tag:blogger.com,1999:blog-1331441403058020963.post653215033213603140..comments2024-03-28T06:49:24.930-04:00Comments on International Political Economy at the University of North Carolina: Why do governments buy companies when they could just steal them?Thomas Oatleyhttp://www.blogger.com/profile/14092437150746625670noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-1331441403058020963.post-57121444105289468492010-02-24T10:00:03.812-05:002010-02-24T10:00:03.812-05:00Yeah, it's hard to interpret in part because t...Yeah, it's hard to interpret in part because there's not good information about the process. The news reports that the French company approached the Venezuelan government, but their source was Uncle Hugo, so who knows the real story.<br /><br />Perhaps the Venezuelan government is pursuing a mixed strategy - they want investment and they also want to steal that investment. But, if they always expropriate foreign firms, no investor will enter the market. So, Venezuela mixes to induce some level of investment. Of course, investors would really prefer to retain ownership over their property rather than being forced to sell.<br /><br />I guess the reason why this case is interesting is because current PoliSci theory can't really explain much of this interaction.Sarah Bauerle Danzmanhttps://www.blogger.com/profile/11268909823574840085noreply@blogger.comtag:blogger.com,1999:blog-1331441403058020963.post-75038573842388430802010-02-24T02:35:21.287-05:002010-02-24T02:35:21.287-05:00i'm still stuck on this. been thinking about i...i'm still stuck on this. been thinking about it for days and can't explain it. <br /><br />how about this: think of chavez as a mafia don who wants a piece of property that is currently occupied. he presents a below-market offer, but it's rejected. he could firebomb the place, but that would damage the value of the property. or he could throw a brick through the window (seize the grocery chain, in this metaphor), then walk in and say that he can't guarantee their protection but he would be willing to take the business off their hands at a "fair" price.<br /><br />maybe what i'm saying is... is there any evidence that this business was up for auction, or did chavez just muscle in as a sole "bidder"? maybe there's some quid pro quo going on, as Thomas said. <br /><br />it bothers me b/c i don't have a great model for interpreting this.Kindred Winecoffhttps://www.blogger.com/profile/14330671232391851377noreply@blogger.comtag:blogger.com,1999:blog-1331441403058020963.post-75075039244808498182010-02-21T17:20:01.786-05:002010-02-21T17:20:01.786-05:00I wonder what the value of Venezuela's oversea...I wonder what the value of Venezuela's overseas fixed assets might be. I doubt it is zero. Thus,might be a simple case of bilateral hostages.Thomas Oatleyhttps://www.blogger.com/profile/14092437150746625670noreply@blogger.comtag:blogger.com,1999:blog-1331441403058020963.post-80189467790763035382010-02-21T16:43:36.923-05:002010-02-21T16:43:36.923-05:00maybe, but again, if you can actually seize a comp...maybe, but again, if you can actually seize a company, then why not just do that? Local governments (at least in the US) worry about backlash after eminent domain seizures because these types of moves are often unpopular. Chavez's popularity is based off of nationalism rhetoric. Either way, we're getting back to interest group politics rather than institutions.Sarah Bauerle Danzmanhttps://www.blogger.com/profile/11268909823574840085noreply@blogger.comtag:blogger.com,1999:blog-1331441403058020963.post-13411252395066796322010-02-20T22:22:13.353-05:002010-02-20T22:22:13.353-05:00Good post.
It is curious, so in that spirit here...Good post. <br /><br />It is curious, so in that spirit here's an off-the-wall thought: Venezuela seized the smaller grocery chain in order to force the sale of Cativen at an acceptable price. In other words, I wonder if this is more of an "eminent domain" situation where Casino gets a "fair" price but really had no choice but to sell.<br /><br />I don't know enough about the local circumstances to have any idea if that makes sense, but it's just a thought I had.Kindred Winecoffhttps://www.blogger.com/profile/14330671232391851377noreply@blogger.com