By Design

Bolivian President Seizes Gas Industry. Hmmm. Sounds radical.

However, the truth is not as extreme as the headline may insinuate. Morales has made a gesture which pleases Bolivia's "left" and, while not an "expropriation," it gives notice to foreign oil that more equitable contracts must be negotiated.

Bolivia's oil and gas industry was privatized in 1996. Previously, the resources were owned by the State in partnership with foreign investors, and Bolivia received 50 percent of profits, until 1996. At that time, with the World Bank and IMF on Bolivian backs, the oligarchy privatized and cut a deal with foreign investors where Bolivia received 18 percent royalties on their oil and gas fields and foreign investors paid no taxes. (And you thought Slick Willie wasn't good for big business.)

Decades before the 1996 deal Bolivia's landscape, like all of Latin America, was one rightwing oligarch/military puppet after another, gringo approved. And again, as in most of Latin America (and elsewhere), Bolivia's leftists, once any clout was obtained through the system, became the usual self-serving career hog politicians.

Morales wants to return to the 50/50 revenues. It is unlikely foreign investors will accept giving Bolivians ½ the pie after a decade of having 82 percent all to themselves. There is the possibility Bolivia's own oligarchy wants Morales to do what they don't have the backbone to do. Get them more of their pie back. Any new deal will read as if beneficial to the little guy, but continued poverty for the Bolivian masses will be concealed in the fine print.

Morales has stated China is interested if the current oil/gas corporations won't make a deal. But again, if one looks at the multi-transnationals who have moved to China – a Bolivia/China mating could be what the Anglo investors maneuver to their own benefit. Mattel, Levi Strauss, Reebok, Citigroup, Motorola, Kodak, and others in China wouldn't mind at all. They need cheaper resources as much as they needed cheaper labor.

Morales also will not be able to do much with coca legalization as too much foreign "aid" carries drug eradication stipulations. Wealth from any legal coca expansion will be to those in power, at home and abroad – not to the little brown people cultivating small patches. They may manage an extra bowl of daily rice and beans but coca farming will not lift them any higher on the plantation.

Bolivia has had land reform laws on the books for decades. Problem is, those who hold vast tracts of land have circumvented the law by placing one grazing cow in the pasture to qualify for a "working" ranch, or send thugs to murder and frighten off any squatters attempting to use a few acres for survival, or the elite simply buy a politician to adopt laws which benefit the few have-holders. Political procedures of modern man huh?

I think the election of Morales is little more than a symbolic nod to the restless Bolivian natives. Bolivia's elite and the "Western world" elites will not allow change by the commoners unless the deal fits in the overall design of their world order. Remember, always use a long spoon when supping with the deal makers.

Perhaps the mistake made is that the "left" in Bolivia, or anywhere, typically believe they can make deals with the ruling elite. A belief that the ruling elite will be fair and reasonable even when forced to cut a deal with the "unwashed masses." Which is why in ancient times a radical change of leadership was often followed by beheading and getting rid of the previous ruler, his cohorts, family members, friends. Just in case the 'used to haves it all' ever want it back.

Thank goodness we the serfs are civilized now days and not killing off ruling elites - only the other little people they designate for slaughter.