Friday, October 07, 2005

Bolivia and The Borg

Here is a confession. Back when I still lived in the US I used to really like watching Star Trek. Not the lesser quality sequel-upon-sequel versions, or even the original with Spock and Kirk (How many times can you watch those over and over anyway?). No, I liked Star Trek: The Next Generation, with the bald and wise Captain Picard. It helped perhaps that the show aired each Wednesday as I returned home from the mind-numbing experience of teaching a three-hour university course on policy analysis.

The show that helped clear my head of the lighter aspects of tax and welfare reform also offered up a rich metaphor: "The Borg".

You Will be Absorbed, Resistance is Futile

For those unacquainted, the Borg were a race of half human/half machines that were connected together with a common central nervous system that allowed them to act as one – not in the "community" sense, but more in the massive inhuman robotic sense. The Borg also had the practice of expanding their numbers through an unpleasant exercise in which they would basically drill into someone's brain, take their identify away and wire them up. Needless to say the crew of the Enterprise were none too keen on joining, which always prompted the following warning from the machine-like Borg:

Resistance is futile.

Right, now how does all this relate to Bolivia and the rest of the real world for that matter? As promised, a metaphor.

I have been pondering recently the similarities between the Borg and the forces of global market economics. Global market fundamentalism does indeed promise to bring us more and more together – in the Borg sense. One world. One market. One culture (materialism). One view of how we relate to nature (privatize and exploit it). One way to live. Absorption requires no cerebral drilling. It is accomplished by a series of tools: the power of markets to forces us to act in certain ways in order to chase economic survival, the conditionalities of global economic institutions such as the World Bank and IMF, and the promise that unfettered markets are the pathway to economic prosperity.

And translated into other words, the message is the same: Resistance is futile.

Any people or nation that does not choose to play by the new economic rules is destined to miserable poverty.

All this is why, I think, Bolivia has captured so much public attention around the world. Since the Cochabamba Water Revolt in 2000, the poor of this country have embarked upon their own bold five-year mission to where no one has gone before. They have resisted and they have won. I guess Star Trek never made it to the Andean television screen.

Two major cities, Cochabamba and El Alto, have taken back their public water systems from mighty foreign corporations. Bolivians stopped an IMF economic belt-tightening package in its tracks. And twice Bolivians have taken to the streets to resist the selling-off of their oil and gas reserves to foreign corporations.

In Bolivia, resistance has actually proven not futile at all.

But Actually Governing, That is Really Hard

One of the more interesting analyses that I have heard about Bolivian politics this year was a talk by Alvaro Garcia Linera, Evo Morales' running mate, when he was still discussing such a move with Bolivian social movement leaders. Alvaro noted that Bolivian social movements had indeed accomplished a great deal, but that simple resistance had also hit the limit of what it could accomplish. Not attainable through resistance, he argued, were the two big goals that top the social movements' agenda: recovering public control of the nation's gas and oil reserves and convening a citizen assembly to rewrite the Bolivian constitution.

"To accomplish these," he observed, "you need to win control of the government and there is only two ways to do that, buy guns or win elections." Linera and a good chunk of Bolivia's social movements have opted for the second. As they now embark on this new mission, contesting a national election and seeking to govern, they might take heed of a lesson I can almost hear coming out of Captain Picard's own mouth:

Resistance is not futile, but governing effectively is a really, really tough job.

Let us look, for example, at the venerable tale of SEMAPA, the public water company re-established in Cochabamba after Bechtel's ousting. It is not a pretty tale. While the company has kept rates down and has made some notable progress in expanding water service to poor neighborhoods, its management has left a good deal to be desired. The union of company workers, in particular, has succeeded in padding the payrolls with more workers than needed and has engaged in acts of petty corruption for years. This week citizens from the poor neighborhoods of the city marched on the water company's facilities and demanded reform.

The lesson? Resistance succeeded in kicking out Bechtel and its search for exorbitant profits on the backs of the poor, which was a good thing. Resistance did not assure or build an efficient public company, a task still to be accomplished. Before some readers seize on this analysis to start cheerleading for privatization, I suggest waiting until we release our forthcoming study comparing Cochabamba's performance with the private water company in El Alto/La Paz. That tale there is pretty ugly too, but in different ways.

