The Latin American Consensus

It appears that the Left wing governments in Latin America have decided to use their Petropower to bypass US hegemony in the region.

Hugo Chavez, the Venezuelan president, says Brazil, Argentina and his country will move forward on a proposed natural gas network spanning much of South America. He added that the agreement heralded a new era of regional co-operation with less US influence.On Thursday, Chavez said: "This is the end of the Washington consensus," referring to a set of US-backed free market policies meant to solve South America's economic woes.
"It is the beginning of the South American consensus."

While this looks good at first glance the problem is that it is stil industrial development and such developement threatens the Amazon jungle.

The pipeline would stretch from Caracas, Venezuela, to Buenos Aires, Argentina, cutting through Brazil's Amazon rain forest. It would also link to Bolivia, Paraguay, and Uruguay.

What is interesting is that the three countries, excluding Bolivia, which still has to nationalize its oil and gas industry, are now looking at oil and gas for export while moving their domestic market for cars to the low pollution alternative of natural gas.

It was not clear how much each country would invest, but Chavez said the investments would pay for themselves if some countries - especially Brazil and Venezuela - change their petrol-powered cars to natural gas. According to Chavez, that shift alone would allow for a massive increase in petrol exports by both Venezuela and Brazil, generating as much as $15 billion in annual revenue. Argentina has the world's largest fleet of cars running on natural gas, followed by Brazil.

Which means that while they reduce greenhouse gas emissions on one hand, they will also be destroying part of the lungs of the world to do it. Sustainable capitalism, once again faces its own contradicitons.

Also see:

Chavez

Bolivia Moves Left

Oil Crisis

The End of the Oil Age

US Government Discovers Peak Oil

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oil
Latin America
Chavez
Brazil
Agentina
natural gas
pipeline
South America