Latin America demands more for its oil and gas

Gas-rich countries like Bolivia are rolling out plans to nationalize energy reserves.

from the April 10, 2007 edition

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Following Chávez's lead?

In Bolivia, many say Chávez inspired Morales's nationalization plan.

"[Morales] echoes the threats that Chávez makes about nationalization. They have the same goals. I don't think Morales tries to hide that," says Napoleon Pacheco, an economist at the Millennium Foundation in La Paz.

Chávez's influence in the region cannot be underestimated – not just the discounted oil he ships around the region but his plans to reduce dependence on the US. He has promised Bolivia some $1 billion to invest in petroleum projects and recently announced he would help the country explore new natural-gas sources. He announced an initiative for natural-gas exporters in the region based on the principles of OPEC. The most ambitious plan is a $20-billion pipeline that would send Venezuelan natural gas all the way to Argentina. Morales may be ahead of him on that one, having inked a deal last month with Argentina to build a gas pipeline that will quadruple the amount of gas Bolivia exports to its southern neighbor.

Many analysts, however, say that resource nationalism has little to do with Venezuela. "It is true that Chávez is the main advocate for taking advantage of a favorable energy market and trying to squeeze foreign companies as much as possible," says Michael Shifter, who recently authored a report on the challenges the Chávez administration poses to US policymakers. "But the kind of 'nationalization' being carried out by the Morales government stems from Bolivia's own particular circumstances, and the mounting pressures of the country's poor, indigenous majority to get what they see as their rightful share of the national wealth. Even without Chávez on the scene, it is likely we would be witnessing such a move in Bolivia today."

That is the case in Ecuador, too, where protesters forced shutdowns of pipelines throughout the Amazonian basin.

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