At the time of its founding, more than four hundred years ago, the valley of Caracas was populated by indigenous peoples. Francisco Fajardo, the son of a Spanish captain and a Guaiqueri cacica, attempted to establish a plantation in the valley in 1562 after founding a series of coastal towns. Fajardo's settlement did not last long. It was destroyed by natives of the region led by Terepaima and Guaicaipuro. This was the last rebellion on the part of the natives. On 25 July 1567, Captain Diego de Losada laid the foundations of the city of Santiago de León de Caracas.
During the 17th century, the coast of Venezuela was frequently raided by pirates. With the coastal mountains as a barrier, Caracas was relatively immune to such attacks – one of the reasons it became the principal city of the region. However, in the 1680s, buccaneers crossed the mountains through a little-used pass while the town's defenders were guarding the more often-used one, and, encountering little resistance, sacked and set fire to the town.
The cultivation of cocoa under the Compañía Guipuzcoana de Caracas stimulated the development of the city, which in 1777 became the capital of the Captaincy General of Venezuela.
An attempt at revolution to gain independence organized by José María España and Manuel Gual was put down on 13 July 1797. But the ideas of the French Revolution and the American Wars of Independence inspired the people, and on 5 July 1811, a Declaration of Independence was signed in Caracas. This city was also the birthplace of two of Latin America's most important figures of the Venezuelan War of Independence: Francisco de Miranda and "El Libertador" Simón Bolívar. An earthquake destroyed Caracas on 26 March 1812, which was portrayed by authorities as a divine punishment for the rebellion against the Spanish Crown. The war continued until 24 June 1821, when Bolívar gained a decisive victory over the royalists at the Battle of Carabobo.
As the economy of oil-rich Venezuela grew steadily during the first part of the 20th century, Caracas became one of Latin America's economic centers, and is also known as the preferred travel hub between Europe and South America. During the 1950s, Caracas began an intensive modernization program which continued throughout the 1960s and early 1970s. The Universidad Central de Venezuela, designed by modernist architect Carlos Raúl Villanueva and now a UNESCO monument, was built. New working- and middle-class residential districts sprouted in the valley, extending the urban area towards the east and southeast. Joining El Silencio, also designed by Villanueva, were several workers' housing districts, 23 de Enero and Simon Rodriguez. Middle class developments include Bello Monte, Los Palos Grandes, Chuao, and El Cafetal. On 17 October 2004, one of the Parque Central towers caught fire. The dramatic change in the economic structure of the country, which went from being primarily agricultural to dependent on oil production, stimulated the fast development of Caracas, and made it a magnet for people in rural communities who migrated to the capital city in an unplanned fashion searching for greater economic opportunity. This migration created the rancho (slum) belt of the valley of Caracas.
The flag of Caracas consists of a burgundy red field with the version of the Coat of Arms of the City (effective since the 1980s). The red field symbolises the blood spilt by Caraquenian people in favour of independence and the highest ideals of the Venezuelan Nation. Later, in the year 1994, presumably as a result of the change of municipal authorities, it was decided to increase the size of the Caracas coat of arms and move it to the centre of the field. This version of the flag is still in use today.
The coat of arms of the City of Caracas was adopted by the Libertador Municipality to identify itself. Later, the Metropolitan Mayor Office assumed the lion, the scallop and Saint James' Cross for the same purpose.
The anthem of the city is the Marcha a Caracas, written by the composer Tiero Pezzuti de Matteis with the lyrics by José Enrique Sarabia. The lyrics are said to be inspired by the heroism of the Caraquenian people, and the memory of the City of Red Roofs. Incidentally, the National Anthem of Venezuela, Gloria al Bravo Pueblo, includes the lines "...y si el despotismo levanta la voz, seguid el ejemplo que Caracas dio" ("...and if despotism raises its voice, follow the example that Caracas gave"), reflecting the fact that, in addition to generously providing many heroic fighters to the War of Independence, the junta established in Caracas (19 April 1810) served as inspiration for other regions to do the same—as did its declaration of independence a year later.
Businesses located here include service companies, banks, and malls, among others. Most economic activity is in services, excepting some industries established in its metropolitan area. The Caracas Stock Exchange and Petróleos de Venezuela (PDVSA) is headquartered here. The PDVSA is the largest company in Venezuela, and negotiates all the international agreements for the distribution and export of petroleum. When the company existed, the airline Viasa had its headquarters in the Torre Viasa.
Small and medium-size industry contribute to the Caracas economy. The city provides communication and transportation infrastructure between the metropolitan area and the country. Important industries in Caracas include chemicals, textiles, leather, food, iron and wood products. There are also rubber and cement factories.
At a short distance east of Plaza Bolívar is Parque Central, a concrete complex of five high-rise residential slabs of somewhat apocalyptic-appearing architecture, crowned by two 56-storey octagonal towers, one of them is under repair due to the fire which burnt the building on 17 October 2004.
Parque Central is Caracas' art and culture hub, with museums, cinemas and the Teresa Carreño Cultural Complex. The West Tower balcony, on the 52nd floor, gives a 360° bird's-eye view of Caracas.
Altamira is a neighborhood located in the Chacao municipality of Caracas. It has its own Metro Station, many hotels, malls and restaurants, and is an important business and cultural centre. The Francisco de Miranda avenue (a major avenue in Caracas) and the Distibuidor Altamira (a congested highway exit) are both located in Altamira.
The Central University of Venezuela (Universidad Central de Venezuela in Spanish) is a public University. Founded in 1721, it is the oldest university in Venezuela and one of the first in Latin America. The university campus was designed by architect Carlos Raúl Villanueva and it was declared World Heritage by UNESCO in 2000. The Ciudad Universitaria de Caracas, as the main Campus is also known, is considered a masterpiece of architecture and urban planning and it is the only university campus designed in the 20th century that has received such recognition by UNESCO.
The Simón Bolívar University (Universidad Simón Bolívar, in Spanish, or USB) is a public institution located in Caracas, Venezuela, with scientific and technological orientation. Its motto is "La Universidad de la Excelencia" ("University of Excellence"). Both nationally and globally, Simón Bolívar University is a well-known school with a high reputation in scientific and engineering careers.
Professional teams include Deportivo Italia, Caracas Fútbol Club, SD Centro Italo Venezolano, Estrella Roja FC and Real Esppor Club. The Deportivo Italia has reached the semifinals of international tournaments such as the Copa Libertadores de America, while the Caracas Fútbol Club has reached the quarterfinals.
Baseball teams Tiburones de La Guaira and Leones del Caracas play in the Estadio Universitario de la UCV, of the Central University of Venezuela, with a capacity of 26,000 spectators.
Another baseball team started in Caracas: the Navegantes del Magallanes. It was moved to Valencia, Carabobo in the 1970s.
Since 1974, Caracas has had a Contemporary Art Museum, containing works representing the most important tendencies in contemporary art, and since 1982, counts with a Children's Museum, a privately managed museum foundation, with the purpose of teaching children about science, technology, culture and arts. The Natural Science Museum, has a rich collection os archaeological pieces from the primitive native cultures, in these collections and in other no less important galleries (Raúl Santana Creole Museum, Transport Museum, the Coin Museum, Bolivarian Museum, Jacobo Borges Museum, Carlos Cruz-Diez Museum, Alejandro Otero Museum, Sacred Museum, etc.) the cultural aspirations of Caracas are more than evident.