Bolivia: Nationalization on its Knees
Bolivia: Nationalization on its Knees
Sometimes the efforts of oppressed peoples to liberate themselves from imperial subjugation are confronted by direct, brutal violence like that used by the CIA to overthrow Jacobo Arbenz in Guatemala in 1954 and Salvador Allende in Chile in 1973 or else by innoculating the virus of paralysis, disorientation and demoralization into the lifeblood of the movement for change as happened in Bolivia with the Revolution of 1952. The 1952 Revolution carried on calling itself revolutionary even after the
This latter way marked the third oil nationalization (2)of May 1st 2006. The oil companies appeared to obey the measure and even "accepted" the framework contract which converted them into service providers in such a way that YPFB(3) recovered ownership, possession and absolute control of underground resources. This time around, the emasculating virus was innoculated via the "innocent" Annexe F, by means of which the Operating Contracts were changed into Shared Production Contracts. Under the Operating Contracts the oil companies would pay to carry out exploration and exploitation activities in the name of YPFB using their own means, on their own account, at their own risk.
Under Shared Production the oil companies recover the right to include the value of their participation in oil transactions, including the gas reserves associated with export markets over which they have ownership rights, which they register first in their own accounts and later in the international stock markets.
With this antecedent, Petrobras (4) announced on March 31st this year that it was signing Shared Production Contracts in
It proposed, without success, that the formulas of Annexe F be made known to the Senate in closed session, that is to say behind the backs of the citizenry. It paralysed the trials for crimes of smuggling, tax evasion and fraud committed by the oil companies. It went on to show the new exports to
Thanks to this,
Could Bolivia have followed another route and faced down the monstrous power of the oil companies backed up by imperial powers like the US, Britain, France and Spain, and too by international financial institutions like the World Bank, the Inter-American Development Bank and the Andean Development Corporation as well as the hundreds of non-governmental organizations that have got themselves key positions within Evo Morales MAS (5)? Why demand more radical behaviour of the first President to call himself indigenous than that demanded of Kirchner or Lula who, in the end, lead countries far better able to resist the New World Order led by that mess of fanaticism and dementia that is George Bush? Could he have chosen a course making national interest and dignity, set down in the Nationalization Decree, prevail with only the support of the Cuban government or the government of Chavez, one of whose economic bases is the consumption of Venezuelan oil by
Possibly, the answer might be negative. Evo had few choices to do anything different than what he did with the oil contracts. On the other hand, he lost the chance to do something profoundly revolutionary. That consisted in telling the country the truth which would have strengthened his moral leadership of the excluded sectors of
By not doing so he offers a desolating spectacle in which the oil multinationals, neoliberal legislators who supported Hugo Banzer Suarez and Gonzalo Sanchez de Lozada (5), along with the leaders of MAS, call on the people to support Oil Contracts characterized by the sinister Annexe F and which, in the fundamentals, help maintain Bolivia's submission to the centres of world power.
Translation copyleft by Tortilla con Sal
1. The Davenport Code was the name applied to legislation promulgated in 1956 offering concessionary terms to foreign (mostly US) oil companies. In 1969 President Alfredo Ovando Candia revoked the Davenport Code legislation. when his government nationalized Gulf Oil.
2. Shortly after Yacimientos PetrolÃferos Fiscales Bolivianos was founded in 1936, General David Toro's government nationalized Standard Oil's holdings in
3. Yacimientos PetrolÃferos Fiscales Bolivianos - the State hydrocarbons company.
4. Petrobras although nominally
5. MAS - Movement Towards Socialism - is Evo Morales' political party.
6. Hugo Banzer Suarez, former Bolivian dictator (1971 to 1978) and also elected President (1997 to 2001). Gonzalo Sanchez de Losada was president twice from 1993 to 1997 and from 2002 until he was forced to flee the country after the 2003 uprisings against his oil and gas policies in favour of foreign multinational oil companies in which many dozens of protestors were killed by security forces.