Ivan Martinez

The idea that integration between states could come as a result of a politically driven process of spillover was drawn from the European experience and its development towards the creation of the European Union.

It is believed that the political will of member countries to abolish internal tariffs creates a demand to equalise, as far as possible, production, services and transport costs which are the basis for successful integration.

Throughout the world, integration has proceeded by stops and starts rather than as a smooth process of spillover.
Integration has taken place in ways and at speeds determined by the course of events, and not in accordance with any previous theoretical model. Every successful process of integration and full cooperation between nations has been sui generis, and it is not possible to find any general lessons about the processes of regional institution building.

The various models existing in the world today symbolise a new chapter of international regional integration history. The spillover process of these integrationist arrangements tends to incorporate not only the economic and financial spheres, but also to combine defence and foreign policy with the endorsement of the common security policy of the member countries under the pact.

Every well-known successful integrationist movement has been based on certain preconditions. Some are proximity, similar political systems, cultural identity, internal political stability and similar experiences in historical and internal social development, compatible forms of government and economic systems and previous collaborative efforts.

Another is supportive public opinion, especially enthusiastic leaders committed to the idea of fusion and the creation of supranational entities as a means of getting the maximum benefits, reducing obstacles and minimising possible confrontations.

International relations of today's world are full of geoeconomics and geopolitical strategies and approaches, considered the best ways and means to achieve economic and market expansion, sustained social development, strong political stability, reinforcement of democratic values, elimination of disputes and to secure peace and security.

Last December 8 in Cuzco, Peru, the heads of states and governments of South America approved the creation of the South American Community of Nations (SACN), and agreed to have its first summit in 2005 in Brazil.

The new regional integrationist organisation underscored the need to foster a greater convergence between the existing South American blocs, Mercosur (Argentina, Brazil,
Paraguay and Uruguay with Chile and Bolivia as special, not full members), the Andean Community (Colombia, Ecuador, Peru, Venezuela) and with Guyana and Suriname (South
American countries which are members of Caricom) in order to establish and perfect a free trade area and the fusion of both regional groupings into the new one.

The second meeting of the SACN will take place in Bolivia in 2006, and the heads of governments and states expect to have made significant progress in the harmonisation of their infrastructural, energy, and communication policies which are considered a pivotal instrument in the promotion of their economic development as a group.

According to the leaders of South America who represent a little less than 400 million people, it could take at least 15 years to fully integrate their economies, the internal and foreign policies of the Community, and to have a common tariff, a single currency and a SACN passport for every inhabitant of the region.

One of the main objectives of SACN is to have a new and stronger negotiating power with the USA, Europe, China, Japan and the Association of South East Asian Nations (ASEAN), and also within the United Nations by having a unified voice.

Another important objective is to lessen first of all, and terminate as soon as possible, the territorial disputes existing between Chile and Bolivia, Venezuela and Guyana, Suriname and Guyana.

Guyana and Suriname, the two richest countries in natural resources within the Caribbean Community and two of the main pillars of this Caribbean integrationist grouping, are also part of the newly created SACN because of their geographic location in South America.

The fact that Guyana and Suriname are part of SACN constitutes a strategic linkage between the new South American organisation and Caricom. Moreover, it also creates a strong possibility for the entire Caribbean community, with its single market and economy, to become part of SACN, when this organisation increases its membership in the future.

Inspired by Brazil and supported by its partners in Mercosur, the SACN was first discussed in 2000 during the summit of heads of states and governments of South America held in Brazil, and continued its discussions in a similar kind of meeting that took place in Ecuador in 2002.

Behind the idea of the launch of SACN was the need to have a strong and committed South American market to confront the challenges posed by the US-led Free Trade Area of the Americas (FTAA) which was projected to start functioning in 2005.

One of the criticisms against the FTAA made by Brazil and other South American nations is that the USA wants to have the Latin American markets open for its exports and investments while preserving certain areas of its economy - protected, subsidised and not exposed to competition with the so-called partners in the south.

This contradiction has been the centre of the dispute between the United States and the more diversified economies of South America. For that reason, the birth of the FTAA has been postponed and must wait for new rounds of negotiations and give and take between the parties.

Something really encouraging and healthy that comes with SACN is that "it was born under the sign of democracy, respect for human rights and the search for social justice among the peoples of Latin America", as president of Brazil Ignacio "Lula" Da Silva defines it.

Dr Ivan Martinez is a lecturer in International Relations at the University of the West Indies, Mona.

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