No subject

drive important plans for regional energy integration. Chavez has proposed
the creation of four regional oil companies to promote unity: Petrocaribe,
Petroandina, Petrosur and Petroamerica as a unifying project within the
framework of ALBA.

Through Petrocaribe, for instance, Venezuela provides discounted oil to 18
Caribbean and Central American nations, whereby those countries are only
required to pay 40% of the price Venezuelan oil upfront, with 25 years to
pay off the remainder as a low interest loan. As well as guaranteeing energ=
y
security to impoverished nations at a time of escalating fuel costs,
Petrocaribe also promotes state-driven national development in the industry=
.


While different issues have impeded the full development of these projects,
PDVSA has signed contracts directly with numerous countries in the region t=
o
build oil refineries, tankers, oil exploration and technical assistance.
Such a policy has been aimed at industrialisation in order to break
dependency on, and subordination to, the US.

This is combined, in alliance with Cuba, with regional health care and
literacy programs.

Possibly the most important part of the struggle for integration by the
anti-imperialist current has been the battle of ideas being waged.
Representatives of this bloc have regularly denounced capitalism, with
Chavez in particular opening up a continental discussion on socialism and
Latin American unity.

This ideological battle has helped encourage the struggles of millions from
below.

In all the regional institutions this bloc has constantly hammering home th=
e
need to create a real political union: a Confederation of Latin American
States.

The Brazilian axis

It was, however, the third axis that was key to the formation of Unasur.
Faced with resistance by Colombia to staging the meeting, Brazil offered to
be the host nation.

Lula stated that Brazil "is the biggest economy, the most industrialised
country with the biggest [GDP]. Therefore, we have to be conscious of the
fact that the integration of South America depends on the actions of
Brazil".

Recalling that only days before he had met firstly with Chavez and Morales,
and then Garcia and Uribe, he said, "on one hand we have a photo with
presidents considered to be left, and on the other with presidents
considered to be from the centre".

"What is the role of Brazil? To be a kind of bridge, to make a connection
between all the political currents of South America, because, given it is
the biggest country, Brazil has to work towards creating a situation of
political, economic, social and cultural equilibrium."

The Lula government is the political representative of Brazil's capitalist
class, whose main interests lie in a process of integration for its own
benefit. It wants to negotiate with the US, but from a better bargaining
position.

Integration, for Brazil, is the development of a regional capitalist system=
,
under the hegemony of the Brazilian bourgeoisie, that can become an
important bloc in the world system. Brazil's weight in the region leaves th=
e
capitalist governments of Argentina, Uruguay, Chile and others with no
option but to follow its lead.

As a counterbalance, some have been working to sign up the other regional
economic power, Mexico, into Mercosur.

While PDVSA promotes integration through dialogue and cooperation to build
up other state oil companies to aid industrialisation, Brazil's nominally
state-controlled energy company Petrobras works to purchase other state
companies or sign contracts favourable to itself to supply Brazil's domesti=
c
industry.

While not a systematic challenge to imperialism, such as represented by
ALBA, Brazil's project collides with the needs of the US. While Chavez
denounces imperialism and Lula seeks to negotiate a better deal for
Brazilian capitalists within its framework, both have worked to block US
plans in bodies like the World Trade Organization.

This is why Brazil was one of the first to propose a South America Defence
Council, along with positioning itself as peacemaker in bellicose clashes i=
n
the region, such as through its leading role in the UN occupation mission i=
n
Haiti.

When asked about what possible role the US would play in such a body,
Brazilian defence minister Nelson Jobim clarified that "we are under no
obligation to ask permission from the US to do this. And they also have to
understand our necessity to reach integration."

While Venezuela supported this initiative as a counterweight to US military
influence, Colombia announced at the Unasur meeting that it was not
interested in joining and the proposal was dropped. Uribe has since stated
his interest in the proposal.

Two new phenomena

Talk of a defence council also comes at a time when both the Argentine and
Brazilian governments have expressed discontent with the reactivation by th=
e
US navy's Fourth Fleet =97 dormant since the end of World War II =97 to pat=
rol
Latin America waters. Along with the increasingly aggressive policy of
Colombia towards its neighbours =97 and the push by the US-backed right-win=
g
opposition in Bolivia towards a violent confrontation =97 it forms part of =
a
new regional phenomenon.

Beginning with Colombia's massacre of Revolutionary Armed Forces of Colombi=
a
(FARC) fighters within in Ecuadorian territory, a series of incidents point
towards attempts by Colombia, behind which stands the US, to find a way to
provoke neighbouring countries.

