Hugo Chávez in the context of Petroleum politics

Bilateral relations between the various countries of Latin America and the United States of America have been multifaceted and complex, at times defined by strong regional cooperation and at others filled with economic and political tension and rivalry. Although relations between the U.S. government and most of Latin America were limited prior to the late 1800s, for most of the past century, the United States has unofficially regarded parts of Latin America as within its sphere of influence, and for much of the Cold War (1947–1991), vied with the Soviet Union.

The political context evolved again in the 2000s, with the election in several South American countries of socialist governments. This "pink tide" thus saw the successive elections of Hugo Chávez in Venezuela (1998), Lula in Brazil (2002), Néstor Kirchner in Argentina (2003), Tabaré Vázquez in Uruguay (2004), Evo Morales in Bolivia (2005), Michelle Bachelet in Chile (2006), Daniel Ortega in Nicaragua (2006), Rafael Correa in Ecuador (2006), Fernando Lugo in Paraguay (2008), José Mujica in Uruguay (2009), Ollanta Humala in Peru (2011), Luis Guillermo Solís in Costa Rica (2014), Salvador Sánchez Cerén in El Salvador (2014), and Andrés Manuel López Obrador in Mexico (2018). Although these leaders vary in their policies and attitude towards both Washington, D.C. and neoliberalism, while the states they govern also have different agendas and long-term historic tendencies, which can lead to rivalry and open contempt between themselves, they seem to have agreed on refusing the ALCA and on following a regional integration without the United States' overseeing the process. In particular, Chávez and Morales seem more disposed to ally together, while Kirchner and Lula, who has been criticized by the left-wing in Brazil, including by the Movimento dos Sem Terra (MST) landless peasants movement (who, however, did call to vote for him on his second term), are seen as more centered. The state of Bolivia also has seen some friction with Brazil, as well as Chile. Nouriel Roubini, professor of economics at New York University, said in a May 2006 interview: "On one side, you have a number of administrations that are committed to moderate economic reform. On the other, you've had something of a backlash against the Washington Consensus [a set of liberal economic policies that Washington-based institutions urged Latin American countries to follow, including privatization, trade liberalization and fiscal discipline] and some emergence of populist leaders." In the same way, although a leader such as Chávez verbally attacked the George W. Bush administration as much as the latter attacked him, and claimed to be following a democratic socialist Bolivarian Revolution, the geo-political context has changed a lot since the 1970s. Larry Birns, director of the Council on Hemispheric Affairs, thus stated: for influence in the Western Hemisphere.

Bolivarian propaganda (also known as chavista propaganda and Venezuelan propaganda) is a form of nationalist propaganda, especially in Venezuela and associated with chavismo, Venezuelan socialism. This type of propaganda has been associated with Hugo Chávez's Bolivarian Revolution, which used emotional arguments to gain attention, exploit the fears of the population, create external enemies for scapegoat purposes, and produce nationalism within the population, causing feelings of betrayal for support of the opposition.

The World Politics Review stated in 2007 that, as Chávez began "transforming Venezuela into a socialist state", propaganda was "an important role in maintaining and mobilizing government supporters". The image of Chávez was seen on sides of buildings, on T-shirts, on ambulances, on official Petróleos de Venezuela (PDVSA) billboards, and as action figures throughout Venezuela. A 2011 article by The New York Times said Venezuela has an "expanding state propaganda complex" while The Boston Globe described Chávez as "a media savvy, forward-thinking propagandist" that had "the oil wealth to influence public opinion".

The Special Period (Spanish: Período especial), officially the Special Period in the Time of Peace (Período especial en tiempos de paz), was an extended period of economic crisis in Cuba that began in 1991 primarily due to the dissolution of the Soviet Union and the Comecon. The economic depression of the Special Period was at its most severe in the early to mid-1990s. The situation improved towards the end of the decade once Hugo Chávez's Venezuela emerged as Cuba's primary trading partner and diplomatic ally, and especially after the year 2000 once Cuba–Russia relations improved under the presidency of Vladimir Putin.

Privations during the Special Period included extreme reductions of rationed foods at state-subsidized prices, severe energy shortages, and the shrinking of an economy forcibly overdependent on Soviet imports. The period radically transformed Cuban society and the economy, as it necessitated the introduction of organic agriculture, decreased use of automobiles, and overhauled industry, health, and diet countrywide. People were forced to live without many goods and services that had been available since the beginning of the 20th century.

