Hugo Chávez is a Venezuelan soldier-turned-politician who harnessed soaring oil revenues and simmering class resentments to make himself the hub of anti-American sentiment in Latin America. As a colonel, Mr. Chávez led a failed coup in 1992 against the government, which had traditionally represented the interests of the country's moneyed elite. He was pardoned after two years in prison, and emerged as one of Venezuela's most popular figures.
In 1998, he won election as president and announced he would seek sweeping changes to benefit the poor. Instead he proceeded cautiously and succeeded in lowering chronically high inflation. His policies, including the firing of the management of the state-owned oil company that is the source of most of the government's wealth, angered members of the middle class, and in April 2002, he was briefly ousted in a failed coup.
Mr. Chávez blamed the administration of President George W. Bush for the incident, and his rhetoric became steadily stronger, especially after he survived a recall election in 2004. In a speech to the United Nations in September 2006, Mr. Chávez, speaking the day after Mr. Bush had addressed the General Assembly, declared that the room stank of sulphur because "the devil" had been there.
In 2006, Mr. Chávez handily won re-election and announced a more radical turn. He nationalized electrical companies, asserted government control over oil projects in the Orinoco forests and withdrew from the International Monetary Fund. He also cracked down on television stations that had been critical of him, and proposed a referendum on constitutional changes that would centralize power in the presidency and remove term limits for the post. That referendum was rejected by voters in December 2007. It was Mr. Chavez's first major electoral defeat in the nine years of his presidency.
In state and municipal elections in November 2008, Mr. Chávez's supporters suffered defeat in several important races, with the opposition retaining power in oil-rich Zulia, the countrys most populous state, and winning a crucial contest in Caracas, the capital. Despite the inroads made by the opposition, followers of Mr. Chávez still control the Supreme Court, the National Assembly, the federal bureaucracy and every state company.
Mr. Chávez signaled that he might move to handpick new regional authorities, effectively diminishing the power of opponents elected elsewhere by voters.
In January 2009, buffeted by falling oil prices that threatened to damage his efforts to establish a Socialist-inspired state, Mr. Chavez began quietly courting Western oil companies again. His olive branch to these oil companies came after he nationalized their oil fields in 2007. Their willingness to even consider investing in Venezuela reflected the scarcity of projects open to foreign companies in other top oil nations, particularly in the Middle East.
But the shift also showed how the global financial crisis is hampering Mr. Chávezs ideological agenda and demanding his pragmatic side. At stake are no less than Venezuelas economic stability and the sustainability of his rule.
In February 2009, Mr. Chávez handily won a referendum ending presidential term limits, allowing him to run for re-election indefinitely and injecting fresh vibrancy into his socialist-inspired revolution. The results pointed to his resilience after a decade in power, as well as to the fragmentation of his opposition. Mr. Chávez's term expires in 2013.
Mr. Chávez said in April 2010 that China had agreed to extend $20 billion in loans to Venezuela, pointing to deepening ties between the two countries as China seeks to secure oil supplies there. China's ties with Venezuela have grown increasingly warm in recent years, marked by rising Venezuelan oil exports to China, the Chinese launching of a satellite for Venezuela and the sale of Chinese military aircraft to Venezuela.
The loans could give Mr. Chávez a much-needed cash infusion. Some financial analysts said that Venezuela could soon face a cash crunch as it grapples with low oil revenues and a dearth of foreign investment.
Mr. Chávez has shown an adeptness at nimbly consolidating power as crisis swirls around him. Even as he struggles with public ire over electricity shortages and an economy in recession, he is using tactics like secret-police raids and expropriations of some of his most powerful supporters' businesses. Several magnates loyal to him have been jailed, and Mr. Chávez is relying on a dwindling number of military loyalists to carry out his orders.