ALBA: The emergence of a
counterhegemonic force
in Latin America and the
Caribbean
Abstract
In the context of the post-Washington Consensus era In Latin America this thesis researches to what extent ALBA forms a counterhegemony against the US-led neoliberal project of the FTAA. The theories of Antonio Gramsci, Karl Polanyi and Robert Cox provide the theoretical framework for this thesis.
Author: Tjalling Bergsma
1st Supervisor: Drs. E. Aykaç
2nd Supervisor: Dr. G.C. van Roozendaal Version: Final
Program: Master International Relations and International Organization
Specialization track: International Political Economy
Institution: University of Groningen
Page 3 Content
Introduction 3
Chapter 1: Theoretical Framework, Methodology, Ontology and Sources 6 Chapter 2: FTAA and ALBA: Differences in organization, ideology and founding 14
Chapter 3: ALBA in context of Antonio Gramsci’s War of Position 21
Chapter 4: ALBA in context of Polanyi’s double movement 31
Chapter 5: ALBA in context of Robert Cox’s 2 criteria 45
Chapter 6: Conclusion 55
Page 4 Introduction
Page 5 of numerous Latin American and Caribbean nations with the FTAA (Phillips 2005, 12). This subject is relevant to International Relations because a battle of theories is taking place in Latin America; where the socialist ALBA is attempting a counterhegemony against the neoliberal FTAA. In addition, there seems to be little notice of the emergence of ALBA in mainstream academics. Influential media outlets such as the Economic Intelligence Unit (The Economist) and Foreign Affairs advocate against ALBA and state that it cannot be taken seriously as organization (De La Rosa 2011, 139). These media outlets only focus on Chavez and Venezuelan politics when writing about ALBA- demonstrating a one-sided Western approach against ALBA and its social democratic principles. Furthermore, since the death of Chavez (5th March, 2013) international and academic media (World Review and The Economist) have increasingly reported that ALBA has no future without its “charismatic leader”. This thesis argues otherwise, as demonstrated in chapter 5. Evidently there is a new social force at rise in Latin America, where its challenge to FTAA and neoliberalism is explicitly embedded in its founding documents (Kellogg 2007, 200). Thus, it is this essay’s goal to investigate the following research question: to what extent does ALBA form a counterhegemony towards the halted FTAA agreements in 2005?
Page 6 Chapter 1: Theoretical framework, Methodology, and Sources
This chapter will explain the theoretical framework and methodology. The theoretical framework will initiate by explaining two concepts that stand central to this thesis: United States Global Hegemony and counterhegemony. Thereafter, the theories of Antonio Gramsci, Karl Polanyi and Robert Cox are explained. These theories have in common that they elaborate on hegemony and counterhegemony and form a clash with free market principles. The sources used in this thesis are explained as last part of the theoretical framework. The second part of this chapter will describe the methodology. In the methodology the theories of Gramsci, Polanyi and Cox are applied to the context of US-led hegemony, counterhegemony, ALBA and the FTAA. .
1.1 Theoretical Framework
United States Global Hegemony
Since the 1970s the United States has been the driving actor in globally spreading the dual values of democracy and neoliberal economics. The United State therefore attempts to lock in a of political economy and social organization in order to accommodate countries to the “rules of the neoliberal game”. The role of the FTAA is pivotal in this, as it accommodates hemispheric regionalism to the neoliberal global economy. Nicola Phillips, professor International Political Economy at University of London, therefore argues that FTAA must be seen as a political and economic project that is fundamentally ideological and reflects the United States global hegemonic project (Phillips 2005, 4). Reflecting back on the FTAA 2005 deadlocked agreements, Kellogg places this in context of the hegemonial decline of the United States. One of the main drivers behind the hegemonial decline is the weakening of United States power in the Latin American region. This is demonstrated by the coming to power of mass movement as left-wing and populist regimes have gained momentum in Latin American and the Caribbean. These leftwing regimes from the Latin American and Caribbean region are increasingly tempting to alter the process of US-led economic integration and the FTAA (Kellogg 2007, 187).
To further define the phenomenon of globalization and its relation to the FTAA this essay combines Stephen Gill’s work consisting of “New Constitutionalism and Global Governance” and his perception of globalization (Gill 2008, 138 and 253) with Barry K. Gills’ characterization of globalization and its epistemological critique.