The Bolivarian Revolution (Spanish: Revolución bolivariana) is a social revolution and ongoing political process in Venezuela that was started by Venezuelan President Hugo Chávez, the founder of the Fifth Republic Movement (MVR) and later the United Socialist Party of Venezuela (PSUV), and his successor Nicolás Maduro. The Bolivarian Revolution is named after Simón Bolívar, an early 19th-century Venezuelan revolutionary leader, prominent in the Spanish American wars of independence in achieving the independence of most of northern South America from Spanish rule. According to Chávez and other supporters, the Bolivarian Revolution seeks to build an inter-American coalition to implement Bolivarianism, nationalism, and a state-led economy.

Chávez and MVR won the 1998 Venezuelan presidential election and initiated the constituent process that resulted in the Venezuelan Constitution of 1999. On his 57th birthday in 2011, while announcing that he was being treated for cancer, Chávez announced that he had changed the slogan of the Bolivarian Revolution from "Motherland, socialism, or death" to "Motherland and socialism. We will live, and we will come out victorious". Following the death of Chávez in 2013, the movement declined and the political and economic situation in Venezuela has rapidly deteriorated, resulting in the Venezuelan crisis.

Chavismo (Spanish pronunciation: [tʃaˈβizmo]), also known in English as Chavism or Chavezism, is a left-wing populist political ideology based on the ideas, programs, and government style associated with Hugo Chávez and later Nicolás Maduro. It combines elements of socialist patriotism, Bolivarianism, and Latin American integration. People who supported Hugo Chávez and Chavismo are known as Chavistas.

An ongoing socioeconomic and political crisis began in Venezuela during the presidency of Hugo Chávez and has worsened during the presidency of successor Nicolás Maduro. It has been marked by hyperinflation, escalating starvation, disease, crime, and mortality rates, resulting in massive emigration. Food shortages and hyperinflation have largely ended, inflation still remains high.

It is the worst economic crisis in Venezuela's history, and the worst facing a country in peacetime since the mid-20th century. The crisis is often considered more severe than the Great Depression in the United States, the 1985–1994 Brazilian economic crisis, or the 2008–2009 hyperinflation in Zimbabwe. Writers have compared aspects, such as unemployment and GDP contraction, to that of Bosnia and Herzegovina after the 1992–95 Bosnian War, and those in Russia, Cuba and Albania following the Revolutions of 1989.

Presidential elections were held in Venezuela on 6 December 1998. The main candidates were Hugo Chávez, a career military officer who led a 1992 coup d'état against President Carlos Andrés Pérez; and former Carabobo Governor Henrique Salas Römer. Both candidates represented newly formed parties, a first in a country where the main candidates always represented the parties of the bipartisanship. Chávez represented the Fifth Republic Movement (MVR), while Salas Römer represented Project Venezuela. Initially weak in the polls, Chávez ran on an anti-corruption and anti-poverty platform, condemning the two major parties that had dominated Venezuelan politics since 1958; and he began to gain ground in the polls after the previous front runners faded. Despite the fact that the major parties (Copei and Democratic Action) endorsed Salas Römer, Chávez was elected into his first term as President of Venezuela.

The election resulted in a political realignment which brought about the end of the bipartisanship that had dominated the political atmosphere of the country in the last 40 years, and began the dominance of the MVR party (later merged into the United Socialist Party of Venezuela) under the Bolivarian Revolution system that still holds political power in Venezuela as of January 2026.

Socialism of the 21st century is an interpretation of socialist principles first advocated by German sociologist and political analyst Heinz Dieterich and taken up by a number of Latin American leaders. Dieterich argued in 1996 that both free-market industrial capitalism and 20th-century socialism have failed to solve urgent problems of humanity such as poverty, hunger, exploitation of labour, economic oppression, sexism, racism, the destruction of natural resources and the absence of true democracy. Socialism of the 21st century has democratic socialist elements, but it also resembles Marxist revisionism.

Leaders who have advocated for this form of socialism include Hugo Chávez of Venezuela, Rafael Correa of Ecuador, Evo Morales of Bolivia, Néstor Kirchner and Cristina Fernández de Kirchner of Argentina, Luiz Inácio Lula da Silva of Brazil and Michelle Bachelet of Chile. Because of the local unique historical conditions, socialism of the 21st century is often contrasted with previous applications of socialism in other countries, with a major difference being the effort towards a more effective economic planning process. Outside Latin America, socialism of the 21st century has been promoted by left-wing leaders such as Mark Drakeford and Jeremy Corbyn in the United Kingdom and Lothar Bisky, Egon Krenz and Oskar Lafontaine in Germany, and also by parties such as the Communist Party of Spain and United Left in Spain and the Communist Party of the Russian Federation and Just Russia.