Venezuela

Where 21st century Asian socialism meets 21st century Latin American socialism

Don't blink, otherwise you might miss the litany of deals China has been making across Latin America! China has recently signed oil deals with Argentina, Ecuador, and Venezuela; and has contracts and cooperation deals with governments in Brazil, Peru, Chile, Colombia, Uruguay - effectively the entire Latin American continent.


In the early stages of Sino-Latin American cooperation, China seemed to be treading rather carefully, hesitant of both its foreign policy and place on the international global stage. The recent increase in overseas activity - from Africa to Latin America, and beyond - however, suggests that Chinese confidence is rapidly growing. The global financial crisis in particular has raised skepticism over America's hitherto seemingly unwavering preeminence, and has at the same time proffered China as a viable alternative. Indeed, an increasing number of countries are now saying "thanks, but no thanks" to U.S. cooperation and assistance, choosing instead to place their faith in the Chinese. Latin America is case in point.


The strategy the Chinese are employing across the continent appears identical to that which is being pursued in Africa, with oil-for-infrastructure contracts as the primary modus operandi. Like in Africa, too, Chinese investment is manifest on many economic levels - from high level government contracts all the way down to small-scale private entrepreneurs who sell vegetables and various knick-knacks on the side of the road. What's more interesting in the case of Latin America, however, is that the partnerships appear to be much more ideologically laden than those in Africa. This is especially true in Venezuela.


In a a great video from Al Jazeera English (HT: Double Handshake), Venezuelan economics professor Jesus Farias briefly touches on the issue of the Venezuelan socialist model and its seemingly logical intersection with its Chinese counterpart (this, around 2:34). He seems to be suggesting that cooperation between China and Venezuela is predicated not only on economic exchange, but has as its broader objective the restructuring of the global political landscape. I'm not wholly certain that this is necessarily the case - or that such is the objective of other Latin American countries engaged in relations with China - but it certainly is an interesting point worthy of further consideration. Viva la revolution...?


Noteworthy….

China cracks down on civil society, making a case of the Open Constitution Initiative (OCI)

A coffee shortage in Venezuela? (Evidently I can't seem to leave the coffee theme from last week. Apologies.)

Who stereotyped whom? A different perspective on the 'Gates-Gate' controversy

On crime, security and corruption in Africa; new findings from Enterprise Surveys

Diplomacy 101 from Joe Biden. Quite frankly, it just makes me want to cry (and not tears of joy, mind you!)

Great expectations

Regarding President Obama's upcoming trip to Ghana, G. Pascal Gregory of Africa Works writes the following in Monday's Globe & Mail:

Scholars speak of “the empire striking back,” referring to former colonized peoples, such as immigrants from Africa and India, settling in Europe and North America and then challenging norms of race and identity. In his first official trip to Africa, U.S. President Barack Obama is striking back in a novel way. His visit to Ghana highlights the desirability of prominent people from the diaspora making a positive contribution to African affairs.

But Mr. Obama's visit, while heavy on symbolism, reveals the limits of his power. Burdened by economic problems in America and wars in Iraq and Afghanistan, he can't act boldly in Africa or make big promises.

There is certainly no denying the importance of Obama's trip to Africa... errr Ghana... but I am struggling to discover the novelty of the visit. Arguably the trip would have carried much more symbolism had he been 'returning' to Kenya, the birthplace of his father. As Kenya is the most corrupt state in east Africa, the President's decision to visit Ghana instead is being justified on the grounds that by his visit he is hoping to "lift up successful models of democracy" of which Ghana is surely one (and Kenya quite obviously not). If this truly is the objective, however, then he presumably should not have extended aid to Zimbabwe or made nice in Saudi Arabia or buddied up to Chavez, etc. etc. If one is keen to promote models of democracy, one would hope that this would apply on a global scale and not just in select regions.

I further hesitate to attach much significance to Obama's upcoming 'Africa' visit because a) he is in fact going only to one country which quite limits whatever impact he might have, even more so in light of the fact that he is not giving a speech as he did in Egypt when addressing the Islamic people. One would think that he would desire to address the people of Africa, if for no other reason to pay tribute to his roots. Moreover (point (b) as it were) as Gregory aptly notes, Obama cannot act boldly in Africa or make any big promises, though to be quite honest I haven't seen any signs signaling his intention to do so anyway.

While there certainly is much excitement surrounding the President's upcoming visit, much of it seems to stem from the symbolism surrounding the trip - a man born to a Kenyan father, elevated to the highest office in America, returning to his native continent. There is certainly much to be celebrated in this tale, but I fear that Obama's visit will be little more than that: another chapter in the history of a man. All the while, great expectations will be met with great disappointment.

