Susana Barria*

Mumbai, October15, 2006: Since the beginning of colonization in 1492, Latin America’s history has been heavily influenced by the imperialist policies of the political powers of the moment - from the Spanish empire to the British and on to the US empire. Latin America’s development has been held in check by the imperialist policies that US-friendly national oligarchies helped (and continue to help) to implement. The neo-liberal model, pushed by the imperialist politics of the US and the international community, has failed to improve the quality of life of the majority of the people in the southern continent and even enlarged the disparities inside and between the countries. The implementation of the North American Free Trade Agreement (NAFTA) was an important step for the neo-liberal integration model in that it formulated in clear words and actions the values and principles of this model, which would later be used in the formulation of the Free Trade Agreement of the Americas (ALCA in Spanish, or FTAA in English). The consequences of the NAFTA for the lower middle-class and “working poor” in USA and Canada and for the majority of the Mexicans, particularly the peasants, have been disastrous.[i] In this context, a break with the imperialist tradition in the continent as well as with neo-liberal policies was a necessity.

Currently the free-trade corporate led integration model is in a crisis of legitimacy. The WTO talks have all but collapsed; Argentina, Brazil, Uruguay, Paraguay and Venezuela soundly rejected the American project for the Free Trade Area of the Americas (FTAA) in November 2005[ii]. The Latin American and Caribbean countries have not stopped just at rejection but have gone ahead in building an alternative model of regional cooperation. Venezuela’s charismatic, albeit, controversial President Hugo Chavez leads from the front in establishing the Bolivarian Alternative for our America (ALBA) as a counter to the Free trade paradigm, which is now extending to other countries and across different strata of society.

What’s the ALBA?

The Spanish world alba signifies dawn. It is also an integration model, as is the neo-liberal ALCA, yet the values and basic principles are fundamentally different, and, as a consequence, so are the modes of action and final results. New values and aims are put in the place; those that break with the capitalist and neo-liberal logic and proposes a model based on the values of complementarity, solidarity cooperation and respect of sovereignty.

Chavez first spoke about project ALBA during the III Summit of the Heads of State and the Government of the Association of the Caribbean States, in Isla Margarita, Venezuela, in December 2001. Later a Joint Declaration and an agreement of ALBA were signed between Venezuela and Cuba in December 2004. As a framework for the implementation of ALBA the Joint Declaration[iii] states 12 guiding principles. In an abridged version[iv]:

·     “Trade and investment should not be ends in themselves, but instruments to achieve just and sustainable development.”

·     “Special and differential treatment, that takes in to account the level of development of the diverse countries and the dimension of their economies.”

·     “Economic complementarily and cooperation between the participant countries and not the competition between countries and productions.”

·     “Cooperation and solidarity that is expressed in special plans for the least developed countries in the region.” Including a Continental Literacy Plan; a Latin American plan for free health treatment for those in need and a scholarship plan in areas of largest interest for the “economic and social development.”

·     “The creation of a Social Emergency Fund”

·     “Integrated development in communications and transportation between the Latin American and Caribbean countries” including plans for highways, trains, shipping and airlines, telecommunications and others

·     “Actions to sponsor sustainable development through norms that protect the environment.”

·     “Energy integration between the countries of the region, in order to insure the supply of stable energy products to the benefit of the Latin American and Caribbean societies.” Including Venezuela’s proposal of the creation of Petroamerica.

·     “Promotion of investment of Latin American capital in Latin America and the Caribbean itself, with the objective of reducing the dependency of the countries of the region on foreign investment.” In order to do so, the creation, among others of the Latin American Investment Fund, the Development Bank of the South, and the Society of Latin American Reciprocal Guarantees.

·     “Defense of Latin American and Caribbean culture and the identity of the people of the region, with particular respect and promotion of the autonomous and indigenous cultures.” Including the creation of TeleSUR.

·     “Measure for the norms of intellectual property, while protecting the heritage of the Latin American and Caribbean countries from the voracity of the transnational corporations.”

