Wednesday, August 16, 2006

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The neoliberal Hugo Chavez

The New York Times runs an amusing story on the growth in bilateral trade between Hugo Cavez's Venezuela and George Bush's America. Some highlights:

[E]ven as the talk from Caracas and Washington grows more hostile and the countries seem to be growing ever farther apart, trade between Venezuela and the United States is surging.

Venezuela’s oil exports, of course, account for the bulk of that trade, as the country remains the fourth largest oil supplier to the United States. Pulled largely by those rising oil revenues, trade climbed 36 percent in 2005, to $40.4 billion, the fastest growth in cargo value among America’s top 20 trading partners, according to WorldCity, a Miami company that closely tracks American trade.

But American companies are also benefiting, as Venezuela’s thirst for American products like cars, construction machinery and computers has steadily grown, rising to $6.4 billion last year, from $4.8 billion a year earlier....

[T]he trade numbers illustrate a widening gulf between Mr. Chávez’s increasingly anti-American speeches, aimed at revving his political base, and the needs of Venezuela’s otherwise freewheeling economy.

For instance, non-oil exports to the United States climbed 116 percent in the first three months of the year, according to the National Statistics Institute. Venezuela also maintains close ties to Wall Street banks, with Morgan Stanley and Credit Suisse advising the governments of Venezuela and Argentina on their coming sale of $2 billion of bonds....

Most delicately, oil services companies like Halliburton, an emblem of the Venezuelan government’s distaste with American foreign policy, are at the forefront of the deepening interdependence.

“There’s rhetoric and there’s business,” said an official with the United States Commerce Department who closely follows trade with Venezuela, and asked not to be identified because of the sensitivity of relations between the countries. “The Venezuelans can’t produce their oil without our equipment. It’s as simple as that.”

With 10 offices and 1,000 employees in Venezuela, Halliburton recently won a contract to assist Petrozuata, a venture between Venezuela’s national oil company and ConocoPhillips, in extracting oil from fields in eastern Venezuela....

In its July filing with the Securities and Exchange Commission, Halliburton reported that its energy services group, which helps companies drill for oil, hit double-digit sales growth in Venezuela in the first six months of 2006, offsetting a decline in Mexico....

The resilient ties with the United States are too much for some of Mr. Chávez’s critics on the left, including Douglas Bravo, a former Marxist guerrilla commander who was once close to Mr. Chávez, but who has broken with him over Venezuela’s heavy reliance on energy companies from rich industrial countries.

“If you look at its speech and discourse, this is a revolutionary government,” Mr. Bravo said in a recent interview with the newspaper El Nacional. “But if you look at what it has accomplished, it is a neoliberal government.”



posted by Dan on 08.16.06 at 10:51 PM




Comments:

Big surprise: we can add "hypocrite" to Chavez's many traits. However, it's gotta be tough saying No to the world's largest market, conveniently located just across a mild sea. Chavez is trying to shift Venezuela's focus towards Asia, but keeping the US out has to be like pushing back that sea with a shovel.

In the end, though, he's proving the old adage about capitalists selling you the rope to hang them: given Chavez's fiery rhetoric and warnings, American firms still selling wares better not cry foul if they end up nationalized, seized, or otherwise screwed.

posted by: St. James the Lesser on 08.16.06 at 10:51 PM [permalink]



Why should this surprise anyone? Chavez needs oil money to finance his schemes and the US needs inexpensive oil nearby.

posted by: Randy Paul on 08.16.06 at 10:51 PM [permalink]



Thank goodness we don't have a group of politically powerful Venezuelan exiles living and voting in a swing state that demand we keep a total embargo against Venezuela until Chavez leaves. That would be nuts... oh wait, that's our Cuba policy.

posted by: Beau on 08.16.06 at 10:51 PM [permalink]



It is interesting that for many people who live in the USA it doesn't seem to be enough to consume 40% of the world's resources and dominate the planet militarily and economically (for the moment anyway). No, that isn't enough: we also can't accept that there might be anyone out there who doesn't think like us, doesn't act like us, may not (*gasp*) like us at all, and may take actions to protect his/their own interets /even if those actions are to the detriment of the United States and/or its very large political donors/ **double gasp**.

I am no fan of Chavez, but I find it vastly amusing how he manages to tie the US Radicals up in spittle-flecked fits whenever he wants to. I for one would love to see a live, no-questions-barred debate between Chavez and W Bush on national TV. Now THAT would be fun!

Cranky

posted by: Cranky Observer on 08.16.06 at 10:51 PM [permalink]



The power of (free-ish) trade is quite prominent here. No matter how boorish and troubling making Mr. Chavez is, no matter how annoyed Washington gets with him, companies and the hundreds of thousands of people who buy from then and work for them,will continue to cemet cultural and economic ties as long as people want them. And, as the demand for greater interaction with the United States grows, we will see a demand for Mr. Chavez to change his tack, or be eventually removed (with or without Chinese support).

posted by: Eric S on 08.16.06 at 10:51 PM [permalink]



> And, as the demand for greater interaction
> with the United States grows, we will see a
> demand for Mr. Chavez to change his tack, or be
> eventually removed (with or without Chinese
> support).

Quite honestly I think it is more likely there will be a demand for the United States to change its tack, not the other way around. Venezula has the oil, after all (and the iron ore, which might be more important in the long run, but no one talks about that as it isn't sexy).

Cranky

posted by: Cranky Observer on 08.16.06 at 10:51 PM [permalink]



Quite honestly I think it is more likely there will be a demand for the United States to change its tack, not the other way around.

It would be interesting if many people who live in Venezuela can't accept that there might be anyone out there who doesn't think like them, doesn't act like them, may not (*gasp*) like them at all, and may take actions to protect his/their own interests /even if those actions are to the detriment of Venezuela and/or its very large political donors/ **double gasp**.

posted by: bgates on 08.16.06 at 10:51 PM [permalink]



bgates,
Two points: (1) I am not just speaking of Venezula (2) Venezula has the oil (and the iron ore); the United States does not.

Now, if you implying that the United States will take military action against Venezula, or take Pat Robertson's advice, perhaps you and your ilk could come right out and say so during the next US Presidential election campaign so the voters can think about it a bit.

Cranky

posted by: Cranky Observer on 08.16.06 at 10:51 PM [permalink]



It is funny that the leftists love Chavez even though his oil give aways and other policies are taking money away from those who need it most, the poor in Venezuela.

posted by: TJIT on 08.16.06 at 10:51 PM [permalink]






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