Nations with vast oil wealth gaining clout

The boom in world oil prices is bolstering autocratic governments in a handful of petroleum-rich countries, emboldening them to challenge U.S. objectives and weakening their own democratic movements.

The cost of a barrel of oil has climbed dizzyingly, from $80 in September to more than $147, before settling Wednesday at $134.60. Some analysts expect it to continue rising to $200. The effects are visible across the globe:
Iraq’s warring factions are scrapping for a share of the massive oil wealth. The Sudanese government has more money to spend on military equipment and the campaign against rebels in Darfur. Saudi Arabia has grown more distant from its allies in Washington.

But some of the most obvious effects are in countries whose leaders are most hostile to the United States: Venezuela’s populist President Hugo Chavez, Iran’s stringent Islamic rulers and Russia’s growing autocracy.

The governments of these three countries, among the top eight in proven reserves, are demanding a greater role in world affairs while spending on domestic social programs, raising salaries and building infrastructure — measures that help blunt concerns over a slide into greater authoritarianism.

“You have no control from society or opposition or the state or anybody,” said Grigory Yavlinsky, a Russian economist and leader of the opposition Yabloko party. “So it’s easy to use this money to support your popularity.”

But vast oil wealth comes with risks. All three countries are struggling with inflation, which might slowly erode popular support.

Los Angeles Times