The creation of Coniba, “forms part of the sowing of the oil and of the policy of endogenous development,” of the Chavez government, said Alvarez during the company’s inauguration.
Endogenous development is the term the Chavez government has used to describe the project of developing the country’s economy “from within,” that is, without relying primarily on outside investors. The plan to “sow the oil,” an expression borrowed from Venezuela’s oil boom years in the 1970’s, is a plan to use the country’s oil wealth for investment in and diversification of the country’s economy.
http://www.venezuelanalysis.com/print.php?newsno=1883
[This is the OPPOSITE of what Canada has been doing since the National Policy days. What Canada did & has been doing is called "import-substitution industrialization" in other words, a branch-plant, resource-exporting economy, & it was even the intention of the National Policy to do that. They also say that it's the quick & easy route to industrialization. This is why some writers call Canada the world's richest 3rd-world country. -- NSay]
Note: http://www.venezuelanal...

Too bad our politicians are too damn beholden to foreign special interests to even consider pursuing it.
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Expect little from life and get more from it.
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People are more violently opposed to fur than leather because it's safer to harass rich women than motorcycle gangs.
Alexei Sayle
The problem is, that the USA going down the tubes is inevitable. I would like to see some action on this by our government. Alberta can't carry the whole country with it's oil revenues.
and capitalistic globalization. In addition to their many progessive programs
on literacy, medical care, housing, free post-secondary education, paying
women who work as householders, 'supermarkets' that provide food stuffs at
at or near wholesale costs - essentially using their oil revenues to benefit the
many and not just the elite, as well as an incredible constitution - a people's
constitution - which is being implemented, and Telesur TV to take on the
media-monopolies, etc etc...it is good to see they are thinking about nation
building....which we are not doing in Canada. Indeed, as a development
economist & lawyer, ---one prescription for nation building is 'close the
leakage of jobs, capital, technology,etc", do import substitution and build as
many forward and backward 'linkages' in the economy. Indeed Venezuela is
using the oil revenues to produce 'public goods'...while we, allow our oil &
gas sectors to be completely controlled by foreign multinationals. I always
thought that when a nation loses a war - spoils go to the victor - spoils
might be such treasure as gold, oil, gas, forests, clean water, agricultural
goods, etc.....but here - Canada has fought no war - yet, as a consequence of
'quiet treason' we have basically lost the nation---and the 'spoils', indeed
the riches of this nation have gone to the victors. What remains, will surely be
sold by Harpo and his gang of continentalists - at firesale side prices and in
a wink - should they ever get a majority--not one doubt of that in my mind.
..and leading the way will be that new Cabinent Minister from you know
where. That is what happens when Capital gets a hold of the levers of
government...and joe & jane public citizen...keep voting the mainstream
parties in. I would be happy to hear what 'hope' there is to counteract these
ideological currents in Canada, what hope there is to awake a slumbering
citizenry - beguiled by hockey, internet, hollywoood entertainment, drugs,
alcohol, --and all the distractions & 'fun' of the modern consumer society -
that is the Canadian oppression - this "beguilement', this 'apathy', this
'hesitation', this 'fear', 'this individuality and lack of solidarity', --what will
come under Harpo or the Liberals for that matter - will no doubt be a
pedagogy for the oppressed - maybe then we will have 'our Venezuela' wake-
up call.
"Import substitution industrialization also called ISI is a trade and economic policy based on the premise that a developing country should attempt to substitute products which it imports, mostly finished goods, with locally produced substitutes. The theory is similar to that of mercantilism in that it promotes high exports and minimal imports to increase national wealth.<br />
<br />
The policy has three major tenets: <br />
-- an active industrial policy to subsidize and orchestrate production of strategic substitutes, <br />
-- protective barriers to trade (namely, tariffs), <br />
-- and a monetary policy that keeps the domestic currency overvalued. Hence import substitution policies are not favored by advocates of absolute free trade."<br />
<br />
<a href="http://en.wikipedia.org/wiki/Import_substitution_industrialization">http://en.wikipedia.org/wiki/Import_substitution_industrialization</a><br />
Canada, with it's fairly big trade surplus obviously has high exports & low imports. Our governments also actively encourage development of branch plants as in the 1st part of the definition. Canada also had a high tariff back in the JA MacDonald days to encourage US branch plants to set up here. I'm not sure if our dollar has been overvalued esp since it was only US$0.63 at one point but as below, that's what countries do when they're designed to export. That last bit is interesting though. I wonder what Harper, etc think of ISI then. <br />
<br />
& here's info on export-oriented industrialization, which also describes Canada's situation perfectly I think:<br />
"Export-oriented Industrialization is a trade and economic policy aiming to speed-up the industrialization process of a country through exporting goods for which the nation has a comparative advantage. Export-led growth implies opening domestic markets to foreign competition in exchange for market access in other countries. Reduced tariff barriers, floating exchange rate (devaluation of national currency is often employed to facilitate exports), and government support for exporting sectors are all an example of policies adopted to promote EOI, and ultimately economic development. Export-oriented Industrialisation was particularly characteristic of the development of the national economies of Japan, South Korea, Taiwan and Singapore in the post World War 2 period. The purpose of international institutions such as the World Trade Organization, work in favour of such trade strategies and promote multilateral trade policy rules to put every nation on the same playing field."<br />
<br />
<a href="http://en.wikipedia.org/wiki/Export-oriented_industrialization">http://en.wikipedia.org/wiki/Export-oriented_industrialization</a><p>---<br>"George Bush has declared the war on terrorism to be the cause of his generation. The cause of Canadian sovereignty will be ours." - John Godfrey, MP for Don Va
With no shirt factory in the US, even Buch and Cheney wear shirts made in Bangladesh, Honduras, Macao or (you name it).
I think this type of manufacturing diversification could be called "reverse outsourcing" or "insourcing".
Yes, we appear to be going down the same path as the US started on some decades ago, and look where they've ended up. How long will it be before we have tv shows like 'Cops - Toronto' or 'Cops - Vancouver'. There is a scary trend flowing in, and for the most part, we're drugged on our couches.
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"It's a heck of a place to bring your family." —George W. Bush, on New Orleans, La., Jan. 12, 2006
The theory is based on fraudulent quotations from the classical "greats", like Adam Smith and David Ricardo. Ricardo's theory of "comparative advantage" doesn't include the free free movement of capital, especially of imaginary fiat capital which didn't exist in his age, and destroys the benefit of any comparative advantage. E.g. Poverty in most oil, or tropical fruit producing countries.
Economies built on exports and monetary competition, the main intentions of the neoclassical theory, are suicidal to any society, as all forms of competition demand constantly increased energy inputs, which are the real costs, and ultimately all competitive systems will burn out.
Also, economies built for exports and competition demand increased specialization, which causes and creates incompetence. This is the real purpose of the theory, because incompetent and forcibly urbanized societies have to rely on bought foods, products and services for every minute of their lives, which enriches the controllers of the economy and raises the phoney GDP.
Ed Deak.