So there you have it. The message these five years from Bolivia has been clear.

We will not be absorbed. We will not let our country be remade in an image sent from the north. We will not accept the bogus tale that only unfettered markets can make our dreams come true.

But building an alternative, that is proving to be a lot trickier than a lot of social movement leaders thought. If the left comes to govern the nation, either after the next election or one after, the challenge is going to get even harder.

A task worthy of a whole fleet of Star Ships.

-----------------------------------

A note to regular readers of the Blog: I will be away all next week, escaping along with my trusty dog Simone to a remote Quechua village. It is a break to work on a novel that won’t seem to leave me alone. I'll be back with Bolivia news and more in a week.

42 Comments:

Anonymous Richard Blair said...

Jim, if your novel is half as good and enlightening as this posting, it should hit the Amazon.com top 100 in a hurry. Good luck with that. I look forward to your briefing on the water situation in La Paz.

It's strange how the entire globalization / World Bank / IMF thing always seems to start with privatizing water supplies. I do understand why this is the starting point for assimilation (to riff on your STNG metaphor) - water is typically a backbone of local industry and manufacturing, as well as a basic necessity for "village life".

Taking the provision of potable water out of the public domain (particularly in a politically inefficient or corrupt environment) appeals to the lowest tier of Maslow's pyramid, which is why such demands from IMF / World Bank are usually met with little resistance, at least initially.

But let's be honest. Even here in the states, most public water authorities are staffed by political appointees and friends of friends. So I don't see the current situation in Cochabamba as maybe a whole lot different than a publicly owned service (sewer, water, electricity, whatever) anywhere in the world. It's the nature of the beast.

Thanks for the great article!

10:27 PM  
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10:20 AM  
Blogger Blueprincesa said...

I find what you have to say extremely enlightening and thought-provoking. It's nice to read something written by someone who actually has something to say about the world.

4:12 PM  
Blogger Hidalgo said...

First time visiting your blog, but I think I will come regularly. Very inspiring thinking you have here, but more interesting, your ideas are quite different from the normal progressive thinker. I would say that you are not only watching carefully the effect of the new forms of market imperialism (which we can surely say it started even before the Atlantic Revolutions), but you are proposing and articulating ideas about how to deal with this problem that could easily be workable. The Left in Latin America has been beaten, and bruised too many times, and in power, it has been powerless when it was needed the most. We need to think hard about the changes we need to bring.

2:29 AM  
Blogger Phil said...

I like that Linera quote. Now if we could also convince American anti-corporate-globalization activists to get more involved in electoral politics, that would be more effective.

11:37 AM  
Blogger AA said...

Being a Bolivian myself, I share in the belief that there are many aspects of U.S.-Driven globalization that cause such problems as the cocha-becthel and el alto-imf scandals. Regardless, I am truly amazed to see that people actually have developed to the point where basic needs (food, water, shelter, job, happiness) are no longer an issue, and you have time to advocate world-peace and equality etc... Don't get me wrong, its great that the life/liberty/equality ideals of democracy are being "spread" to places such as Bolivia. Personally, I hope I can also take on this mission someday. Now, in reality, I could care less right now about anything beyond getting a good job so I can feed my mother, sister, brother, father, and myself. And truly, as long as it does not directly affect my family, I will gladly take the lead in the next Bechtel takeover of an impoverished country, the next haliburtonesque "development," or the next GONI-inspired agreements. Believe me, there are many more people in my place than you think, and while in some happy disney-like fairy tale I want poverty to end in Bolivia and the country to prosper, the truth is that I will do whatever it takes and step on whoever I have to to meet the needs of my family. Indeed, the riots in Bolivia are because the poor are only protecting their own family. Well, that is really all I'd be trying to do if I was the one that drafted the agreement that drove Bechtel in there in the first place, or if I was the one that authorized sucking out every last drop of natural gas from the ground. We often forget that while the poor have life, liberty, and property to lose, those of us that have worked our ass-off countless hours and have CLAWED past barrier after barrier, have JUST AS MUCH TO LOSE, and more. But... that's just one perspective, and I'm writing this more therapeutically than politically.

