States, securing his legacy as one of the most prominent international leaders to emerge from 20th-century Latin America. Scholars credit Betancourt as the Founding Father of modern democratic Venezuela.

Early years

Betancourt was born in Guatire, a town near Caracas. His parents were Luis Betancourt Bello (of Canary origins) and Virginia Bello Milano. He attended a private school in Guatire, followed by high school at the ''Liceo Caracas'' in Caracas. He studied law at the Central University of Venezuela.

As a young man he was expelled from Venezuela for agitation and moved to Costa Rica where he founded, and led, a number of Communist student groups. In the early 1930s, while in Costa Rica, he became one of the main militants of that country's Communist Party at the young age of 22. In 1937, after resigning from the Communist Party and returning to Venezuela, he founded the Partido Democrático Nacional, which became an official political party in 1941 as Acción Democrática (AD).

Colombian leader Jorge Eliécer Gaitán claimed Betancourt had "offered him arms and money to launch a revolution in Colombia" which was part of Betancourt's alleged plan to build a solid phalanx of left-wing regimes in the Caribbean.

First term as president

Betancourt became president in 1945 by means of a military coup d'état and, during his time in office, completed an impressive agenda. His accomplishments included the declaration of universal suffrage, the institution of social reforms, and securing half of the profits generated by foreign oil companies for Venezuela. His government worked closely with the International Refugee Organization to aid European refugees and displaced persons who could not or would not return home after World War II; his government assumed responsibility for the legal protection and resettlement of tens of thousands of refugees inside Venezuela. The refugee initiative was the subject of great controversies within his government with the winning side led by Betancourt's secretary of Agriculture, Eduardo Mendoza.

Reform of the oil industry

In 1941, before AD's entry into policymaking, Venezuela received 85,279,158 bolívars from oil taxes, out
of a total oil value of 691,093,935 bolivars. Before Betancourt's changes in the taxing system, the state of Venezuela was making only a fraction of what foreign oil companies were making in profit. President Betancourt had overthrown the Isaías Medina Angarita which enacted a law to tax oil companies up to 60%, and reserved for the government the right to raise more taxes as needed. Betancourt changed the law to "Fifty to Fifty".

One of Betancourt's original objectives was the nationalization of the country's oil industry. Mexico had nationalized its oil industry in 1938, and because its economy was more diversified than Venezuela's, there was little to no backlash. Though oil nationalization became one of AD's main objectives, Venezuela's economy was not stable enough to handle potential boycotts by foreign oil companies and would have left nation fiscally vulnerable.

Rationalizing the complications of nationalization at the time, raised taxes on oil production instead accomplishing the same goal: Venezuela's oil riches to benefit Venezuelans. In the late 1940s Venezuela was producing close to annually and as production climbed, the tax followed. Venezuela was the Allies' top oil supplier during the wars occurring in the European continent. Betancourt identified this potential to play an important historical role, using the knowledge to his nation's advantage transforming Venezuela into a global player. Germany then lacked reliable access to oil limiting troop movements. Some historians identify this vulnerability a deciding factor in Hitler's defeat. Venezuelan oil played a key role.

According to Betancourt, a spike in taxes was just as effective as nationalizing the oil industry, "Tax income was increased from then to such a degree that nationalization was unnecessary to obtain maximum economic benefits for the people of the country". Oil companies were forced to cede to the demands of labor unions and no longer entitled to make larger profits than the Venezuelan government. As a result, generally had full support of the labor unions as the administration openly encouraged workers to organize. In 1946, 500 labor unions were created. Another notable achievement of Betancourt's first administration include the termination of the concession policy, the initial development of refineries within Venezuela, and tremendous improvement in worker conditions and pay. Juan Pablo Pérez Alfonso served as Minister of Development in Betancourt's first term.

Government Junta cabinet (1945–1948)

Third exile

Betancourt presided over the country's first free elections, in 1947, which were won by the AD's Rómulo Gallegos. However, on 27 November 1948, Carlos Delgado Chalbaud, Marcos Pérez Jiménez and Luis Felipe Llovera Páez launched the 1948 Venezuelan coup d'état and overthrew Gallegos after just . Betancourt went into exile in New York City. In exile he planned a political return sustained on democratic principles and open elections legitimizing his national leadership role. His forward vision and strategy was successful and Betancourt was elected president by his own people upon returning to Venezuela. He had been determined to expose to the world the political problems and dictatorships that plagued the country through most of its modern history – a risky proposition.

