Argentina’s Expropriation of Repsol’s YPF (A Reversal of Fortune): Understanding the Decolonial Turn in Latin America

Far from being an implaus­ible para­dox, the dif­fer­ence between what is hap­pen­ing in Europe and in Latin Amer­ica lies at the epi­cen­ter of a 500-​year long farce: colo­ni­al­ity. In a monu­mental reversal of for­tune, the peoples of Latin Amer­ica are decon­struct­ing colo­ni­al­ity from its core, while within Europe this seems to be the new tune of power.

What is occur­ring in Europe — the “Troika” devour­ing Greece, turn­ing its people into new colo­nial and oppressed polit­ical sub­jects, the new racism against Span­ish and Por­tuguese lazi­ness, the Irish melt­down as a sign of pro­vin­cial reck­less­ness and lack of dis­cip­line — has been pretty much the his­tory of Latin Amer­ica, that is, until now.

Today (3 May 2012), the Argen­tine National Con­gress is due to approve Pres­id­ent Fernández’s plan to expro­pri­ate and nation­al­ize Span­ish pet­rol giant Repsol’s major­ity shares in Argentina’s lead­ing energy com­pany YPF. On 1 May 2012, Bolivia’s Pres­id­ent, Evo Mor­ales, announced the nation­al­iz­a­tion of yet another Span­ish elec­trical com­pany (Red Eléc­trica Cor­pora­ción), adding to a long list of expro­pri­ations since 2005.

Argentina’s argu­ment is simple: Repsol repor­ted a profit of 15.278 bil­lion dol­lars between 1999 and 2011, and most of it was shipped back to Spain, like in the old days, when gold, sil­ver, cot­ton and sugar were expor­ted to the King­dom, leav­ing the colon­ies not only empty handed but with their social fab­ric des­troyed. Repsol, along with other oil and elec­trical com­pan­ies in Bolivia, were given absurd and abso­lute guar­an­tees from neo-​liberal gov­ern­ments in Latin Amer­ica, that is, before the deco­lo­nial turn in Venezuela, Bolivia, Ecuador, Argen­tina and, of course, in Lula’s gov­ern­ment in Brazil.

Sure, the US and the EU are raging, demand­ing respect for the pil­lars of lib­er­al­ism — such as legal cer­tainty — which amounts to noth­ing more than colo­ni­al­ity in dis­guise. The European model has not only failed miser­ably out­side the walls of Europe, but now reveals its excru­ci­at­ing flaws within its own pro­tec­ted com­pound of sup­posed ration­al­ity, liberty and social prosper­ity. Now they are dis­cov­er­ing for them­selves how the “invis­ible hand” is inex­tric­ably linked with sys­temic poverty.

To under­stand what is hap­pen­ing in Latin Amer­ica it is cru­cial to under­stand the pas­sage of his­tory from colo­ni­al­ism to colo­ni­al­ity. The first thing to take into account is that the Amer­icas were not incor­por­ated into a preex­ist­ing cap­it­al­ist sys­tem. Rather, there simply could not be any cap­it­al­ism without the col­on­iz­a­tion of the Americas.

As we are told by Argen­tinian philo­sopher, Wal­ter Mignolo, colo­ni­al­ity is the hid­den side of mod­ern­ity. This bipolar­ity — modernity/​coloniality — means that colo­ni­al­ity is con­stitutive of mod­ern­ity, so there is no mod­ern­ity without colo­ni­al­ity. This strange but coordin­ated sym­bi­osis allows us to grasp the double nature of mod­ern­ity. Within the West, mod­ern­ity means the deploy­ment of a logic of liber­ties and prosper­ity, while its colo­nial side means extrac­tion and racism, dom­in­a­tion and exclu­sion. Of course, the dream of prosper­ity and liberty is a charade even within Europe. The vital thing to grasp is the impossib­il­ity of split­ting or divid­ing these cat­egor­ies, for they rely on each other to function.

Theo­logy and evan­gel­iz­a­tion accom­plished the first period of dom­in­ance. Non­ethe­less, at the end of the 17th cen­tury, a shift in the paradigm occurred. Through a sec­u­lar and com­mer­cial lan­guage based on profit and the free cir­cu­la­tion of com­mod­it­ies, a model hail­ing from Eng­land, Hol­land and France over­took the Spanish-​Portuguese approach. So we can say that, while Spain con­sidered Amer­ica an exten­sion of Europe (an ecu­men­ical church), Eng­land con­sidered the world an open mar­ket. This second phase was marked by an Anglo-​French com­bin­a­tion of eco­nomic growth and ration­al­ism framed as a devel­op­mental cru­sade. When the United States — the greatest mil­it­ary and eco­nomic power ever known — entered the scene, it res­ul­ted in the refash­ion­ing and strength­en­ing of the Brit­ish capitalist-​imperial appar­atus, cut­ting off in a stroke any link with Brit­ish, ver­nacu­lar and feudal hier­arch­ies. It intens­i­fied the dream of a free mar­ket through an expans­ive con­sti­tu­tion and through the demoli­tion of clas­sic forms of national sovereignty.

The first phase of col­on­iz­a­tion is intim­ately linked with the theo­lo­gical pro­long­a­tion of Europe in Amer­ica, i.e. West­ern­iz­a­tion. The second, as put by Edward Said, is the ori­ent­al­iz­a­tion of the rest of the world. The first depends on the pur­ity of race as the main stand­ard of occu­pa­tion, while the second is all about the emer­gence of the bour­geoisie and the plan­et­ary implant­a­tion of cap­it­al­ism and the con­sequent divi­sion of labour, mak­ing itself con­crete in coloniality.

