PetroCaribe Confronts Global Crisis
17 July, 2008

Havana, Cuba.- The good and bad side of the coin. These are the discussions and considerations on the oil issue these days.

On one hand, in Japan, the large economic powers of the world, among them the major consumer of hydrocarbons the United States, merely expressed 'concern' over the high price of oil, already over 140 dollars a barrel and demanded that the producers pump more for their opulent societies.

On the other hand, the poor nations that met in Venezuela received both solidarity and cooperation from one of the world major suppliers of oil, whose popular government is convinced that energy can be a source of development and well being.

The recently concluded PetroCaribe Summit thus became the noble face amidst the current global oil crisis, provoked by the devastating actions of the large and untouchable financial speculators; the sickly weak dollar and Washington's war policy that still has an influence on the rest of the world.

But PetroCaribe is looking for solutions, establishing concrete measures, foreseeing policies and prioritizing solidarity above small-minded interests.

Very important agreements came out of Venezuela for the sub region, where the energy bill, according to current prices, could mean a mortal blow.

To import oil, currently at over 100 dollars a barrel for members of the pact, now including Guatemala, they will pay 40 percent of their purchases within 90 days and the other 60 percent can be paid over 25 years, with an interest rate of 1 percent.  The decision to use the oil saved for social programs in each of the respective countries still remains intact.

In addition, a Council of Ministers was created during the Summit to face up to the food risks that derive for the region due to the price hikes of food staples in the international market.

This institution should also establish official plans to raise internal production of provisions through incentives for producers and othersupport programs in such a sensitive branch.

As one analyst said:A good lesson from the Caribbeans to those that think they own the world.

By Nestor Nuñez
ACN special service