'Resource nationalism' as an answer to unequal economic exchange

OIL CRISIS: Just when the world was coming to consider the "oil price crunch" of the early Seventies as history, comes this steep climb in world oil prices coupled with the looming "oil weapon".

The OPEC action of those times which had an almost paralytic impact on industrial capitalism and posed a threat to Western economic dominance was an epochal moment in 20th century international relations.

For the first time since the formation of the US - dominated post World War II politico-economic order, a group of states owning a substantial proportion of the world's oil resources was coming together to promote its vital interests, disregarding in the process the tremendous political, economic and military might wielded by the US- led Western power bloc symbolized by NATO.

The OPEC- inspired oil price spiral of the Seventies was certainly an "oil crunch" of the greatest magnitude because perhaps for the first time in the history of the modern world, the Western system was found to be vulnerable to the steep price changes of an important economic resource, which was also of great strategic relevance.

For some sections of the Third World, this was a turning - point in global power relations. At long last, the tables were turned on the dominant West by an oil cartel which was seen as linked more to the developing world on account of its predominantly Asiatic identity.

Until then, global economic relations were shaped by the West and were seen as highly exploitative in nature with the developing countries constantly losing out in their economic transactions with the First World. Low prices in the West for Third World primary products were a case in point.

Not being in a position to challenge the economic and military dominance of the industrialized West, the Third World was compelled to accept Western economic decisions, which were seen as disadvantageous to the developing countries.

However, with the hiking of oil prices, the developing countries believed that their moment had arrived. Finally, the West was seen to be at the mercy of an important section of the developing world, in economic terms.

That the developing countries did not gain in any measure from this seeming change in the global power equation was soon apparent. The "oil weapon" certainly brought unprecedented wealth to some OPEC countries, but the developing countries, generally, remained outside this charmed circle.

Needless to say, there is nothing in the current oil price hike too for the developing countries, which is seen as being sparked mainly by Iran's confrontation with the West over the nuclear issue, but there are some incipient nationalistic stirrings in distant Latin America which could be of interest to the Third World.

In developments which are somewhat reminiscent of the oil crisis and resultant issues of the Seventies, Bolivian President Evo Morales has ordered his troops to seize the natural gas fields of Bolivia which have thus far been operating in the shadow of Western multinational oil companies such as British Gas, Total and Exxon Mobil Corporation.

Morales would be seeking to bind the oil multinationals to a new contract which would be more advantageous to Bolivia. This is "natural gas nationalism" in action.

This development comes close on the heels of a successful effort by Cuba, Venezuela and Bolivia to close ranks against Western economic dominance. For instance, the three states have formed an alternative bloc to the US - led Free Trade Area for the Americas - the Bolivarian Alternative for the Americas.

This grouping seeks to promote the vital economic interests of the three states against Western economic penetration and was enthusiastically flagged off recently by the Presidents of the three states - Fidel Castro, Hugo Chavez and evo Morales.

Only time would tell how effective an economic bloc this would prove to be but what is beyond dispute is that poverty is steeply rising in sections of the Third World, necessitating a fresh look at Socialism as a politico-economic model and paving the way for the emergence of what has come to be known as "resource nationalism".