South America Flexes Its Muscles

There is an interesting sea change that is occurring in South America. One by one, countries are swinging left and reclaiming resources in the name of the people. They are also attempting to set their own terms with the United States and transnational corporations. It started with Hugo Chavez in Venezuela, and is sweeping across the continent - Brazil, Bolivia, Argentina. Mercosur - the trading block of South American Nations - continues to gain strength. Perhaps, the iron fist of the U.S. is loosening over its southern neighbors.

The plans are being made for the world's largest pipeline to be constructed in South America, for South America. According to Monte Reel, in his Washington Post article "A Latin American Pipeline Dream:"

South American leaders from Venezuela to Argentina are proposing to build the world's largest fuel pipeline across Latin America, and they hope it will deliver much more than natural gas: They portray the plan as the first blueprint for a new era of regional cooperation, greater independence from international markets and a more prominent voice on the world stage.

President Hugo Chavez of Venezuela has labeled the proposal a 5,000-mile symbol of diminishing U.S. influence in Latin America. Enthusiastic support for the project from regional heavyweights, including Brazil and Argentina, has prompted others to describe the project as the first true joint venture of a political coalition determined to forge a new South American identity.

Certainly, Evo Morales of Bolivia is doing his part, by attempting to nationalize the gas reserves of the country. He argues that the transnational companies are running a conspiracy to exploit the gas resources of Bolivia, and that the profits should be going to the people. This move is not making either the corporations, or the U.S. very happy. He has also decided to rewrite the definition of coca, by standing against cocaine, but for coca and coca farmers. That is another revolutionary step that might sweep across South America.

Resources - particularly oil and gas - and drugs seem to be intimately linked in the United States long term attempts to control South America. Interestingly, at a time when the U.S. is most dependent on both, they are slipping away. Illegal drug money makes up a significant portion of the U.S. economy with perhaps a trillion dollars a year being laundered through U.S. corporations, banks, and the stock market - not to mention the engrained practice of using drug operations to fund "black ops" by the CIA and US military. Drugs, particularly cocaine) have also been used as an ongoing legitimation of US financing of military operations in South America ("Plan Colombia" for example).

Now, as peak oil and gas is on the table, the resources of the Western Hemisphere become particularly valuable. To have the control of those wrested out of the hands of big energy and the U.S. has to rankle the powers that be. However, the U.S. has apparently decided to focus its primary attention on the non-Saudi resources of the Middle East and South Asia. This certainly does not mean that South America is being totally ignored. The U.S. approach at this time seems largely aimed at covert operations, continued funding of rightist paramilitaries, and using organizations like NED (National Endowment for Democracy) to foil, or at least slow down, the increasing independence of South American nations. Given the momentum that is building, I sincerely doubt that such tactics are likely to succeed over the long term.