Page 7 openly claims to resist globalization in the neoliberal context. The driving force behind neoliberal globalization is elaborated by Stephen Gill’s concept of disciplinary neoliberalism. Gill defines disciplinary neo-liberalism as the structural and behavioral power of capital. Thus, neo-liberalism is institutionalized and bureaucratized in regions and countries. This leads us to what Gill calls “New Constitutionalism”. He defines this as the political project of transnational and democratic liberalism, which is perceived and projected as the unique and only form of development. Market efficiency, discipline and confidence, national economic consistency and credibility are the well-known practical implication of neo-liberalism, and in our case Gill relates them to New Constitutionalism. Gill points out that the prevention of national interference with property rights and free capital mobility is central to new constitutionalism (Gill 2008, 141). This is in the line with the FTAA integration process, that urged for protection of intellectual property rights and further integration of services aimed at capital investment (Phillips 2005, 6).
Stephen Gill links the role of International Financial Institutions to neoliberal globalization. He identifies this as the G-7 nexus. In accordance with Gramscian terminology, he defines neoliberal globalization as a historical bloc of social, economic and political forces, with at its apex the G-7 nexus; acting as a global oligopoly. At the head of the G-7 nexus stands the United States, considered as the hegemon that spreads its values. According to Stephen Gill, the eventual goal of the G-7 nexus is to further deepen disciplinary neoliberalism and intensify neoliberal globalization. The essence lies in strengthening of the power of capital in states and civil society. Therefore, as can be seen in the past, the G-7 nexus has sought to hamper alternative development models and lays emphasis on multi- and bilateral agreements that make nationalization and control over private property illegal (Gill 2008, 254).
Page 8 Counterhegemony
So what are the options for resistance against the US-led global hegemony in Latin America? This would imply an alternative regional political agenda of social and economic restructuring. This agenda should entail new coalitions of social forces which through diplomacy and governments should directly be linked to one and another (Gills 2003, 8). As the FTAA agreements stalled in 2005, the Bolivarian Alliance for the Americas (ALBA) has attempted to emerge as a regional counterhegemony against the FTAA (Cole 2012, 327). Henceforth, this thesis will focus on the concrete levels of resistance that are demonstrated ALBA. The concrete levels of resistance that this thesis uses are explained by Antonio Gramsci, Karl Polanyi and Robert Cox. Fundamentally speaking, the theories derived from these three thinkers clash with free market principles. The following section will demonstrate their ideas of counterhegemony.
Antonio Gramsci
Antonio Gramsci describes that classes gain supremacy over one another in two ways: “Coercion” and “Intellectual and Moral leadership”. Gramsci dictates that not only can a class gain social control externally (punishment and reward), yet a supreme class must also gain social power through internally molding personal convictions into a prevailing set of norms. This signifies that hegemony over classes is above all a function of consent rather than force. Intellectual and moral leadership are then constitutive parts of civil society. Yet as Gramsci notes, hegemony is always be rooted in material aspects. It is not enough to merely have an ethic-political base. There must also be an economic foundation of hegemony that is rooted in the leading group and attributes to the ethic-political hegemony (Fernia 1981, 24). Relating to our thesis, these assumptions signify that ALBA must gain social power over the people it rules through consent. In addition, this consent must be supported by an economic basis.
Page 9 Karl Polanyi
Arriving from Gramsci, we now explain the second main theorizer used in this thesis: Karl Polanyi. Polanyi’s main target is market forces. Even though his critique of market society strongly relates to Marx’s critique of capitalism, Polanyi refuses the economic determinism he subscribes to early Marxists. Polanyi was believed to be influenced by Christian Socialists and his theorizing reveals a strong affinity with Durkheim and Mauss. In essence Polanyi’s passion lies in socialist welfare policies, correcting the material inequalities that arise from a freely operating market (Hann and Heart 2009, 6-7).