7:00 PM  
Blogger Darrell said...

Boy, this is a really good spot to learn about another country. Your blogs are very thoughtful and thought provoking, that can be seen by the comments generated. And Bolivia, after reading this blog for almost a year, I am better informed. Informed enough to know I sould speak very carefully.

The problem is the classic problem, how to generate wealth and how to distribute it. From seeing the upheaval in Bolivia, the approach to the solution to this problem needs to change. Was the approach historically a small elite dominating impovershed masses? If that is so, that has to change. How's that for a starting point?

10:23 PM  
Anonymous Anonymous said...

Hi Jim and everyone who dares to continue reading this comment, I think you will not like this, (so if you will, do it at your own risk), first of all because my english is very basic and second my political beleifs.

As AA, I'm bolivian myself, I live in La Paz and writing this comment anonymously (sorry, but you will understand). I am actually one of the very few people that think GONI WAS THE BEST PRESIDENT since V. Paz Estensoro, and I am not a member of the MNR party (even if you think I should be).

I'm writing this as a catharsis, you can't imagine how much of my brothers (as I consider all bolivians) hate him as he was the devil himself, without any proofs he is guilty of: mass-murder, genocide, corruption, stole all the people's money, bankrupcy the state, give all the gas reserves as a gift and so and so and so on, he is worst than the Borg Queen or Locutus (http://en.wikipedia.org/wiki/Borg) and you can think now that I'm too. This is really a urban legend, not even the Mythbusters could bust that.

Well, this discussion could imply an entire Blog and I'll not continue.

The central issue is what can we do for not being assimilate? If we maintain our narrow "independence" can we survive? Is any of you experimenting (rights or lefts) with my country? Is Evo just a puppet of left-sided billonaries? Is here a mafia-like "social" leadership (coca is not cocaine)? Can every issue concerning the poverty of my country be attributed to the government? Who has win in this 5-year war? Who will win? For how long the war lasts?

One thing you can be sure, I'll not be protesting or be the leader of a "parade" if Evo or anyone is president, I'll be working, I'm sure me and my family will suffer but we will stay as long as we can in La Paz, most of you dear readers who support Evo will never put a feet in my city, you can't imagine how beautiful it is, as many of your employees can tell you.


For you my brothers, why did you leave your country? When will you come back? and for those who stay here, piensen que por hacer protesta no necesariamente las cosas mejorarán, la utopía no es buena por si misma, es necesario tener un objetivo claro, las personas que los convencen para protestar pueden tener mucha razón en sus argumentos (sin justicia social no habrá paz), pero pueden estar muy equivocados en sus métodos (la cita de García Linera es muy explícita). Sorry for the inconvenience, but you can translate it with google (http://translate.google.com/translate_t).

I really apreciate your good intentions for "freeing" my country from the hungry multinational enterprises, but I apreciate more any formula that you know it works in a Bolivia-like reality. I know only one "work, discipline, respect, education and hope" we could achive it with your help.

Thank you for reading this long comment (Jallalla Bolivia).

10:57 PM  
Blogger un curioso said...

Thanks for an insightful article. I just opened my blog, Blogsmopolis, from a classical greek idea of One World. Of course, I took that to mean that they needed to realize that to overcome ideas of superiority of one race to another. It's the early documents of the inherent rights of men. But a parallel thought that has traveled from then to now is the market tendency and its effect on culture that your article helped me to see.
Hmm, interesting. I'm going to pursue the line of thought of unfettered markets and supposed economic prosperity and see what "jumps out" at me.

2:38 AM  
Blogger Javier said...

Jim,

Hello and congratulations for your work. I've been friendly 'lurking' your blog, and I appreciate your insight on Bolivia. I even posted a humble link in my humble blog, which I'm not been working on lately.

I'm a Bolivian in search of a better future, and have not yet even started, because my plans encompass an integral outlook for me and the places I've gone to and the places I've come from. It may take a while.

