[lbo-talk] Privatization of Iranian oil companies in sight

Yoshie Furuhashi critical.montages at gmail.com
Thu Aug 16 06:38:34 PDT 2007


On 8/15/07, Robert Wrubel <bobwrubel at yahoo.com> wrote:
> Miles Jackson <cqmv at pdx.edu> wrote:
>
> "Another glorious step toward socialism in the Middle East! Thank
> goodness the Iranian regime is challenging the Washington consensus-"
>
> Ah, but the Washington consensus is breaking up. The
> companies that will benefit from privatizing Iran's oil industry
> will be Russian, German, French and Italian.

Take a look at the AEI's interactive map of "Global Business in Iran": <http://www.aei.org/IranInteractive/>. Impressions that many have to the contrary, Russian business transactions with Iran are apparently in the same league as those of Canadian and American businesses. Russia's interests in Iran are more geopolitical than economic.

After looking at the map, click on "Analysis," and then click on "Bilateral Trade Ranking, by $ Amount of Business Transactions, 2000-Present." The main business partners with Iran are China (44.45% of the total)* and India (34.97% of the total), which are way ahead of France, Germany, and Italy.

In any case, Iran's power elite are happy to do business with any country, but they won't let anyone have a controlling stake in any vital part of Iran's economy, least of all any crucial part of its oil industry, for their power ultimately rests on state control of oil. If they lose control of oil, they will lose economic control of the state, which will spell the end of their bureaucratic-collectivist political rule, and they are not about to commit political suicide.

As for the international regime of regulation of capitalism, if anything can replace the Washington Consensus, it will be the Beijing Consensus,** which certain China hands as well as the Chinese themselves were promoting a few years ago. Whether it can do so depends on to what extent China's economy is tied up with the US market. Will the turmoils of US economy -- more are sure to come, from the continuing deflation of asset bubbles -- diminish only US hegemony or also help create upheavals in Chinese economy?

* See, also, Paulo Prada and Betsy McKay, "Trading Outcry Intensifies Firms Face More Calls to Cut Ties With Censured Nations," 27 March 2007, <http://online.wsj.com/public/article/SB117495743693749812-siqnI8qlULM9hbMuAlzn4v7_q7s_20070425.html>

** About the Beijing Consensus, see, for instance, <http://english.peopledaily.com.cn/200405/26/eng20040526_144393.html>, <http://english.peopledaily.com.cn/200506/18/eng20050618_190947.html>.

The Shanghai Cooperation Organization has also grown, what with its joint military exercises (cf. <http://www.granma.cu/ingles/2007/agosto/sabado4/reflexiones.html> and <http://japanfocus.org/products/details/2494>), in which the Cubans as well as the Russians are interested. But these developments have been more about China's and Russia's national and regional interests, rather than a new principle of internationalism that can help bring about a post-US hegemonic world. Nevertheless, on international affairs, China's and Russia's business nationalist approaches are preferable to Amnesty Internationalism of Western liberals and leftists. The power elites of China and Russia, if nothing else, are realist, and they sound like they read the business press -- the most important publications that liberals and leftists should read -- more closely than Western liberals and leftists do. -- Yoshie



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