Ahmed EL Droubi Released!
Ahmed El Droubi has been released!
You've been missed man!
Well, Faisal, let me ignore your mindboggeling comparison of those who die on the hands of terrorists and those who die from poverty for a minute, because You said you don't want a blog-bashing post and I believe you. This will be a discussion of the issue at hand and the mode of thinking. Ok? But first of all, let me correct you on 2 things: The Oil companies in Bolivia aren't US or from other developed countries, and this wasn't done for the "benefit of the people".Hold on a second! I made that comparison for a reason... ignoring my comparison is like saying: "we'll just imagine you didn't say this". But... but... I did! I said it!
Second of all, does it strike you as odd at all that the moment they seized the companies, it was venezeulan technicians who went in and ran the sites ? Does it not seems suspicious at all, that the bolivian candidate that was supported by Chavez all the way , suddenly nationalizes the industry and hand it over to the technicians of his "ally"?As about the Venezuelan technicians part, I honestly see no relevance to the topic at hand; if that post was in fact a response to my post, then it's the nationalization and its disadvantages/advantages to Bolivia and its people that was under discussion. Excuse me if I think that the attempt to tie Morales to Chavez is an attempt at sensationalization by linking Morales to someone who is not quite liked by many countries in the west.
Under Monday's decree, foreign companies must sell a majority stake of their participation to YPFB. Yet it remains unclear how Bolivia will come up with the several billion dollars needed for that deal.Pssst! There's the bit about compensation. It isn't exactly hardcore, confiscate-nationalization if you're buying the shares/stake, is it? (The YPFB is Bolivia's state-owned natural gas company).
Do you know what Morales now wants? He demands that any company that comes in to get only 18% of the profits, and give the other 82% to the Bolivian government. And they are wondering why the hell no one has stepped up to take them on that offer yet. Man, I work in the Oil and Gas sector, and let me tell you, that kind of profit margin is beyond unacceptable. The return on the investment would take forever to actualize itself, and let's face it, any government that sees it well in its right to nationalize your investment whenever they see fit, is a government that you can not trust with your investments. So yeah, sure, they did take over the facilities, but no one who actually knows how to run the business will touch it with a 10 foot pole. Morales, if he really wanted to help his people and raise their income level, has fucked up big time. Bolivia doesn't have much oil to begin with, so the return is not even close to the risk.
The state assumed the majority control (51% of the actions) of all the oil-producing companies in the country and two refineries of the Petrobrás (brazilian state company); decreed an increase of the gas tax of 50% for 82% and gave a period of time of 180 days for the companies accept the measures, otherwise they will have to leave the country... Formerly, in the beginning of the privatization process, the companies stayed with 82% of the invoicing and the state with 18% left. In that time, the executives of the company Repsol YPF (Spain and Argentina) celebrated the fact that, for each dollar they put in Bolivia, the company got 10 dollars of profit.
Although Mr. Morales said on Thursday that no compensation would be paid because there was no confiscation of energy companies' assets, Bolivian officials have said that if the new contract talks fail, expropriations are possible, and in that case, restitution would be made.
I also believe that Socialism and its pretext of working for the public good has always been and still remains the ultimate excuse for tyrants and dictators to validate their powers and control.