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...from one another. Yet in these globalized times, they are bound together by their opposition to and fear of the United States. That may be the reason why there were so many photographers and journalists at Russian President Dimitry Medvedev’s recent meeting with Venezuelan President Hugo Chavez in Moscow, which was the second such negotiation in the last two months. After the meeting and in a world of frozen credit lines, it was announced that Russia would lend Venezuela over a billion dollars to fund purchases of Russian weaponry in the next few years, which complements...

Author: By Pierpaolo Barbieri | Title: The Axis of Guns and Oil | 10/15/2008 | See Source »

...Enter Hugo Chavez, the boastful believer in “21st century socialism” who is eager for Russian economic and military support, just as he has been in the past with Iran and Cuba. Yet in the last year, the Venezuelan president has seen his political star begin to fade: After losing a crucial referendum that would have allowed him to remain in power indefinitely last December, Chavez has attempted to distract Venezuelans’ attention from the dire economic situation at home with a lot of show abroad...

Author: By Pierpaolo Barbieri | Title: The Axis of Guns and Oil | 10/15/2008 | See Source »

...From an economic perspective, however, Russian problems seem miniscule compared to those faced by its newfound Latin American ally. In an electoral year, Chavez is eager to regain popular support, but the oil-producing country has contracted its growth forecasts due to lack of investment. As inflation reaches over 30 percent per year, the government has increased public sector salaries, a populist move that will only worsen inflationary pressures. Despite the sky-high oil prices, Venezuela is not able to grow its production because the government has used all the money for clientelist programs, rather than securing future investment. Unsurprisingly...

Author: By Pierpaolo Barbieri | Title: The Axis of Guns and Oil | 10/15/2008 | See Source »

...above the world price. "If the price stays there a while Iran would cut spending," Priddy says. That might include cutting heavy gas subsidies for Iranian drivers, who have rioted in the past when the government tried to ration gas or raise the price at the pump. Hugo Chavez could face similar problems in Venezuela if oil prices drop below $75 a barrel - the rate at which the country calculated this year's budget. The problems lower prices could cause in those countries could be more visceral than those posed so far by the current financial upheaval...

Author: /time Magazine | Title: Is Cheaper Oil A Good Thing? | 10/10/2008 | See Source »

...countries, specifically Venezuela. While she said that all the governments share common objectives of tackling poverty and creating better opportunities for their people, she acknowledged that they have chosen to go about it in very different ways. “People have paid a lot of attention to the Chavez model and due attention has to be given to the Chilean model,” said Soo Min Seo, a first-year masters student in public policy at the Kennedy School. Despite the weighty topics she discussed, Bachelet kept a light-hearted demeanor throughout her speech and made the audience...

Author: By Lauren D. Kiel, CRIMSON STAFF WRITER | Title: Chilean Leader Focuses On Democracy | 9/24/2008 | See Source »

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