Friday, September 22, 2006

Regional Integration :Which way Latin America should follow?

The United Nations forums ,give us an opportunity to know the current state of world affairs .At the same time ,it allows to know the different focus world leaders are concentrated on to overcome the main challenges arising from such affairs. For Latin America, it is the special occasion to discuss its position and interests, on that global politic scenario.-
Given that the situation and prospect for a wider global trade including agricultural goods, is standing by after the Doha meetings results, some analysts are saying that it is the time for regional integration, starting with the Asia Pacific area next to have its annual meeting this year in Hanoi. The instrument, would a be a Free Trade Agreement for the whole area included in the Asia Pacific Economic Cooperation forum (APEC),fostering a new impulse on global trade talks.
For Latin America economies, such regional integration strategy would also imply to reinforce trade within themselves and others partners, mainly Europe, Asia and the United States.
The question is which direction should follow such effort?. In the United Nations forums, The Latin America Presidents gave different and heterogeneous speeches. Chile concentrated on the necessity of improving trade, Argentina concentrated on the necessity of improving the financial architecture for capital flow and debt renegotiation, Brazil concentrated on the necessity of reducing poverty, Colombia concentrated on the necessity of reducing violence, and Venezuela concentrated on the necessity of confronting the empire (¿?). There was different styles, moods and strategy to capture the audience attention, but it seems clear that there is no connection between these speeches and the regional integration demand. What if the Venezuela approach is followed?. It means to go nowhere .Insulting does not provide leadership . What about Chile proposition ? .The Doha results are evident that there is still a long way through . Argentina initiative? .It emphasizes the financial requirements for global trade. Brazil proposition ? .A desired goal for development, and finally Colombia proposition?. Peace is the United Nation business.
None of the orientation and guidelines mentioned ,kept the attention on what is really needed for regional integration : To foster growth and wealth creation as the precondition to overcome poverty, violence, and underdevelopment so to be able to have a place on the major leagues.
The regional integration effort during the nineties, has been driven mainly by private business which searching for bigger external markets ,to sustain investment levels in some cases above the levels that domestic markets were capable of support. Latin America firms, went to different countries within the continent , such as it allowed them later on , with the expertise and economy of scale advantage of greater volumes, to improve its access to world markets.-
This integration path got Latin America government policies closer to one another, but behind private firms, not leading them. So, the driven factor ,as mentioned, was not Government ,but firms. The implication of this is that the only integration which have a common language is the one leaded by private sector, which imply a complementary role for governments .-

No comments:

Post a Comment