Adamant: Hardest metal
Thursday, April 3, 2003

Dabur Pharma Plans Para IV Filing For Oncology Product

<a href=www.financialexpress.com>The financial Express Pummy Kaul

New Delhi, April 1: In order to take advantage of ‘six months exclusivity’ in the overseas market, Dabur India’s newly demerged pharma entity Dabur Pharma Ltd plans to complete the para IV filing for one of its new oncology products soon. With the para IV filing, the company will be able to make inroads into the lucrative generic market segments the worldover, especially in the United States.

More precisely, the development will enable Dabur to get a six-month exclusivity for some of its oncology drugs. Companies like Dr Reddy’s and Ranbaxy have been able to get a 180-day marketing exclusivity for a few drugs after successfully completing their para IV filing.

Talking to FE, Dabur India vice-president (VP) and pharmaceuticals head Ajay Vij, said that the move is in line with the company’s focus to emerge as a global player in the space of oncology, develop comprehensive oncology franchise globally including the US and EU and focus on research in innovative molecules in Oncology.

Meanwhile, in the domestic market, the focus is to widen the product basket in oncology in addition to introducing new products in the anti-diabetic and cardiovascular segment. The company plans to introduce four to five new products in the last quarter of financial year 2003-04, Mr Viz said.

“The idea is to give equal thrust to the international as well as domestic markets,” said Mr Vij. “In the overseas markets, while we are looking at exploring the US and European markets, we will ensure a deeper penetration in markets of significance where we have already established our presence,” he added.

Dabur has set up a manufacturing facility in the UK for oncology injectibles at an investment of $15 million and commercial production is slated for late 2004.

The key challenge in the highly regulated markets in the developed world is in getting faster regulatory approval and the UK facility is expected to give the needed edge to penetrate effectively in these markets.

The company is looking for deeper penetration in its already established overseas destinations such as Phillipines, Malaysia, Thailand, Mexico, Brazil, Venezuela, Costa Rica, Peru, Russia, Belarus, Sri Lanka and Bangladesh besides some African countries.

Dabur India, last year, took an in-principle decision to demerge its pharma business into a separate company after incorporating the suggestions of Accenture into its corporate agenda.

The company has already virtually demerged pharma business and operationally separated it from the FMCG business. While the new entity comes into effect from April 1, 2003, Dabur expects to complete the legal formalities by in September 2003.

Bolivia says mudslide kills 14, 200 said missing

NEWSDESK 01 Apr 2003 18:56:05 GMT

LA PAZ, Bolivia, April 1 (Reuters) - Heavy rains triggered a massive landslide in a remote gold-prospecting town in northern Bolivia, killing at least 14 people and leaving 200 missing, officials said on Tuesday.

A mountainside washed into the town of Chima, 117 miles (190 km) from the capital of La Paz, on Monday, burying more than 100 houses in mud.

"Fourteen bodies have been found so far," government health official Beatriz Peinado told Reuters.

Peinado said the first of a convoy of rescuers had arrived in the town, accessible only by a winding 360 mile (580 km) road, after a 10-hour journey. The area was declared a disaster zone by President Gonzalo Sanchez de Lozada.

Government officials said the U.S. Embassy lent rescue teams, four helicopters and an airplane that are usually used in efforts to eradicate illegal crops of coca, the plant used to make cocaine, to aid rescue efforts. But bad weather was hampering air travel to the area.

About 1,200 families live in the town beneath Chima mountain, where mining cooperatives prospect for gold with rudimentary equipment, desperate to escape poverty that envelops about 60 percent of the country's 8 million people.

Monday's mudslide was the latest in a series of similar disasters that have killed hundreds of people over the last decade in the gold-rich north near the border with Peru and Brazil, where miners in one of the Western Hemisphere's poorest countries pan for gold using century-old technology.

Sixty people were killed by a mudslide in the jungle gold-mining town of Mocotoro in 1998, while a mountain slide was estimated to have killed hundreds in 1992 in Llipi.

Thousands of people were killed by mudslides in Venezuela in 1999 on the mountainous northern coast near Caracas.

