Boris Johnson’s cancellation of London’s oil agreement with Venezuela is a piece of rightwing dogmatism that is equally costly to the people of London and Caracas. The agreement was that Londoners on income support received half-price bus travel, subsidised via cheap Venezuelan oil, in return for London providing transport, planning and other expertise to Venezuela.
The basic principle of London-Caracas agreement was simple, reasonable and indeed a rather textbook illustration of relative advantage in foreign trade. Each side provided the other with that in which they are rich, and which for them is therefore relatively cheap – oil, on one hand, and the expertise in managing a modern advanced city on the other – in return for something which was scarce, and therefore relatively expensive, for the other side. Continue reading →
LONDON, England (AP) — The British capital’s new mayor, Boris Johnson is ending a deal that has provided cheap Venezuelan fuel for London’s transport network. Johnson was a critic of the oil deal struck by his predecessor, Ken Livingstone.
The agreement, signed last year by the Conservative Johnson’s predecessor and Labour Party rival, Ken Livingstone, provided discounted gas for London’s iconic red buses in exchange for advice on urban planning in Caracas, the Venezuelan capital.
Money saved on gas was put into a program providing half-rate bus fares for low-income Londoners. Continue reading →