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

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

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

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)

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

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

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

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?

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