Open Bolivia thread

I would be remiss in not mentioning that Bolivia just elected a former coca farmer turned socialist politician as president. Among his many campaign pledges are to decriminalize coca production and to renationalize the commanding heights of the national economy. Comment away on the implications of this power transition in Andean region. Noah Millman offers ...

By , a professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University and co-host of the Space the Nation podcast.

I would be remiss in not mentioning that Bolivia just elected a former coca farmer turned socialist politician as president. Among his many campaign pledges are to decriminalize coca production and to renationalize the commanding heights of the national economy. Comment away on the implications of this power transition in Andean region. Noah Millman offers various reasons for why this should concern the United States. [Hey a few years ago you were pretty sanguine about the rejection of the neoliberal model in Latin America. How about now?--ed.] Well, the spread of Chavez-like politicans throughout Latin America would be intrinsically bad. At the same time, this Associated Press report suggests just how difficult it will be to foster regional solidarity by pursuing a policy of economic nationalism: The winner of Bolivia's presidential elections has repeated his vow to nationalize oil and gas and said he will void at least some contracts held by foreign companies "looting" the poor Andean nation's natural resources. Indian coca farmer Evo Morales said he will not confiscate refineries or infrastructure owned by multinational corporations. Instead, his government would renegotiate contracts so that the companies are partners, but not owners, in developing Bolivia's resources, he said.... On Monday, Morales said Brazilian oil company Petrobras must turn two refineries it owns in Bolivia back to Bolivian control. Morales announced that he had asked Brazilian President Luiz Inacio Lula da Silva to return the refineries, which Petrobras purchased in the last decade. Petrobras bought the two refineries from Bolivia's state-owned oil company in 1999 for roughly $100 million.... The top investors in Bolivia are Petroleo Brasileiro SA, known as Petrobras, Spain's Repsol YPF, France's Total SA, British Gas and BP PLC . Foreign energy firms have invested $3.5 billion in Bolivia since 1996. But after the passage of the new hydrocarbons law in May, and amid increasing calls for an outright nationalization of the energy industry in Bolivia, they this year have mostly frozen any new investments. (emphases added) So, the new Bolivian president's first move is to alienate his top foreign investor, who happens to be.... Brazilian. The last paragraph suggests that staying this course will retard other foreign investors. And note that no U.S.-based multinational appears on that list. Even if Hugo Chavez lends a hand, I don't think this strategy is going to inspire a lot of solidarity elsewhere in the continent.

I would be remiss in not mentioning that Bolivia just elected a former coca farmer turned socialist politician as president. Among his many campaign pledges are to decriminalize coca production and to renationalize the commanding heights of the national economy. Comment away on the implications of this power transition in Andean region. Noah Millman offers various reasons for why this should concern the United States. [Hey a few years ago you were pretty sanguine about the rejection of the neoliberal model in Latin America. How about now?–ed.] Well, the spread of Chavez-like politicans throughout Latin America would be intrinsically bad. At the same time, this Associated Press report suggests just how difficult it will be to foster regional solidarity by pursuing a policy of economic nationalism:

The winner of Bolivia’s presidential elections has repeated his vow to nationalize oil and gas and said he will void at least some contracts held by foreign companies “looting” the poor Andean nation’s natural resources. Indian coca farmer Evo Morales said he will not confiscate refineries or infrastructure owned by multinational corporations. Instead, his government would renegotiate contracts so that the companies are partners, but not owners, in developing Bolivia’s resources, he said…. On Monday, Morales said Brazilian oil company Petrobras must turn two refineries it owns in Bolivia back to Bolivian control. Morales announced that he had asked Brazilian President Luiz Inacio Lula da Silva to return the refineries, which Petrobras purchased in the last decade. Petrobras bought the two refineries from Bolivia’s state-owned oil company in 1999 for roughly $100 million…. The top investors in Bolivia are Petroleo Brasileiro SA, known as Petrobras, Spain’s Repsol YPF, France’s Total SA, British Gas and BP PLC . Foreign energy firms have invested $3.5 billion in Bolivia since 1996. But after the passage of the new hydrocarbons law in May, and amid increasing calls for an outright nationalization of the energy industry in Bolivia, they this year have mostly frozen any new investments. (emphases added)

So, the new Bolivian president’s first move is to alienate his top foreign investor, who happens to be…. Brazilian. The last paragraph suggests that staying this course will retard other foreign investors. And note that no U.S.-based multinational appears on that list. Even if Hugo Chavez lends a hand, I don’t think this strategy is going to inspire a lot of solidarity elsewhere in the continent.

Daniel W. Drezner is a professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University and co-host of the Space the Nation podcast. Twitter: @dandrezner

Tag: Theory

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