Later this group transformed into the Fifth Republic Movement. In the1998 elections, Chávez was elected president. (Gale Group) .
History and Background .
From 1958 until 1989, Venezuela had one of the most stable political systems in Latin America. After that period of time, numerous economic and political challenges plagued the country. Eventually, the power of the two traditional parties began to fade. In February of 1989, former President Carlos Andres Perez, was inaugurated to a five year term. He initiated an austerity program that fueled riots and street violence. These riots and violence led to several hundred people being killed. In 1992, two attempted military coups threatened the Perez presidency. One of these coups, led by Lieutenant Colonel Chávez, was united against corruption and poverty. Ultimately, in May of 1993, the legislature dismissed President Perez from office on charges of misusing public funds. However, some observers asserted that Perez's unpopular economic reform program was the real reason for his dismissal from the presidency. The election of elder statesman, Rafael Caldera, as President, in December 1993, brought a measure of political stability to the country. Yet, the Caldera government soon faced a severe banking crisis that cost the government more than $10 billion. While the economy began to improve in 1997, a rapid decline in the price of oil brought about a deep recession in early 1998. .
In 1999, leftist president Hugo Chavez took office. He pledged political and economic reforms by giving the poor a greater share of the country's oil wealth. A constituent assembly, made up of Chavez's allies, was formed to rewrite the constitution and replace the democratically elected Congress, in July of 1999. Chavez's assumption of greater power prompted charges from some that he was establishing a left-wing dictatorship. Chavez was reelected to a six-year term in July 2000.