The Thirty-Year Itch

Quotation It is narrated by 'Abdullah ibn 'Amr that the Messenger of Allah said, "It is not allowed that three be in the open (during a journey) and that they do not make one of them their leader." - Abdullah ibn 'Amr   KCom Journal

<a href=www.khilafah.com>www.khilafah.com 01 Apr 2003

Although much of Dreyfuss’ analysis is grounded in sound information, we believe that his focus on America’s intervention in the Middle-East without considering the war against Islam and the pre-emptive strike on political Islam means it is only an explanation of a part of the entire political jigsaw. Despite this we feel it overall to be a good piece in exposing the age old US desire to colonise directly the region.

The Thirty-Year Itch

Three decades ago, in the throes of the energy crisis, Washington's hawks conceived of a strategy for US control of the Persian Gulf's oil. Now, with the same strategists firmly in control of the White House, the Bush administration is playing out their script for global dominance.

Robert Dreyfuss, Mother Jones Magazine, March/April 2003

If you were to spin the globe and look for real estate critical to building an American empire, your first stop would have to be the Persian Gulf. The desert sands of this region hold two of every three barrels of oil in the world -- Iraq's reserves alone are equal, by some estimates, to those of Russia, the United States, China, and Mexico combined. For the past 30 years, the Gulf has been in the crosshairs of an influential group of Washington foreign-policy strategists, who believe that in order to ensure its global dominance, the United States must seize control of the region and its oil. Born during the energy crisis of the 1970s and refined since then by a generation of policymakers, this approach is finding its boldest expression yet in the Bush administration -- which, with its plan to invade Iraq and install a regime beholden to Washington, has moved closer than any of its predecessors to transforming the Gulf into an American protectorate.

In the geopolitical vision driving current U.S. policy toward Iraq, the key to national security is global hegemony -- dominance over any and all potential rivals. To that end, the United States must not only be able to project its military forces anywhere, at any time. It must also control key resources, chief among them oil -- and especially Gulf oil. To the hawks who now set the tone at the White House and the Pentagon, the region is crucial not simply for its share of the U.S. oil supply (other sources have become more important over the years), but because it would allow the United States to maintain a lock on the world's energy lifeline and potentially deny access to its global competitors. The administration "believes you have to control resources in order to have access to them," says Chas Freeman, who served as U.S. ambassador to Saudi Arabia under the first President Bush. "They are taken with the idea that the end of the Cold War left the United States able to impose its will globally -- and that those who have the ability to shape events with power have the duty to do so. It's ideology."

Iraq, in this view, is a strategic prize of unparalleled importance. Unlike the oil beneath Alaska's frozen tundra, locked away in the steppes of central Asia, or buried under stormy seas, Iraq's crude is readily accessible and, at less than $1.50 a barrel, some of the cheapest in the world to produce. Already, over the past several months, Western companies have been meeting with Iraqi exiles to try to stake a claim to that bonanza.

But while the companies hope to cash in on an American-controlled Iraq, the push to remove Saddam Hussein hasn't been driven by oil executives, many of whom are worried about the consequences of war. Nor are Vice President Cheney and President Bush, both former oilmen, looking at the Gulf simply for the profits that can be earned there. The administration is thinking bigger, much bigger, than that.

"Controlling Iraq is about oil as power, rather than oil as fuel," says Michael Klare, professor of peace and world security studies at Hampshire College and author of Resource Wars. "Control over the Persian Gulf translates into control over Europe, Japan, and China. It's having our hand on the spigot."

Ever since the oil shocks of the 1970s, the United States has steadily been accumulating military muscle in the Gulf by building bases, selling weaponry, and forging military partnerships. Now, it is poised to consolidate its might in a place that will be a fulcrum of the world's balance of power for decades to come. At a stroke, by taking control of Iraq, the Bush administration can solidify a long-running strategic design. "It's the Kissinger plan," says James Akins, a former U.S. diplomat. "I thought it had been killed, but it's back."