·     “Coordination of positions of the multilateral sphere and in the processes of all negotiations with countries and blocks from other regions, including the struggle for democratization and transparency in international organisms, particularly in the United Nations”

The Agreement between the President of the Bolivarian Republic of Venezuela and the President of the Council of State of Cuba, for the Application of the Bolivarian Alternative for the Americas[v], signed during the same meeting discards the market logic and could be qualified as a just or equitable trade agreement in the way that “every country gives what it can produce in suitable conditions and gets back what it needs, in an independent relation with the world market”. It includes specific bilateral liberalization – elimination of all duties on imports, tax exemption on benefits on investments, airplanes and ships preferential treatment - but also broader exchanges related with a countries particular needs. For example, while Cuba provides services and human resources for different social projects in Venezuela – 2000 university scholarships a year, 15000 medical professionals, among others, Venezuela will transfer technology in the field of energy.

In April 2005, both Presidents met again to draw a strategic plan for the implementation of ALBA, resumes in the Final Declaration of the First Cuba-Venezuela Meeting for the Application of the ALBA[vi]. The declaration states that it aims to “guarantee the most beneficial productive complementation on the bases of rationality, exploiting existing advantages on the side or the other, saving resources, extending useful employment, access to markets or any other consideration sustained in genuine solidarity that will promote the strengths of the two countries”, and open the door to the concept of cooperative advantages (as opposed to comparatives advantages) that should “decrease asymmetries between the countries by using compensation mechanisms, which will correct differences in development levels.”[vii] In the present context it principally means cooperation to provide basic health system and education to the entire population, social development oriented trade exchanges and economic liberalization.

In April 2006, Bolivian President Evo Morales met both signatories of the December 2004 Agreement. He agreed to the agreement and the Joint Declaration and proposed the Trade Treaty of the Peoples[viii], as the commercial component of ALBA, but that aims to protect the right of each country to design their own models of development based on internal needs and introduced the idea of social trade (in opposition to free trade)[ix]. In fact the general commitments of the April 206 agreement are very similar to the 2004 one. The major difference lies in the specific actions. The Article 12 states that "the governments of Venezuela and Cuba admit Bolivia specific necessities as a consequence of the wreck and exploitation of it’s natural resources during centuries of colonial and neo-colonial domination”. Regarding to it, Bolivia’s commitment toward both signatories are much less: while Cuba and Venezuela waive of taxes on Bolivian exportations, Bolivia doesn’t, Cuba will provide free material, personnel and technologies for eyes operations and Venezuela will donate 30 million dollars and asphalt for roads construction to Bolivia, among others.

Since December 2004, other treaties to different topics have been signed between Venezuela and other countries of Latin America (with Argentina in January 2005, Brazil in February 2005 and Uruguay in March 2006). It’ is still not clear if they can be considered as part of ALBA or not, because even if their content is in the spirit of ALBA, it is important to take in account their implementation.

Is it going anywhere?

Because ALBA is a model, a compilation of guiding principles and values to reach specific aims, it can be hard to know what fits inside or not. It may turn out that some political decisions or meetings are less the milestones they appear to be at the moment and represent something more in the nature of boulders blocking the way forward for ALBA, as they could be finally be drawing another way, away from the ALBA objectives.

Achievement number one is Mission Milagro, a health project to be implemented all over Latin America and the Caribbean. In June 2006, after 15 month of implementation, more than 300000 low-income people had been treated free of charges all over the continent, from which more then 193000 Venezuelans. Currently, several centers have been built in Venezuela, and Argentines, Bolivians, Ecuadorians, El Salvadorians, Guatemalans, Haitians, Mexicans, Panamas, Paraguayans, Peruvians and Uruguayans are traveling to both countries to be treated.[x]

Televisiones del Sur SA (TeleSUR), achievement number two, is a television company owned by the Argentinean, Cuban, Uruguayan and Venezuelan States. As a project of the December 2004 Joint Declaration, it sees itself as a counter-weight to CNN, the dominant channel that propagates the US’ view of things in Latin America and the Caribbean. It started to broadcast in October 2005 from its head quarter in Caracas and has now offices in Argentina, Colombia, Cuba, Haiti, Mexico and Nicaragua, collaborating journalists in the rest of Latin American and the Caribbean, and is broadcasting in Argentina, Brazil, Bolivia, Colombia, Cuba, Haiti, Mexico, Nicaragua, USA and Venezuela.[xi]

Another breakthrough was achieved in June 2005, when the Government of Venezuela and the Governments of the Associations of the Caribbean States signed the creation of Petrocaribe[xii], offering oil at preferential rates to Caribbean countries and the possibility of partial payment in the form of other non-monetary goods and services. In parallel, Venezuela signed several agreements on oil with other countries from the south continent, such as the construction of a pipeline from Venezuela to Argentina through Brazil, or investments in refineries in Uruguay and Brazil. All these projects together open the door to the creation of Petroamerica, a Latin American petroleum company, also proposed in the December 2004 Joint Declaration.

