Venezuela is in the midst of an acute political, economic, and social crisis. Following the March 2013 death of populist President Hugo Ch�vez, acting President Nicol�s Maduro of the United Socialist Party of Venezuela (PSUV) narrowly defeated Henrique Capriles of the opposition Democratic Unity Roundtable (MUD) to be elected to a six-year term in April 2013. Four years later, President Maduro has less than 20% public approval and fissures have emerged within the PSUV about the means that he has used to maintain power, including a recent aborted attempt to have the Supreme Court dissolve the MUD-dominated legislature. Protests are escalating amid calls for the Maduro government to hold the regional elections that Maduro postponed last year rather than convene a constituent assembly to rewrite the constitution, as he has proposed.Venezuela also is grappling with crippling economic and social challenges. It faces an increasingly unstable economic crisis, triggered by mismanagement and the global drop in oil prices. In 2016, the economy contracted by some 18% and inflation averaged 254%. In addition, massive shortages of food and medicine have caused a humanitarian crisis. The Maduro government is struggling to make debt payments and seeking loans from Russia, but economists maintain that Venezuela is at risk of default in 2017.International efforts to facilitate dialogue between President Maduro and the opposition have failed, due to the government's intransigence. In March 2017, Secretary General of the Organization of American States (OAS) Luis Almagro called on member states to temporarily suspend Venezuela from the organization if the government did not take certain actions, including convening general elections. On April 26, 2017, the OAS Permanent Council approved a resolution to convene a meeting of foreign ministers to discuss Venezuela. In response, the Maduro government initiated the two-year process required to leave the OAS.U.S. PolicyU.S. policymakers have had concerns for more than a decade about human rights and democracy in Venezuela and the government's lack of cooperation on antidrug and counterterrorism efforts. The Obama Administration strongly criticized the Maduro government's heavy-handed response to protests in 2014 and employed sanctions against Venezuelan officials linked to drug trafficking, terrorism, and human rights abuses. At the same time, it supported efforts at dialogue and OAS activities.The Trump Administration has followed the same general policy approach. In February 2017, the Treasury Department imposed drug-trafficking sanctions against Vice President Tareck el Aissami. President Trump and the State Department have called for the release of imprisoned opposition leader Leopoldo L�pez and all political prisoners. State Department officials have condemned the Venezuelan Supreme Court's recent rulings, expressed grave concern about a recent ban preventing Capriles from running for office, and called for prompt elections.Congressional ActionCongress has taken various actions in response to the situation in Venezuela. In July 2016, Congress enacted legislation (P.L. 114-194) extending the ability to impose sanctions through 2019.In the 115th Congress, the Senate approved S.Res. 35, expressing support for OAS efforts to hasten a return to electoral democracy in the country. The FY2017 Consolidated Appropriations Act enacted on May 4, 2017, recommends providing $7 million in democracy and human rights assistance to Venezuela. Congress soon will have the opportunity to reexamine such aid to Venezuela as it considers the FY2018 request. This report provides an overview of the political and economic challenges Venezuela is facing and efforts to respond to those challenges taken through the OAS. The report also analyzes U.S. policy concerns regarding democracy and human rights, drug trafficking, terrorism, and energy issues in Venezuela.
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