Venezuela to Nationalize Cement Industry

Epicurus

Epicurus

Reasonable
http://news.bbc.co.uk/2/hi/business/7569290.stm

Venezuela to sign cement deals

Cement production is the latest target of Mr Chavez's nationalisation drive.

Venezuela is proceeding with plans to nationalise its cement industry.

Multinational cement firms Holcim and Lafarge will sign agreements with the country to transfer shares of their local subsidiaries.

The country has begun nationalising industries, including electricity and gas, as part of President Hugo Chavez's drive toward "21st-Century socialism".

However, the Venezuelan government made no mention of Mexican firm Cemex, the country's largest cement producer.

Details of the compensation talks have not been made public.

A spokeswoman for Lafarge said that the company was working to protect the interests of shareholders and staff based in the country.

President Chavez has accused foreign cement firms of demanding excessive profits and selling their cement overseas.

Taking them over, he said, would allow his government to progress faster with plans to end a massive housing shortage.

Venezuela aims to secure at least 60% ownership of cement companies and has said private companies can keep minority stakes.

Banking and telecommunications industries are also set to be taken over by the state.
 
Good idea! It would mean a lot of money for the country and our CIA would have to leave...he he
 
Imagine the Venezuelans believeing they could do things in their own country without US approval.

Good for Chavez and good for the Venezuelan people.
 
blackascoal said:
Imagine the Venezuelans believeing they could do things in their own country without US approval.

Good for Chavez and good for the Venezuelan people.
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Probably not good for the Venezuelan people in the long term. Maybe a good thing for Chavez personally.


Venezeula is experiencing a huge increase in revenue from the increased price of oil. This is likely to be sufficient to fund Chavez's social spending until he leaves office.

But that still doesn't make it a good thing in the long term, since he is making the Venezuelan economy wholly dependent on the state, and the state wholly dependent on revenues from oil, a finite commodity.

Even if it works out financially in the short term, it is unsustainable.
 
I believe after the period of Friedman's brand of Capitalism in South America, the people of Venezuela will thank Chavez in the long run. They can say, well, we aren't Argentina or Chile, thank the gawds!
 
Epicurus said:
Probably not good for the Venezuelan people in the long term. Maybe a good thing for Chavez personally.


Venezeula is experiencing a huge increase in revenue from the increased price of oil. This is likely to be sufficient to fund Chavez's social spending until he leaves office.

But that still doesn't make it a good thing in the long term, since he is making the Venezuelan economy wholly dependent on the state, and the state wholly dependent on revenues from oil, a finite commodity.

Even if it works out financially in the short term, it is unsustainable.
Click to expand...

I think Venezuelans will do what intelligent people do and adapt their economy in future to suit what is in the best interest of Venezuelan people.

Chavez, like Castro, is not attempting to build wealth just for himself .. as would be always true in a capitalist system. Instead, BOTH have risen the economic, educational, and health status of their people. This is undeniable.

Unfortunately, leaders who put the interest of their people before the interest of western corporations are demonized to a gullible American public.

I'm not at all suggesting that you are gullible, but our society most certainly is.
 
Calm down.

Hand wringing over venezuela sells a lot of rightwing magazines. Its a good paying gig for a rightwing op-ed columnist.

Interestingly, a prosperous and egalitarian country, like Norway, which has an economy that is predominantly state-owned, is never written about in rightwing rags. But, as we know, whining about the Norwegian state-controlled economy doesn't sell rightwing magazines. Probably, because its easier to demonize brown people as evil communists, than it is to demonize happy, white, and prosperous white scandanavians.

In theory, there's nothing wrong with a mixed economy, which has elements of public state ownership and euntrepenueralship. Who knows if a mixed economy in Venezuela will ultimately work. All these articles I'm reading says Chavez only wants majority state control. 60% state ownership. He's not bailing on private investors. He just wants the state to have the main say in the distribution and utilization of domestic resources. I don't care that much. Its not my country, they can run their economy however they want. A mixed economy might work. Norway, Sweden, Finland. The rightwing never wants to talk about those. On the other hand, the opportunity for corruption in state owned enterprises is a risk sometimes. But, we all know what the history is of many multinational corps in Latin America is. Murder, exploitation, and coups top that list. I don't think we need to freak out over "encroaching socialism"on America though. Chill out.
 
blackascoal said:
I think Venezuelans will do what intelligent people do and adapt their economy in future to suit what is in the best interest of Venezuelan people.

Chavez, like Castro, is not attempting to build wealth just for himself .. as would be always true in a capitalist system. Instead, BOTH have risen the economic, educational, and health status of their people. This is undeniable.

Unfortunately, leaders who put the interest of their people before the interest of western corporations are demonized to a gullible American public.

I'm not at all suggesting that you are gullible, but our society most certainly is.
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How true because under both Chavez and Castro the common man has seen a dramatic increase in wages. Much more that the increase in wages seen by the average american over the same period in time. Government control of production and natual resources has shown itself to be the best system through time. Every system that has nationalized the means of production and natual resources has soared to the head of the class economically while regulated market economies have failed all over the world.
 
With all due respect to those who posted earlier on this thread I would argue a couple of points. One is that Americans, sometimes very correctly, get categorized as being very provinicial. So having a discussion about another country is not a bad thing. I would also argue people in Venezuela being brown has nothing to do with the argument. Americans constantly talk about the welfare states of the largest European countries/economies such as France and Germany and they are very white people.

Epi essentially nails it above when he states the danger of an economy being wholly dependent on the state and the state so dependent on oil revenue. As he stated Chavez is able to survive now with the high oil prices but they will come down and there will be some ugly economic remains when that happens. Chavez has also replaced many of the long time oil employees with his cronies which is having a severe effect on its infrastructure. Again something that doesn't show up immediately but will eventually rear its ugly head.

And what happens in Venezuela and Latin America is relevent to Americans. No its not going to effect our day to day living. But they are in our hemisphere and have economic and security relations with us.
 
this is great guys, as it exposes the utter and I mean total lack of economic understanding of the modern turbo-lib male.
there citizens only make about $2,200 a yr and Chavez is slowing that down. that is all
 
cawacko said:
With all due respect to those who posted earlier on this thread I would argue a couple of points. One is that Americans, sometimes very correctly, get categorized as being very provinicial. So having a discussion about another country is not a bad thing. I would also argue people in Venezuela being brown has nothing to do with the argument. Americans constantly talk about the welfare states of the largest European countries/economies such as France and Germany and they are very white people.
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Yes, but then the attempt to end any thought by saying "racism" (or implying it) doesn't work when you point out how disingenuous it is. Shhh...

Epi essentially nails it above when he states the danger of an economy being wholly dependent on the state and the state so dependent on oil revenue. As he stated Chavez is able to survive now with the high oil prices but they will come down and there will be some ugly economic remains when that happens. Chavez has also replaced many of the long time oil employees with his cronies which is having a severe effect on its infrastructure. Again something that doesn't show up immediately but will eventually rear its ugly head.
Click to expand...

It will be interesting to see what happens in Venezuela in about 20 years, when the next generation of energy is coming to the fore, if they continue on this path after Chavez leaves office.

And what happens in Venezuela and Latin America is relevent to Americans. No its not going to effect our day to day living. But they are in our hemisphere and have economic and security relations with us.
Click to expand...

Yes, but now somebody will tell you that they are "brown" and that is the only reason you are saying anything.
 
venezuala is so screwed up they are crumbling even with high oil prices. They kicked out exxon and some other oil companies. Now they don't have the engineers or the educatin base to handle on their own.
 
I hope Senor D'Anconia removes all his IP from the system before turning it over.
 
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