Akins learned a hard lesson about the politics of oil when he served as a U.S. envoy in Kuwait and Iraq, and ultimately as ambassador to Saudi Arabia during the oil crisis of 1973 and '74. At his home in Washington, D.C., shelves filled with Middle Eastern pottery and other memorabilia cover the walls, souvenirs of his years in the Foreign Service. Nearly three decades later, he still gets worked up while recalling his first encounter with the idea that the United States should be prepared to occupy Arab oil-producing countries.

In 1975, while Akins was ambassador in Saudi Arabia, an article headlined "Seizing Arab Oil" appeared in Harper's. The author, who used the pseudonym Miles Ignotus, was identified as "a Washington-based professor and defense consultant with intimate links to high-level U.S. policymakers." The article outlined, as Akins puts it, "how we could solve all our economic and political problems by taking over the Arab oil fields [and] bringing in Texans and Oklahomans to operate them." Simultaneously, a rash of similar stories appeared in other magazines and newspapers. "I knew that it had to have been the result of a deep background briefing," Akins says. "You don't have eight people coming up with the same screwy idea at the same time, independently.

"Then I made a fatal mistake," Akins continues. "I said on television that anyone who would propose that is either a madman, a criminal, or an agent of the Soviet Union." Soon afterward, he says, he learned that the background briefing had been conducted by his boss, then-Secretary of State Henry Kissinger. Akins was fired later that year.

Kissinger has never acknowledged having planted the seeds for the article. But in an interview with Business Week that same year, he delivered a thinly veiled threat to the Saudis, musing about bringing oil prices down through "massive political warfare against countries like Saudi Arabia and Iran to make them risk their political stability and maybe their security if they did not cooperate."

In the 1970s, America's military presence in the Gulf was virtually nil, so the idea of seizing control of its oil was a pipe dream. Still, starting with the Miles Ignotus article, and a parallel one by conservative strategist and Johns Hopkins University professor Robert W. Tucker in Commentary, the idea began to gain favor among a feisty group of hardline, pro-Israeli thinkers, especially the hawkish circle aligned with Democratic senators Henry Jackson of Washington and Daniel Patrick Moynihan of New York.

Eventually, this amalgam of strategists came to be known as "neoconservatives," and they played important roles in President Reagan's Defense Department and at think tanks and academic policy centers in the 1980s. Led by Richard Perle, chairman of the Pentagon's influential Defense Policy Board, and Deputy Secretary of Defense Paul Wolfowitz, they now occupy several dozen key posts in the White House, the Pentagon, and the State Department. At the top, they are closest to Vice President Cheney and Defense Secretary Donald Rumsfeld, who have been closely aligned since both men served in the White House under President Ford in the mid-1970s. They also clustered around Cheney when he served as secretary of defense during the Gulf War in 1991.

Throughout those years, and especially after the Gulf War, U.S. forces have steadily encroached on the Gulf and the surrounding region, from the Horn of Africa to Central Asia. In preparing for an invasion and occupation of Iraq, the administration has been building on the steps taken by military and policy planners over the past quarter century.

Step one: The Rapid Deployment Force

In 1973 and '74, and again in 1979, political upheavals in the Middle East led to huge spikes in oil prices, which rose fifteenfold over the decade and focused new attention on the Persian Gulf. In January 1980, President Carter effectively declared the Gulf a zone of U.S. influence, especially against encroachment from the Soviet Union. "Let our position be absolutely clear," he said, announcing what came to be known as the Carter Doctrine. "An attempt by any outside force to gain control of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force." To back up this doctrine, Carter created the Rapid Deployment Force, an "over-the-horizon" military unit capable of rushing several thousand U.S. troops to the Gulf in a crisis.

Step two: The Central Command

In the 1980s, under President Reagan, the United States began pressing countries in the Gulf for access to bases and support facilities. The Rapid Deployment Force was transformed into the Central Command, a new U.S. military command authority with responsibility for the Gulf and the surrounding region from eastern Africa to Afghanistan. Reagan tried to organize a "strategic consensus" of anti-Soviet allies, including Turkey, Israel, and Saudi Arabia. The United States sold billions of dollars' worth of arms to the Saudis in the early '80s, from AWACS surveillance aircraft to F-15 fighters. And in 1987, at the height of the war between Iraq and Iran, the U.S. Navy created the Joint Task Force-Middle East to protect oil tankers plying the waters of the Gulf, thus expanding a U.S. naval presence of just three or four warships into a flotilla of 40-plus aircraft carriers, battleships, and cruisers.

