Geography & Statistics

Please click here for a full listing of the geography and statistics for the region.

History of the Region

Before the arrival of the Europeans, the northern region of South America—consisting of modern-day Suriname, Guyana, French Guiana, and Venezuela—was home to numerous native tribes and cultures. These tribes were largely self-sustaining, and did not rely on trade for the upkeep of their economy, such as it was. Although the Spanish were the first to set foot in this area, the other European powers were quick to follow, Britain, France and Holland each carving out their own piece of the “New World.” Spain controlled the area where Venezuela now resides, France controlled French Guiana, and Holland controlled Suriname and Guyana (the latter was later ceded to the British due to a wartime treaty). Trade from these colonies consisted mainly of sugar, tobacco, coffee, and other agricultural products farmed from the plantations established in these regions. The plantations used African slave labor, and all four colonies heavily relied on the slave trade for their supply of workers in the 1600’s and 1700’s.

However, by the early 1800’s, slavery was becoming increasingly more and more unpopular, and Britain was the first to abolish slavery in her empire in 1833. Holland did not abolish slavery until the 1860’s, with France doing the same a few years before. In Venezuela, however, the Spanish had other problems to deal with in the form of revolts against the government in Spain, being the first revolts against Spain in South America, and lead by the now famous Simon Bolivar. By 1829, Venezuela had established her own independent government, but unfortunately a string of power struggles lead to a stagnation of trade and economy in the country. Meanwhile, the former slaves in Guyana now worked for wages on their plantations, but Suriname imported a large number of Chinese and Indonesian workers to maintain their economy, their descendents today making up a majority of Suriname’s population. The French had decided to make Guiana a penal colony, and as the majority of the criminals who were sent there died, French Guiana’s population remained stagnant.

World War Two changed the face of this area dramatically; French Guiana was no longer used as a penal colony after the war, Suriname was given equal partnership status with the rest of Holland’s empire, Britain allowed limited self-government in Guyana, and Venezuela allied herself with the U.S. during the war, enabling her to qualify as a charter member of the U.N. Soon after, it was discovered that Venezuela was home to large quantities of petroleum, increasing her exports and economy dramatically. However, this lead to more power struggles, and Venezuela was not able to fully capitalize on her newfound trading wealth until recently. In 1965, Guyana officially became independent from Britain, and concentrated on developing her sugar trade, oil resources, and bauxite mining—the mineral the newly formed aluminum is made from—all main trading sources today. A succession of military coups in Suriname after her independence lead to an economic crisis in the late 1990’s, but today has recovered somewhat and bases her economy on bauxite mining, lumber, and some agriculture. All four countries are semi-industrialized, and behind much of the rest of the world in terms of globalization of their economy, although Venezuela does ship petroleum to many countries.

Politics

Much of the region known to be the northern part of South American is home to what many economists consider a politically unstable region. Venezuela is a federal republic whose oil exports represent a staple of its economy. Many countries, including Brazil and the United States, have formed an alliance to advocate the ideas of democracy in Venezuela. Nonetheless, there are still signs of instability in the local market. In 2002, for instance, a local halt on petroleum production basically shut down the entire nation-everyday life of individuals is dependent on the petroleum because oil makes up over half of Venezuela's Gross Domestic Profit. Venezuela is also fairly politically active: Venezuela worked closely with its neighbors following the 1997 Summit of the Americas in many areas (for instance energy integration into the economy) and has adopted an Anti-Corruption Convention. Venezuela also participates in the UN Friends groups for Haiti. It is pursuing efforts to join the MERCOSUR trade bloc to expand the hemisphere's trade integration prospects. The Venezuelan Government advocates an end to Cuba's isolation and a "multi-polar" world based on ties among Third World countries.

Many of the countries of the northern part of South America are heavily influenced by regional and international trade with countries that serve as a 'parent' country, like French Guiana. Through imports and subsidies, French exchange contributes to over a quarter of the Gross Domestic Product. One of the most important resources and trade exports for French Guiana is the forestry industry (timber, wood processing, etc) because over 90% of the country is covered by woodland. Guyana also shares a similar concentration in terms of agriculture, although not as deep rooted. Guyana also has the support of many international organizations, including the United Nations, the International Monetary Fund, and other groups. The biggest problems in Guyana that have recently developed come from a lack of a skilled labor force and the need for better infrastructure within the country. Many economists also see a better short-term benefit to the privatization of the mining sector because the low inflation and realistic exchange rate makes companies want to invest in Guyana. Suriname, Guyana's neighbor, also has good outlook based on the promises of the Dutch government to open up funding to the country and support its endeavor for international trade. The main industry in Suriname is the bauxite industry which accounts for 70% of the exports. The new government platform in recent years of the Suriname government has supported more liberal, privatized policies.

The Future and Beyond

The Northern States are faring moderately well by utilizing their natural resources, but generally are not self-sufficient, or are experiencing a form of domestic problems. Suriname relies on exporting alumina and aluminum, but with depleting sources, they must invest in extracting more from remote areas of the country, as well as explore the potential of oil. Suriname also relies on the relationship with the Dutch for a healthy economy and now the Dutch are insisting that they install economic reforms and new plans so monetary aid can be used efficiently. Suriname is in a state of economic decline because of the policies of the policies of the Wijdenbosch government and now must make more strict reforms to control spending. Guyana, despite its overall growth from their economic recovery plan in 1989, faces much debt and unemployment. French Guiana and Venezuela also face unemployment issues and remains dependent on foreign imports for most of their food, chiefly from the French and US, respectively. Venezuela’s future mainly rests in the hands of oil exportation and exploitation of other natural resources, such as gold, diamonds and nickel. The Northern States are vast in natural resources, but to improve their prospects for the future, they should make efforts to become more self-sufficient while maintaining positive relations with their current trading partners to expand their economies. 

Did you know?

Suriname is about one-tenth larger than Michigan

Tropical forest covers 80% of Guyana

The European Space Center is located in Kourou, French Guiana

96% of the population of Venezuela is Roman Catholic

English is the official language of Guyana

In January 2004, Suriname changed the name of its currency from the guilder to the dollar

Venezuela is about a third larger than Texas

66% of French Guiana is black or part-black