Another important component of ALBA is the participative aspect. An example of it is the Bolivarian Congress of the People. In November 2003, 400 representatives of different social organizations from the hemisphere met in Caracas for the 1^st Bolivarian Congress of the People, while Venezuela’s government was still on it own supporting ALBA. In their final declaration they affirmed their support to the alternative project of ALBA. In December 2005 the second Congress was held, which created the post of a permanent Secretary. The Secretary mandate is to collect proposals emanating from the social movements meeting at the Congress’ and to make them accessible to the interested people and to Governments, as is the document “Construyendo el ALBA desde los pueblos[xiii] (Constructing ALBA from the peoples). Since then, particularly the energy workers have held specific meetings to provide their inputs.[xiv] This is not surprising as the issue is energy sustainability and dependence is a critical issue on the international terrain and Petrocaribe is an exciting new initiative.

Another ALBA proposal form the December 2004 Joint Declaration aims to invest domestic surplus capital directly in the region in order to be more independent from the influence and interests of the foreign investors by having an own credit source for investment at the same time as a protection weapon against speculation attacks . The same logic is drives Argentina proposal of the creation of a Latin American and Caribbean South Bank in the frame of MERCOSUR. For remembering, during the south-east Asia and Korean crises, a similar project as been envisages. But the Asian monetary found discussions were stopped by Washington intervention. During the 14^th summit of the Non-Aligned Movement (NAM) Iran proposed a Development Inversion Fund and Venezuela a South Bank under the supervision of the South Commission. As these propositions are larger as Latin American and Caribbean area, it can’t be taken as part of ALBA, but depending on the paradigm according to which they come to be implemented they could be consider as “ABLA compatible”. Moreover, the NAM provides an interesting frame to build up an alternative to the existing international system.

More specific to the region, the South Asian Association for Regional Cooperation (SAARC) could also be a frame for the implementation of a new paradigm. Created in 1985 as an economic and social development platform, after two decades of activity the SAARC is looking for reforms and new trends. The final declaration of the 13^th SAARC Summit held in November 2005 in Dhaka shows clearly this will and gives some directions for it. The incremental broadening of the SAARC agenda shaped in the Dhaka Declaration[xv] is extremely similar to the content of the December 2004 Joint Declaration and emphasizes on the relevance of regional cooperation.

Among others, the Dhaka Document states for:

·        “A civil society resources center” (al. 23) linked with a broader engagement with the civil society oganizations (al. 6), area in witch Latin American and Caribbean governments committed with ALBA are now doing a very respectable work;

·        “regional cooperation in Tele-Communication” (al. 19) as well as an “increase of people-to-people contact” (al. 6), which was the impulse for the creation of TeleSUR;

·        “funding mechanism” (al. 11,12), now to be implemented in Latin America and the Caribbean in the frame of MERCOSUR;

·        “cooperation in the economic and commercial fields, especially in the energy sector” (al. 13), the energy sector is actually playing a leading role in the ALBA integration progress;

·        “strengthen transportation and communication links” (al. 15), 6^th point of the December declaration;

·        “freeing south Asia from illiteracy” (al. 27), in the frame of ALBA, Venezuela came to be the second illiteracy Latin American and Caribbean country, after Cuba, and Bolivia is planed to bet the third in 2007;

·        “basic health care services and sanitation in the rural areas” (al. 31), the cooperation between Cuba and Venezuela on this topic leaded to the Mission Milagro which is now implemented all over Latin America and the Caribbean;

·        “Reform of the United Nations system” (al. 44), which is also an important settlement in the joint declaration.

