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New regional intergations
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INTERNATIONAL RELATIONS
OF THE CARIBBEAN
Alternative integration in Latin
American and the Caribbean
Dr. Jacqueline LAGUARDIA MARTINEZ
New Regional Integration
ALBA
CELAC
UNASUR
New kind of regionalism
Globalization and the recent economical crisis attempt against traditionalintegration schemes and encourage the search of alternative integration
frameworks
Search for economic growth and national development out of the Washington Consensus formula: no fundamental gains in competitiveness
through liberalizing regional markets
Look for alternative strategies for regional integration, and equitable and sustainable development
Current regionalism is more than economic liberalization, although influenced by that process. It reflects different socio-economic conditions,
values and ideological positions. It emphasis cooperation and
complementarity
Strong institutionalization and proposal of real goals are indispensable In the region the integration map tends to become a real spaghetti ol
in which bilateral and su-regional agreements and institutions overlap
Common characteristics
Inclusion, cooperation, complementarity, extra
economic goals, emphasis on human development,
respect of differees, Conditioned by four main factors: 1. Dispersion and fragmentation of political interests
2. The role of energy resources
3. The coexistence of new conflicts with more
traditional
4. The wear of the integration processes in Latin
America
Itegratios eefits for the Cariea Possibilities to maximize national capabilities Proper diplomatic framework Unified regional voice Go beyond insularity and mistrust
Development assistance funds available Developmental regionalism South-South Cooperation
Bolivarian Alliance for the Peoples of Our America (ALBA)
2004, Alternativa Bolivariana para las Amricas, transformed in 2009 in Alianza Bolivariana de los Pueblos de Nuestra
Amrica - Tratado de Comercio de los Pueblos (ALBA-TCP)
Membership (9 Members): 2004 Cuba and Venezuela, 2006 Bolivia, 2007 Nicaragua, 2008 Dominica and Honduras, 2009
St. Vincent and Grenadines and Ecuador, Antigua and
Barbuda, 2013 Saint Lucia (Multiple membership of its
members)
Integration platform based on the cooperatives advantages of its members, in order to compensate asymmetries and
advance in developments goals out of the neoliberal logics
and based on endogenous dynamics
Purpose to join the capacities and strengths of the Member countries, in order to produce structural
transformations and the networks needed to achieve an
integral development
It is a political, economic, and social alliance in defenseof the independence, self-determination and the
identity of its peoples
ALBA does not harbor commercial criteria or selfish interests related to business profits or national benefit to
the detriment of other peoples
Solidarity, complementarity, justice and cooperation
What is ALBA?
ALBA Model
Explicit ideological component against the Washington Consensus (counter-hegemonic project)
Flexibility: special and differential treatment as a fundamental characteristic
Respect of sovereignty South-South Cooperation Regionalization of endogenous development State participation Facing asymmetries using complementarity criteria and
cooperative advantages and networks, creation of
productive linkages
1. Trade and investment must not be an end in itself, but instruments to reach a just and
sustainable development
2. Special and Differential Treatment
3. The economic complementarity and the cooperation between the participating
countries and non competition between countries and productions
4. Cooperation and solidarity that are translated into special plans for the least developed
countries in the region
5. Creation of the Social Emergency Fund
6. Inclusive development of the communications and the transport between the Latin-
American and Caribbean countries
7. Actions to enable the sustainability of the development by means of procedure, and which
protect the environment
8. Energy Integration between the countries of the region
9. Promotion of Latin American capital investments within Latin America and the Caribbean
10. Defense of the Latin-American and Caribbean culture and of the identity of the peoples of
the region
11. Measures for intellectual property norms
12. Coordination of the positions in the multilateral spheres and in the processes of negotiation
of all kinds with countries and blocks of other regions
Basic Principles
ALBA has four dimensions
SOCIAL POLITICALSOCIAL
MOV.ECONOMICAL
ACHIEVEMENTS NOT MAJOR RESULTS
ALBA Mechanisms
Grannational Projects: trade, finances, tourism, health, telecommunications, industry, mining, transportation, energy