The first rad­ical dif­fer­ence imposed by Europe is the hege­mony of its know­ledge. The rules are imposed rigidly and any know­ledge that does not com­ply with the rules of the game, mean­ing folk­lore, the sub­ject­ive, the emo­tional or sac­red, are expelled as inept and bru­tish forms of con­ceiv­ing the world. Hence a racist and utterly nar­ciss­istic know­ledge that can only be held together by its own terms of valid­ity is built and irrig­ated as a uni­ver­sal pro­ject that des­troys any other ways of con­ceiv­ing and liv­ing in the world. Here­after, the colo­nial sub­ject is declared, as Hardt & Negri have pin­pointed, as an abso­lute other, the neg­a­tion of being white and European, of being a lib­eral and a ration­al­ist. So being a colo­nial sub­ject has meant being in a cata­strophic state of cul­tural and polit­ical error.

The Enlight­en­ment in Nueva Granada (now roughly Colom­bia, Venezuela and Ecuador) was, as Castro-​Gómez lucidly puts it, not a “simple dis­place­ment of mean­ings pro­grammed from a neut­ral ‘point zero’ that would have adop­ted an ori­ginal text, but rather a strategy of social pos­i­tion­ing garnered by the ‘Enlightened’ creole against sub­al­tern groups”. There is, then, a fun­da­mental rami­fic­a­tion of colo­ni­al­ism. On one side, its dif­fu­sion and impos­i­tion from Europe, on the other, the bene­fit­ting of colo­nial national elites through formal inde­pend­ence, whereby Enlight­en­ment is the mech­an­ism through which power is affirmed as a sup­pres­sion of dif­fer­ence and the con­tinu­ity of racial priv­ileges. What these white elites accom­plished was a formal depar­ture from the met­ro­polis. They repro­duced the bulk of the prin­ciples of modernity/​coloniality — such as the nation state and the rule of law — as a way of per­petu­at­ing their hege­mony and of encour­aging new forms of racism and dom­in­a­tion. The pro­cesses of inde­pend­ence in Latin Amer­ica did not des­troy colo­ni­al­ity, it simply exacer­bated its more acute forms. They were just a way for the white colo­nial elites to grasp power in a stronger form. Our his­tory is there­fore the his­tory of oppres­sion fathomed by such elites against indi­gen­ous peoples, blacks and mestizos.

Colo­ni­al­ity sur­vives colo­ni­al­ism and is kept alive in con­sti­tu­tions, books, in cri­teria of aca­demic per­form­ance, cul­tural can­ons, com­mon sense and aes­thet­ics. Accord­ing to Maldonado-​Torres, as mod­ern sub­jects we breathe colo­ni­al­ity every day, all the time. Colo­ni­al­ity is not a mere con­sequence or resid­ual form of colo­ni­al­ism, colo­ni­al­ity is the inev­it­able product of mod­ern dis­course with Latin Amer­ica as a test­ing ground for Empire and capitalism.

The true prob­lem of lib­eral uni­ver­sal­ism is that it was never meant to be an authen­tic uni­ver­sal­ity. Terms such as “rights” and “free­dom” are no more than min­is­cule con­cepts elev­ated fraud­u­lently to a space of uni­ver­sal rep­res­ent­a­tion in order to over­whelm and dis­en­fran­chise dif­fer­ence. In this sense, the colo­nial sub­ject is given a flawed form of elec­tion, either to embrace free mar­kets, human rights and con­sti­tu­tions or to be deemed and treated as a bar­bar­ian, a rogue or a ter­ror­ist. But free mar­kets, human rights and con­sti­tu­tions are the very mech­an­isms through which colo­ni­al­ity becomes per­vas­ive and indisputable.

Argentina’s expro­pri­ation of Repsol’s shares can be seen as a way of undo­ing the per­verse forms of colo­ni­al­ity that have deprived most Latin Amer­ic­ans of the oppor­tun­ity to real­ize their own being in the world. Fol­low­ing Bolivia’s Vice Pres­id­ent, Alvaro Garcia-​Linera, the new polit­ical model super­sedes the lib­eral repub­lic­an­ism that frag­men­ted and privat­ized the com­mons. In this sense, we stand before a new type of polit­ics, where the com­mons are admin­istered and shared col­lect­ively. The only way to pro­tect this new polit­ical truth is through a plural eco­nomy, a strong com­mons, where the stra­tegic activ­it­ies of the coun­try lead to an eco­nomic sur­plus that is rein­ves­ted across all pro­duct­ive sectors.

In truth, Bolivia did not acquire its inde­pend­ence in 1825, but in 2005. Up until that point, the model of the state was colo­nial, held together by a despic­able and racist elite who wel­comed for­eign inter­ven­tion. As Garcia-​Linera once remarked, colo­ni­al­ity is a global demon and the only way to defeat it is with another sort of glob­al­iz­a­tion, not of fin­an­cial cap­ital or mil­it­ar­iz­a­tion, but of people power.

Rich and novel forms of know­ledge that are part and par­cel of the new Latin Amer­ican land­scape, such as Pasha Mama and Sumak Kaw­sai, may even help the West to escape the ter­rible mess it has cre­ated for itself before it becomes fully col­on­ized by its own tra­di­tion. There is hope: look to Latin America.

Ricardo Sanin Restrepo is Pro­fessor of Legal The­ory at the Uni­ver­sidad Javeri­ana Bogota-​Colombia

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