Abstract
Countries blessed with a luscious endowment of natural resources should, at least in theory be able to engage in rapid economic development. However, the reality is often very different. As many countries appear to be cursed by their natural resource. This is somewhat paradoxical, as resource revenue should enable these countries to prosper. Of many of these countries, Venezuela has historically been a case example of the Resource Curse. However, its current president Hugo Chávez promised a break with its country's curse ever since he first got elected in 1998.
But, what is the situation in Venezuela now, writing 9 years later? Has Chávez been able to live up to his electoral promises? The main question that this article tries to solve is: does Chávez succeed in breaking the resource-curse for Venezuela? Moreover, as Venezuela is one of the largest oil exporting countries in the world, one essentially has to wonder what the role of oil in the policy of Chávez is.
The method employed for finding an answer to this question is a deep and thorough analysis of Chávez's policy from 1998 up to the present date. The sources used are books, reports and critical scientific and opinion articles. In retrospect it is fair to say that Chávez has not succeeded in breaking his country's curse, nor is he likely to do so in the near future. Also one should question if Chávez was ever bent on breaking Venezuela's curse from the onset. By failing to live up to his electoral promises, the conflict potential in Venezuela is growing larger by the day with possible detrimental consequences for the Venezuelan population.
This research aims to aid policy initiatives directed at safeguarding stability and promoting democracy in Latin America by pointing out the worrisome developments in Venezuela.



March 7, 2008
Florian Kuhne, Westfälische Wilhelms-Universität Münster, Bronze Contributor (17)
Your work seems very good to me as far as scientific style is concerned and very interesting as far as the topic is concerned. I know little about Venezuela and Chavezism but I think your thesis in the conclusion is very pessimistic. Why should Venezuela bog down in anti-democratic politics and are you serious about your comparison of Venezuela and Cuba?
Chavez tried to keep in force but accepted the referendum last year, so he will leave office in 2012. I really do not hope that there will be "arrangements" as seen in Russia these days.
And dont forget the benefits for Venezuelans: With these so-called Petrodollars Chavez is able to spend money for infrastructure, medical care, schools and so on. In this connection its very interesting what projects Chavez puts on furthermore. As one example, he delivers (cheap) oil to the city of London and therefore gets administrative assistance from city-planners and development help from London. This benefits the Venezolanian people.
In my opinion, Chavez is no authorian dictator and no real danger to the world community. But we need to keep in mind, that his position will strengthen as the price for oil will rise in long-term and it will be necessary to peacefully talk as long as he is willing and unable to behave like a militaristic dictator.
These were ideas I had when I read your text, which is once again really good.
Best wishes, Florian