Step three: The Gulf War

Until 1991, the United States was unable to persuade the Arab Gulf states to allow a permanent American presence on their soil. Meanwhile, Saudi Arabia, while maintaining its close relationship with the United States, began to diversify its commercial and military ties; by the time U.S. Ambassador Chas Freeman arrived there in the late ‘80s, the United States had fallen to fourth place among arms suppliers to the kingdom. "The United States was being supplanted even in commercial terms by the British, the French, even the Chinese," Freeman notes.

All that changed with the Gulf War. Saudi Arabia and other Gulf states no longer opposed a direct U.S. military presence, and American troops, construction squads, arms salesmen, and military assistance teams rushed in. "The Gulf War put Saudi Arabia back on the map and revived a relationship that had been severely attrited," says Freeman.

In the decade after the war, the United States sold more than $43 billion worth of weapons, equipment, and military construction projects to Saudi Arabia, and $16 billion more to Kuwait, Qatar, Bahrain, and the United Arab Emirates, according to data compiled by the Federation of American Scientists. Before Operation Desert Storm, the U.S. military enjoyed the right to stockpile, or "pre-position," military supplies only in the comparatively remote Gulf state of Oman on the Indian Ocean. After the war, nearly every country in the region began conducting joint military exercises, hosting U.S. naval units and Air Force squadrons, and granting the United States pre-positioning rights. "Our military presence in the Middle East has increased dramatically," then-Defense Secretary William Cohen boasted in 1995.

Another boost to the U.S. presence was the unilateral imposition, in 1991, of no-fly zones in northern and southern Iraq, enforced mostly by U.S. aircraft from bases in Turkey and Saudi Arabia. "There was a massive buildup, especially around Incirlik in Turkey, to police the northern no-fly zone, and around [the Saudi capital of] Riyadh, to police the southern no-fly zone," says Colin Robinson of the Center for Defense Information, a Washington think tank. A billion-dollar, high-tech command center was built by Saudi Arabia near Riyadh, and over the past two years the United States has secretly been completing another one in Qatar. The Saudi facilities "were built with capacities far beyond the ability of Saudi Arabia to use them," Robinson says. "And that's exactly what Qatar is doing now."

Step four: Afghanistan

The war in Afghanistan -- and the open-ended war on terrorism, which has led to U.S strikes in Yemen, Pakistan, and elsewhere -- further boosted America's strength in the region. The administration has won large increases in the defense budget -- which now stands at about $400 billion, up from just over $300 billion in 2000 -- and a huge chunk of that budget, perhaps as much as $60 billion, is slated to support U.S. forces in and around the Persian Gulf. Military facilities on the perimeter of the Gulf, from Djibouti in the Horn of Africa to the island of Diego Garcia in the Indian Ocean, have been expanded, and a web of bases and training missions has extended the U.S. presence deep into central Asia. From Afghanistan to the landlocked former Soviet republics of Uzbekistan and Kyrgyzstan, U.S. forces have established themselves in an area that had long been in Russia's sphere of influence. Oil-rich in its own right, and strategically vital, central Asia is now the eastern link in a nearly continuous chain of U.S. bases, facilities, and allies stretching from the Mediterranean and the Red Sea far into the Asian hinterland.

Step five: Iraq

Removing Saddam Hussein could be the final piece of the puzzle, cementing an American imperial presence. It is "highly possible" that the United States will maintain military bases in Iraq, Robert Kagan, a leading neoconservative strategist, recently told the Atlanta Journal-Constitution. "We will probably need a major concentration of forces in the Middle East over a long period of time," he said. "When we have economic problems, it's been caused by disruptions in our oil supply. If we have a force in Iraq, there will be no disruption in oil supplies."

