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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (1138)	7/18/2005 8:46:18 PM
From: Wharf Rat	Respond to of 24225

Nicaragua hits the crunch first The poorer nations are first to experience what we will all be swept over by: expensive energy by Dan Crawford Recently, Fidel Castro, who attended the first PetroCaribe Energy Summit at Puerto La Cruz, Venezuela, made a statement that was ignored by international media. He informed the summit that no Caribbean country will be able to purchase oil once the price reaches $100 a barrel. Castro was only pointing out the obvious—the first places to be affected by increasing fuel costs will be the poorest countries of the world. The fact that media ignored this statement is significant. Logically, if one wishes to understand how rising energy costs will affect us, then one should look at the very places that are being affected now. The poorest countries that rely completely on diesel generators for their electricity are the ones showing the initial signs of trouble brewing. Nicaragua, the poorest country in Central America, is a case in point. The President, Enrique Bolanos, recently issued a state of emergency over energy due to rising fuel costs. This event was so poorly covered by media that only a handful of reports ever surfaced, much of them containing inaccurate information. I recently spent a number of months in Nicaragua. Through my contacts there I have received first-hand accounts of their current situation. The media reports stated that “three-hour-a-day rationing in the supply of electricity” would be enforced. Many interpreted this as meaning electricity would only be available for three hours a day. In fact the opposite is what happened. Rationing only occurred during peak consumption—a three hour period from seven till ten in the evening. When the rationing was first announced many Nicaraguans reacted by buying up supplies. Stores selling candles, flashlights and batteries were quickly emptied. The power was never cut in the richer parts of the country, such as the tourist town of Granada. The blackouts occurred only in the poorest parts of the country in places like the Mercado Oriental in Managua. Ironically, the government had issued public statements saying that the poor would not be affected. For many third world countries there are numerous problems causing cracks in their social structures. Corruption is often considered an accepted business practice. In fact, many business owners in Nicaragua pay Union Fenosa representatives to turn their meters back so as to reduce their electricity bills. Rising costs could very well motivate more customers to join in the corruption, exacerbating the overall problem. On the more legitimate side, a number of unions and consumer groups are advocating to stop payment of electric bills until the problem has been resolved, which will also cause the situation to worsen. Rising energy costs are being used to bring political agendas and new conundrums forward as well. For Nicaragua the situation is being referred to as a “political crisis” causing much concern over the future of the country. Foreign intervention has been initiated through the OAS (Organization of American States). Other areas of society are also being affected. Unemployment in the rural areas is on the rise, the price of basic staples has increased, and consumers are buying less. Some store owners are concerned that if this paces continues, they may be forced into bankruptcy. The rising cost of energy is acting as a catalyst that is amplifying the problems faced by third world countries. Any pre-existing cracks in their political and societal levels are being wedged wider. In essence, the cost of a barrel of oil could very well act as the match for setting off powder kegs of social and political unrest. When the same reality of expensive fuel starts to hit us, the same thing will happen: whatever pre-existing problems we now have will be breached open wider. **** republic-news.org