The United States' effort to restructure Iraq politically is at a critical juncture. The war in Afghanistan may be taking a turn for the worse with the Taliban. The Chinese military expansion is posing a threat to Taiwan. With these three critical issues on the front burner, it's very easy to ignore developments much closer to home in South America. Not paying attention right now to the drama unfolding in the south could have serious repercussions in the near term.

Regardless of what one thinks about the United States' policy of isolating Fidel Castro and the Cuban trade embargo, there is no question that Castro, weakened by the withdrawal of Russian support, poses no threat to anyone other than the Cuban people. The reality is that Castro, who sent troops to Angola and various other places in support of “the evil empire,” never really did much harm to the United States in South or Central America. Hugo Chavez, the leader of Venezuela, is another matter.

Chavez is not a communist, but then again communism is no longer a viable political movement. He is, however, a populist attempting to expand Venezuela's influence throughout the region. His rallying cry to allies and potential supporters in other countries is a strongly anti-U.S. policy. Chavez is fanning the flames against Washington that always existed to some extent in South America. Within Venezuela, he has undertaken massive rebuilding of the country's armed forces and civilian militia with the objective of repelling a U.S. attack that has never even been hinted at by Washington.

Chavez is a real threat, and cannot be overlooked, because his anti-Washington platform is being fueled by Venezuela's massive oil revenues. With oil selling for around $70 a barrel, Venezuela is flush with cash. Money goes a long way in South America, particularly when it finds its way into the pockets of leaders. Chavez is shrewd and cannot be underestimated. If he has his way, he will lure other countries on the continent, one by one into his informal alliance.

He began his expansion with Ecuador and Peru. In Peru, Chavez suffered a setback last week with the election for Peruvian President of Alan Garcia over Ollanta Humala. Garcia ran on an anti-Chavez platform while emphasizing that his objections to the Venezuelan leader don't mean that he supports the U.S. government. By voting for Garcia, the Peruvian people demonstrated that they wish to preserve their own national democracy and not become a satellite of Venezuela or a pawn in Chavez's master plan for regional domination.

Prior to the election, Chavez asserted that he would sever relations with Peru if Humala lost, but only time will tell if he carries out that commitment. Moreover, Chavez is likely to attempt an expansion of his influence in an effort to upset delicate political balances in other South American countries, including Chile and Argentina.

It's easy for Americans to shrug their shoulders and wonder what difference any of this makes to us in the United States.

Thinking along those lines is short sighted. The current economy of the world and the United States is critically dependent on natural resources, including oil and copper, which are plentiful in South America. To the extent that Chavez can deprive the United States of those resources, either by cutting off the flow to the United States or by simply wrecking the oil infrastructure, he will be dealing a significant blow to the American economy. We are not suffering without Castro's sugar and most of us are getting a long fine without his cigars. Reductions in oil and copper would be another matter.

Furthermore, Chavez's efforts to induce turmoil in South America, to whatever degree they are successful, will promote dissatisfaction among the populace and provoke more of them to want to immigrate to the United States, either legally or illegally. The result will be further pressure from the South on the United States border, which is already a delicate situation. Throughout our history we have had a rather bizarre relationship with South America in which our attitude has shifted from paternalism to indifference, and back again. The time has come to wake up, consider carefully what is happening, and try to influence current developments in a delicate manner.