Kagan, along with William Kristol of the Weekly Standard, is a founder of the think tank Project for the New American Century, an assembly of foreign-policy hawks whose supporters include the Pentagon’s Perle (since resigned), New Republic publisher Martin Peretz, and former Central Intelligence Agency director James Woolsey. Among the group's affiliates in the Bush administration are Cheney, Rumsfeld, and Wolfowitz; I. Lewis Libby, the vice president's chief of staff; Elliott Abrams, the Middle East director at the National Security Council; and Zalmay Khalilzad, the White House liaison to the Iraqi opposition groups. Kagan's group, tied to a web of similar neoconservative, pro-Israeli organizations, represents the constellation of thinkers whose ideological affinity was forged in the Nixon and Ford administrations.

To Akins, who has just returned from Saudi Arabia, it's a team that looks all too familiar, seeking to implement the plan first outlined back in 1975. "It'll be easier once we have Iraq," he says. "Kuwait, we already have. Qatar and Bahrain, too. So it's only Saudi Arabia we're talking about, and the United Arab Emirates falls into place."

LAST SUMMER, Perle provided a brief glimpse into his circle's thinking when he invited rand Corporation strategist Laurent Murawiec to make a presentation to his Defense Policy Board, a committee of former senior officials and generals that advises the Pentagon on big-picture policy ideas. Murawiec's closed-door briefing provoked a storm of criticism when it was leaked to the media; he described Saudi Arabia as the "kernel of evil," suggested that the Saudi royal family should be replaced or overthrown, and raised the idea of a U.S. occupation of Saudi oil fields. He ultimately lost his job when rand decided he was too controversial.

Murawiec is part of a Washington school of thought that views virtually all of the nations in the Gulf as unstable "failed states" and maintains that only the United States has the power to forcibly reorganize and rebuild them. In this view, the arms systems and bases that were put in place to defend the region also provide a ready-made infrastructure for taking over countries and their oil fields in the event of a crisis.

The Defense Department likely has contingency plans to occupy Saudi Arabia, says Robert E. Ebel, director of the energy program at the Center for Strategic and International Studies (CSIS), a Washington think tank whose advisers include Kissinger; former Defense Secretary and CIA director James Schlesinger; and Zbigniew Brzezinski, Carter's national security adviser. "If something happens in Saudi Arabia," Ebel says, "if the ruling family is ousted, if they decide to shut off the oil supply, we have to go in."

Two years ago, Ebel, a former mid-level CIA official, oversaw a CSIS task force that included several members of Congress as well as representatives from industry including ExxonMobil, Arco, BP, Shell, Texaco, and the American Petroleum Institute. Its report, "The Geopolitics of Energy Into the 21st Century," concluded that the world will find itself dependent for many years on unstable oil-producing nations, around which conflicts and wars are bound to swirl. "Oil is high-profile stuff," Ebel says. "Oil fuels military power, national treasuries, and international politics. It is no longer a commodity to be bought and sold within the confines of traditional energy supply and demand balances. Rather, it has been transformed into a determinant of well-being, of national security, and of international power."

As vital as the Persian Gulf is now, its strategic importance is likely to grow exponentially in the next 20 years. Nearly one out of every three barrels of oil reserves in the world lie under just two countries: Saudi Arabia (with 259 billion barrels of proven reserves) and Iraq (112 billion). Those figures may understate Iraq's largely unexplored reserves, which according to U.S. government estimates may hold as many as 432 billion barrels.

With supplies in many other regions, especially the United States and the North Sea, nearly exhausted, oil from Saudi Arabia and Iraq is becoming ever more critical -- a fact duly noted in the administration's National Energy Policy, released in 2001 by a White House task force. By 2020, the Gulf will supply between 54 percent and 67 percent of the world's crude, the document said, making the region "vital to U.S. interests." According to G. Daniel Butler, an oil-markets analyst at the U.S. Energy Information Administration (EIA), Saudi Arabia's production capacity will rise from its current 9.4 million barrels a day to 22.1 million over the next 17 years. Iraq, which in 2002 produced a mere 2 million barrels a day, "could easily be a double-digit producer by 2020," says Butler.