In this process, it's been a relief finding 'voices' on the net that paint the other side of the coin as eloquently as you do. It was a desert and you provided a big oasis.

Please keep populating your views with all the colours posible from the spectrum you find in such a lovely and astounding place as Bolivia. I find them timely.

I moved because there weren't feasible opportunities for me to re-establish my stand: I was flooded by reactive-thought waves rather than pro-active ones. I'm still making my efforts to stand. Probably I'll return when I've achieved something very important: The control of my own energy and efficient administration of my own plans. As many know, nobody likes to be told what to do with their own stuff, unless is done in a way that respects the autonomy and independence.

In the process, I just wonder if any Bolivian will ever attain a level of prestige similar to what you've acquired, Jim, within their own local resources, not relying on external ones. In other words, do you think there are realistic possibilities in Bolivia of creating a home-grown proposal for integrating to the world, with dignity, respect and high values after all the past turmoil? The answer within myself is yes, but it's not based on factual, analised or researched data, it's my longing; a glimpse I want to develop into more light.

I'm hoping to soon find out the steps that will enable me answer my own question with a reality-based and tested YES, it's possible. But for the time being, I would like to consider your present opinion. I find it valuable in morality and integrity.

Respectfully,
Javier

7:31 AM  
Blogger Dan said...

Curioso,
You might check out Hardt and Negri's Empire:
http://www.angelfire.com/cantina/negri/
Cheers,
Dan Moriarty

3:15 PM  
Blogger diE to SELF LiVE foR ChRisT said...

hi! just blog surfing!!


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3:32 PM  
Anonymous Javier F. said...

Yeap, I used to love this show as well when I was in college.

The Borg also had the practice of expanding their numbers through an unpleasant exercise in which they would basically drill into someone's brain, take their identify away and wire them up.

The most important characteristic of the Borg…they did not give anyone the CHOICE to join them or not…thus, they claim, resistance is futile.

Aren’t fascist other kind of Borg? …by definition fascism: A system of government marked by centralization of authority under a dictator, stringent socioeconomic controls, suppression of the opposition through terror and censorship, and typically a policy of belligerent nationalism and racism.

Jim tells us ”similarities between the Borg and the forces of global market economics” …well, yeah…there can be similarities to the Borg with anything that is imposed to anyone. However, as far as I see it …World Bank, BID, and other give us the CHOICE to get loans or not. We Bolivians, through our questionable system, have the politicians privatize state business….but, some how, we CHOSE this politicians.

Many may argue that Chavez is the Borg in South America….I am not an expert of Venezuelan affairs, neither on global market economics…but neither the majority of Bolivians…in my perception, Chavez seems to be much more of a Borg than Jim’s Borg.

Even the concept of “Democracy” could be a Borg…since the time it was created…resistance has been futile to it.

So, there are good Borg’s and Bad Borg’s in the world…but not for captain Pickard.

Saludos, Javier

9:05 PM  
Blogger tuckabuick said...

Yes and no.

9:20 PM  
Anonymous mad said...

Let me throw in a hipothetical: A mother with her starving child in her arms begs for milk. The kid will surely die if not fed soon. The milk is suspected of causing infertility. Are you saying that mother has a choice to accept or not accept the milk?

The fact that you think poor countries have a choice to accept or refuse aid is not only naive to me, it is simply bizarre. Do you live in Bolivia man? what planet do you live in?

12:56 AM  
Blogger Dueledge said...

America could also be compared to the borg. just look at the cold war, they hated the soviets because they had a different political system. I am not promoting communism I am just pointing out that the Americans did not even apear to think about it, the soviets were different, and therefore they had to be destroyed.

8:35 AM  
Anonymous Carlos Villegas said...

I have read your blog since a long time. I have been impressed by your credentials: "harvard trained analyst and defender of the water in Cochabamba". Finally I your comments have promted me to extricate an opinion about Blogs from Bolivia.

This last article you wrote, though entertaining, is one more example of how shallow is your understanding of Bolivia. And you live there, don't you?

