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

5. 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

6. 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)

7. 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

8. 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

9. 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

10. 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?

11. 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