Claim: The Caracazo happened in a country.

Venezuela -LRB- -LSB- vɛnəˈzweɪlə -RSB- ; -LSB- beneˈswela -RSB- -RRB- , officially the Bolivarian Republic of Venezuela -LRB- República Bolivariana de Venezuela -RRB- , is a federal republic located on the northern coast of South America . It is bordered by Colombia on the west , Brazil on the south , Guyana on the east , and the islands of Trinidad and Tobago to the north-east . Venezuela covers 916445 sqkm and has over 31 million -LRB- 31,775,371 -RRB- people . The country has extremely high biodiversity -LRB- ranked 7th in the world 's list of nations with the most number of species -RRB- , with habitats ranging from the Andes Mountains in the west to the Amazon Basin rain-forest in the south , via extensive llanos plains and Caribbean coast in the center and the Orinoco River Delta in the east .   The territory now known as Venezuela was colonized by Spain in 1522 amid resistance from indigenous peoples . In 1811 , it became one of the first Spanish-American colonies to declare independence , which was not securely established until 1821 , when Venezuela was a department of the federal republic of Gran Colombia . It gained full independence as a separate country in 1830 . During the 19th century , Venezuela suffered political turmoil and autocracy , remaining dominated by regional caudillos -LRB- military strongmen -RRB- until the mid-20th century . Since 1958 , the country has had a series of democratic governments . Economic shocks in the 1980s and 1990s led to several political crises , including the deadly Caracazo riots of 1989 , two attempted coups in 1992 , and the impeachment of President Carlos Andrés Pérez for embezzlement of public funds in 1993 . A collapse in confidence in the existing parties saw the 1998 election of former coup-involved career officer Hugo Chávez and the launch of the Bolivarian Revolution , beginning with a 1999 Constituent Assembly to write a new Constitution of Venezuela . This new constitution officially changed the name of the country to República Bolivariana de Venezuela -LRB- Bolivarian Republic of Venezuela -RRB- .   Venezuela is a federal presidential republic consisting of 23 states , the Capital District -LRB- covering Caracas -RRB- , and federal dependencies -LRB- covering Venezuela 's offshore islands -RRB- . Venezuela also claims all Guyanese territory west of the Essequibo River , a 159500 km2 tract dubbed Guayana Esequiba or the Zona en Reclamación -LRB- the `` zone being reclaimed '' -RRB- . Venezuela is among the most urbanized countries in Latin America ; the vast majority of Venezuelans live in the cities of the north , especially in the capital -LRB- Caracas -RRB- which is also the largest city in Venezuela .   Oil was discovered in the early 20th century , and Venezuela has the world 's largest known oil reserves and has been one of the world 's leading exporters of oil . Previously an underdeveloped exporter of agricultural commodities such as coffee and cocoa , oil quickly came to dominate exports and government revenues . The 1980s oil glut led to an external debt crisis and a long-running economic crisis , in which inflation peaked at 100 % in 1996 and poverty rates rose to 66 % in 1995 as -LRB- by 1998 -RRB- per capita GDP fell to the same level as 1963 , down a third from its 1978 peak . The recovery of oil prices in the early 2000s gave Venezuela oil funds not seen since the 1980s . The Venezuelan government then established populist policies that initially boosted the Venezuelan economy and increased social spending , significantly reducing economic inequality and poverty . However , such policies later became controversial since they destabilized the nation 's economy , resulting in hyperinflation , an economic depression and a drastic increase in poverty .