The Caracazo: February 27, 1989

On February 27, 1989, Venezuela faced one of its most tumultuous days in modern history when President Carlos Andrés Pérez declared a state of emergency amid widespread riots and protests. These events, collectively known as the “Caracazo,” erupted in response to economic reform measures.

Context Leading to the Caracazo

Carlos Andrés Pérez had recently begun his second term as President of Venezuela in February 1989. Faced with a severe economic crisis, Pérez implemented a set of neoliberal economic policies recommended by the International Monetary Fund (IMF), often referred to as the “paquetazo.” These measures included:

• The removal of gasoline subsidies, leading to a dramatic increase in public transportation fares.
• Deregulation and government spending cuts.
• Removal of price controls and trade barriers.
• A move towards a free-market economy aimed at reducing the national deficit.

These reforms, intended to stabilize Venezuela’s ailing economy, were perceived as harsh by the general populace, particularly affecting the lower and middle-class citizens.

The Outbreak of Riots

The immediate cause of the riots was the sharp increase in public transportation costs, which sparked spontaneous protests in Guarenas, a city near Caracas, on the morning of February 27. These protests quickly spread to Caracas and other urban centers. The dissatisfaction with the government’s economic policies boiled over into violent unrest.

Demonstrations quickly turned into looting sprees across cities. Protesters targeted shops, supermarkets, and other businesses, leading to widespread chaos and instability. Law enforcement struggled to manage the disorder, leading to further clashes and violence.

Declaration of a State of Emergency

In response to the escalating violence, President Pérez declared a state of emergency on February 27, 1989. He authorized military deployment to restore order, granting them the power to enforce curfews and suppress riots by any means necessary. This declaration marked a decisive and controversial intervention by the government.

Aftermath and Significance

The government’s harsh response to the Caracazo resulted in significant fatalities, with estimates of deaths ranging from hundreds to possibly over a thousand, as precise numbers remain contentious due to the limited reportage and cover-ups.

The Caracazo had profound long-term effects on Venezuela:

• Erosion of public trust in the political establishment and increased political activism.
• Foreshadowed the rise of Hugo Chávez, a military officer at the time, who would later capitalize on the discontent to spearhead a political movement leading to his own presidency in 1999.
• A shift in Venezuela’s political landscape, with increased reliance on populist measures and leftist policies.

The Caracazo remains a significant historical event, symbolizing the deep social divides and economic challenges that characterized Venezuela in the late 20th century.