What's the purpose of Bolivarian corporate "compensations"?

[Cheung Mo]

Why should some oil company be compensated when a radical reformist government seizes its land and resources given that these were seized as a result of shitty labour conditions, human rights abuses, and environmental degradation? If the principle of asset forfeiture can be applied to innocent Americans who grow hemp and cocao, why can't it be applied to those who are guilty of legitimate wrongs?

[BobKKKindle$]

In moral terms, there is no need to pay oil firms compensation, as the use of force and other coercive methods to establish initial control invalidates all property rights which might otherwise obligate a government to pay compensation. However, geopolitics is not dictated by what is moral, and any government which aims to improve the condition of the working masses by taking control of foreign property faces external constraints which restrict the scope and extent of government action. If a government refused to pay compensation, the country where the firms are based may use armed force to regain control of the resources and remove the radical government from power (as occurred in Chile following the election of Salvador Allende) or may use economic pressure (refusing to trade with that country, removing technical workers, encouraging other states to apply economic sanctions, etc) to force concessions or, by worsening economic conditions, deprive the radical government of popular legitimacy and hence encourage the election of a regime which protects foreign ownership.

[Comrade Vasilev]

Chavez wouldn't be compensating if he didn't think private property was a sacred right, so he obviously does.

[Q]

In moral terms, there is no need to pay oil firms compensation, as the use of force and other coercive methods to establish initial control invalidates all property rights which might otherwise obligate a government to pay compensation. However, geopolitics is not dictated by what is moral, and any government which aims to improve the condition of the working masses by taking control of foreign property faces external constraints which restrict the scope and extent of government action. If a government refused to pay compensation, the country where the firms are based may use armed force to regain control of the resources and remove the radical government from power (as occurred in Chile following the election of Salvador Allende) or may use economic pressure (refusing to trade with that country, removing technical workers, encouraging other states to apply economic sanctions, etc) to force concessions or, by worsening economic conditions, deprive the radical government of popular legitimacy and hence encourage the election of a regime which protects foreign ownership.

While in theory that's a legitimate concern, you will never get free of imperialisms chains by that logic as it'll give imperialism time to organise its forces while you're paying off your debt or paying "compensation". This problem could simply be solved by nationalisation under workers control and management as this would make it much harder to "pull an Allende" so to say for imperialisms forces. In fact, the mobilisation of the masses is what has saved Chavez thusfar.

What you could however do, depending on how class forces dictate, is a compensation on the basis of proven need (as opposed to "market value").

[Schrödinger's Cat]

It's a legitimate concern. Venezuela's refining abilities aren't as strong as some would like to believe. Supposing the country did nationalize production, there could be even worse consequences from the international arena. Let's also remember that many Venezuelans aren't particularly fond of the Cuban model and are still looking for some alternative.

[el_chavista]

The petroleum companies demand compensation for the cancellation of the operative contracts that they had signed with the country, after they didn't accept the requirements of the State of paying more taxes and accepting a major control on his operations, or, because his facilities in the oil-bearing strip of the Orinoco river were taken by the Venezuelan government, after the transnational oil companies refused to convert his projects to the new scheme of operation. The bad news is that Venezuela got to defend its rights abroad because of former pro-'gringo' government according to oil companies.

[ipollux]

Or we could be like the puritanical self-righteous Americans and just pray at the pump ...