Spain's Clash With Argentina Over An Oil Company
http://thedianerehmshow.org/shows/2012-04-18/spains-clash-argentina-over-oil-company
Spain had harsh words for Argentina yesterday over the nationalization of the oil firm YPF. Argentine president Cristina Fernandez de Kirchner rejected the demands of the Spanish company that held a major stake in YPF for ten billion dollars in compensation. All this comes at a bad time for Spain, which is the current European union member causing market anxiety. The euro dropped against the dollar today as Spanish stocks slipped. Diane and her panel of experts discuss what Argentina's decision means for Spain’s struggling economy and the Euro.
Guests
Paul Isbell
a visiting senior fellow for energy and climate change at the Inter-American Dialogue in Washington DC, and a visiting professor at the Instituto Tecnológico de Buenos Aires, former director of the Energy and Climate Change Program at the Elcano Royal Institute for International and Strategic Studies in Madrid.
Daniel Kaufmann
a senior fellow in the Global Economy and Development program at the Brookings Institution, former director of Governance and Anti-Corruption of the World Bank Institute
Sophia Aguirre (Aghih-ray)
professor of Economics and head of the Integral Economic Development Management Program (IEDM) in the Department of Business and Economics of the Catholic University of America
Jacob Kirkegaard
research fellow, Peterson Institute and senior associate, Rhodium Group, a New York-based research firm.
Comments
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Ahh, another fine example of government run rampant, we as americans need to make sure this kind of nationalisation never happens here. The government works at the pleasure of the people not the other way around.
USA is already sliding down the path to more and more state control over of our economy and our lives. President Obama and his allies have successfully sold the argument that the only way to reward the economically uninspired is to confiscate from the rich. It begs the question, how is this empty policy sustainable when you've taken everything from the rich.
I realize you tried to get someone from the Embassy to present the Argentine viewpoint. But the program is very, very unbalanced.
Some years ago Argentina was criticized over its foreign debt policies, and yet the predictions of the critics never came to pass.
A little humility by critics is in order
These guests just seem to be admonishing the argentinian gov't for intruding on the profits of a foreign multinational.They may as well be on the payroll.For the last 50-100 years the anglo-american axis has done everything it could to stand in the way of peoples and their gov't attempts to control their own destiny.From propaganda like this, to assasinations and military interventions.Corporatists like bush and obama, are happy to let tax evading "American"corporations and foreign ones alike to run amok over the people here and around the world.
I love your show, but it is sad that the point of view of today's panel is so one-sided.
Interesingly, nobody seems to mention three things:
(1) Menem's policies of privatization (the opposite of the current situation) led to a huge crisis in Arentina the '90.
(2) Why any country should care about multinational corporations (including YPF)? Should the interests of a multinational corporation go over the interests of ordinary citizens? I don't think so...
(3) What about the allegations of inefficiency and curruption from YPF
I do agree with jose. No way to bring a subject without showing a different point of view. I'm Argentinian , but I don't know enough to take a position in the issue.
Juan Domingo and later Evita institutionalized populism as the form of governmment in Argentina, regardless of the party in power. Once again it shows its stupid face, in fanning the Faukland Is. flames again and the expropriation of Repsol. The EU will not allow these "sin" go unpunished to great detriment of the Argentinian economy. However the insidious consequence of this ill-advised move could be a loss of faith by foreign investors in all of South or even Latin America. Brazil's oil reserves are of much greater importance than what Argentina's are and clearly they will need foreign involvement to fully develop it.
On the other hand the impact this may have on Spain's economy is minimal.
Much worse impact on the world's confidence on Spain, and how it could impact on world economy at large, is the actions by its own king, who chose to go a $58,000 safari while Spain's economic crisis deepens, and to kill elephants to boot. Is this dumb or what?
The Citizens of the Commonwealth of Virginia have something in common with these issues as our governor and his minions have arranged for foreign possession and profit stream from the highways and byways of the Old Tidewater, home of the exiles of the heartland who join the Navy. Of course, everything was done in whispers and behind closed doors, and sweet smells wafted over the concourse. I am unsure of the reference, but I at least call on the Avatar of Swamp Fox, and Touissant L'Ouverture, to assist us in our moment of need, our abjection, our prostration under the clogs of the New Regency.