Petroamrica: Petroandina, Petrosur and Petrocaribe Banco del ALBA ALBA Cultural: Casas del ALBA, Fondo Cultural del
ALBA, Premios ALBA Cultural and ALBA narrativa, TELESUR
Conditionalities of ALBA membership
1. Support for its general principles
2. Use of ALBA funding exclusively for the public
sector (government and state enterprises)
3. Orientation of projects and social cooperation
to disadvantaged socio-economic sectors of the
population
2007, Bank of ALBA
Credit policy: To finance cultural, healthcare, food security and education projects, reconstruction
funding (50 millions USD in Haiti)
Monetary policy: SUCRE (Sistema Unitario de Compensacin Regional de Pagos), hile sucre identifies the system Common Currency Unit (Unidad
de Cuenta Comn)
Development promotion policy XI ALBA Summit (2011): Each member will place the
1% of international financial reserves in the Bank of
ALBA (it represented 500 million USD in 2012)
ALBA TRADE RELATIONS
Non-reciprocity - Cuba agreed to grant duty-free access to Venezuelan imports and to remove non-tariff barriers; while
in return Venezuela has agreed to eliminate only non-tariff
barriers on Cuban imports
Compensated trade - through direct product exchanges Dominica is allowed to pay for 40% of its Petrocaribe oil
imports with exports of bananas
Trade agreements negotiated on a case-by-case basis, allowing for flexibility of commitment according to country
circumstances
Reciprocal Credit Arrangements Venezuela-Cuba Agreement
Trade using the sure (millions)Sistema Unitario de Compensacin Regional
Source: Centro de Investigacin de la Economa Mundial (CIEM), Cuba
2010 2011 2012
Operations 6 431 2.135
Value 12.6 216.0 700.0
In March 2013, Uruguay began using the sucre. It is
the first non ALBA member country to use the system
GRANNATIONALS It is an essentially political concept. Has several components:1. Historical and Geopolitical Basis: Focused on the Bolivarian vision of the
union of the Latin-American and Caribbean republics for the shaping of the
great nation
2. Socio Economic Basis: Based on the fact that the strategy for the development of the economies of our countries in order to meet the social
needs of the great majorities cannot only be restricted to the local sphere
3. Ideological Basis: It is determined by the conceptual affinity regarding the
critical conception of the neoliberal globalization and the need to break
the world trade patterns based on the free market fiction
Grannational Project: Program of action intended to comply with the principles and objectives of ALBA.It s implementation involves two or more
countries, for the benefit of the social majorities
Grannational Enterprise: Enterprises from the ALBA countries, whose productions will be fundamentally destined for the INTRA-ALBA market to
shape up a fair trade area, and its operation will be carried out efficiently
PETROCARIBE Created in June, 2005 Energy Cooperation Agreement to coordinate and articulate
energetic policies, including oil and oil-products, gas, electricity
and technological cooperation
Membership (18, 12 Members of CARICOM): Antigua and Barbuda, Bahamas, Belize, Cuba, Dominica, Grenada,
Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua,
Dominican Republic, St. Kitts and Nevis, Saint Vincent and the
Grenadines, Saint Lucia, Suriname and Venezuela
ALBA-Caribe Fund: It has been allocated 179 millions USD to 85 projects in 11 countries; 29 millions USD to 3 energy projects
Trinidad and Tobago and Barbados do not belong April 3-4, 2014: Meeting in Caracas regarding Plan de Accin
para la Erradicacin del Hambre y la Pobreza en la Zona
Econmica de Petrocaribe (more than 60 millions USD)
Petrocaribe pros and cons Oil supply in advantage conditions to the Members: lower
prices and facilities of payment (even more important in the
current global economic crisis)
To pay the oil bill with products and services stimulate domestic production and trade
ALBA/Petrocaribe provides public sector financing that, compared with conventional sources, is (i) low-conditionality
and host-country determined, (ii) low-interest and (iii) quick-
disbursing
However, the rising debts to PetroCaribe have generated debate about the long term sustainability of this strategy and
the imperative to balance it with other solutions to energy
security, such as increased investment in renewable energy
sources in the region
Operacin Milagro: 1,6 millions of persons
recover eyesight (until June 2009)
Literacy Program Yo s puedo (Yes I can): 3,8
millions new literate persons (until June 2009)
15,000 young people of low incomes study
medicine in Cuba and Venezuela (June 2009)
4,000 graduates in Cuba (Until August 2008)
ALBA Social Achievements: some figures
While traditional regional groupings experience evident stagnation, most Caribbean countries joined the Petrocaribe
initiative to combat difficulties of energy cost and availability.
