12 Feb 2026·Source: The Hindu

5 min

International RelationsEconomyNEWS

Venezuela's Underdevelopment: A History of Western Imperialism and Plunder

Latin America's underdevelopment is a structural byproduct of Western dominance, especially US.

Photo by Bona Lee

The article discusses the history of Latin America, focusing on Venezuela, and argues that its underdevelopment is a direct result of Western imperialism and exploitation. It references three books: 'A History of Venezuela' by Guillermo Morón, 'Open Veins of Latin America: Five Centuries of the Pillage of a Continent' by Eduardo Galeano, and 'The Shock Doctrine: The Rise of Disaster Capitalism' by Naomi Klein.

The article highlights the exploitation of resources and labor, the imposition of dictatorships, and the undermining of independent economic development in Latin America by Western powers, particularly the United States. It also mentions Hugo Chávez's efforts to break free from this system and the challenges he faced.

Key Facts

Latin America has been pillaged for over half a millennium, starting with Christopher Columbus in 1492.

The civilizations of the Mayans, Aztecs, and Incas were razed as European 'civilization' was transplanted.

Eduardo Galeano's 'Open Veins of Latin America' frames Latin American underdevelopment as a structural byproduct of western development.

Naomi Klein's 'The Shock Doctrine' details the manufactured coup in Latin America.

Gregory Wilpert's account of Hugo Chávez's attempts to break free of the capitalist-imperialist system.

Chávez introduced a new constitution in 1999 to promote participatory democracy.

UPSC Exam Angles

GS Paper 2: International Relations - Impact of policies and politics of developed and developing countries on India's interests.

GS Paper 1: History - Colonialism and its impact on Latin America.

Potential for questions on economic exploitation and political interference in developing nations.

Visual Insights

Venezuela's Historical Context

Map showing Venezuela and its historical relationship with Western powers, particularly the United States.

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📍Venezuela📍United States

More Information

Background

The history of Latin America is marked by a long period of colonialism, primarily by European powers like Spain and Portugal. This era, starting in the 15th century, involved the extraction of resources such as gold, silver, and agricultural products. The Treaty of Tordesillas (1494) divided the newly discovered lands outside Europe between Portugal and Spain along a meridian 370 leagues west of the Cape Verde islands (off the coast of Africa). This division significantly shaped the colonial landscape of South America. Following independence movements in the early 19th century, many Latin American nations faced challenges in establishing stable and independent economies. The legacy of colonialism, including unequal land distribution and dependence on raw material exports, continued to influence their development. The rise of the United States as a dominant power in the region further shaped their economic and political trajectories. This period saw interventions and policies that often favored U.S. interests, impacting the sovereignty and economic independence of Latin American countries. The concept of dependency theory emerged as a critical lens to understand the underdevelopment of Latin America. This theory posits that resources flow from less developed countries (the periphery) to wealthy states (the core), enriching the latter at the expense of the former. This dynamic perpetuates a cycle of dependence and hinders the development of peripheral nations. Key figures like Raúl Prebisch and Andre Gunder Frank contributed significantly to this theory, highlighting the structural inequalities in the global economic system. In the 20th century, many Latin American countries experienced periods of political instability, including military dictatorships. These regimes were often supported by external powers, particularly the United States, due to Cold War politics and economic interests. These dictatorships implemented policies that favored foreign investment and suppressed dissent, further exacerbating social and economic inequalities. The impact of these regimes continues to shape the political landscape of Latin America today.

Latest Developments

Venezuela has faced significant economic challenges in recent years, including hyperinflation and shortages of essential goods. These challenges have been exacerbated by international sanctions and a decline in oil prices, which is the country's primary source of revenue. The government has implemented various measures to address the economic crisis, including currency reforms and efforts to diversify the economy. The political situation in Venezuela remains complex, with ongoing tensions between the government and the opposition. International actors have played a significant role in mediating the conflict and providing humanitarian assistance. The country has also experienced a large-scale migration crisis, with millions of Venezuelans fleeing to neighboring countries in search of better economic opportunities and political stability. Recently, there have been renewed efforts to promote dialogue and reconciliation in Venezuela. The government and the opposition have engaged in negotiations aimed at resolving the political crisis and ensuring free and fair elections. However, significant challenges remain, including deep divisions within Venezuelan society and external interference. Looking ahead, the future of Venezuela will depend on its ability to address its economic and political challenges. This will require a combination of domestic reforms, international cooperation, and a commitment to democratic principles. The country's vast natural resources offer potential for economic recovery, but only if they are managed effectively and transparently. The role of OPEC and other international organizations will be crucial in supporting Venezuela's transition.