Update: I stand corrected, President Obama will deliver a speech in Ghana, according to the White House blog. The speech is set to air at 6am EST on Saturday, 11 July for all of you early Americans risers (and at a much more reasonable hour for those in Europe and elsewhere!). The President's interview with allAfrica.com likely provides some insights into what we might expect from him. I very much look forward to learning what he has to say.

(Semi-) lighthearted on a Friday

With the sobering (though altogether unsurprising) news in this morning that Iran's Supreme Leader, Ayatollah Ali Khameni, is backing Iran's election results (as is Chavez, apparently) while protests swell, I feel compelled to counteract this bad news with something a bit more cheery. It is Friday, after all!

Before I do that, though, I'd like to bring a few more interesting Iran-related links to your attention:
  • Twitter's watchdog site, Twitspam, has compiled a list of possibly fake (i.e. connected to the Iranian security apparatus) Iran election Tweeters
  • Interesting Chinese commentary on the situation in Iran, from Shanghaiist
  • Ethan Zuckerman on Iran, citizen media, and media attention (the good, the bad, and the ugly)
Right, well enough of that for now. Let's chat photography, travel and music (three of my most favorite things!), shall we? Canadian blogger and world traveler Brendan (aka Cashewman) has compiled a wonderful list of tips for photography in developing countries. At the end of the day it truly comes down to blending in with one's surroundings, though Brendan articulates this infinitely better than I have here.

In keeping with the theme of lists, White African has a running list of practical - and at times amusing - travel tips for Africa. If I have the time, I will begin a similar list for China. Until then, do please leave your tips in the comments section of this post!

And finally, I'm quite excited to see Senegalese-born singer and song writer Youssou N'Dour's new documentary film, "I Bring What I Love," this weekend. In the film N'Dour speaks about his life, his faith, his music, and his vision for human rights and tolerance:



Happy Friday, everyone! Enjoy the weekend.

Update: I happened upon a great piece by the FT's Anna Fifield on the mood among the under-30s in Iran. Definitely worth the read!

Confessions of a (Chinese) shopaholic

I didn't see the film, nor have I ever read the book, but am quite certain that the title (at the very least) nevertheless does well to encompass China's latest buying spree
Squeezed between falling profits and the credit crunch, a growing number of troubled corporations and countries are turning to cash-rich China for a bailout. And with foreign assets cheaper than they have been for years, Beijing is going on an international spending spree.
It appears that while the Chinese economy has also been hit by the crisis, the Chinese banks have not been so badly damaged, and policy banks seem ready to lend. And lend they are. 

Last week, the Chinese government signed a landmark $10bn agreement with Brazil that will ensure long-term supplies of oil to China while delivering much-needed financial assistance to help Brazil develop oil and gas reserves recently discovered in coastal waters. Also last week, China signed off  on $25bn in loans for Russia in return for oil supplies from newly discovered fields in Siberia for the next twenty years. Venezuela will likewise supply Beijing with up to 1 million barrels per day by 2015 in return for $6bn from China to top up an existing development fund. Indeed, not only is China taking full advantage of the economic downturn, but it is quickly assuming the role of Global Lender Extraordinaire.

I must say, however, China's " loans-for-oil" policy reminds me in part of the now infamous Oil for Food Programme. While I trust that Chinese loan money is being employed for its intended purposes, I would be shocked - shocked! - if at least a small portion of it wasn't unlawfully being diverted to help prop up recipient regimes. And when the recipient regimes are states like Russia and Venezuela, it would be a miracle indeed if  that weren't the case.

Chavez’s China strategy

Chavez appears to be turning away from the US and towards China as the future major importer of Venezuelan oil, according to Forbes' Paul Maidment.

Chavez paid a three-day visit to Beijing in late September during which he and Chinese leaders struck deals to build four oil tankers and to construct or upgrade more oil refineries in China capable of processing Venezuela's crude. PetroChina (nyse: PTR - news people ) just upgraded the Liaoyang refinery to that end. China and Venezuela also agreed to build a refinery in Venezuela's Orinoco Basin and launch a joint oil-development project there, potentially one of the world's largest oil fields.

China currently buys 4% (330,000 barrels of oil a day) of Venezuela's crude. Chavez wants to get that up to 1 million barrels by 2012. China also recently signed a $3 billion oil deal with Iraq, and is meant to begin receiving oil supplies from Turkmenistan in 2009. Coupled with its deals with Angola, Nigeria, Russia, and Sudan - among several others - it seems that "non-interference" has its advantages.