Bolivia nationalizes natural gas industry

[Kidlicious]

Re: China

They violate their agreements with MNE's all the time without consequence. Read "Not Exactly Counterfeit" in the most recent Fortune magazine to see what kind of fun New Balance has had outsourcing to China. The thing is they can't do anything about it, and they still subcontract out to China. Since the US pretty much has to subcontract to China the Chinese can steel from them, and no one really cares except the property rights nuts in the West. Contracts have to be enforced. If they aren't you have to take what you get.

[chequita guevara]

Originally posted by Flubber
What exactly is your litmus test for a country you can do business with?

A minority government because the people didn't choose a majority government (Canada) is a very different thing than a minority government constructed thqat way in order to keep the majority out of power (Bolivia). Until this election, Bolovia had a system designed to keep the peasants out of power in in the hands of the white minority.

And to answer you other question, if a real democracy came to power in China, I would argue that it was in no way beholden to keep the agreements made by the dictatorship. If you deal with a dictatorship, you should get burned.

Colon™, this is not the first majority government in Bolivian history. In 1952, the people of Bolivia overthrew the old government and established a real democracy. It lasted 12 years before a CIA backed golpe de estado (coup d'etat) overthrew it. That was why my name-sake went to Bolivia in '66.

[chequita guevara]

Originally posted by Oerdin
I'd like to point out the Bolvia's previous natonalization of the oil and gas sector didn't go so well. I see no reason why this time will be different.

That's because you're a privatization fanatic who ignores all evidence that contradicts his opinion. That whole, reality has a well-known liberal bias thing.

[MOBIUS]

Originally posted by Eli
So deals with the 2000-2004 Bush administration also dont need to be honored, since it's not certain Bush actually won?

Given their track record I believe that would be an admirable solution!

[chequita guevara]

Originally posted by Eli
So deals with the 2000-2004 Bush administration also dont need to be honored, since it's not certain Bush actually won?

We can try.

[MOBIUS]

Originally posted by chegitz guevara
[Q]Originally posted by Flubber
It lasted 12 years before a CIA backed golpe de estado (coup d'etat) overthrew it. That was why my name-sake went to Bolivia in '66.

...to his death...

[notyoueither]

Some days you catch a break and something good happens.

[lord of the mark]

Originally posted by chegitz guevara

Originally posted by Flubber
What exactly is your litmus test for a country you can do business with?

A minority government because the people didn't choose a majority government (Canada) is a very different thing than a minority government constructed thqat way in order to keep the majority out of power (Bolivia). Until this election, Bolovia had a system designed to keep the peasants out of power in in the hands of the white minority.

And to answer you other question, if a real democracy came to power in China, I would argue that it was in no way beholden to keep the agreements made by the dictatorship. If you deal with a dictatorship, you should get burned.

Cuba? Iran?

Who gets to decide whats a dictatorship for that purpose? Venezuala is cracking down hard on the press. Its quite possible a post-Chavez govt will try to get out of any contracts hes made. This would be a formula that would basically stop investment in most of the less developed world. Unless thats your goal, this idea needs work.

[lord of the mark]

Originally posted by chegitz guevara

Originally posted by Flubber
What exactly is your litmus test for a country you can do business with?

A minority government because the people didn't choose a majority government (Canada) is a very different thing than a minority government constructed thqat way in order to keep the majority out of power (Bolivia). Until this election, Bolovia had a system designed to keep the peasants out of power in in the hands of the white minority.

How? Ive looked at wiki, at Freedom House, etc and I dont see this. The political system didnt change to get the Morales victory - rather Morales was able to use the gas issue, the coca issue, and the govts heavy handedness with protestors to mobilize voters as the left had not been able to do earlier.

[Barnabas]

Argentina had almost no debt before the 1976 coup, when the dictatorship ended they owed 40.000 million dollars (mainly because of the 1978 world cup and falklands war), would that be a good example?

[Last Conformist]

A good example of what? It's certainly a good example of why military dictatorships suck.

[chequita guevara]

Originally posted by lord of the mark
This would be a formula that would basically stop investment in most of the less developed world.

You think those companies don't make screaming profits during those years, before the government is replaced by a popular majoritian type government?

[chequita guevara]

Originally posted by lord of the mark
How? Ive looked at wiki, at Freedom House, etc and I dont see this. The political system didnt change to get the Morales victory - rather Morales was able to use the gas issue, the coca issue, and the govts heavy handedness with protestors to mobilize voters as the left had not been able to do earlier.

Bolivia still has the system which gives less representation to the Indians. Morales was just able to overcome it since the alternative was likely revolution.

[Kidlicious]

Originally posted by lord of the mark
This would be a formula that would basically stop investment in most of the less developed world. Unless thats your goal, this idea needs work.

I wouldn't call it an end goal anyway.

[lord of the mark]

Originally posted by chegitz guevara

Originally posted by lord of the mark
This would be a formula that would basically stop investment in most of the less developed world.

You think those companies don't make screaming profits during those years, before the government is replaced by a popular majoritian type government?

Depends on the deal theyve got - not all dictatorships are pushovers at negotiating. And on how long till the regime change.

This would favor investment in places where the dictatorship looked stable, vs those where it looked to be teetering. It would also give investors a huge incentive to oppose regime change in such places.

It may be worth considering a rule accepting cancelling flagrantly unfair contracts. Cancelling ALL contracts would have perverse effects.