Rural problem-solving policies in Venezuela, with special reference to the agrarian issue

Despite instability in the political arena, stability and continuity have prevailed for economic policy. In 1900 Venezuela typified a stagnant and traditionally oriented economy in a primarily rural society. During the next 20 years of internal tranquility the economy did not improve. The oil industry (1920) replaced agriculture as the most important income. Gross national income increased sharply. Commercial growers prospered. After 1930 agricultural exports dropped severely and by 1935 agriculture was in serious difficulties. The new government made agricultural and rural reform top priority matters. In the forties 3 agrarian reform laws were passed. In the fifties government hardly changed, ignoring the existence of widespread poverty in favor of large commercial farms and the oil industry. The Agrarian Reform Law of 1960 attempted to improve conditions in traditional agriculture by redistributing land and developing socioeconomic programs for the campesinos. It is difficult to tell whether the reform has increased incomes among peasants by raising productivity, but there is some evidence of a new peasantry at higher economic levels; subsidies will be needed for a long time.