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Regional Cooperation: ALBA

Regional Cooperation: ALBA. 4/21/2010. NOTE. On policy papers: If you have not written a policy paper since the midterm, you MUST write on the final two topics Regional Cooperation (this week’s topic) DUE Wed, April 28 Living with the US (next week’s topic) DUE Wed, May 5.

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Regional Cooperation: ALBA

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  1. Regional Cooperation:ALBA 4/21/2010

  2. NOTE On policy papers: • If you have not written a policy paper since the midterm, you MUST write on the final two topics • Regional Cooperation (this week’s topic) DUE Wed, April 28 • Living with the US (next week’s topic) DUE Wed, May 5

  3. What is The Bolivarian Alternative for the Americas? Establishment • 2004, Dec. 14: original agreement between Cuba and Venezuela signed • Establishes the exchange of Venezuelan oil (subsidized price) for Cuban doctors and teachers (Venezuela pays their salary) • 2006, April: Bolivia joins • 2007, February: Nicaragua and Dominica join • 2008, January: Dominica joins • 2008, Oct. 9: Honduras joins; withdraws January 13, 2010 • 2009, June: Ecuador, Antigua and Barbuda, Saint Vincent and the Grenadines join

  4. What is The Bolivarian Alternative for the Americas? • A statement of regional solidarity and an explicit rejection of neoliberalism and U.S.-led economic projects • Mechanism for strategic economic planning which recognizes asymmetries between countries and thus uses the existing benefits of each to reach the most beneficial result for both • Mechanism for collaboration on social issues • Opposes current intellectual property rights regime

  5. What is The Bolivarian Alternative for the Americas? Some Programs of Interest • Exchange of medical and educational resources • “Operation Miracle” provides free eye operations, transportation and accommodation, to almost 600,000 Latin American citizens each year • Petrocaribe, Petroandina, and Petrosur and the coordination of energy sectors • TeleSUR regional TV and radio network presenting Latin American people’s perspective • SUCRE monetary union • Proposed • Bank of the South: Compensatory Fund for Structural Convergence • Latin American Parliament (to replace the OAS)

  6. Drawbacks of Alba • Ideological • ALBA as a vehicle for Venezuelan foreign policy rather than a functioning economic program • Partner states as opportunists (cheap oil and easy credit) rather than committed to the ideals • Concern for state sovereignty has limited effective macroeconomic policy coordination • Generates a great deal of hostility both by and towards the US

  7. Drawbacks of Alba • Practical • Cooperation and development are driven by oil and gas money, volatile commodities • Economic projects remain largely based on resource extraction and export-oriented growth • Lack of complementarily between the economies of member states • Hostility by and towards the US is problematic in an area of the world where the US is still deeply engaged - through economic, aid, and military links

  8. ALBA What determines success? • Socially-oriented • The targeted use of social spending and access to public services to correct inequality • Rejects sweatshop and other “low quality” employment • Promotes self-sufficient agriculture • Promotes cooperative enterprise • A “new social contract” • Incorporate the disenfranchised electorate • Support from grassroots movements and civil society organizations • Confront powerful, established commercial interests • A viable alternative to US dominated regional trade • Opposed to the Free Trade Area of the Americas (FTAA) • Association of weaker countries

  9. Questions • Should trade agreements separate economic goals from the social agenda of the state? • How does a country’s political, social, and economic structure determine what type of trade agreement would be most beneficial? • What type of economic actor is most likely to benefit from NAFTA/ALBA? Why?

  10. NOTE On policy papers: • If you have not written a policy paper since the midterm, you MUST write on the final two topics • Regional Cooperation (this week’s topic) DUE Wed, April 28 • Living with the US (next week’s topic) DUE Wed, May 5

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