Polanyi describes that the freedom of self-regulating market forces is a myth. In 1957 he wrote that the 19th century modern society has witnessed a double movement: On the one hand there had been a continuously hegemony of the free market, the embedment of economic liberalism and policies deferred towards laissez-faire. However, on the other hand this has been met by opposition: Opposition has risen amongst those negatively affected by the market, aiming at the conservation of man and nature (Polanyi 1957, 132). The struggle between hegemony and counterhegemony becomes clear in Polanyi double movement; where on one hand the free market dominates and on the other hand this hegemony is opposed by “the losers” of the free market. This double movement is witnessed through neoliberal globalization that attempts to dominate through the FTAA and, consequently, ALBA that starts opposition. The relevance of Polanyi in contemporary area lies in the fact the neoliberalism is currently the same large-scale project of spreading laissez-faire economics as the embedment of economic liberalism was in the 19th century for western countries (Birchfield 1999, 38).
Page 10 argument is relevant to the counterhegemony of ALBA because ALBA is attempting to set up an inter-regional trade system that fully collides with the principles of a free market. It therefor rejects the objectivity of prices based upon question and demand, and has set up an alternative economic program that attributes trade to the collective needs of a country (SUCRE inform 2012, 21).
Robert Cox
Robert Cox is the final thinker who will be used in this thesis. Cox holds the following worldview: “the Future represents an opportunity to break with the structures of the past and thus the potential to escape the strictures that bind human potential” (Sinclair in Cox 1996, 3). In relation to structures Cox proposes that there are three elements that hold a certain structure together. These are material capabilities, ideas and institutions. According to Cox institutions make international organizations function. Thus, institutions stabilize and perpetuate the structure. They can become relatively autonomous and at times portray the scenery of battlefield, with opposing parties fighting out their conflict- indicating the role a counterhegmony can practice in institutions (Cox, 1996, 11).
The interesting issue about structures is that Cox depicts them as limited. They do not incorporate everything and hold a limited totality. Therefore Cox distinguishes counterhegemonic and hegemonic structure. In essence, an emancipating counterhegemonic structure could arise and take over a hegemonic structure if its material capabilities, ideas and institutions prove resilient enough (Cox 1996, 11). This type of process can be witnessed in the FTAA vs ALBA struggle. Where the counterhegemonic structure of ALBA is increasingly attempting to counter the US-led dominance. In addition to structure, Cox defines ideology; consisting of a system of ideas and ideals that is fundamental for legitimizing an existing hegemonial structure (Cox 1996, 362);(Cox 1996; 364). It is in this sense that Cox describes the significant role of international organization (Cox, 1996, 364). In the context of this thesis neoliberalism should be seen as the ideology that supports the existing world hegemony, where neoliberalism is the main ideology behind Stephen Gill’s New Constitutionalism. As such, the FTAA is a form of world hegemony crystallization where it translates hegemonial neoliberal values into the practical content of Latin American free trade agreements.
Page 11 product of neoliberal globalization. Thus, the FTAA is the hegemon against which the ALBA is attempting to emancipate and form a counterhegemony.
Sources
This essay uses various primary and secondary sources. Gramsci and Polanyi’s theories are derived from their (translated) originals. Besides these original sources, their arguments are supplemented by authors placing them into modern context, as is described in “Globalisation and the Politics of Resistance” by Barry K. Gills on the one hand, and Chris Hann with “Polanyi and the Market Transformation” (a book setting Polanyi’s theory in current context) on the other. The theories advocated by Cox are original and can be found in Approaches to World Order, by Robert Cox. For analysis this thesis greatly relies on state and ALBA documents. With regards to the ALBA analysis documents and proposals are used from its main website: www.alba-tcp.org. Besides the ALBA website this essay delves into national policy documents that are published on state websites of the ALBA nations. In addition, ministry websites such as the Venezuelan www.pvdsa.com are researched, as they generate a large amount of information about ALBA. With regards to documents from the ALBA website the statistical information must be treated with caution. Most of the documents from these website have a rather propagandist nature, which naturally arises questions whether their statistics should be perceived as wholly objective. Therefore, where possible, the thesis gives preference to statistics provided by the United National Economic Commission for Latin America and the Caribbean (ECLAC), World Bank or the World Trade Organization (WTO). For primary sources on energy statistics this thesis relies on figures provided by International Energy Statistics. In addition to these primary sources this thesis uses numerous secondary sources that critically debate Latin American regionalism and neoliberalism in the Americas.
