Remora

Enron's stunt fall, during that portion of the Bush administration that we will certainly know more about if Cheney's office has to release its docs, was preceded by a rise duing a portion of Clinton's administration that hasn't received a lot of scrutiny, yet. Corporate Watch has published an article by Jimmy Langman on Enron's operations in Bolivia. The interlocking interests of capital and the state are put into special relief in this instance of what Cobbett would have called 'ruffian' capitalism.

Let's put this in terms of the mission statement, or the vision committment, or whatever seedy term you want to use.

Q: How can Enron, the free enterpriser's free enterprise, suck off the government tit by running a pipeline through an environmentally threatened forest? And how can it parlay false promises to a bunch of indigineous know nothings into an incredible amount of profit, without paying for an incredible amount of environmental damage, and still cheat its partners on the deal?

First, the setting:

"The 390-mile long Cuiaba natural gas pipeline, partly owned by Royal Dutch/Shell Group, stretches from near the city of Santa Cruz in eastern Bolivia to Cuiaba, Matto Grosso, Brazil. There, it fuels Enron's new 480-megawatt thermal power plant. The pipeline cuts through the 15 million-acre Chiquitano, the last, large, relatively intact tall dry forest in the world. The Chiquitano forest is "one of the world's richest, rarest and most biologically outstanding habitats on Earth" and one of the planet's 200 most sensitive eco-regions, according to the World Wildlife Fund. Approximately 90 species of mammals, birds and reptiles in the Chiquitano are listed as endangered. The adjacent Pantanal is the world's largest wetlands region, spanning 89,000 square miles and straddling the borders of Brazil, Paraguay, and Bolivia. It is one of the world's richest wildlife habitats."

Now, remember, this forest is inhabited. The inconvenient indigenes must be placated with some initial promise that will pay off the NGOs that virtuously claim to represent them. Don't worry about really representing them -- once the NGOs have satisfied themselves, and their mailing list of contributors, that they've operated with maximum virtue, they will forget about their "clients" -- or better, having bought into the enterprise, they'll defend it against any subversive dissent that might emanate from some village headman somewhere, like that guy knows anything. Enron, however, isn't Shell Oil, which would be satisfied with some such arrangement. Enron wants to hit the ball out of the park, because that is the innovative, asset light, creative destruction type of corporate culture that made the 90s so special. To really hit the ball out of the ball park, you have to simultaneously juggle your accounting in a fraudulent way, contribute as much as possible to the degredation of the wilderness described above, seduce monetary support from the taxpayer, and cheat your business partner. Enron, with the mastery that accompanied its spiking stock prices, was able to do it all, as Langman reports. What fascinated LI is the part played by another one of those obscure Federal agencies that exist to pump money, as in an artesian well, from a lower level to a higher one -- that is, lining the pockets of the porcine set with money that, as LI writes this, is going to be denied the unworthy poor in pending legislation to "reform" welfare even more.

This is the US aspect of the deal:

"The "Cuiaba Energy Integrated Project" cost an estimated $600 million to build, $200 million of which was originally to be financed by the Overseas Private Investment Corporation (OPIC), a US government agency that helps US companies with business projects in less-developed countries."

Never let it be said that America is indifferent to less developed countries, not with OPIC around to spread our bounty from jungle to glorious jungle. Enron was OPIC's number one cause, accruing 1.7 billion dollars in much needed aid since 1992. However, in Bolivia, OPIC was hampered by constraints on lending to environmentally destructive projects. But hey presto! that's where a little teamwork from OPIC's pliant chief environmental officer, Harvey Himberg, came in. By selectively describing the project, and by picturing the Chiquitano in wholly false terms, they were able to get around the restraints written into OPIC regulations. Himberg is what you call a visionary in the Forturne-'n-Forbes speak. Here's an example:

"After fires swept parts of the Chiquitano forest in the summer of 1999, OPIC even created a video highlighting the burnt out areas in an effort to convince individuals from other government agencies that the forest was not primary. The video led one US Agency for International Development staffer to tell an environmental group that he came away with the impression that there was no forest left.

"At every step OPIC sided with Enron, finding every way possible to circumvent its primary forest policy," says Atossa Soltani, executive director of Amazon Watch: "OPIC management put on an all out effort to defend its largest business client."

This sounds much like tactics used by the Bush administration to get its true clients, petro companies, oil leases in the Artic National Wildlife Refuge.

OPIC has a little convenient site for children set up to explain itself, with cute pictures of jungle plants and beasts (in keeping with the curious American custom of portraying, in cartoons, the happy frolicking creatures we stun, butcher, slice n dice, broil, bake, and fry -- the grinning pig at the Barbecue place, the dancing chicken who can't wait to immerse itself, breast and thigh, in boiling oil. MMM MMM Good, Kids!) and a whole buncha fun facts to know and tell. Did you know sometimes private insurance companies just are so poopy? Yeah, they simply won't underwrite those necessary ventures of American capital into the big scary world of lions and tigers and bears. Now, Uncle Sam don't want to coddle any of you or your welfare queen mamas, you hear? But if you are, say, a multi-billion dollar energy company, the bowels of our national compassion are moved:

Why Is OPIC Needed?


Private loans, loan guaranties, and political risk insurance are hard to get for companies who want to operate in less developed countries. The best way for a country to become more developed is to encourage businesses to build and operate there. Some banks refuse to do business in these countries because they think it is too risky. OPIC helps these growing nations by supporting those businesses that want to operate in these countries.

Kids will do the darndest things, and some of them might question whether Uncle Sam should leap in where angels and venture capitalists don't dare to venture. But have no fear. OPIC, you see, is good for America!

"How Does OPIC Help America?

OPIC helps American companies make investments in developing countries. When US companies make these investments they are likely to create US jobs and exports. For example, if OPIC is helping to build a power plant in a foreign country then the parts and equipment needed to build the power plant will often be supplied by other American companies. American companies may build the generator for the plant, as well as selling the cranes, bulldozers, and trucks needed to build it. Since 1971, OPIC has supported $138 billion worth of investments that will generate $63.6 billion in U.S. exports and create nearly 250,000 American jobs. OPIC does not support projects that may result in any loss of American jobs or exports.

OPIC also helps U.S. foreign policy by only doing business in countries that obey certain rules about workers� rights and human rights. OPIC will not help any country that abuses its people.

OPIC is self-sustaining , and has made money every year since it was created in 1971. Because OPIC is so successful, it contributes money to the U.S. foreign assistance account every year."

LI was a smart ass boy. And LI has grown up to be a smart ass man. And this man, reading about all those trucks and cranes and things, wonders how scared the lions and tigers and bears should be. But they are SCARY! We have zoos to put creatures like that where they belong: behind bars!

In the meantime, although OPIC is very open and touchy feely with the kiddies, it seems simply touchy when it comes to its accounting. Or at least according to the Friends of the Earth. Kids, you might want to add to OPICs fun facts page the question, how are we accounting for those projects that (zoom! zoom!) use all those like neat cranes and trucks to set up like coal burning fuel plants in Thailand and stuff.

"OPIC's Annual Reports provide Congress and taxpayers with an ambiguous and distorted picture. OPIC reports "commitments" to the public but not final signed contracts. Therefore, the public has no way of knowing whether or not a contract was actually signed, which would result in official U.S. financial exposure and could create debt for developing countries."

But lets not badmouth our friendly neighbor policy while our POTUS is with Putin. Children, after all, should be seen, and not heard -- and the same is true for citizens.






has a site for kids