Frequently Asked Questions

1. What are the key historical events and figures to remember regarding Venezuela's underdevelopment, as discussed in the article?

Key events include Christopher Columbus's arrival in 1492, marking the beginning of Latin America's exploitation, and Hugo Chávez introducing a new constitution in 1999, aiming to break free from Western dominance. Key figures include Christopher Columbus and Hugo Chávez.

Exam Tip

Focus on the before and after Chávez eras to understand the shift in Venezuela's political landscape.

2. What is meant by 'underdevelopment' in the context of Venezuela and Latin America, according to the article?

The article argues that underdevelopment is not a natural state but a structural outcome of Western imperialism and exploitation. It suggests that Latin America's resources and labor have been systematically pillaged, hindering independent economic development.

3. How does the concept of the 'Resource Curse' relate to Venezuela's current economic situation?

While the article doesn't explicitly mention 'Resource Curse', Venezuela's reliance on oil revenue and its subsequent economic challenges due to fluctuating oil prices and international sanctions align with the concept. The country's dependence on a single resource has made it vulnerable to external economic pressures.

4. What are the recent developments contributing to Venezuela's economic challenges, as per the article?

Recent developments include hyperinflation, shortages of essential goods, international sanctions, and a decline in oil prices. These factors have collectively exacerbated the country's economic crisis.

5. In your opinion, what are the potential long-term consequences of Western intervention in Latin America, considering Venezuela's case?

Long-term consequences may include continued economic instability, political polarization, and social unrest. The legacy of exploitation can hinder the development of strong, independent institutions and perpetuate cycles of poverty and dependence.

6. What is Dependency Theory, and how does it relate to the situation in Venezuela as described in the article?

Dependency Theory posits that resources flow from underdeveloped states to wealthy, developed states, enriching the latter at the expense of the former. The article suggests Venezuela's underdevelopment is a result of this dynamic, where Western powers have historically exploited its resources and labor, hindering its independent development.

Practice Questions (MCQs)

1. Consider the following statements regarding the 'dependency theory': 1. It posits that resources flow from less developed countries to wealthy states. 2. It suggests that this flow enriches the less developed countries at the expense of wealthy states. 3. Raúl Prebisch and Andre Gunder Frank are key figures associated with this theory. Which of the statements given above is/are correct?

A.1 and 2 only
B.1 and 3 only
C.2 and 3 only
D.1, 2 and 3

Show Answer

Answer: B

Statement 1 is CORRECT: Dependency theory indeed posits that resources flow from less developed countries (the periphery) to wealthy states (the core). This is a fundamental tenet of the theory. Statement 2 is INCORRECT: The theory argues that this flow enriches the wealthy states at the expense of the less developed countries, perpetuating a cycle of dependence. Statement 3 is CORRECT: Raúl Prebisch and Andre Gunder Frank are indeed key figures who contributed significantly to the development of dependency theory.

2. In the context of Latin American history, what was the primary significance of the Treaty of Tordesillas (1494)?

A.It established free trade zones between Spain and Portugal.
B.It divided the newly discovered lands outside Europe between Portugal and Spain.
C.It marked the end of Spanish colonization in the Americas.
D.It led to the formation of the Organization of American States (OAS).

Show Answer

Answer: B

The Treaty of Tordesillas (1494) divided the newly discovered lands outside Europe between Portugal and Spain along a meridian 370 leagues west of the Cape Verde islands. This division significantly shaped the colonial landscape of South America. Options A, C, and D are incorrect as they do not accurately reflect the treaty's purpose or consequences.

3. Which of the following best describes the economic situation in Venezuela as described in the news?

A.Stable economic growth due to diversified industries.
B.Hyperinflation and shortages of essential goods, exacerbated by sanctions and declining oil prices.
C.A thriving agricultural sector leading to food security.
D.Strong trade relations with European countries ensuring economic stability.

Show Answer

Answer: B

The news summary explicitly mentions that Venezuela has faced significant economic challenges in recent years, including hyperinflation and shortages of essential goods. These challenges have been exacerbated by international sanctions and a decline in oil prices. Therefore, option B is the most accurate description.