Journalist accused of being Chilean spy
10.16.2003An Argentine journalist was accused of being a Chilean, then of being a government spy. Why? She asked some campesino protesters a few questions, basic questions.
First, she asked why they're marching. "We want Bolivian gas to stay in Bolivia." In other words, the basic "no to export of natural gas" line most protesters chant. Fair enough. But Bolivia has 8 million people (small population) and the second largest known natural gas reserves in Latin America. Economists estimate only 1% of our natural gas meets all domestic demand. But let's ignore that.
The reporter asked the protesters what they want to do w/ the gas instead, if it isn't to be exported. "Industrialization," was the answer. In other words, changing the gas to liquid fuel, or making other changes to it to produce value-added commodities, rather than just export raw material. I think this is a good thing, the country should export higher value products (to improve the balance of trade). Another part of the industrialization demand's that the country develop domestic gas lines (currently gas for stoves is bought in garrafas, metal containers). I also think this would be a good thing, most Bolivians do.
So then the reporter asked how the protesters suggest Bolivia industrialize it's natural gas, since it's a poor country. In other words: w/ what capital? The protester she was interviewing stopped and froze in thought for a moment. After all, the government's line has been that Bolivia would export some of its gas, to raise capital for parallel industrialization. Then the protester shouted: "You're from Chile!" (keep in mind that rabid anti-Chilean nationalism is a significant factor in mobilizing the protests). And a crowd started threatening her (all this on camera, reported live to Argentine TV).
She was held hostage over an hour, before finally being released. If you try to enter into rational discourse w/ the protesters, or even seem like you don't agree w/ them 100%, you're a traitor (a "vende patria" or a Chilean agent).
Posted by Miguel at 02:59 PM
Comments
The fact that Argentina and Chile have fought numerous wars over pointless bits of land makes that rather ironic....
Posted by: Francis at October 17, 2003 05:02 AM
Miguel,
Who are the energy companies interested in exporting the Bolivian natural gas? Is the president considering reworking the energy contracts to allow more industrialization of the gas within Bolivia?
Perhaps it might be possible for the president to demand that the energy companies set-up a joint-venture with either a Bolivian company, or create a state-owned corporation for the purposes of handling this gas. This might supply some jobs to the region and allow Bolivia to better control their resources. Maybe then the protestors would see that Bolivia is benefiting from this resource and not being manipulated by other countries.
Posted by: Patrick at October 17, 2003 10:10 AM
Actually, the energy company currently handling Bolivian gas & oil is a joint venture w/ a Spanish firm. The state-owned YPFB was "capitalized" (not privatized, I'll explain in a moment) in the late 1990s. So the company is still owned 50% by the Bolivian government. BTW, YPFB was, when it was state-owned, one of the worse industries imaginable, corrupt, and always working at a dramatic loss (despite being the nation's largest export!).
About "capitalization": While most Latin American countries were privatizing their industries, that is, selling them to international (or domestic) capitalists, Bolivia took a different rout; it was actually lauded in the international community! Capitalization means that the government retains full control of the assets & capital of the company, but asks foreign industries to add an equivalent share of capital & assets to the company. E.g. if a company was worth $50 million (total assets & capital), the prospective "capitalizer" would have to provide an equal share, bringing the new total net worth of the industry to $100 million. Got it? It was a way to infuse capital into the economy, while preserving the state's rights to previously existing equipment, etc. The foreign "capitalizer" would gain management control, but the terms were also for set numbers of years (some as low as seven) in which the state would regain full control, w/ option to extend control to the foreign capitalist.
As an aside, once the industries were capitalized, most of that money went to provide a nation-wide social security pension fund (called the BONOSOL) payable to all Bolivians over the age of 60. It was the first of its kind.
Both of these reforms were introduced by the first Goni administration, 1993-1997.
Posted by: miguel at October 17, 2003 12:01 PM