"Betancourt's third, and longest, period of exile was a time of enormous frustration. In the prime of his life --for roughly the decade of his forties-- he was forced into relative inactivity and obscurity. He traveled extensively, living in Cuba, Costa Rica, and Puerto Rico, and remained a leader of an opposition-in-exile to the Perez Jimenez dictatorship. And of course wrote 'Venezuela: Oil and Politics'. A beach home outside of San Juan (Puerto Rico) provided a quiet refuge for this work," wrote Franklin Tugwell in his Introduction to the 1978 English publication of Betancourt's book.

"The preparation of this book has been as hectic as the life of the author. I wrote it first between the years 1937–39 while I was underground hiding from the police. It could not be published then because no Venezuelan publisher would dare risk printing a book written by one who was in such compromising position. The only typewritten copy was among my personal papers and it disappeared with them when a military patrol plundered the house I was living in when the constitutional government was overthrown on 24 November 1948. Thus most of the material from the first draft was lost.

"I believe that 'the dead command,' although not in the sense that reactionaries have traditionally given the phrase. When they die they give the command for an ideal of human excellence, obliging those who survive to finish their work," wrote Rómulo Betancourt in the Prologue to the first edition of "Venezuela: Oil and Politics".

The book published in Mexico City by Editorial Fondo de Cultura Económica in 1956 was prohibited from circulating in Venezuela.

Second term as president

A decade later, after Pérez Jiménez was ousted, Betancourt was elected president in the general election of 1958, becoming the first leader of the Punto Fijo Pact. Having inherited a well constructed country but with the need to give more education to its people, Betancourt nevertheless managed to return the state to fiscal solvency despite the rock-bottom petroleum prices throughout his presidency.

In 1960, two important institutions were created by Juan Pablo Pérez Alfonso, Betancourt's minister of Mines and Hydrocarbons: the Venezuelan Petroleum Corporation (Corporación Venezolana del Petróleo — CVP), conceived to oversee the national petroleum industry, and the Organization of the Petroleum Exporting Countries (OPEC), the international oil cartel that Venezuela established in partnership with Kuwait, Saudi Arabia, Iraq, and Iran. Considered a radical revolutionary idea at the time by its opponents, but essential to Venezuela's independence and fiscal solvency by a visionary nationalistic Betancourt.

At an annual oil convention in Cairo, Venezuela's envoy, fluent in Arabic, convinced oil producing Middle Eastern countries to sign a secret agreement that promoted unity and control of their own national oil resources; under the noses of the British and American corporations that dominated the oil industry globally and had funded the event. Planting the seed for OPEC that was founded in September 1960 at Baghdad, Iraq. This movement was triggered by a 1960 law instituted by American President Dwight Eisenhower that forced quotas for Venezuelan oil and favored Canada and Mexico's oil industries. Eisenhower cited national security, land access to energy supplies, at times of war. Betancourt reacted seeking an alliance with oil producers of Middle Orient and North Africa as a pre-emptive strategy to protect the continuous autonomy and profitability of Venezuela's oil, establishing a strong link between the South American nation and the OPEC countries that survives to this day.

On a scenario of suspended economic guarantees, special situation derived from the Castro-communist armed insurrection, Betancourt adopted the CEPAL model of substitution of imports in order to achieve a fast track to development through industrialization that succeeds in replacing imported goods with locally produced goods. The government strategy included tax exemptions to attract capital investment and land at low cost to facilitate foreign suppliers building plants for the assembly or packaging of finished products, closing the economy to import trade through high taxes on similar imported goods and import quotas to reduce foreign competition or other quantitative restrictions that prohibited imports. In addition, the Central Bank overvalued the Bolivar to cut down prices of imported inputs and promote export-oriented growth. Large road-building, and electrical power programs, such as the construction of Guri Dam Phase I were carried out, transforming Venezuela into a modernized Latin American nation.

Agrarian reform

AD's land reform distributed unproductive private properties and public lands to halt the decline in agricultural production. Landowners who had their properties confiscated received compensation.

FALN guerrilla group

Betancourt also faced determined opposition from extremists and rebellious army units, yet he continued to push for economic and educational reform. A fraction split from the AD and formed the Revolutionary Left Movement (MIR). When leftists were involved in unsuccessful revolts at Barcelona ('' El Barcelonazo'') in 1961 and in navy bases in 1962 ('' El Carupanazo'', Carúpano

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