Chomsky on the Rise of the South

" ... Actually what's happening in Bolivia is a striking example. The mostly white, Europeanized elite, which is a minority, happens to be sitting on most of the hydrocarbon reserves. And for the first time Bolivia is becoming democratic. So it's therefore bitterly hated by the West, which despises democracy, because it's much too dangerous. But when the indigenous majority actually took political power for the first time, in a very democratic election of the kind we can't imagine here, the reaction in the West was quite hostile. I recall, for example, an article - I think it was the Financial Times - condemning Morales as moving towards dictatorship because he was calling for nationalization of oil. They omitted to mention, with the support of about 90% of the population. But that's tyranny. Tyranny means you don't do what the United States says. Just like moderation means that you're like Saudi Arabia and you do do what we say.

There are now moves toward autonomy in the elite-dominated sectors in Bolivia, maybe secession, which will probably be backed by the United States to try and undercut the development of a democratic system in which the majority, which happens to be indigenous, will play their proper role, namely, cultural rights, control over resources, political and economic policy, and so on. That's happening elsewhere but strikingly in Bolivia.

The Bank of the South is a step towards integration of the countries. Could it weaken the IFIs, yes it can, in fact they're being weakened already. The IMF has been mostly thrown out of South America. Argentina quite explicitly said, "Okay, we're ridding ourselves of the IMF." And for pretty good reasons. They had been the poster child of the IMF. They had followed its policies rigorously and it led to terrible economic collapse. They did pull out of the collapse, namely by flatly rejecting the advice of the IMF. And it succeeded. They were able to pay off their debts, restructure their debts and pay them off with the help of Venezuela which picked up a substantial part of the debt. Brazil in its own way paid off its debt and rid itself of the IMF. Bolivia is moving in the same direction.

The IMF is in trouble now because it is losing its reserves. It was functioning on debt collection and if countries either restructured their debt or refused to pay it, they're in trouble. Incidentally the countries could legitimately refuse to pay much of the debt, because, in my opinion at least, it was illegal in the first place. For example, if I lend you money, and I know you're a bad risk, so I get high interest payments, and then you tell me at one point, sorry I can't pay anymore, I can't call on my neighbors to force you to pay me. Or I can't call on your neighbors to pay it off. But that's the way the IMF works. You lend money to a dictatorship and an elite, the population has nothing to do with it, you get very high interest because it's obviously risky, they say they can't pay it off, you say okay your neighbors will pay for it. It's called structural adjustment. And my neighbors will pay me off. That's the IMF as a creditors' cartel. You get higher taxes from the north.

[ ... ]

...they have to face the fact that the West will not allow it to happen. If you go back to 1974, that was the first move toward oil independence by the oil-rich countries. Just read what American journalists and commentators were writing. They were saying they have no right to the oil. The more moderate writers were saying the oil should be internationalized for the benefit of the world. American agricultural wealth shouldn't be internationalized for the benefit of the world, but the oil of Saudi Arabia should be because they're not following what we tell them to do anymore.

The more extreme people, I guess it was Irving Kristol, said insignificant nations like insignificant people sometimes gain illusions about their own significance. So therefore the age of gunboat diplomacy is never over, we'll just take it from them by force. Robert Tucker, a serious international relations specialist who is considered pretty moderate, said it's just a scandal that we're letting them get away with running their own resources. Why are we sitting here, we've got the military force to take them. Go back to somebody like George Kennan, who's considered a great humanist. When he was in the planning sector, in the late 1940s and early 1950s, he said harsh measures may be necessary for "protection of our resources" -- which happen to be in some other country. That's just an accident of geography. They're our resources and we have to protect them by harsh measures, including police states and so on.

Take Bill Clinton. He had a doctrine too, every president has a doctrine. He was less brazen about it than Bush, didn't get criticized a lot, but his doctrine was more extreme than the Bush doctrine if taken literally. The official Clinton doctrine presented to Congress was that the United States has the unilateral right to use military force to protect markets and resources. The Bush doctrine said we've got to have a pretext, like we've got to claim they're a threat. Clinton doctrine didn't even go that far, we don't need any pretext. With markets and resources, we have a right to make sure that we control them, which is logical on the principle that we own the world anyway so of course we have that right.

You're going to have to look far in the political spectrum to find any deviation from this. So if the oil-rich countries were to try to really take independent control of the resources, there would be a very harsh reaction. The United States, by now, has a military system; more is spent on the military system than the rest of the world put together. There's a reason for that. That's not to defend the borders. ... "

~ From Michael Shank, "Chomsky on the Rise of the South" (Washington, DC: Foreign Policy In Focus, January 30, 2008) ~