APRIL 27, 2003
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Q&A: Charles J. Fombrun
"There is a direct correlation between reputation and market capitalisation. Reputation has to be treated as an asset, measured as an asset." Thus spake Charles J. Fombrun, reputation guru, Professor at New York University's Stern School of Business, and Founding Director of the Reputation Institute. For more, log on.


Q&A: Keith Smith
Keith Smith—not to be confused with a Hot Springs Arkansas-based egg marketer by the same name—lives in Hong Kong, as the boss of an idea-hatchery. More specifically, as the Regional Chairman of the Asia pacific operations of TBWA. His most significant 'business coup'? Swinging the Wonderbra account.

More Net Specials

Business Today,  April 13, 2003
 
 
Bush's Dirty War
The US-Iraq war is all about controlling the world's second-largest oil reserves.

More than eight decades ago, to be precise, in 1919, a year after the end of World War I, the then President of the US Thomas Woodrow Wilson had raised a rhetorical question that has become more valid than ever before. He had asked: ''Is there any man, is there any woman, let me say, any child here, that does not know that the seed of war in the modern world is industrial and commercial rivalry?''

Only the most gullible supporters of the Bush administration believe that the US-led war on Iraq is aimed at destroying the so-called weapons of mass destruction with the Saddam Hussein regime. Who does not know that first, the attack on Afghanistan and now, the invasion of Iraq, have been motivated by America's desire to control the world's reserves of oil and gas-especially the hydrocarbon reserves of the Middle East and Central Asia?

   
   

The US currently guzzles as much as one-fourth of the world's total consumption of petroleum products while possessing barely 5 per cent of the planet's proven reserves of fossil fuels and an equal proportion of the earth's population. A University of Wisconsin academic Rob Nixon went as far as to argue in The New York Times that over the last 70 years, oil had been responsible for more of America's ''international entanglements and anxieties than any other industry'' and that oil ''continues to be a major source of America's strategic vulnerability and of its reputation as a bully, in the Islamic world and beyond''. He argued that the insatiable US appetite for foreign oil-more than half the oil used in the US is currently imported-''has created a long history of unsavoury marriages of convenience with petro-despots, generalissimos and fomenters of terrorism''.

More pithy is novelist John Le Carre's remark: ''What is at stake is not an axis of evil, but oil, money and people's lives.'' In an article titled The United States of Oil in the online magazine Salon, staff writer Damien Cave argued that it was common knowledge that the Bush administration's ties to the oil industry ''are as deep as an offshore well''. The article pointed out that three generations of the Bush family have run oil companies since 1950, that Vice President Dick Cheney used to head Halliburton, the world's largest provider of services and equipment to oil-extracting companies, that National Security Advisor Condoleezza Rice sat on the board of directors of oil multinational Chevron-a tanker was even graced with her name-while Commerce Secretary Donald Evans used to head Tom Brown Inc., owner of natural gas fields.

What's not so well known is that Osama bin Laden's family members as well as others belonging to Saudi Arabia's oil-rich elite have contributed generously to several Bush family ventures. As Cave wrote: ''The fusion of oil and politics is a Bush family tradition.'' Moreover, Halliburton under Cheney had conducted sales worth over $23 million with Iraq in 1998 and 1999 through the company's European subsidiaries ''to avoid straining relations with Washington'', according to a November 2000 report in the Financial Times, London.

In early-September 2001, a few days before the attack on the World Trade Centre and the Pentagon, a report prepared by the American Energy Information Administration stated: ''Afghanistan's significance from an energy standpoint stems from its geographical position as a potential transit route for oil and natural gas exports from Central Asia to the Arabian Sea.'' This statement is perhaps even more valid for Iraq, which has the world's second-highest hydrocarbon reserves after Saudi Arabia. Iraq's production costs are among the lowest in the world at $1 per barrel against $2.5 in Saudi Arabia and around $4 in the US. Nearly 80 per cent of the oil from the Gulf region moves through the narrow Straits of Hormuz, making this area strategically crucial for American interests.

Do you still have any doubts about the real reasons for the war on Iraq?

The author is Director, School of Convergence at IMI, New Delhi, and a journalist.
He can be contacted a paranjoy@yahoo.com

 

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