Herrera had a dirigiste view of the government's economic role, which involved channelling public funds into agricultural and industrial projects, paying generous subsidies and controlling the prices of many goods.

His government continued President Pérez's policy of borrowing on a world market awash with petrodollars, and by the early 1980s Venezuela owed the banks more than $20 billion.

As president, Herrera implemented cultural development programs, including the elaborate Teresa Carreño Theater,[1] and education reforms.

In 1982, Herrera sided with Argentina in its war with the United Kingdom over the Falkland Islands, or Islas Malvinas, adroitly exploiting anti-British and anti-American sentiment to boost his flagging popularity.

In December 1982, PDVSA signed a cooperation agreement with the German oil company VEBA for the establishment of a joint venture named Ruhr Oel GmbH.

By the time Herrera's term ended, the economy was in meltdown, poverty and hardship were widespread and the voters turned on the ruling Christian Democrats, ejecting the party from office in the elections of December 1983.