Second presidency of Carlos Andrés Pérez

For the 1988 presidential election Democratic Action (AD) President Jaime Lusinchi backed Octavio Lepage as AD candidate,[1] but in a primary election the party chose Carlos Andrés Pérez[2] (previously president from 1974 to 1979).

Carlos Andrés Pérez based his campaign for the 1988 Venezuelan general election in his legacy of abundance during his first presidential period[3] and initially rejected liberalization policies.[4] However, Venezuela's international reserves were only $300 million USD at the time of Pérez' election into the presidency; Pérez decided to respond to the debt, public spending, economic restrictions and rentier state by liberalizing the economy.[3] He announced a technocratic cabinet and a group of economic policies to fix macroeconomic imbalances known as El Gran Viraje (English: The Great Turn), called by detractors as El Paquetazo Económico (English: The Economic Package). Among the policies there was the reduction of fuel subsidies and the increase of public transportation fares by thirty percent (VEB 16 Venezuelan bolívares, or $0.4 USD).[5][6][7]

The increase was supposed to be implemented on 1 March 1989, but bus drivers decided to apply the price rise on 27 February, a day before payday in Venezuela. In response, protests and rioting began on the morning of 27 February 1989 in Guarenas, a town near Caracas;[8] a lack of timely intervention by authorities, as the Caracas Metropolitan Police was on a labour strike, led the protests and rioting quickly spread to the capital and other towns across the country.[9][4][10] President Andrés Pérez ordered the activation of Plan Ávila and the intervention of the military.[10] A commission was established in the Venezuelan Congress with all its political parties to investigate the events during the Caracazo and unanimously voted for a report that concluded that 277 people were killed,[11] though the Venezuelan media reported up to 3,000 deaths.[10]

By late 1991, as part of the economic reforms, Carlos Andrés Pérez' administration had sold three banks, a shipyard, two sugar mills, an airline, a telephone company and a cell phone band, receiving a total of $2,287 million USD.[12] The most remarkable auction was CANTV's, a telecommunications company, which was sold at the price of $1,885 million USD to the consortium composed of American AT&T International, General Telephone Electronic and the Venezuelan Electricidad de Caracas and Banco Mercantil. The privatization ended Venezuela's monopoly over telecommunications and surpassed even the most optimistic predictions, with over $1,000 million USD above the base price and $500 million USD more than the bid offered by the competition group.[13] By the end of the year, inflation had dropped to 31 %, Venezuela's international reserves were now worth $14,000 million USD and there was an economic growth of 9 % (called as an "Asian growth"), the largest in Latin America at the time.[12]

In 1992, his government survived two coup attempts. The first attempt took place 4 February 1992, and was led by Lieutenant-Colonel Hugo Chávez from the Venezuelan Army, who was later elected president. With the attempt having clearly failed, Chávez was catapulted into the national spotlight when he was allowed to appear live on national television to call for all remaining rebel detachments in Venezuela to cease hostilities. When he did so, Chávez famously quipped on national television that he had only failed "por ahora"—"for now". The second, and much bloodier, insurrection took place on 27 November 1992, and this time, civilians and military personnel from both the Venezuelan Air Force and the Bolivarian Navy of Venezuela were involved. 172 died during the second coup attempt.

• Second inauguration of Carlos Andrés Pérez
• First Presidency of Carlos Andrés Pérez
• Presidents of Venezuela

• Márquez, Laureano; Sanabria, Eduardo (2018). "La democracia pierde energía". Historieta de Venezuela: De Macuro a Maduro (1st ed.). Gráficas Pedrazas. ISBN 978-1-7328777-1-9.
• Rivero, Mirtha (2011). La rebelión de los náufragos (9th ed.). Alfa. ISBN 978-980-354-295-5.