Sic Semper Tyranus. No-longer-the-Commonwealth-of-Virginia
The Canadian Broadcast Network made a wonderful documentary regarding the 2001 Argentine Economic crash.The first modern day Occupy type movement may have been born there. Why are citizens continually asked to care about the investor class? There is NO greater investment a government must make than that of the interests and needs of it`s people.These corporations,using armored cars,and government security forces emptied the banks,they also outsourced the manufacturing plants,all in the cover of night.The natural resources on public lands belong to the people.....P E R I O D......
Alaska residents receive an annual check from Big Oil. Nothing crashed. Nothing`s broken. Big Oil is making plenty. Alaska is not Communist or Socialist,in fact it is a very Red Republican State.ALL LIVING TOGETHER...
If we use our heads together,THE SKY WILL NOT FALL !!
Everybody needs to take a reality check. Big government is just a front for international big business.
Could Diane please make the panelists more diverse? All these were economists, with a clear neoliberal bent. A historian would have been quite helpful to provide historical and political context to what is an issue that has dominated Latin America since the dismantling of direct state involvement in the economy and rise of neoliberal goverments in the 1980s in the wake of the region-wide debt crises of the 1980s. The prescription to this, as provided by Washington and the IMF, led to brief economic growth in participating countries like Argentina (that was such an avid disciple of the new policies it even dollarized its economy), but then Argentina most spectacularly suffered massive economic collapse. This led to the rise of populists and a search for another path for development that leads us to today. Listening to these people prattling on in unison about "Chavezization" and other false analogies was exasperating.
Diane,I was very frustrated trying to find the call in number today listening to the Argentine Spanish oil conversation. I was amazed that none of your guests were aware that Spain's Repsol polluted vast areas of the Neuquen provence,contaninated the ground water and were force under international law to now pay and transit in fresh water for towns and villages. In retaliation the Spanish Government has imposed restrictions on hereditary citizenship whilst ten of thousands of young Spaniards are reliant on work in Argentina. Your guests all missed the main points and the Malvinas oil exporlation by the English could easily compromise the fishing grounds off Argentina's coastline. Both countries have been taunting their colonial attitudes and as Americans either North or South we should never lose sight of this common perspective we share.
The reason Argentina went from top ten in the 20's to low 200's today lies primarily with the influx of Franco's unwanted, these communists infected a rapidly growing society with envy and criminal misdeeds that required a terrible heavy hand to control. As Argentina finds it's balence it seems no one wants it to rise to the top ten again.
Diane,I was very frustrated trying to find the call in number today listening to the Argentine Spanish oil conversation. I was amazed that none of your guests were aware that Spain's Repsol polluted vast areas of the Neuquen provence,contaninated the ground water and were force under international law to now pay and transit in fresh water for towns and villages. In retaliation the Spanish Government has imposed restrictions on hereditary citizenship whilst ten of thousands of young Spaniards are reliant on work in Argentina. Your guests all missed the main points and the Malvinas oil exporlation by the English could easily compromise the fishing grounds off Argentina's coastline. Both countries have been taunting their colonial attitudes and as Americans either North or South we should never lose sight of this common perspective we share.
The reason Argentina went from top ten in the 20's to low 200's today lies primarily with the influx of Franco's unwanted, these communists infected a rapidly growing society with envy and criminal misdeeds that required a terrible heavy hand to control. As Argentina finds it's balence it seems no one wants it to rise to the top ten again.
The economic colapse in the 90's was caused by International Banks with drawing from Argentina after they refused to allow a US military base in the Commodore provence. our sources are from top brass in that region.
Argentina's mega agricultural exports almost paid out their debts in just a few years.but last year's truck drivers strike cost them dearly.
The Government works to Protect the people. in this case Repsol Spanish oil polluted entire counties, making the drinking water useless. They have now been forced to pay by International Law. What a shame Diane had these lame pundits. just because they have a spanish accent does mean they know anything different.
The rich give their money .....the poor working give their health,happiness and liberty. which is the greater?
Argentina will develope their alternative energy needs quickly. They have great food exports too. Spain doesn't have a leg to stand on as they refuse to pay for the oil mess they made in Patagonia. As for their King,he's the last of his kind. The man's son is gay and the marrige a farce. End O the Line.
Yes, your right. everyone underestimates the Argie's. They did get the debt of their backs and they did use the investments wisely for inferstructure. We couldn't get them to give us a military base in the south so our banks pulled the rug out from under their feet. We should be embarraseed. Really Diane please get people who know what their talking about, not these Bush relics. Who by the way owns vast tracks of land down there too.
I will repeat this again...The US wanted a military base in Patanonia and when they didn't get it our banks pulled the plug on everything to punish.