You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Reply #1: Huh, that's not "backing", Judy [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Places » Latin America Donate to DU
protocol rv Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-09-10 08:21 PM
Response to Original message
1. Huh, that's not "backing", Judy
The guy said Bolivia had the right to nationalize. That's like saying orcas have the right to eat seals. He was saying something that's self-evident and not disputed. It doesn't follow he thinks seizing the plants is a good idea. Notice the words "fair compesation" were used. Most companies are in full agreement with nationalization, as long as "fair compensation" is paid. The problem, you see, is that fair compensation isn't paid by the likes of Chavez, Correa, etc.

I should add, the reason why companies like to have an international arbitration clause in their contracts is to have the ability to go to an outside arbitrator (usually in Sweden, NY, or similar), where the fair compensation issue can be decided. Countries which don't intend to honor the fair compensation of nationalized companies hate such arbitration clauses. And this is the reason why nobody is really investing in Venezuela. I know the deals are "signed", but the reality is very ugly: they are barely investing at all, waiting to see if Chavez' government will lose the elections in September.
Printer Friendly | Permalink |  | Top
 

Home » Discuss » Places » Latin America Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC