ABSTRACT
The oil economy occupies an axial position in explaining dominant party hegemony in Venezuela and the subsequent deterioration of the political system. Economic decline, clientelism and corruption had the effect of reducing the ability of the state to sustain basic public services. All practical policy aspects of the decrees and legal changes introduced by the Andrés Pérez government represented a challenge to the economic and political agreements established by Punto Fijo. The reforms introduced by Andrés Pérez in 1989 and the socio-economic context of their application prefigured significant changes in the Venezuelan party system. The two-fold reform process, economic and political, consequently undermined the fundamental pillars of the partidocratic model and the operating norms of the party system. The political reform initiative generated significant changes within Accion Democratica (AD) and Comité de Organizacion Politica Electoral Independiente (COPEI). A new generation of political leaders emerged within both AD and COPEI with a power base in regional politics.
