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    | REALITIES AND DREAMS IN THE CONSTRUCTION OF A REGIONFounding moments in the long and unfinished process of development of 
        Latin American integration.
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    | by Félix PeñaMarch 2019
 
 English translation: Isabel Romero Carranza
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    |    | A little more than fifteen years after the publication 
        of the book "Momentos y Perspectivas" ("Moments and Perspectives"), 
        I confirm the impression that I had then in the sense that the continuous 
        tension between dreams and realities is at the heart of the major experiences 
        of joint work, with an intention of permanence, between sovereign and 
        contiguous nations who share common goals and interests but that do not 
        necessarily wish to resign their sovereignty. I can also confirm what 
        I pointed out when observing what has been achieved in the South of the 
        Americas in terms of the development of an area of peace and in terms 
        of the significant increase in cooperative interdependence. Although the 
        task of our countries has been erratic and is still unfinished, the overall 
        balance remains a positive one.
       A positive outlook on the travelled path does not mean imagining that 
        the initial momentum and the agreed trajectory will materialize as defined 
        in the founding moments. On the contrary, the experience accumulated in 
        Latin America in the last sixty years indicates that the process of building 
        an area for joint work shared by a group of countries needs to be redefined 
        continuously.  From the experience acquired in the Latin American region, as well 
        as in other regions, we can identify those factors that help explain the 
        founding moments and later their adaptation to the changing international, 
        regional and domestic realities of each country. There are three factors 
        that would seem to be the most necessary to help materialize any initiative 
        of permanent joint work between sovereign nations. These are: the intensity 
        and continuity of the political will of the leadership of at least the 
        most relevant members of the integration process; the effectiveness and 
        sustainability of the joint work methods chosen at the moment of foundation 
        and in the subsequent adaptations, and the quality of the agreed ground 
        rules, especially the balance achieved between the requirements for predictability 
        and flexibility, which do not necessarily have to be contradictory. Over time, integration processes can thus be the result of different 
        moments that affect the definition of the joint work among the participating 
        countries. In this perspective, it is always convenient to identify which 
        have been the most relevant founding moments in a given region.  Two of these moments can be detected in the Latin American and South 
        American regions. One is reflected in the proposals to enhance the LAIA 
        and the other has to do with Mercosur. They are directly related to the 
        necessary articulation between the Pacific Alliance and Mercosur, for 
        which the LAIA can play a very important role. |  
   
    |  In our book "Moments and Perspectives. Argentina in the world and 
        in Latin America" (Eduntref, Buenos Aires 2003), we compiled some 
        articles written between 1968 and 2003, referring to the international 
        insertion of Argentina and its participation in the development of integration 
        processes in Latin America. Nowadays, our project -or shall we say dream- 
        is to prepare a second volume with the compilation of some articles published 
        during the period 2003-2018. In the introduction to the mentioned work, I point out that in re-reading 
        what was written and appreciating the expectations of integration that 
        later did not materialize-even the mistakes in diagnosis that I often 
        made-I become aware of how easy it is for passion for what can be achieved 
        to lead to confuse illusions with realities and desires with possibilities. 
       Some fifteen years after the publication of the book and observing the 
        most recent developments in the processes of regional integration, including 
        Mercosur itself, I confirm the impression that I had then in the sense 
        that the continuing tension between dreams and realities is at the heart 
        of the major actual experiences of joint work, with an intention of permanence, 
        between contiguous sovereign nations that share objectives and interests 
        but that do not necessarily desire to stop being sovereign.  I also confirm what I pointed out at the time in the sense that, when 
        observing what has been achieved in the South of the Americas in terms 
        of the development of an area of peace and a substantial increase of cooperative 
        interdependence, the impression remains that, even when the task of our 
        countries has been erratic and unfinished, the overall balance is a positive 
        one.  A positive outlook of the travelled path involves not expecting that 
        the founding momentum and the agreed trajectory materialize exactly as 
        they were conceived at the initial stage. The experiences gathered in 
        Latin America in the last sixty years indicate that the process of developing 
        an area for joint work by a set of contiguous sovereign nations requires 
        to be redefined continuously. Indeed, this has happened in other regions, 
        as we have observed in the process of European integration and, especially, 
        with the Brexit.  This continuous redefinition does not necessarily contradict the logical 
        demands for predictability in the goals and ground rules, shaped by those 
        who will take decisions -especially for productive investment- based on 
        the integration of the corresponding economic spaces.  As we have pointed out on other occasions when assessing the situation 
        of an actual process of integration between countries that share a given 
        geographical space, such as the case of Mercosur, it is important to be 
        able to detect at each specific moment if the differences that may eventually 
        arise between the participating countries reflect an existential crisis 
        or just a methodological one. An existential crisis becomes clear when 
        one or more countries prefer to withdraw from the integration process 
        or seriously consider such option. This would be the case today of the 
        Brexit in the EU. A methodological crisis refers to one or more aspects 
        of how to work together, that is, which are the objectives, institutions, 
        rules and mechanisms that are most convenient -and feasible- to use in 
        the joint effort between the partners. From the experience accumulated in Latin America and in other regions, 
        some factors help explain their founding moments and their subsequent 
        adaptation to the new international, regional or domestic realities of 
        the participating countries. In our opinion, three factors seem to be necessary for a permanent joint 
        work effort between contiguous nations to be viable. These are:
 