How simplistic is it seen. Evil capitalism vs the forces of the good (you). One question: have you ever had an economics class in your distinguished harvard career? If so, I would doubt you would mix concepts like free markets with capitalism or materialism.

As a Bolivian, one who has had a fair share to do creating that country of ours, I don't like the disservice you do to those people who come to your blog to learn about Bolivia.

I ask you please, when you write about the situation, think about it a little bit harder. Try not to mix concepts and try no to simplify something that is not simple.

11:47 AM  
Blogger Phil said...

Carlos, what concepts is he mixing? His post doesn't criticize capitalism. It criticizes "market fundamentalism." Even Joseph Stiglitz, the nobel price winning former chief economist of the World Bank, uses that term.

8:10 PM  
Anonymous mad said...

Carlos Villegas:

Did your posting get cut off while you typed your post? ..or did you fall sleep? It doesn't say anything of value, as I began to read it, it started to look interesting and then it ended up saying nothing. what are you talking about? you don't make sense at all. Could you at least give a coherent argument against Jim's post?

I have a hard time believing your post has any value more than a silly question: Did Jim take an economics class?

Get to the bottom of things, (give it try) don't just shoot your superficial rant and shoot down an opinion simply because you think someone should take an economics class to describe the situation in Bolivia.

Do you even understand Bolivia?

8:40 PM  
Anonymous Javier F. said...

I am living in the same planet you live mad, hope this is ok…wait, I am even closer, I am reading the same Blog that you are.

2-0 my friend…for the 2nd time you try to use a statement, an obvious statement to weaken premises…today we have….

A mother with a living child but starving…but of course mad, she would do ANYTHING for that milk…some moms will even kill for it….so she will NOT CHOSE, she will ACT to get the milk (so I hope).

What is bizarre here is that you are trying to use so obvious statements and pretend that them, by themselves, will weaken someone else’s premises…Perhaps you should use a specific example on how foreign aid to Bolivia is something Bolivia does not have a choice on.

Of course Bolivia has the choice to refuse or accept “AID”…of course, more likely we should accept the “non-conditional” aid…but when aid comes with condition…then, stop, have a look, analyze, think in the future, etc, etc…and CHOSE….and no, Bolivia is not begging for milk mad, we actually have a lot of resources in our country to be begging….not using the resources to make milk is another story.

Now, the milk that produces infertility…in which kind of these “aids” would you classify it?

Your hypothetical is ok as an introduction, as an opener to your criticism…but, then, bring up a good example, then, we can all talk based on a current event.

Saludos, Javier F.

11:16 PM  
Blogger Paisano de Elite said...

I was planning to answer your metaphor when I first read it, but I decided to take my time reading the information on your web page to understand where do your opinions are coming from; and the true is that after all that great intentions your organization seems to have and all the knowledge your organization happen to have, your article is so pathetic it hurts, you are quick in identifying problems but do not give a win-win solutions to them, you should nationalize Bolivian and run for a political office with your friend Garcia Lineras. According to what you being writing it seems that to you the only real solutions for World Bank and IMF issues are civil unrest, blockage of roads and bridges, and following the rule of the more violent, what a disgrace for somebody that says that is fighting for human rights. I rest may case commenting over some of your metaphor, you wrote “I have been pondering recently the similarities between the Borg and the forces of global market economics. Global market fundamentalist does indeed promise to bring us more close together – in the Borg sense..... Resistance is Futile”; down the line you also wrote, “Two major cities, Cochabamba and El Alto, have taken back their public water systems from mighty foreign corporations. And twice Bolivians have taken to the streets to resist the selling-off of their oil and gas reserves to foreign corporations” and finally you wrote “The venerable tale of SEMAPA, the public water company re-established in Cochabamba after Bechte’s ousting. Is not a pretty tale. .... .. .. The union o companies workers, in particular, has succeeded in padding the payrolls with more workers than needed and has engaged I acts of petty corruption for years”. It seems to my that Capitan’s Picard and the whole The Next Generation fleet of Star Ships, impersonated by the peace loving Bolivians, where not only under the attack of the Borgs, impersonated by the World Bank and IMF, but we where also stroked buy the Cardassians, impersonated by Olivera, Evo, Fejuve del Alto, The Democracy Center, etc, etc.
Yes, like you, I also watched the Trek series or show and the people you so much price in your Bolivian adventures distance themselves to much of anybody that could represent Picard and his friends, fearless defenders of democracy; they are much closer to the fascist Cardassians. You wrote it yourself, once the entity that controlled the water in Cochabamba under the WB and IMF left, the old inefficiency, corruption and theft came back; you really think that that is not hurting the pockets of the Cochabamba’s poor people?.
After the blockage, after the abuse of the Coordinadora del Agua thugs to innocent people, after the injured, after the death of one Bolivian and after paying Olivera’s travel, food and shelter in the US. Worst at all, after you wrote in an article published in: We Are Everywhere the year 2003; that the water war would never had happened if Bechter raised the water bill slowly during the years instead of doing it the way they did. Implicitly, you are also approving that water could be managed properly in a private way; without having to suffer all the previous after.
Why you never mention the work of other water administration entities in Bolivia that are private and doing very good, like Saguapac in Santa Cruz. Nooooo, water has to be controlled in a more fascist or better, communist way. Well Fascism and Communisms has being tried in this and many other countries and did not work, the World Bank and IMF way is today’s way. I am not telling you to accept everything they said or borrow the money a 100% under they conditions; I challenge you to help Bolivians thinking on ways we can help each other, poor and rich, to have our basic needs using World Bank and IMF criteria without having to blow our brains out. I think that is not to much to ask to somebody that says that is fighting for democracy.

5:37 PM  
Anonymous Javier F. said...

Let’s put some weight in the other side of the balance…

(27 May 2005) Banco Mundial acude en ayuda de zonas rurales de Bolivia - Jornada - Economía
“El BANCO Mundial anunció ayer que ha concedido a Bolivia dos préstamos sin intereses por un total de 43, 4 millones de dólares para apoyar áreas rurales bolivianas.”

Hey, 0% interest! ...wish I could get this "sour" milk!!

(14 Ago 2005) Banco Mundial podrá prestar más a países en desarrollo - EL Diario - Economía - R= 5,91 Tot. pal.:412

(05 Oct 2005) Banco Mundial califica con buena nota a la economía - La Razón - Economía

“El BANCO Mundial calificó ayer de sorprendente la recuperación de la economía boliviana, “a pesar de la turbulencia política que se está viviendo tanto interna como externamente”.…Por ello, el BANCO se comprometió ayer ante el presidente Eduardo Rodríguez a seguir implementando más proyectos a favor de la lucha contra la pobreza.”

(17 Abr 2005) Manifestantes piden alivio para la deuda de los países pobres - Los Tiempos - Economía

”Las protestas contra la globalización se han tornado festivas más que combativas.”

The estimates: 300 protesters…did you go Jim? Mad?

(11 Jun 2005) Venezuela propondrá creación de Banco del Sur al Grupo 77 - Los Tiempos - Economía

”La idea de un BANCO del Sur fue presentada por el presidente venezolano, Hugo Chávez, como parte de una serie de iniciativas que buscan la mayor independencia de los países subdesarrollados…..La propuesta busca ayudar al financiamiento del desarrollo de los países del llamado tercer mundo, sin las condiciones que imponen organismos internacionales financieros como el Fondo Monetario Internacional y el BANCO Mundial”

There you go…loans, no conditions!! …whay do you think Jim…would resistance be futile to Chavez intentions??

And the list goes on…here…the links to this newspapers

Los Tiempos: http://www.lostiempos.com
La Razon: http://www.la-razon.com
El Diario: http://www.eldiario.net/
La Jornada: http://www.jornadanet.com/

So, any example how the World Bank is a menace to Bolivia?

Javier F.

7:30 PM  
Anonymous Paul V said...

"We will not be absorbed. We will not let our country be remade in an image sent from the north. We will not accept the bogus tale that only unfettered markets can make our dreams come true."

Water in Cochabamba has little to do with unfettered markets, or remaking the country in the image of the north.

