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.The foundation −1567 – “I take possession of this land in the name of God and the King” These were the words of Don Diego de Losada in founding the city of Caracas on 25 July 1567. In 1577 Caracas became the capital of the Spanish Empire's Venezuela Province under Governor Juan de Pimentel (1576–1583).
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.
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. 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 declared World Heritage by UNESCO, 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
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