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Regionalism and regional organisations: exploring the dynamics of institutional formation and change in Latin America

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Nothing is possible without man; nothing lasts without institutions.

Jean Monnet

Abstract

Two elements define regional integration in Latin America: its extension in time and its plurality. Analyses abound regarding the drivers underlying regional cooperation, the specific institutional design, its effects, and impact. However, studies have not yet provided full answers to the question of how regional institutions emerge and change through time in Latin America. To investigate this rather underexplored issue, I contribute a dynamic analytical framework whereby interests and ideas are taken as factors that interact with each other within a specified institutional environment, thus sha** processes of institutional creation, change and development. The argument advanced is that whereas the role of states and presidents remains constant, ideas and the existing regional organisations face presidents with either limitations or resources depending on the degree of synergy and convergence between states’ material interests and regional ideas and institutions. Based on the particular ideational and institutional configuration, three patterns of change may emerge: creation, conversion, and layering. The paper draws on comparative regionalism and institutionalism studies and empirically explores more than 25 years of regional cooperation in Latin America. Focus is on the comparative assessment of the Common Market of the South and the Union of South American Nations.

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Notes

  1. Similarly, Sbragia (2008) argues that contrary to Western Europe, countries in Latin America (and Asia) faced less incentives for intra-regional trade because of their dependence on extra-regional market exports.

  2. This contrasts with the EU, whose flexible institutional architecture, i.e. ‘variable geometry’, tolerates ‘member states’ divergent preferences, which prevents deadlock and lasting conflict’, and allows ‘the continuous strengthening of the European regional architecture’ (Hofmann and Merand 2012: 173).

  3. Recent research has underscored the relevance of presidents’ ideology in regional cooperation (Jenne et al. 2017; Baracaldo Orjuela and Chenou 2019; Quiliconi and Rivera 2019). However, ideologies ‘provide mental frameworks within which human beings can order and understand the entire world in which they live’, but upon which it is difficult to predict and assess how presidents would attempt to put these ideas into practice and in a particular period (Berman 1998: 20‒21). Conversely, programmatic beliefs ‘are directly relevant only to particular categories of human action’ (ibid.).

  4. This categorisation builds on Streeck and Thelen (2005), who offered a catalogue of commonly observed patterns of change: displacement, layering, drift, conversion, and exhaustion.

  5. These initiatives are variously labelled. In this paper, I refer to this latest trend as post-liberal.

  6. Latin American has been a pioneer in thinking itself as a region: its long history of regionalism and the ideas associated with it go back to the independence years (Fawcett 2005), when the notion of ‘patria grande’ envisioned the creation of a political bloc bringing together all the newly independent countries. By 1950, the structuralist school under the lead of the Economic Commission for Latin America, nurtured the first wave of regionalism, and together with dependency theory, offered the most relevant Latin American contribution to international thinking and practice (Bianculli 2016).

  7. Several regional groups were then established, including Central American Common Market (CACM, 1960), Latin American Free Trade Association (LAFTA, 1960), replaced by Latin American Integration Association (LAIA) in 1980, and Caribbean Free Trade Association (CARIFTA, 1965), which later became Caribbean Community and Common Market (CARICOM, 1973).

  8. Other newcomers included the Association of Caribbean States (ACS, 1994), together with the launch of more than 25 regional agreements, ranging from bilateral and multilateral free trade areas to customs unions with pretensions to become a common market.

  9. Today MERCOSUR includes Argentina, Brazil, Paraguay, Uruguay, and Venezuela (suspended for failure to implement accession clauses, including the Protocol of Ushuaia, MERCOSUR’s democratic clause in 2017). Associate members are Bolivia (in accession process since 2013), Chile, Colombia, Ecuador, Guyana, Peru, and Surinam.

  10. In December 1995, after assuming the pro-tempore presidency of the bloc, Carlos Menem instructed public officials and negotiators that his 6-month term of office should be recognised by MERCOSUR’s active external trade agenda, which included negotiations with Bolivia, Chile, the FTAA, and the EU (Cadorin 1996).

  11. MERCOSUR’s main objective was to create a common market while also pursuing ‘economic development with social justice’ in the region (Treaty of Asuncion).

  12. Within the framework of deep structural and trade liberalisation reforms, Argentina introduced the Convertibility Plan that pegged its peso on a one-to-one fixed exchange rate to the United States dollar in 1991.

  13. This was indicated in the preambles of the FTAs with Chile, Colombia, Panama, and Peru and in the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).

  14. President Néstor Kirchner’s inauguration speech, available at https://www.cfkargentina.com/discurso-de-asuncion-del-presidente-nestor-kirchner-a-la-asamblea-legislativa-el-25-de-mayo-del-2003/ (last accessed on 14 June, 2021).

  15. An initial agreement between Venezuela and Cuba in 2004, ALBA then incorporated Bolivia (2006), Nicaragua (2007); Dominica (2008), Ecuador, Saint Vicent and the Grenadines, Antigua, and Barbuda (2009), Saint Lucia (2013), Federation of Saint Christopher and Nevis (2014). Honduras joined ALBA in 2008, but withdrew in 2010, whereas Ecuador announced its exit in 2018 and Bolivia in 2019.

  16. These included Argentina (2003, 2007, 2011), Bolivia (2006, 2010, 2014), Brazil (2003, 2007, 2011), Ecuador (2007, 2013), Paraguay (2008), Uruguay (2005, 2012, 2015), and Venezuela (1998, 2001, 2007, 2013, 2019).

  17. In 2011, Chile, Colombia, and Peru together with Mexico, established the Pacific Alliance as a liberal and market oriented regional project.

  18. Tratado Constitutivo de la Unión de Naciones Sudamericanas, available at https://web.archive.org/web/20161009121928/http://www.unasur.int/images/descargas/DOCUMENTOS%20CONSTITUTIVOS%20DE%20UNASUR/Tratado-UNASUR-solo.pdf (last accessed on 30 August, 2021).

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Acknowledgements

I wish to thank the editors and three anonymous reviewers, whose insightful and detailed comments greatly improved the manuscript. I am also grateful to Miriam Bradley, Robert Kissack and the members of IBEI Research Cluster ‘Norms and Rules in International Relations’ for their helpful comments on earlier versions of this article.

Funding

This research was funded through the project ‘Regional Social Regulation in Latin America: A New Agenda for Development? Prospects and Challenges (SociAL-Reg)’ (CSO2015-66411-P), Spanish Ministry of Economy, Industry, and Competitiveness.

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    Andrea C. Bianculli

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Bianculli, A.C. Regionalism and regional organisations: exploring the dynamics of institutional formation and change in Latin America. J Int Relat Dev 25, 556–581 (2022). https://doi.org/10.1057/s41268-022-00253-3

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