zando, fact is EVERY developing nation have a relationship with china in today's world. chavez eh doing anything different from other developing nations. china is the global driver for growth in the developing world and have money for investment. the larger point i'm trying to make is that practical considerations are at the heart of the apparent ideology, not the other way around.
btw: abdullah's talk doh line up with he actions so much. they have a real demographic problem in de middle east - alot of unemployed youth getting state handouts - look more like social pacification than social investment.
With all due respect, ‘practical considerations’ is a catch-all phrase that is simultaneously overarching and completely devoid of meaning. I take it you mean economic and to some extent security gain, but it can also be used to describe almost any accrued benefits.
My point here is that conflict within OPEC is not solely the result of disagreements over price levels, i.e. revenues. The new tone of discussion we are hearing from OPEC that they are concerned only with the business of oil production comes mainly from the Saud camp…take that for what it is. The reality is that levels of extraction, production, distribution (supply), and therefore price, are also driven by geo-political considerations, and contrasts in geo-political considerations that can affect these factors, and therefore price, is most discernable in the positions of Saudi Arabia and the Venezuela/Libya/Iran bloc
Saudi Policy: Maintain stability, manage risk, sustain demand in the face of non-OPEC competition, maintain Saudi Arabia’s global market share, act as a buffer against conservative Shia fiscal policies especially in Iran, stabilize the U.S. dollar, increase the wealth of individual Saudis. …..As one Saudi avisor put it “OPEC has to do with oil; it cannot solve the world's problems with a political agenda. It would be putting its bread and butter at risk.''
Venezuelan policy: Actively recruit non-OPEC nations to OPEC, more emphasis on inter OPEC cooperation and formation of mutally beneficial OPEC/non-OPEC trade blocs in developing nations, less emphasis on competitiveness of each state in maintaining market share, use OPEC as a pulpit to call for the U.S. dollar to replaced by a basket of currencies and derivatives as the worlds reserve currency, enhance wealth of global citizenry at large. Best summarized by the old mantra…A rising tide lifts all boats.
If practical considerations drive the production and distribution of petrochemicals and derivatives then why all the baccanal?? Surely the Saudis have a good thing going on with 10,000,000 barrels of oil a day @ $100/barrel yes? Why don't they just kick back and drink rum and chase women all day? Why the need for the 'social pacification' of the youth as you say? Why does the Saudi aristocracy say one thing in public and then finance insurgency against the Western world particularly the United States, with the same money that the U.S. pumps into their economies?
The old conception about economics being solely at the heart of everything should have been tossed into the toilet right after 911.