ECONOMIC STRUCTURE OF VENEZUELA BETWEEN 1830 AND 1936 - CULTURE VOCABULARY - 2025

The Venezuelan economy between the years 1830 and 1936 was influenced by the great political and military changes in the country, by the world oil boom and by the intervention of foreign powers among other actors.

The period between 1830 and 1936 has been of special importance in the economy of the Venezuelan country for two important events. First, the separation of Gran Colombia in 1830, and second, the consolidation of Venezuela as one of the largest oil exporters in the world in the years 1935-1936.

After 1830, when the collapse of Greater Colombia and the separation of Venezuela and New Granada occurred, Venezuela was governed mainly by the military who saw in the development of the oil industry and the implementation of social reforms as a way to govern the country.

Despite the political instability and constant wars, it can be said that the Venezuelan economy remained stable and growing during this period.

The products that allowed this were mainly coffee during the times of the 19th century and oil during the 20th century. Other important products such as cocoa stood out in the Venezuelan economy in this period.

Key points of the Venezuelan economic structure between 1830 and 1936

Great Britain's economic intervention in Venezuela

For much of the 19th century, Great Britain used its dominance and control over Trinidad to influence Venezuela's internal affairs and economy.

After the separation of Venezuela from Great Colombia in 1930, Venezuela became an unstable country and it was difficult to pay the loans contracted with Great Britain, which allowed the latter to maintain a constant influence over the South American country and counteract the growing American influence in the region.

Between 1895 and 1903, agreements on the region between the British and the Americans freed Venezuela from the economic blockade of Great Britain.

Later, after 1920 and mainly during World War I, the United Kingdom would become dependent on Venezuelan oil.

Coffee and Cocoa

At the beginning of the 19th century, Venezuela was strongly integrated into international markets by exporting 2 products mainly: coffee and cocoa.

It is estimated that the country's exports, driven by these products, increased 7 times between 1830 and 1900.

During that same period, the country grew at an annual rate of 2.6% with some ups and downs. However, this economic growth did not translate into well-being for the population, which kept up the tense political struggles and wars.

Oil economy

Between 1920 and 1930, the oil exploitation companies settled in Venezuela and quickly intervened to exploit the fuel in this country. This marked an important transition in the Venezuelan economy.

With the granting of permits to foreign companies for exploitation and export, the oil income meant a relief for debts and a great asset to invest in the development of the country. By 1936, Venezuela was positioned as a power producing crude oil.

In addition to the export of fuel and the income that this generated, oil allowed the development of the internal economy of Venezuela, since it provided industry and transportation with an efficient fuel that was produced at low cost.

Many analysts agree that the benefits of oil during this period were much greater for oil companies that came from abroad than for the inhabitants of the country.

References

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