Evidence that the US and its regional allies are seeking to provoke an arme=
d
conflict can be found in a series of recent incidents, including: Colombian
soldiers illegally entering Venezuelan territory; the release of supposed
documents linking the Venezuela and Ecuadorian governments to FARC
"terrorism"; Colombia's willingness to allow the construction of a US
military base on the border with Venezuela; a new US base in Paraguay near
the Bolivian border and reinforcement of other regional bases; a US militar=
y
plane violating Venezuelan airspace; and the arrival of US troops in Peru.

Uribe has also held talks with the opposition governor of the Venezuelan
border state of Zulia, expressing his desire to deepen relations between
Colombia and the state.

At the same time, a wave of conflicts are sprouting as social polarisation
increases. Ongoing strikes in Peru, growing unrest in Chile, worker
mobilisations in Uruguay, rural strikes in Argentina and a multiplicity of
social struggles in Brazil =97 while often confused expressions of social
discontent =97 are likely to increasingly place these governments in diffic=
ult
situations.

This is already the case in Argentina (under threat from the right) and Per=
u
(from the left).

Social unrest is also affecting Mexico. Following the massive outpouring
against the 2006 electoral fraud that robbed centre-left candidate Andres
Manuel Lopez Obrador of the presidency, the struggle is now focused on
preventing the privatisation of the state oil company.

European Union

Into the mix, the European Union has been working hard to take ground lost
by the US, offering alternative development programs and opportunities for
further economic ties with Europe.

With the prices of natural resources skyrocketing, Latin America is becomin=
g
a crucial region. Unlike Washington, which attacks Venezuela and tries to
pressure Brazil, the EU instead works behind the scenes to undermine Chavez
while offering support to Brazil. Brazil and Argentina look to the EU as
counterbalance to the US.

However, the recent approval by the EU of the racist anti-immigrant "return
directive", which could see undocumented immigrants jailed for 18 months
before being deported, has been met with united opposition by all Latin
American nations.

This is due to the huge number of Latin American families that depend on
members working in Europe and sending money home. The law represents a
serious threat to regional economies.

Bolivia and Venezuela have threatened to reply with a "return directive" on
capital from EU countries that apply the law, as well as cutting off oil an=
d
gas exports.

All this helps explain the real significance of Unasur as well as the
obstacles ahead.

Socialist strategy

One of US imperialism's key objectives is to divide the pro-integration
currents, along with arming its remaining allies, in order to regain lost
ground. To impede this division is a crucial task for Latin American
socialists.

This is something understood by Chavez, who seeks to utilise all openings
towards integration, whatever the limitations, while simultaneously
advocating and seeking ways to implement the Bolivarian revolution's
anti-imperialist program. Venezuela is both seeking to operate within
institutions like Mercosur and construct ALBA with those countries that are
willing.

For the regional capitalists, this convergence is necessary to put a brake
on the uncontrolled voracity of imperialism, in a context of growing demand=
s
from ordinary people.

For socialists, opposition to US plans to divide the region is for
completely different reasons. While institutions like Mercosur can be
supported, it is not because they represent real alternatives to the FTAA
but because they can act as transitional forms towards a real confederation
of Latin American states =97 which would alter the relationship of forces a=
way
from imperialism, creating a stronger basis for social change.

With Mercosur hamstrung by disputes between its members, the creation of
Unasur represents an advance as it moves the discussion to the South
American-wide stage.

In the meantime, it is necessary to transform the mobilisation of workers,
peasants, urban poor and other exploited and oppressed people =97 such as
indigenous peoples =97 into powerful movements for real social change.

Fundamental to this is the construction of political instruments built out
of these movements that aim to win power =97 which means not simply winning=
 an
election but organising the mass of the oppressed to govern.

The struggle to construct the mass-based United Socialist Party of Venezuel=
a
(PSUV), led by Chavez, is a powerful example of what is needed.

Importantly, the PSUV has already set out as an immediate challenge the
promotion of other such parties in the region. To this end, it seeks to
organise a meeting of regional left parties with the aim of constructing an
international organisation of the Latin American and Caribbean left.

[Federico Fuentes is from the Caracas *Green Left Weekly* bureau and edits
Bolivia Rising, http://boliviarising.blogspot.com.]

--=20
"The free market is perfectly natural... do you think I am some kind of
dummy?" - Jarvis Cocker