U.S. strategists aren't worried primarily about America's own oil supplies; for decades, the United States has worked to diversify its sources of oil, with Venezuela, Nigeria, Mexico, and other countries growing in importance. But for Western Europe and Japan, as well as the developing industrial powers of eastern Asia, the Gulf is all-important. Whoever controls it will maintain crucial global leverage for decades to come.

Today, notes the EIA's Butler, two-thirds of Gulf oil goes to Western industrial nations. By 2015, according to a study by the CIA's National Intelligence Council, three-quarters of the Gulf's oil will go to Asia, chiefly to China. China's growing dependence on the Gulf could cause it to develop closer military and political ties with countries such as Iran and Iraq, according to the report produced by Ebel's CSIS task force. "They have different political interests in the Gulf than we do," Ebel says. "Is it to our advantage to have another competitor for oil in the Persian Gulf?"

David Long, who served as a U.S. diplomat in Saudi Arabia and as chief of the Near East division in the State Department's Bureau of Intelligence and Research during the Reagan administration, likens the Bush administration's approach to the philosophy of Admiral Mahan, the 19th-century military strategist who advocated the use of naval power to create a global American empire. "They want to be the world's enforcer," he says. "It's a worldview, a geopolitical position. They say, 'We need hegemony in the region.'"

UNTIL THE 1970s, the face of American power in the Gulf was the U.S. oil industry, led by Exxon, Mobil, Chevron, Texaco, and Gulf, all of whom competed fiercely with Britain's BP and Anglo-Dutch Shell. But in the early '70s, Iraq, Saudi Arabia, and the other Gulf states nationalized their oil industries, setting up state-run companies to run wells, pipelines, and production facilities. Not only did that enhance the power of opec, enabling that organization to force a series of sharp price increases, but it alarmed U.S. policymakers.

Today, a growing number of Washington strategists are advocating a direct U.S. challenge to state-owned petroleum industries in oil-producing countries, especially the Persian Gulf. Think tanks such as the American Enterprise Institute, the Heritage Foundation, and CSIS are conducting discussions about privatizing Iraq's oil industry. Some of them have put forward detailed plans outlining how Iraq, Saudi Arabia, and other nations could be forced to open up their oil and gas industries to foreign investment. The Bush administration itself has been careful not to say much about what might happen to Iraq's oil. But State Department officials have had preliminary talks about the oil industry with Iraqi exiles, and there have been reports that the U.S. military wants to use at least part of the country's oil revenue to pay for the cost of military occupation.

"One of the major problems with the Persian Gulf is that the means of production are in the hands of the state," Rob Sobhani, an oil-industry consultant, told an American Enterprise Institute conference last fall in Washington. Already, he noted, several U.S. oil companies are studying the possibility of privatization in the Gulf. Dismantling government-owned oil companies, Sobhani argued, could also force political changes in the region. "The beginning of liberal democracy can be achieved if you take the means of production out of the hands of the state," he said, acknowledging that Arabs would resist that idea. "It's going to take a lot of selling, a lot of marketing," he concluded.

Just which companies would get to claim Iraq's oil has been a subject of much debate. After a war, the contracts that Iraq's state-owned oil company has signed with European, Russian, and Chinese oil firms might well be abrogated, leaving the field to U.S. oil companies. "What they have in mind is denationalization, and then parceling Iraqi oil out to American oil companies," says Akins. "The American oil companies are going to be the main beneficiaries of this war."

The would-be rulers of a post-Saddam Iraq have been thinking along the same lines. "American oil companies will have a big shot at Iraqi oil," says Ahmad Chalabi, leader of the Iraqi National Congress, a group of aristocrats and wealthy Iraqis who fled the country when its repressive monarchy was overthrown in 1958. During a visit to Washington last fall, Chalabi held meetings with at least three major U.S. oil companies, trying to enlist their support. Similar meetings between Iraqi exiles and U.S. companies have also been taking place in Europe.

"Iraqi exiles have approached us, saying, 'You can have our oil if we can get back in there,'" says R. Gerald Bailey, who headed Exxon's Middle East operations until 1997. "All the major American companies have met with them in Paris, London, Brussels, all over. They're all jockeying for position. You can't ignore it, but you've got to do it on the QT. And you can't wait till it gets too far along."

