WI: Hugo Chávez loses 1998 election

Hugo Chávez's "socialism of the 21st century" programs funded by the country's oil revenues and his criticism of what he saw as foreign imperialism made him beloved by many people in the Western left, and put South America on the map for those who might not have otherwise paid attention to the region. However, violent crime, which was already a problem, increased during his tenure, and the Venezuelan economy collapsed shortly after he died of cancer in 2013.

How might Venezuela be different if someone else won the 1998 election, in particular his main opponent Henrique Salas Röhmer? (Although you can use another challenger if you want a more exotic timeline; many people had high poll results in 1998)

Would Venezuela diversify its economy beyond oil exports, or will it remain stuck in the rut as it has for decades? Would Venezuela align itself with Iran, Russia, and left-leaning Latin American countries as it did under Chávez, or would it favor the U.S. and Europe? Would corruption be as big of a problem? Would class divides be as stark as they were in 1998? How might racial relations be different? What would happen to the insurgent group FARC in Colombia without Chavista support?

An example of 1998 Venezuela is found in of all things, a book about looking for shipwrecks: "It [Caracas] has a New York City skyline-a big money skyline. Beneath it, however, is a scene reminiscent of Calcutta. We were told that there were, on average, a dozen or more murders a week. . .It is a myth that there is a middle class in Caracas".

Quotes are from The Lost Fleet: The Discovery of a Sunken Armada from the Golden Age of Piracy by Barry Clifford.
 
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I have a personal connection to Venezuela and TBH, what Venezuela needed was a good diversification program in the 1970's oil boom more or less what Norway does with a sovereign wealth fund, investing in seocndary and tertiary education, seeding new businesses and working their way up the value-added products and services chain.

A lot of people took M. King Hubbert's predictions about peak oil seriously, shrinking supply, increasing demand, and figured they couldn't lose.

I remember visiting Venezuela in 1992, and it was obvious when the street maintenance and other things stopped during the 1980's oil crash.

A good contrast is look at what Colombia and Venezuela are doing and their rates of economic growth.
 
I have a personal connection to Venezuela and TBH, what Venezuela needed was a good diversification program in the 1970's oil boom more or less what Norway does with a sovereign wealth fund, investing in seocndary and tertiary education, seeding new businesses and working their way up the value-added products and services chain.

A lot of people took M. King Hubbert's predictions about peak oil seriously, shrinking supply, increasing demand, and figured they couldn't lose.

I remember visiting Venezuela in 1992, and it was obvious when the street maintenance and other things stopped during the 1980's oil crash.

A good contrast is look at what Colombia and Venezuela are doing and their rates of economic growth.

Yes, I agree that a lot of Venezuela's structural economic problems existed before Chávez, and diversification would make Venezuela better than it is today. I thought I made that clear in the OP. Are you saying that by 1998 it was too late for Venezuela to diversify in time?

Colombia's economy seems to be growing in the 2000s, especially during Álvaro Uribe's term, though with unemployment and foreign debt problems.

The question I posed was more about Chávez's challengers and how the country would be different without the charismatic leftist leader of OTL.
 
People used to make tons of Hugo Chávez threads on this board, and no one before seems to have made one about the 1998 election. Is anyone else interested?
 
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