MERCOSUR--Chomsky Speaks about "Exciting" South American Integration

In this interview of Noam Chomsky on Foreign Policy in Focus, Chomsky explains why he is excited about Latin America and its attempts at regional integration. I have culled the relevant sections of the interview here. Enjoy!

South America

DOSSANI: Will the current crisis open up space for other countries to follow more meaningful development goals?

CHOMSKY: Well, it's been happening. One of the most exciting areas of the world is South America. For the last 10 years there have been quite interesting and significant moves towards independence, for the first time since the Spanish and Portuguese conquests. That includes steps towards unification, which is crucially important, and also beginning to address their huge internal problems. There's a new Bank of the South, based in Caracas, which hasn't really taken off yet, but it has prospects and is supported by other countries as well. MERCOSUR is a trading zone of the Southern cone. Just recently, six or eight months ago, a new integrated organization has developed, UNASUR, the Union of South American Republics, and it's already been effective. So effective that it's not reported in the United States, presumably because it's too dangerous.

So when the U.S. and the traditional ruling elites in Bolivia started moving towards a kind of secessionist movement to try to undermine the democratic revolution that's taken place there, and when it turned violent, as it did, there was a meeting of UNASUR last September in Santiago, where it issued a strong statement defending the elected president, Evo Morales, and condemning the violence and the efforts to undermine the democratic system. Morales responded thanking them for their support and also saying that this is the first time in 500 years that South America's beginning to take its fate into its own hands. That's significant; so significant that I don't even think it was reported here. Just how far these developments can go, both dealing with the internal problems and also the problems of unification and integration, we don't know, but the developments are taking place. There are also South-South relations developing, for example between Brazil and South Africa. This again breaks the imperial monopoly, the monopoly of U.S. and Western domination. China's a new element on the scene. Trade and investment are increasing, and this gives more options and possibilities to South America. The current financial crisis might offer opportunities for increasing this, but also it might go the other way. The financial crisis is of course harming — it must harm — the poor in the weaker countries and it may reduce their options. These are really matters which will depend on whether popular movements can take control of their own fate, to borrow Morales' phrase. If they can, yes there are opportunities.

Sameer Dossani, a Foreign Policy In Focus contributor, is the director of 50 Years is Enough and blogs at shirinandsameer.blogspot.com.

Bank of the South is Here, But Can Africa Bank on the Latin American Way of Regional Integration?

The new multilateral institution is considered as an alternative to the International Monetary Fund and the World Bank and seeks to satisfy development credits demand.

Seriously, it's more than an alternative; it's also yet another expression of Venezuela and its associate MERCOSUR members of their dissatisfaction with the prevalent neoliberal system.

I've written about this Bank of the South before and I explained that the Latin Americans had something that Africans certainly didn't. Beyond blood running through their veins, it's about a radicalism and conviction so unprecedented and emanating that any of their opponents feel it viscerally that these are people not to be toyed with.

If not, how is it that despite the articulations of Venezuela against the mighty US, Venezuela has -- along with Brazil; Argentina; Bolivia; Ecuador and Paraguay -- establish this Bank of the South [I notice no Uruguay!!]. Yet, Africans have allowed themselves to be fragmented on the so-called Economic Partnership Agreements?

The fallout of the signing of a so-called EPA-lite by the East African Community and SADC (without South Africa and Namibia) just leaves one speechless--not to mention a little bit less for wear the arduous efforts of civil society -- both in the North and the South.

That said, it's important to press on to stop the discussions between the bullying EU and the other regions.

In my view, the Bank of the South initiative, a formidable alternative indeed to the Breton Woods institutions of the World Bank and IMF in the sense that "each member country would have a single vote, irrespective of size and financial contribution" (from:http://www.nationnews.com/290175804330225.php) brings into sharp relief the necessity for greater collaboration between MERCOSUR in general/Latin America specifically and other AU regionalisms to learn lessons on how they were able to resist the Free Trade Area of the Pacific in 2005, yet AU/ACP countries allowed fragmentation by the EU.

While this issue of the Bank of the South, in my view, is one of the most progressive developments in global regional integration to date--bar the ASEAN charter-- Africans ought to contemporaneously reflect on whether there is that much of a difference between the EU and the US, for them to have allowed the EU--former colonisers at that--to hoodwink many of them into an interim agreement that will most likely destroy attempts at regional integration.

You Can Bank on Something Big Happening in MERCOSUR!

There is something rather peculiar about the calibre of political leaders in Latin America that I don not find on the continent of Africa.

Somehow, it's that ability to look beyond the handouts of the IMF and the neoliberal policies that have afflicted them, and come out with a vision that is people-centred. When Africans, especially the South Africans, are keen to espouse the notion of NEPAD, and contemporraneously and ineluctably link it with the integration of Africa, somehow, somewhere, these Latin American leaders are turning agianst this type of Pavlovian attachment to what is, frankly in my view, a new colonialism, predicated on financial ties.

It is no surprise therefore to see that there's something big coming from Latin America again--specifically the MERCOSUR region.

The Bank of the South--described as "an ambitious and strategic gambit[sic--gamble??] in regional integration"--is going to radically transform how regional integration is done in that region. It only had to be the idea of the more progressive of the MERCOSUR countries--Venezuela and Argentina.

Despite a hitch between these two countries in a joint proposal against the Ecuadorians in the conception of the Bank of the South, it is clear that this Bank is going to deliver. IT is ambitious, without a doubt, and has vision unmatched in the region thus far.

In an explicit attempt to divest itself of the IMF/WB and other neoliberal financial policies, this bank, aiming to start operations in 2008, has five key characteristics:

1. bank's clients should not be large corporations;

2. rather it should give loans "to the public sector, to small producers, to local communities, to municipalities, and to states or provinces." (Toussaint)

3.Finally the document asserts that BoS should not be a behemoth like the World Bank with its 13,000 employees,

4. it should account for operations and activities on an annual basis.

5. It required an annual public debate for the bank to explain its activities to the citizenry whose taxes it used

Chile and Uruguay are absent from the debate on the BoS on account of their proximity to the US, deemed not just antagonistic, but which policies are necessarily anathema to the progressive vision of the BoS.

It was going to be evident the US would complain about a project like this. If there have been muted complaints, it's probably because Rice and her cohorts are too busy trying to carve Africa, EU-style, by way of the Africa Growth and Opportunity Act Forum due in Accra from 16 July this year (next week).

Either way, the Bank of the South is going to be reclaiming the state:

the Bank of the South can play a decisive role in reuniting a region divided by decades of neoliberalism. To implement the neoliberal model, its main beneficiaries—the financial institutions and monopolistic corporations—have weakened or dismantled the power of the nation state. It may be that one of the primary tasks of the BoS could be rebuilding state control and regulations
from:http://www.worldpress.org/Americas/2852.cfm

It's important to just touch very briefly on how MERCOSUR is doing things, If we take the example of the BoS, we read that:

Energy will be one of the first priorities of the new bank and one of its first projects will be to finance the proposed South American Gas Pipeline, which will link Venezuela with Argentina, passing through Brazil. This will be a real regional integration project because the gas transport is oriented toward regional economic development as opposed to exporting it to markets in the developed world.

I couldn't help but shake my head in wonderment about the--yet again--Pavlovian response by ECOWAS countries towards the West African Gas Pipeline, which has CHEVRON owning a stake. Euphemistically speaking, it is the project manager.

Honestly, can ECOWAS countries not manage their own ECOWAS gas pipeline? Perhaps, it's time to start taking cue from our MERCOSUR friends!