an talks in July 2013 expressed a common desire to continue strategic bilateral cooperation.
While strains have reappeared in the Colombia-Venezuela relationship under Maduro’s presidency, the two countries have improved considerably their cooperative ties since major diplomatic standoffs in 2008 and 2010. Venezuela has played an important role, for example, in accompanying the peace talks between Colombia and the Revolutionary Armed Forces of Colombia (FARC) guerilla group.
Venezuela is a non-permanent member of the UN Security Council during the period, 2015-2016.
In 2001, the Australian Government established the Council on Australia-Latin America Relations (COALAR) which aims to enhance commercial, political and cultural relations between Australia and Latin America. Since its inception, COALAR has been active in promoting business, education, tourism and cultural links between Australia and Latin America. For updates on COALAR activities and information on the annual grants program, follow COALAR on Facebook.
People to people links
Though small numbers of Venezuela-born people have migrated to Australia since the 1960s, they are relatively new migrants to Australia. The latest Census in 2011 recorded 3,404 Venezuela-born people in Australia, an increase of 122 per cent from the 2006 Census. In 2014 there were 895 Venezuelan students studying in Australian education institutions. More information on the Venezuela-born community in Australia can be found at the Department of Social Services Community Information Summary page.
From 2010 to 2014, Australia provided $100 million in official development assistance to Latin America, including 250 Australia Awards scholarships. Venezuela received six Australia Awards Scholarships.
At a glance
For latest economic date refer to the Venezuela fact sheet [PDF 29 KB].
Venezuela's economy is largely based on its petroleum sector, which accounts for roughly a third of the country's GDP and over 90 per cent of its export earnings. Like other oil-dependent economies, Venezuela has suffered from the rapid reduction in the price of oil, compounded by the global financial crisis and remains susceptible to international volatility. This has been compounded by scarcity of goods and a deteriorating security situation that has deterred investors.
Venezuela experiences high inflation. The government introduced a new currency in January 2008, known as the bolivar fuerte, to replace the old currency, known simply as the bolivar, at a rate of 1 bolivar fuerte = 1000 bolivars to deal with the rampant inflation. Annual inflation soared to around 64 per cent in 2014, rising from 41 per cent in 2013 as a result of deteriorating domestic productive capacity, tight currency restrictions, high fiscal spending and several currency devaluations.
In a bid to reduce Venezuela’s dependence on imports and improve the country’s fiscal position, the government has undertaken several currency devaluations since January 2010. The most recent devaluation took place in February 2013, from 4.3 bolivares fuertes to 6.3 bolivares fuertes to the US dollar. This was praised by the International Monetary Fund (IMF) as an important measure to reduce the country’s macroeconomic imbalances, particularly its fiscal deficit of 16 per cent of GDP. However, as was the case with previous currency devaluations, the process increased the cost of imports, putting pressure on domestic industries and inflation. Due to Venezuela's dependence on oil revenue, the government's economic strategy has been to increase revenue by controlling output, working primarily through OPEC and other oil-producing allies.
In February 2014 Venezuela introduced a dual-rate currency exchange system which was later amended a few times, which critics describe as a currency devaluation in disguise. The dual system maintained the existing rate of 6.3 bolivares fuertes to the US dollar for essential goods such as food and medicine, but initially increased the rate to 11.7 bolivares fuertes to the US dollar for tourists, remittances and US dollar auctions, a