The SAARC members are now interested by holding a comprehensive review and reform of all SARRC institutions and mechanisms. But what kind of regional integration will the SAARC adopt? Latin America, the Caribbean and Asia share a common colonial history. Latin America and the Caribbean seem firmly set to chart an alternative path.

Conclusion:

ALBA process of participatory dialogue and consensus-based decision-making, the explicit defence of the right to individual models of development and the emphasis on complementarity and solidarity, on cooperative advantage taken together form a very promising starting point towards building a respectful, as opposed to an exploitative, trade regime for the region. Considering Latin American history, its specific development and context (economical weakness and instability, very different economic realities between the different countries, historically excluded indigenous peoples, strong disparities, illiteracy, US-domination linked to weak national sovereignty, dependence on IFI policies) the potentialities of ALBA model of integration look like adequate solutions for Latin America and the Caribbean. Asia has similar problems, but also a different history, its own specific development and context. Eventually, the ALBA experience can be inspiring for the Asian peoples.

A first teaching seems to be that there are alternatives to the neo-liberal model and that while governments can be a motor for their implementation the people have to be present and active to give it the form that fits themselves in the best way as a human collectivity. Another important point is about aims and actions. ALCA and ALBA are similar in that they both talk about development and a better life for the people. Then the first difference is in the relative priority of these aims, and in the values or principles guiding their actions. ALBA puts the people at the center of its logic, which seems to be the best way to improve their situation. The economic activities are only a means to reach this aim and not an aim in itself as it is in the neo-liberal model. A change of paradigm has to be done.

As India struggles with a deep agrarian crisis partly induced by the WTO and free trade agreements, will it look to Latin America for inspiration and collaboration or will it move closer to the US and its brand of corporate friendly trade pacts? The NAM, the SAARC and the Manmohan Singh Government are at interesting crossroads. The UPA Government will not choose the correct path on its own; a positive outcome depends on pressure from several fronts– elected representatives, public officials, social movements, labour groups, academicians and civil society organisations.

*Susana Barria is a intern with Focus on the Global South and is based in Mumbai. She can be reached at < This email address is being protected from spam bots, you need Javascript enabled to view it >

[i] Mexico’s corn farmers see their livelihoods wither away, Monica Campbell, Tyche Hendricks, San Francisco Chronicle, 31.08.06, http://www.bilaterals.org/article.php3?id_article=5715

[ii] Stop the FTAA! The 3rd People’s Summit of the Americas, Hemispheric Social Aliance, 04.10.05, http://www.asc-hsa.org/article.php3?id_article=286

Timely demise for Free Trade Area of the Americas, Laura Carlsen, la Prensa San Diego, 06.12.05, http://www.bilaterals.org/article.php3?id_article=3180

[iii] http://www.cuba.cu/gobierno/discursos/2004/ing/d141204i.html

[iv] Defining the Bolivarian Alternative for the Americas – ALBA, Michael Fox, 04.08.06, http://www.venezuelanalysis.com/articles.php?artno=1790

[v] http://www.rhc.cu/ingles/alba/documentos/documento1.htm

[vi] http://www.rhc.cu/ingles/alba/documentos/documento2.htm

[vii] Resistances et integration: alternatives latino americaines in Le Monde Diplomatique, Emir Sader, Febrary 2006.

[viii] http://www.rhc.cu/ingles/alba/documentos/documento5.htm

[ix] TCP: For a just trade between peoples, Movimiento Boliviano por la Soberanía y la Integración solidaria de los pueblos: Contra el TLC y el ALCA, 28.04.06, http://www.bilaterals.org/article.php3?id_article=4585

[x] Infiltrado en un avión de la Misión Milagro con destino a La Habana, Pascual Serrano, Rebelión, 07.02.06, http://www.rebelion.org/noticia.php?id=26464

[xi] Democratizar la informacion, Arham Aharoman, Rebelion, 27.08.06, http://www.rebelion.org/noticia.php?id=36669

[xii] http://www.rhc.cu/ingles/alba/documentos/documento3.htm

[xiii] http://www.alternativabolivariana.org/pdf/desde_los_pueblos.pdf

[xiv] http://www.sme.org.mx/index2foro.htm

[xv] http://www.mofa.gov.bd/13saarcsummit/dhaka_summit_declaration.html