Hugo Chavez's oil largesse is shifting the balance of power in the Caribbean, writes Darcus Howe

The name Hugo Chavez stirs great expectations in the English-speaking Caribbean these days. He is, of course, the president of Venezuela.

Relations between his country and the English-speaking Caribbean have not always been cordial. In 1970, when Trinidad and Tobago was consumed by a socialist-leaning insurrectionary movement, the activists (including yours truly) feared intervention from Venezuela, and the government almost fell when Venezuelan naval vessels appeared in Trinidad's waters.Since then much has changed. Venezuela has ceased to be a sub-imperialist mate of the US and become a beacon of anti-imperialism, and Chavez has seen off the middle-class, pro-American opposition at home. Venezuela can withstand US pressure because it produces almost three million barrels of crude oil per day.

For the first time, the Venezuelans have extended their power to embrace the stagnant and paralysed economies of the tiny island states of the Caribbean. Recently, 13 Caribbean governments signed what is called the PetroCaribe accord, which supplies them with 185,700 barrels of Venezuelan oil daily and defers payments for 30 per cent of the imports for 15 years at an interest rate of 2 per cent a year, the rate decreasing in proportion to the increase in the oil price on the world market. Chavez has gone further. He has also offered the islands a $50m grant for social programmes, which they have accepted.

Oil-rich Trinidad and Tobago did not sign the accord. Barbados, too, has not signed, perhaps fearing that its tourist economy could not survive US displeasure. On the other hand, the agreement has been hugely popular in the countries that have joined up, giving a sense that power is shifting in the hemisphere from Uncle Sam to Venezuela.

On my recent visit to the islands I experienced an amazing interest in the PetroCaribe accord, and there is apparently more to come in that vein. So don't be surprised to hear "Chavez, Chavez, Chavez" ringing out from the Caribbean.

http://www.newstatesman.com/200603130016

Darcus Howe
Monday 13th March 2006