Bolivia’s populism steps on Brazil

Bolivia’s decision last week to nationalize its natural gas reserves shocked the West, but the country set to pay the highest price – both politically and economically – is Brazil, experts and analysts say.

More than half the gas used in Brazil is Bolivian, and in Sao Paulo – the state that accounts for roughly half of Brazil’s
GDP – the figure is 75 percent. Any disruption in supply from Bolivia would hit Brazil hard, and those in the heavily industrialized south of the country are especially concerned about the potential costs of last week’s decision.

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