posted by: Jim Dandy | May 02, 2006 at 11:15 PM
A little more recent historical reference than 1815 France would be very useful here, when referring to this mining and resource rich nation of mostly terribly poor people. Evo Morales was elected following a number of years of social protests which have centered in large part around the question of control of Bolivian gas fields and an earlier wave of privatizations under less democratic circumstances (so much so that the entire period is often referred to as the 'Bolivian Gas War' http://en.wikipedia.org/wiki/Bolivian_Gas_War)
It would be wise to at least consider this context as you are lecturing on 'governance, legitimacy, or the public welfare.'
Certainly one can and should be concerned about HOW this will be carried out, and whether the net result will be less and not more revenues for the Bolivian state, but to assume it's not going to payoff even in the long run, seems to prejudge.
Thirty three years ago Salvador Allende nationalized Chile's large copper mines. Henry Kissinger and ITT Corp. were then determined to 'make the economy scream,' and the Chilean economy did spiral out of control in the next several years. But what is relevant to note is that Chile never re-privatized its large mines. Not under Pinochet and certainly not under the last three democratic governments. Although Allende remains a divisive figure, most Chileans today would agree that the nationalization of Chilean copper was a wise choice. Copper prices are today at historical highs and the billions of dollars Chile has earned over the period have help undergird Chile's economic stablity and its social spending. Codelco - the state company that took over the running of the mines today produces 21% of world copper output. They somehow found a way to hire a batallion of engineers.
Bolivia's 'nationalization' is rather tame compared to Chile's takeover of its mines (looks more like a re-negotiation of the terms of gas contracts).
Even if Evo Morales manages to greatly botch the economy over the next few years (as Allende did in Chile), it's still an open question what the decision will mean for his country over the next 33 years.
full: http://delong.typepad.com/sdj/2006/05/latterday_bourb.html
I'd say his readers are more on the ball on this topic than DeLong is.
I dunno if he still reads this list; last time I saw him pop up here he was getting righteously flamed for likewise inane comments apropos of the passing of Edward Said.
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Colin Brace
Amsterdam