http://www.post-gazette.com/pg/07127/783961-192.stm
Chavez's chafing: The state of U.S.-Venezuela relations needs repair
Monday, May 07, 2007
Pittsburgh Post-Gazette
President Hugo Chavez has nationalized the control of four oil fields and a refinery in Venezuela's Orinoco River Basin, affecting foreign companies like ExxonMobil, Chevron, ConocoPhillips, BP, France's Total and Norway's Statoil ASA.
The assets are worth $30 billion, with compensation by Venezuela to the companies yet to be worked out.
In taking the action last week, Mr. Chavez continued to carry out a policy that melds his own personal attitude toward the United States with a course he has set to free Venezuela as much as possible from external control. He includes in this category influence from foreign governments and companies, in particular the United States, and any future need on Venezuela's part to toe the line in dealing with international financial institutions. On Thursday, he said that he plans also to nationalize Venezuela's banks and a steel company.
He also announced that Venezuela would be withdrawing from both the World Bank and the International Monetary Fund. It has paid off its loans to both with revenue from the high oil prices of this decade.
Some of what Mr. Chavez is doing changes little for Venezuela. Its oil industry was under national control from 1975 to 1992, when privatization resumed. Greater national control of development of the country's oil resources could mean that investors will be less likely to provide the necessary funds to keep Venezuelan oil production up to date.
On the other hand, world market demand for oil -- largely depoliticized in nature -- is such that Venezuelan nationalization of its reserves will likely make almost no difference, in sales or investment. Three-quarters of the world's oil reserves are under state control in any case.
Mr. Chavez's actions are another step in a resurgence of socialism as the governing theology of economics in Venezuela, and potentially at least in some of the rest of Latin America. Looking around the world, it is probably fair to say that the economic philosophy of a government has little to do with actual oil production. An expansion across Latin America of Mr. Chavez's approach, however, would probably mean that more American companies would lose parts of their concessions and other positions in the region.
Mr. Chavez's own basic problem with the United States is political and goes back to 2002, when the administration of President Bush prematurely recognized an ultimately unsuccessful coup d'etat against Mr. Chavez. He is also no doubt aware that across the years some other Latin American leaders have come to premature, sticky ends for their opposition to the United States. He is noisy about this subject on the world stage to try to ensure himself against such U.S. action against him.
The state of U.S.-Venezuela relations is painful. It would be unfortunate if Mr. Chavez and his country became another Castro's Cuba stuck in America's craw as time goes by. It is hard for Washington to take steps toward Mr. Chavez while he lambasts the United States publicly. On the other hand, the United States is the big power and Venezuela the small one. Venezuela is also the fourth-largest foreign supplier of oil to the United States.
The importance of the relationship would seem to suggest greater efforts on the part of Mr. Bush and his administration to patch things up with Mr. Chavez and Venezuela.
6 comments:
Methinks you got it backwards. It is time for Chavez to change his attitude and make an effort to get along with President Bush and USA. He was the one who went to the UN and called President Bush a devil.
Chavez needs a villian to blame..Bush and the USA are his targets.
Chavez isn't going to change ...so forget it.
The point is not to have Chavez change. The point is to have a fruitful relationship between the two countries.
The Pittsburgh Gazette editorial points out that the US aided a coup d'etat against Chavez, who was and still is the legitimately elected president of Venezuela, back in 2002.
Also, the US harbors a man wanted for trial in Venezuela for mass murder. This took place well before Chavez was elected president, and every prior government of Venezuela has requested the US send this man to Venezuela for trial, but the US does not do so.
The onus is on the US to make the first move to improve the atmosphere.
What about the effect of Venezuela on Cuba? Chavez has survived atleast 12 elections. If you are a Cuban medical professional in Venezuela, that should have some impact.
Chavez needs to kiss Bush's butt and apologize for calling him a devil at the UN.
Yes, and the thousands of university students protesting against RCTV's closure who have been denied permit after permit to march and express their right to free speech have been infiltrated by Columbian narco-terrorsts, and so are a security threat and can't be given permits. Even if the Chavistas marched to the very same place the day before.
You'll believe anything.
Support the Manos Blancos! Que vivan los estudiantes!
Betty, thanks for the comment. I've been letting this blog go to seed and was surprised to see a comment here.
I don't know the security situation in Caracas. Here in NYC many protests are denied permits, or given permits "far off the beaten path" and protesters have been lassoed by cops like cattle at a rodeo and held overnight without charges. Go figure!
I know how tough it is being an oppositionist, because I was active against the Vietnam war, getting arrested thrown down a flight of stairs in an NYPD stationhouse, have eaten my share of teargas and participated in suppressed protests against the Iraq war.
With all this no one who is anyone says that the US or New York are dictatorships crying out for foreign intervention which I see as the not too subtle subscript of your act.
I suggest you not try to stage marches to Miraflores, where your democratically elected President lives, especially if you plan to bring along Bandera Roja (a hyper stalinist grouping given to violence and opposing Chavez) sharpshooters for example and not throw any more rocks and bottles at cops. Things like that touch some raw nerves in your country, even a gringo like me knows it.
Try my advice and let me know how it works out.
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