At 18:59 12/05/2007, Sartesian wrote:
Historically, Venezuela has tried variations on the theme of "plowing
the petroleum".... using oil revenues to develop and "balance the
economy." In the 70s and 80s Venezuela attempted just that, using oil
revenues as down payments on intl bank loans for investing heavily in
new and existing industries, just in time for the overproduction that
knocked down rates of return and oversaturated the world markets. We
know what happened next. And it wasn't pretty.
"Plowing the petroleum" did not work then, didn't work in the 30s or
40s, or 60s and I don't think it is going to work any better this time
around in Venezuela.
The earlier Venezuelan experience was based upon supporting
capitalist enterprises at the very time of the restructuring of
transnational capital in the face of growing intensity of
competition. Whether it will be possible to balance the economy on
the basis of non-capitalist sectors remains to be seen, but we
shouldn't confound the capitalist pattern with all potential ones.
michael
Michael A. Lebowitz
Professor Emeritus
Economics Department
Simon Fraser University
Burnaby, B.C., Canada V5A 1S6
Currently based in Venezuela.
NOTE NEW PHONE NUMBERS
Can be reached at
Residencias Anauco Suites
Departamento 601
Parque Central, Zona Postal 1010, Oficina 1
Caracas, Venezuela
(58-212) 573-6333, 571-1520, 571-3820 (or hotel cell: 0412-200-7540)
fax: (58-212) 573-7724
