ISSUES....
Inside, confidential, off the record

Bolivia a regional crisis

 

Evo Morales took giant steps toward defeat when he extended Bolivia's crisis
into Argentina and Brazil via his nationalization of Bolivia's energy
sector. In effect, Morales has declared economic warfare against argentina
and Brazil, who are dependent upon bolivia for gas imports. Bolivia has
provided future guarantees only on volume, not on price. This Morales
policy is introducing uncertainty and friction into bilateral trade.

It increasingly appears that Morales and Chavez are forming a cabal against
Brazil and Argentina. Indeed, prior to the four way meeting last week to
discuss Bolivia's action, Morales and Chavez had a private coordination
meeting to hammer out a joint strategy against Argentina and Brazil.

Bolivia's confrontational stance toward Argentina and Brazil is
inexplicable. As large scale importers of Bolivian gas, they have equities
in a viable Bolivian state. Not so for Hugo Chavez and Venezuela, which is
a direct competitor to Bolivia in gas exports. In a word, Morales is
trusting the wrong party, a mistake that will cost him and Bolivia dearly.

 

Petroleumworld 05 05 06

ISSUES....

Is an independent journalist effort from Petroleumworld, on Inside, Confidential
and Off The Record Information, its views are not necessarily those of Petroleumworld

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