Monday 13th March 2006

New Statesman - Urban life

Darcus Howe senses a power shift

Hugo Chavez's oil largesse is shifting the balance of power in the
Caribbean, writes Darcus Howe
The name Hugo Chavez stirs great expectations in the English-speaking
Caribbean these days. He is, of course, the president of Venezuela.

Relations between his country and the English-speaking Caribbean have not
always been cordial. In 1970, when Trinidad and Tobago was consumed by a
socialist-leaning insurrectionary movement, the activists (including yours
truly) feared intervention from Venezuela, and the government almost fell
when Venezuelan naval vessels appeared in Trinidad's waters.

Since then much has changed. Venezuela has ceased to be a sub-imperialist
mate of the US and become a beacon of anti-imperialism, and Chavez has seen
off the middle-class, pro-American opposition at home. Venezuela can
withstand US pressure because it produces almost three million barrels of
crude oil per day.

For the first time, the Venezuelans have extended their power to embrace the
stagnant and paralysed economies of the tiny island states of the Caribbean.
Recently, 13 Caribbean governments signed what is called the PetroCaribe
accord, which supplies them with 185,700 barrels of Venezuelan oil daily and
defers payments for 30 per cent of the imports for 15 years at an interest
rate of 2 per cent a year, the rate decreasing in proportion to the increase
in the oil price on the world market. Chavez has gone further. He has also
offered the islands a $50m grant for social programmes, which they have
accepted.

Oil-rich Trinidad and Tobago did not sign the accord. Barbados, too, has not
signed, perhaps fearing that its tourist economy could not survive US
displeasure. On the other hand, the agreement has been hugely popular in the
countries that have joined up, giving a sense that power is shifting in the
hemisphere from Uncle Sam to Venezuela.

On my recent visit to the islands I experienced an amazing interest in the
PetroCaribe accord, and there is apparently more to come in that vein. So
don't be surprised to hear "Chavez, Chavez, Chavez" ringing out from the
Caribbean.

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