Water utilities in the United States are almost entirely publicly owned, although the actual work involved may be subcontracted out.

Other utilities in the United States; electric, natural gas; cable television, and telephone service; have been in the past or still are natural monopolies and have been highly regulated as such throughout American history.

As cable television and telephone industries have become less of a natural monopoly, regulation has decreased.

Steps have been taken to encourage competition in the electric power industry wherever possible.

None of the utility industries in the United States are dominated by large multinational corporations.

Even Bechtel is a bit player in international water development. As a private company selling their services to governments around the world, they hardly have monopoly pricing power.

If International Water/Bechtel was ever going to make obscene profits in Cochabamba, the blame would lie entirely with the Bolivian and Cochabamba governments, not with private industry.

Americans are generally not in uproar about the high prices charged by regulated private companies. Better run regulated companies often succeed in taking over less well run regulated companies. Occasionally companies run into trouble, but the issues eventually get worked out. The system does not get viewed as inheritently unworkable.

Comparing natural monopolies to laissez faire free enterprise seems nonsensical.

Is the gas and oil industry a natural monopoly? Clearly the local distribution of natural gas is a natural monopoly. Beyond that, there is a lot of room for free enterprise. Gasoline is distributed locally by trucks and gas stations. At least four or five competitors can operate successfully in any area of reasonable population.

In the oil and gas industry, many private companies specialize in search for the oil and gas. Others specialize in drilling for the oil and gas, or in providing equipment to the drillers. Other companies specialize in producing oil and gas from developed fields. Others specialize in refining the oil and gas. Others specialize in developing large transportation pipelines for natural gas. Some companies may be involved in all of these areas, but they must compete against similar large companies as well as all the specialists. If locally produced oil and gas is too expensive, it can be imported. There isn't much of a "free ride" in the oil and gas industry.

Bolivians want to garner huge profits from hydrocarbon industry, but if they don't allow exporting the hydrocarbons, then they can only fleece themselves. Locally, it is a zero-sum game (or worse, if they allow all of the profits to escape the country). They could benefit locally from inexpensive natural gas, but then the hydrocarbon industry wouldn't make the obscene profits (taxes) they want it to make.

Having said that, both Bolivians and the local hydrocarbon industry could benefit from the sale of Bolivian hydrocarbons within Bolivia at a price higher than cost but lower than competing sources of energy, if Bolivians could in turn find economical uses for that energy.

1:15 PM  
Anonymous Anonymous said...

The Borg blog; …
I have not seen a single episode of “Star Trek”, but from your writings (and other postings) I can understand, but not necessarily agree, your point of view.

You state: “Global market economics. Global market fundamentalism does indeed promise to bring us more and more together – in the Borg sense”. Then you continue: “It is accomplished by a series of tools: …, the conditionalities of global economic institutions such as the World Bank and IMF, …” and finally: “Resistance is futile”.

Later on, while discussing the public water systems in Cochabamba and El Alto, you state: “In Bolivia, resistance has actually proven not futile at all”. As I understand, The Borg has no time limits; in fact, today’s SEMAPA is after the same “bank loans” you despise so much, and it is already dependent to institutions such as the World Bank, in short, resistance has proven to be futile.

If you were aiming your darts to “mighty foreign corporations”; then, you could probably agree that they are not “The Borg” and that Bolivia has a choice to invite them or not to operate in their country.

I celebrate that Linera and others, have decided to try at winning elections (instead of guns) to accomplish their objectives. Also, your insightful comment, “but governing effectively is a really tough job”. We all know, that resistance (or opposition) is a lot easier than governing. It is becoming clearer every day, that it won’t be easy, in their effort to drift their movement to the center (to win more votes), they are alienating the strong and radical extreme left, they might get a lot of their own medicine (street unrest and violence); if they return to radical positions, then Bolivia might become a dark hole in the middle of South America.

Bolivia has had more than its fare share of unrest, social resistance, violence, encouraged in great part by radical positions. Let’s contribute in any way we can to achieve Bolivia’s development in a peaceful and civilized manner. Thank you.

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