Is Cristina right?
The renationalization of the oil company YPF has divided the Argentine press; the pro-government newspaper Página 12 praised the initiative, while the opposition newspaper Clarón condemned it; under Spanish control, the company prioritized dividends for shareholders, who are facing a crisis in Europe, instead of investments in Argentina.
247 - By regaining control of YPF, the "Petrobras of Argentina," from the Spanish company Repsol, President Cristina Kirchner set a precedent and sparked a discussion that, sooner or later, could reach Brazil. In the 90s, when Latin American countries faced severe crises, governments privatized the so-called "crown jewels," which were predominantly handed over to Spanish, Portuguese, and Italian groups. Today, with Europe in deep crisis, many of these companies have faced losses in their countries of origin, which are partly offset by profits obtained in Latin America. This was the blatant case of Repsol in Argentina, but not the only one. For the Spanish groups Telefónica and Santander, for example, Brazil has become a veritable windfall. And here, the services provided are not among the best, nor do the tariffs charged for the services seem to be the fairest.
In the case of Repsol, the situation was dramatic. A traditional exporter of gas and oil, Argentina was becoming an importer due to low investments by YPF. According to columnist Alfredo Zaiat of Página 12, President Cristina Kirchner took a decisive step for the country to begin recovering its "energy sovereignty," after what she defined as "14 years of Spanish predation." According to Zaiat, a country's development is intimately linked to its energy supply, which cannot be left solely to private interests.
In Clarín, the reaction was the opposite. The newspaper, which opposes Kirchnerism, highlighted the threats of retaliation from Spain and the cancellation of a European mission to Argentina. Spanish authorities accuse Cristina Kirchner of using the crisis to cover up her own economic and social crisis. A detail: Argentina, which has been growing at rates close to 8% per year, is only not growing more because it has been hampered by low energy supply, while Spain is mired in the worst recession in its history.
At different historical moments, Brazilian leaders, such as Leonel Brizola, Getúlio Vargas, and Juscelino Kubitschek, also nationalized foreign companies when they perceived that they were investing below what was necessary and draining resources abroad. The most emblematic case was that of the former Light company, which was known as the "Canadian octopus." Recently, Itamar Franco regained control of Cemig from the American group AES. The same company was partially privatized by Aécio Neves and, according to a report this week in Exame magazine, began operating under state control but under the results-oriented logic of private enterprise. In São Paulo, where blackouts are frequent, AES continues to control Eletropaulo.
Therefore, in the case of YPF, the analysis is not as simple as it seems to be for those who divide the world between neoliberals and Chavistas. Perhaps Cristina Kirchner made the right decision. And it is still possible that this discussion will reach Brazil, when people start to wonder, for example, why telephone service here is one of the worst and most expensive in the world.