Analysis of the Nation of Venezuela with the Aim of Establishing and Developing Potential Major Foreign Direct Investment Opportunities

Analysis of the Nation of Venezuela with the Aim of Establishing and Developing Potential Major Foreign Direct Investment Opportunities

Background and Statistical Information
The Bolivarian Republic of Venezuela, often referred to simply as Venezuela, was created in 1830 along with Colombia and Ecuador following the restructuring of the large territory of Gran Colombia. It is located on the top of South America and borders Colombia, Brazil, and Guyana. While the capital, Caracas, is located on the north-central coast at the base of the Caribbean Sea, the rest of the nation consists of the following diverse landscapes: both the massive Andes mountain range coupled with the Maracaibo Lowlands in the northwest, central plains, and the Guiana Highlands in the southeast. At an approximate total land area of 912,050 square kilometers Venezuela is slightly twice the size of the state of California, while its July 2008 population estimate of 26,414,815 is slightly higher than that of the state of Texas.
Because of its location and the hot, tropically-humid climate, Venezuela relies heavily on its key natural resources of petroleum, natural gas, iron ore, gold, bauxite, minerals, hydropower, and diamonds as means to acquire goods. Agriculture is a virtually non-existent industry; according to 2005 figures, only 3.73% of the land mass was comprised of arable land or permanent crops with only 5,750 square kilometers (0.65%) of land being irrigated. Agricultural products that are produced include corn, sorghum, sugarcane, rice, bananas, vegetables, coffee; beef, pork, milk, eggs, and fish.
Since its declaration of independence from Spain in 1811, Venezuela has seen both sides of the political spectrum. A succession of dictators ruled chaotically until 1870, when Antonio Guzman Blanco established an infrastructure as well as a welcoming climate for foreign direct investment. Blanco was able to instill a spirit of democracy that transcended generations of Venezuelans, yet dictatorships reassumed control 40 years later and eventually led to the legalization of the Communist party during the heart of the...