Antulio Rosales

Going Underground: the political economy of the ‘left turn’ in South America

Abstract This article argues that South America’s ‘revolutionary’ left turn can be best explained by its assertion of state property over natural resource extraction. The recent history of the leftist movements in Venezuela, Bolivia and Ecuador relates to the failures of the neoliberal reforms applied in the region decades before, hence the dismantling of core orthodox policies has been critical for them once in power. This has been possible through the expansion of state action in the economy, but mainly through the governance of hydrocarbon extraction and the control of subsoil rents. Resource extraction has been central to the political economy of Andean left-wing revolutionaries, responsible for many of their successes but also their impending challenges. This rearticulation of underground governance is linked to global transformations that give prominence to emerging economies and reinforces these countries’ position in the world economy as providers of primary commodities.

The Banco del Sur and the Return to Development

The proposal of a Banco del Sur began to be discussed in 2007 and generated important debates about the need to establish a new regional financial architecture. These discussions resulted in consensus about the importance of financing development at the regional level. An analysis of the positions and development visions of four key states—Argentina, Brazil, Venezuela, and Ecuador— in the negotiations for the establishment of the Banco del Sur and their implications for its design reveals important differences about its purpose—whether it should be the center of an institutional network aimed at the construction of a new regional financial architecture or simply a development bank. La posibilidad de un Banco del Sur se comenzó a discutir en 2007 y generó importantes debates sobre la necesidad de establecer una nueva arquitectura financiera regional. Estas discusiones dieron lugar a un consenso sobre la importancia de financiar el desarrollo a nivel regional. Un análisis de las posiciones y visiones de desarrollo de cuatro naciones clave (Argentina, Brasil, Venezuela y Ecuador) en las negociaciones para el establecimiento del Banco del Sur y sus implicaciones en dicho proyecto revelan importantes divergencias sobre su presunto propósito: ¿debe ser el centro de una red institucional destinada a la construcción de una nueva arquitectura financiera regional o simplemente un banco de desarrollo?

Deepening extractivism and rentierism: China’s role in Venezuela’s Bolivarian developmental model

ABSTRACT Venezuela is an example of a neo-extractivist country that pursues a developmental model based on wealth redistribution sustained by oil rents. The Venezuelan government has sought support from Chinese state-owned enterprises and lending institutions. This article argues that the political elite of the Bolivarian project has turned to China not just as a strategic ally but also as a source of development cooperation, a lender-of-last-resort, a major investor and a reliable market for its oil. As Venezuela’s domestic political economy has become entrenched in an extractivist and rentier model of development, it has also become dependent on China’s financial support.

China and the decaying of socialist rentierism in Venezuela: instability and the prevalence of non-interventionism

ABSTRACT Over the last decade, Venezuela’s government turned to China’s state-owned enterprises and lending institutions as sources of financial support. As Venezuela’s rentier model of development became entrenched, it also became more dependent on China’s financial support. In this article, I analyse the recent evolution of this relationship and explain a change in attitude from China in recent years, when Venezuela faced a soaring economic crisis. The article argues that China’s response to Venezuela’s pursuit of financial support has been timid due to concerns around the stability of the Venezuelan regime, which put repayment of commodity-backed loans at risk. Instead of pushing for much-needed reforms to secure repayment, China’s behaviour remained cautious and loyal to the principle of non-interventionism. In turn, Venezuela has been unable to continue delaying an adjustment, which took place in the form of a drastic reduction in imports. China’s financial support bolstered an unfeasible rentier-state project. The decaying of Venezuela’s socialist rentierism has undermined its own capacity to extract crude and satisfy its commitments with foreign partners.

The political economy of natural resources and development: from neoliberalism to resource nationalism, edited by Paul A. Haslam and Pablo Heidrich

Paul A. Haslam and Pablo Heidrich’s edited volume The Political Economy of Natural Resources and Development joins a growing body of literature on the relationship between resource extraction and d...