Likewise, six countries joined ALBA. Both organizations easily fit
the labels of deelopetal regioalis ad outh-South ooperatio Cuba-CARICOM cooperation, ALBA and Petrocaribe have
considerably narrowed the gaps that existed between Latin
American and Caribbean understandings of regional spaces
and identities
ALBA and Petrocaribe have had a positive impact as providers of development assistance and social programs
Its funds have helped to alleviate the effects of economic crisis and provide some protection for vulnerable populations
In favor
ALBA economic sustainability
Favorable international prices for energy, minerals and agricultural products since 2003
Natural resources and agricultural sector (water and biodiversity)
Major State control over national natural resources and its exploitation
Financial mechanisms within ALBA
But Extractivism has eidet liits!!!!!
Presence of the US as main investor and trade partner in ALBA countries
Insufficient integration among the national economies (still compete more than complete)
Asymmetries among the ALBA Members Rentist model (oil and natural resources,
remittances)
POTENTIAL NEGATIVES OF ALBA
Donor dependency Energy dependency Economic vulnerability Political vulnerability State-etri, as opposed to grassroots or ouity-
based development
Capital intensive, potentially environmentally damaging projects
Transparency/accountability issues Potential for corruption
ALBA vs. FTA in Latin America and the Caribbean
ALBAFTA
SUCRE
Banco del ALBA
GrannationalsTransnationals
DOLAR
IMF, World Bank
PRENSA LATINA, TELESURCNN, ABC, NBC
ComplementarityCompetition
UNASUR / CELACOAS
Iterestig 11 of the 18 Caribbean countries that benefit from
Petrocaribe credits are non-members of ALBA
Non-members access loans from the ALBA Caribe Fund, from the ALBA Bank and from the ALBA Food
Security Fund; all three are financed by PetroCaribe
CARICOM non-ALBA beneficiaries of these programmes includes Bahamas, Belize, Grenada,
Guyana, Haiti, Jamaica, Suriname and St Kitts and
Nevis
Community of Latin American and
Caribbean States (CLACS/CELAC)
December, 2011: Foundational Summit in Caracas January, 2013: I CELAC Summit in Santiago de Chile January, 2014: II CELAC Summit in Havana
It is a forum that brings together 33 sovereign States of the region, which looks for the deepening of political, economic, social and cultural integration of Latin America and the Caribbean, based on full respect for democracy and human rights
http://www.youtube.com/watch?v=Jn0CAMBWRjo
II Summit CELAC: highlights
eogitio of the Uity i the Diersity priiple ad the construction of an space of dialogue and political coordination
Support of regional integration, sustainable development (climate change adaptation), indigenous and afrodescents rights, nuclear
dismantling
Latin America and the Caribbean as a Peace Zone Special mentions to Haiti and Puerto Rico upport Argetias lai oer Malvinas Condemnation of the USA blockade against Cuba Support the Colombian peace negotiations Establishment of a China-CELAC Forum and a Dialogue Mechanism
with the Russian Federation
Special Declaration on Small Island Developing States (SIDS)
CELAC PLAN OF ACTION 2014 Food security and nutrition and eradication of hunger and poverty
Family farming Education Culture and dialogue between cultures Science, technology and innovation Productive and industrial development Infrastructure Finance Latin American and Caribbean preferential tariff Energy Environment Post-2015 Development Agenda International humanitarian assistance in case of disaster situations Migration World illicit drug problem and addictions Struggle against corruption and its prevention Citizen participation Security of citizens Cooperation Regional and sub-regional integration mechanisms International policy
Created in 2008 Members (12): Argentina, Brasil, Uruguay, Paraguay,
Venezuela, Bolivia, Colombia, Ecuador, Per, Chile, Surinam,
Guyana
CAN: Bolivia, Colombia, Ecuador and Per MERCOSUR: Argentina, Brasil, Paraguay, Uruguay, Venezuela
and Bolivia
Goal: To encourage the regional integration in energy, education, health, environment, infrastructure, security and
democracy
To promote the development of an integrated political, social, cultural, economic, financial, environmental and
infrastructure space, recognizing the different ideological
conceptions, corresponding to the plurality of its Members
Union of South American Nations (UNASUR)
Bank of the South (Banco del Sur)
Established in 2009 by Argentina, Brazil, Paraguay, Uruguay, Ecuador, Bolivia and Venezuela
Goal: to lend money to nations in the Americas for the construction of social programs and infrastructure
Main functions: Financing basic infrastructure projects, support investments that strengthen the integration and
combat asymmetries. To provide technical advisory services
and training
An alternative to borrowing from the IMF and the World Bank
Equal representation of its Members Decisions are taken by consensus