[lbo-talk] Brazil and Bolivia

Yoshie Furuhashi furuhashi.1 at osu.edu
Mon Apr 3 09:48:42 PDT 2006


Doug wrote:


> Whom is Brazil looting on any large scale?

Take a close look at the terms of Bolivian gas sold to Brazil (and Argentina). It's a case of the poor subsidizing the development of the rich, it seems to me:

<blockquote>The question of gas will present a key challenge for Bolivia’s relations with the Argentine government of Nestor Kirchner and Brazil’s Lula government. For many years, these countries have benefited from transnationals selling Bolivia’s gas at heavily discounted prices. While the international price of gas was around US $8-$10 per million British Thermal Unit, for example, Argentina was been receiving gas at US$3.25 per million BTU. For Bolivians, this is a situation that must change in order to help lift the country out of poverty. This may cause conflict, particular with Kirchner, who on one hand plays tough with the IMF, but at the same time has “close ties to Repsol and other transnationals and has been involved in deals that have not benefited Bolivia”, according to Soliz Rada.

("Reversing Neoliberalism: An Interview with Bolivia’s New Energy Minister," 1 February 2006, <http://www.greenleft.org.au/back/ 2006/654/654p12.htm>)</blockquote>

<blockquote>Brazil's state-owned petroleum company says its future in Bolivia is unclear, and it is worried about a declaration that Brazil has treated its is gas-rich neighbor like a "semi-colony," Petrobras chief executive Sergio Gabrielli said in an interview published Thursday. Ever since the January inauguration of leftist Bolivian President Evo Morales, Petroleo Brasilerio SA appeared to be in a better position than other foreign companies extracting Bolivian gas because Morales made it clear he favors doing business with state-owned companies like Petrobras as he heads down a vaguely defined path to nationalize the natural resource.

But Bolivian Hydrocarbons Minister Andres Soliz said last week that Brazil has taken a tough negotiating stance on gas purchases, is exerting geopolitical pressure on Bolivia and views Bolivia "as some kind of semi-colony, which will be reflected in the negotiations."

(Alan Clendenning/Associated Press, "Petrobras Says Future in Bolivia Uncertain," 30 March 2006, <http://www.businessweek.com/ap/ financialnews/D8GLVRFO0.htm?campaign_id=apn_home_down&chan=db>)</ blockquote>

Yoshie Furuhashi <http://montages.blogspot.com> <http://monthlyreview.org> <http://mrzine.org>



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