        the intensity and continuity of the political will of the leadership 
          of at least the most relevant countries of the corresponding integration 
          process, fueled by a shared vision of the challenges that originate 
          in their respective external fronts;
 
the effectiveness and sustainability of the joint work methods selected 
          in the founding moments or in the subsequent adaptations, and
 
the quality of the agreed ground rules and of their effective application 
          and, especially, the balance that is achieved between requirements for 
          predictability and flexibility, which do not necessarily have to be 
          contradictory.  Over time, integration processes can be the result of different moments 
        which affect the definition of the scope and methodology of the joint 
        work among participating nations. In this perspective, it is always advisable 
        to detect which have been the most relevant founding moments in a given 
        region.  Two highly interconnected founding moments can be identified. on the 
        one hand, at the Latin American regional level and, on the other hand, 
        at the South American sub-regional level.. The first is evinced today 
        in the proposals to enhance the Latin American Integration Association 
        (LAIA) and the other involves Mercosur. Additionally, both are directly 
        related to the necessary articulation between the countries of the Pacific 
        Alliance and those of the Mercosur (the so-called the Group of Eight), 
        for which the ALADI can play a significant role. These founding moments were reflected by the signing of the Treaty of 
        Montevideo on February 18, 1960, by which the Latin American Free Trade 
        Association (LAFTA) was created and at the Uruguaiana Summit, on April 
        20-22, 1961, between the Presidents Arturo Frondizi, from Argentina, and 
        Janio Quadros, from Brazil. They can be considered important milestones 
        due to their impact on the subsequent development of the current processes 
        of Latin American integration.  In both cases, the relevance of the role of Argentina and Brazil can 
        be observed. In the first case, the drive of what were at that time the 
        two economies with greater impact in intraregional trade-especially in 
        the South American space- together with the leading role of Chile and 
        later of Mexico, and certainly of the ECLAC, led to the creation of the 
        LAFTA, which was the first institution specifically oriented to the development 
        of commercial integration with a Latin American scope. The methodology 
        used had to fit the requirements, especially those from the US, for its 
        recognition in the GATT, due to its adaptation to the then prevailing 
        interpretation of its Article XXIV. Hence, the use of concepts and methods 
        that did not conform to what was originally proposed by the countries 
        that promoted the negotiation of the Treaty, as well as the ECLAC.  In the second case, the "Pact of Uruguaiana" was the expression 
        of the convergence between Argentina and Brazil, that is, two key protagonists 
        in the South American geographical space, at a relevant moment for Latin 
        American relations with the US, especially because of the increasing influence 
        that the Cuban revolution was beginning to have in the hemisphere and 
        in international relations. (On the Pact of Uruguayana and its relevance 
        at the beginning of the journey that led, first to the binational agreement 
        between Argentina and Brazil and then to the beginning of Mercosur, see 
        the books by Juan Archibaldo Lanús, "From Chapultepec to the 
        Beagle, Argentine Foreign Policy: 1945-1980" and Oscar Camilión, 
        "Political Memoirs. From Frondizi to Menem (1956-1996)". See 
        also the article by Daniel Amicci,"The course towards the Uruguayana 
        Summit: maximum expression of the approach between Argentina and Brazil 
        during developmentalism ", listed as recommended reading at the end 
        of this newsletter, and Félix Luna, "Dialogues with Frondizi", 
        Editorial Desarrollo, Buenos Aires 1963, p. 95 to 122).  In both cases, the importance of a shared interpretation of the external 
        challenges by the political leaders was evinced, within a context where 
        common visions prevailed among the potential partners. The relevance of 
        the "human factor" is also evident in order to materialize a 
        common political will and translate the political leadership into actions. 
        This fact was very clear in the case of President Frondizi's team and 
        was manifested through the key roles of Carlos Manuel Muñiz, Oscar 
        Camilión, Rogelio Frigerio, Carlos Florit, Roberto Alemann, Arnaldo 
        Musich and Cecilio Morales, among others.  |  
   
    | 
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    | Félix Peña Director 
        of the Institute of International Trade at the ICBC Foundation. Director 
        of the Masters Degree in International Trade Relations at Tres de Febrero 
        National University (UNTREF). Member of the Executive Committee of the 
        Argentine Council for International Relations (CARI). Member of the Evian 
        Group Brains Trust. More 
        information. |  
 
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