But the companies are also anxious about the consequences of war, according to many experts, oil-company executives, and former State Department officials. "The oil companies are caught in the middle," says Bailey. Executives fear that war could create havoc in the region, turning Arab states against the United States and Western oil companies. On the other hand, should a U.S. invasion of Iraq be successful, they want to be there when the oil is divvied up. Says David Long, the former U.S. diplomat, "It's greed versus fear."

Q&A: R K PACHAURI--‘Strategic Interests, Not Terrorism, Propelled US To Launch Attack On Iraq’

<a href=www.financialexpress.com>The Finnantial Express

The war on Iraq has raised many questions about fairness, the human cost, international norms and the impact on the global economy as well as our own economy. Director General of The Energy And Resources Institute (Teri) and chairman of the inter-governmental panel on climate change RK Pachauri says war portends ill not only for Iraq but also for oil dependent countries like India. In an interview with RAMESH MENON, he says that strategic interests propelled the United States to launch an attack on Iraq. If the war continues for long, oil prices would shoot up and the war’s environmental impact would go beyond Iraq’s borders. Excerpts:

If the war in Iraq continues, what are its implications for India? The implications are serious for India which imports 70 per cent of its crude oil requirements. A prolonged war will affect inflation and the government’s budgetary deficits. We may be in for a difficult situation.

Why do you think the US was so keen to go into Iraq? The United States has several strategic interests behind this move. There is no denying the fact that Iraq is a different society in that region. Iraq is secular. The level of education and literacy there is very high. There is a gender balance. Women and men are employed in various organisations. There is significant agricultural activity. It has a fair amount of water resources. Having a democratic government there could further US interests. More importantly, there is a possibility of Iraq becoming a much larger repository of hydrocarbons than it is today. Already, it has the second largest oil reserves in the world. That makes it a very attractive area to have some area of influence in. But more than that it has more to do with the Middle East as a whole. So there is a larger strategic interest which has to do with the politics of the region. It is also a fact that the United States is going to become a much larger importer of oil than it is today. The imports are going to go up rapidly and they are concerned over where the oil is going to come from in future.

Is its Iraqi policy not dictated by its desire to control oil reserves in the Gulf? Well, oil is certainly an important component of the policy. But not the only one.

What does this mean for the rest of the world? That is difficult to say at the moment. One will have to see how political developments take shape in that part of the world. You might have instability to begin with, but later you might get stable regimes. But it is very speculative. But one can safely predict that we are going to have an uneasy period. That really means that oil prices would fluctuate a bit. They may go up sharply. The world would be seriously hit. Another aspect is the impact it is going to have on the US economy. If the US economy does not recover, it certainly has implications for the rest of the world that will not be favorable.

The United States is no more as comfortable with Saudi Arabia, which also has large reserves. Yes, they are uneasy with their relationship with Saudi Arabia. I have got this through conversations with several people in the US government. They are very nervous about the fact that a large part of the funding that has gone into terrorist activities worldwide seems to have emanated from Saudi Arabia. If you talk to officials in the United States you will get the feeling that the regime in Saudi Arabia is either ineffective in curbing the outflow of money for such activities or has perhaps not been strong enough to put it down... Therefore, they feel that a presence in Iraq would give them additional leverage with countries in the region, particularly Saudi Arabia.

Is India more vulnerable to oil price rise than many other countries? Unfortunately, it is. India’s percentage of imports has gone up significantly and even the magnitude is going up even if we are able to hold up the percentage of imports related to our total consumption. Projections by the International Energy Agency show that by 2030 India will be consuming five million barrels of oil a day. That puts us in the big league. We need an aggressive, integrated forward looking energy policy that reduces our dependency on oil imports. I am afraid I do not see any signs of that now.

How do you see the politics of oil taking shape in the years to come? It will get murkier in the years to come. Everyone thought OPEC would be finished. But it has come to life again. OPEC today produces more quantities of oil than in the past. It is about 27 million barrels a day. If OPEC is going to have a larger share of the global oil market, it also gives them more clout in deciding oil prices. The kind of excess capacity that existed during the Gulf war 12 years ago, is not there now. At that point of time, Saudi Arabia substantially increased its output calming the prices in the oil market. In the future if you have disruptions like the type you have in Venezuela, then that could have a serious impact on global oil prices. Fluctuations in oil prices today would be more serious than in the past.

