Feature

The fallout over Morales’ natural-gas takeover.

The week's news at a glance.

Bolivia

Bolivia’s gas reserves now belong to Bolivians, said Armando Mariaca in Bolivia’s El Diario. President Evo Morales has announced that foreign countries will no longer be allowed to plunder Bolivian resources according to an outdated, colonialist model. Investors such as Brazil’s Petrobras and Spain’s Repsol, which run gas fields in Bolivia, will have to renegotiate their contracts to give a greater share back to the state. The president’s decree caused “delight here at home,” because it “corrected the huge mistakes of the past.” Abroad, though, investor countries are “predictably skeptical.” They seem not to believe that they will no longer get to buy gas at a price “infinitely lower than market rates.” To them, we say, Like it or lump it. Bolivia has the gas you need. Out of “a feeling of friendship,” we won’t charge higher prices than necessary—but neither will we cheat ourselves.

What a transparently demagogic move, said Winston Estremadoiro in Bolivia’s El Nuevo Dia. It’s the same old “bread and circuses” that populists have offered since Roman times, only in this case we’re getting “more circus and less bread.” Morales is hyping his nationalization as “the third and definitive nationalization,” comparing it to the 1937 seizure of Standard Oil assets and the 1969 seizure of Gulf assets. But he apparently doesn’t realize that those takeovers “were not free.” The Standard takeover cost this country $1.7 million in Great Depression dollars, while the Gulf fiasco crippled our petroleum production for decades. Placing our faith in our “insolvent” state gas company rather than in thriving companies such as Petrobras is “economic stupidity.” Worse, we’ve traded a cushy position as the “treasured godchild” of Brazil and Chile for an uncertain alliance with far-left governments in Cuba and Venezuela.

So this is what we get for being nice to Bolivia, said Brazil’s Veja in an editorial. Brazilian President Luiz Inácio Lula da Silva had nothing but warm words of welcome for Morales when the former coca farmer was elected president. He was repaid with “treachery.” Just last month, Lula was still the leading light of Latin America. He’s now “one more fool in the court of Venezuela’s Hugo Chavez.” It was Chavez, that ultraleftist buffoon, who “planned the theft of Brazilian property in Bolivia.”

Folha de Sao Paulo

Recommended

Ukraine blames Russia for destroying major Dnipro River dam 'in panic'
Kakhovka Dam
Cui bono?

Ukraine blames Russia for destroying major Dnipro River dam 'in panic'

Why is Riyadh going it alone on oil cuts?
An illustrated image of oil rigs and oil barrels
Today's big question

Why is Riyadh going it alone on oil cuts?

Officials suspect dozens of girls in Afghanistan were poisoned at school
Girls in Afghanistan walk to school.
awful

Officials suspect dozens of girls in Afghanistan were poisoned at school

Robert Hanssen, ex-FBI agent who became Russian spy, dies at 79
U.S. spy Robert Hanssen being arrested in 2001.
A Spy Passes Away

Robert Hanssen, ex-FBI agent who became Russian spy, dies at 79

Most Popular

Can Chris Christie make a comeback?
A black and white photo of Chris Christie waving
Profile

Can Chris Christie make a comeback?

Is Trump's wall working?
International Border Wall Between Tecate California and Tecate Mexico.
Briefing

Is Trump's wall working?

Chuck Todd to be replaced by Kristen Welker on NBC's 'Meet the Press'
'Meet the Press' anchor Chuck Todd.
Out with the old, in with the new

Chuck Todd to be replaced by Kristen Welker on NBC's 'Meet the Press'