As far as strategic oil reserves are concerned, is India in a comfortable position? We have a month’s supply. The government has been taking steps to increase its storage of oil. I do not see any emergency in the near future.

How difficult will it be to reduce our dependence on oil imports? It is very difficult because it will take imagination. It will take coordinated action between several ministries. More importantly, it will require major reforms in the power and energy sector.

There are fears of large scale environmental damage that the war in Iraq would lead to. Those fears are justified. But as we do not know how long the war would last, we do not know now how the war is going to unfold and what kind of weapons will be used as it escalates. It is a little too early to figure that out.

Messrs Carlos Ortega and Carlos Fernandez just won't let go!

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Tuesday, April 01, 2003 By: Patrick J. O'Donoghue

VHeadline.com News Editor Patrick J. O'Donoghue writes: News that members of the Venezuelan Confederation of Trade Unions (CTV) led by general secretary Manuel Cova are to visit Costa Rica to hold session with exiled Carlos Ortega has knocked me off balance.

Does that mean that trade union policy will be dictated from Ortega's place of exile?

Does it mean that Ortega will not concede his post as CTV president to someone who lives in Venezuela?

Does Ortega think that the CTV is akin to the Oil Workers Federation (Fedepetrol) which he ran as a personal fiefdom?

Knowing Mr. Ortega's close links with former President Carlos Andres Perez, it is hard to understand the hesitancy of other executive members in blasting Ortega's pretensions sky high. There have been rumblings from Pablo Castro and Carlos Navarro but it is not enough. 

The usually vociferous Andres Velasquez and Causa R colleague ,Alfredo Ramos argue that the most important thing is to get rid of Chavez Frias first and then hang out the dirty linen afterwards ... usual double-speak.

It leads me to another question: why do political analysts, such as Jorge Olavarria who pride themselves on their historical knowledge, ignore obvious connections between local politicians and foreign organizations? 

It is understandable political agony aunts, Nelson Bocaranda and Ibeyise Pacheco refuse to publish a list of opposition politicians that visited Washington or Miami, say last week but it becomes completely obvious that the stiff collars  (scholars) are trying to pull the wool over our innocent eyes convincing us that Venezuela is an island and not a dependent economy ... and yet they insist on the close connection with the USA to hit out at Chavez Frias. The only consequent scholar is columnist, Anibal Romero.

Which is why I appreciate the irreverence of left-wing political analyst, Domingo Alberto Rangel. 

Rangel goes way back and has the moral authority to debunk opposition spin that corruption has increased with Chavez Frias ... the difference is that we know more cases nowadays, thanks to the political polarization and leaks from squealers. 

Venezuela has been high in the corrupt Latin American countries top ten list but the thing is that before Chavez Frias, the media (and Transparency International) only published Venezuela's position in the world tables. 

Rangel has criticized the fact that the Armed Force (FAN) was ill-prepared for undertake its job long before Chavez Frias enlisted as a soldier ... he has exposed the cowardice of Venezuela's greedy and not very patriotic business sector.

It would be nice to see more irreverence.

Which brings me back to Ortega and Federation of Chambers of Industry & Commerce (Fedecamaras) president, Carlos Fernandez ... another person that can't and won't hand over power. 

Thank God he won't be running for President of the Republic. His rush to the emergency room should have convinced him to return to his transport business and leave politics to the politicians. 

Fernandez was very quick to step into the shoes of Pedro Carmona as Fedecamaras president but he won't allow anyone to step into his shoes, despite his heart condition.

  • Venezuela is described as the land of caudillos, which I translate as "warlords"  ... which for me conveys the meaning perfectly. 

Whatever opposition and Cuban Miami hacks say about the authoritarian Chavez Frias, Ortega and Fernandez are just as or more authoritarian than the President.

Holding court in Miami, or Costa Rica or Valencia?

Well, I never!