Page 12 section will elaborate on the theoretical framework, which analyzes the concrete forms of resistance of a counterhegemony.
1.2: Methodology
In providing the methodology this chapter will explain three concepts that stand central in this thesis: Gramsci’s war of position, Polanyi’s double movement and Cox’s theorizing on institutions.
War of Position
To counter the hegemony and change civil society Antonio Gramsci uses the distinction of war of movement and war of position. Gramsci uses First World War trench warfare as an example. An artillery attack is carried out before a side attacks the other. With the artillery the attacker expects to destroy the other, yet often only the outer perimeter of the enemy is destroyed. The core of the enemy remains untouched. Gramsci mirrors this core to capitalism and civil society. Civil society, as stated in the previous section, signified the ideological superstructure; the institutions and technical instruments that produce a mode of thought which sets a prevailing core of discourse (Fernia 1981, 26) Civil society has become so immensely complex that it has become resistant to the most catastrophic irruption caused by economic factors; crises, depression etcetera. Thus, the dominant capitalist ideology in modern societies has become institutionalized to such an extent that a frontal attack can only be met with disappointment ( Femia 1981, 51).
Hence, the failure of war of movement signifies that a different strategy must be sustained. This is where the concept of war of position is utilized. In order to radically change society and free the proletariat from their chains, the agents of civil society must be conquered. In this sense Civil Society becomes the battleground where all dominant institutions of society (school, university, media, church etcetera) must be attacked by a revolution of spirit. Signifying, an attack of position has to take place against these institutions that will change the mode of thought.
Page 13 of movement outside the context of the state only (Gills 2000, 33). Gills therefore argues for a new coalition of social forces which through governments and diplomacy opt for resistance (Gills 2003, 8). In short, ALBA has to demonstrate a war of position in order to effectively establish a counterhegemony. This can be done through emancipation by changing the institutions that are dominant in society. Hence, ALBA has to enlarge its influence by creating its own relevance in institutions. Increasingly the institutions within the agents of Culture, Media, Education, Energy and Finance have been developed in the ALBA context since 2001. Therefore this thesis will research to what extent ALBA has been able to capture these agents and built counterhegemonical institutions within them.
Double movement: solidarity, carrying on a conflict and breaking the limits of the system
Page 14 Agreements. Even though the FTAA process has stalled since 2004, the United States has established numerous bilateral Free Trade agreements with Latin American countries. This essay will examine the status of bilateral Free Trade Agreements between the United States and individual ALBA countries; in doing so this thesis will be able to conclude if ALBA has pushed the ALBA nations away from a position where the conclusion of Free Trade Agreements was still the norm.
Two combinational criteria for a counterhegemonic force
According to Cox hegemony is invisible, yet institutions are visible. The secret of hegemony is its institutions that keep it viable. But institutions adapt and co-opt resistance. Therefore to make progress, the hegemony has to be challenged. In doing so, Cox designates 2 combinational criteria that distinguish a counterhegemonic force. These are (1) an increase in material resources available to subordinate group and (2) a coherent and persistent articulation of the subordinate group’s demands that challenges the legitimacy of the prevailing consensus (Cox, 1996, 12). Regarding the first criteria the focus lies upon energy resources. The choice is made for energy resources because the production income from oil and gas is the main material resource of the ALBA process. Most of the ALBA initiatives are paid through income from the hydrocarbon industry. Therefore, to be a counterhegemon, ALBA must have dominance in energy resources. Hence, it is crucial to examine to what extent ALBA has been able to possess over energy resources and to what extent it has been able to redistribute material resources to the subordinate group. Within redistribution the focus will be on funds that benefit the ALBA countries in terms of energy, infrastructure, education and health. Oil and gas are the most significant material resource in the ALBA nations, therefore it is crucial for the ALBA government to form a counterhegemon within this specific area. In relation to the second criteria, the incorporation of Social Movements is examined. Social movements were one of the main counterhegemonic forces that Chavez used to stall the FTAA process-for this reason it is crucial that ALBA successfully articulates the demands of these groups into its institutions (De La Rosa 2012, 155-158).
In sum, in order for ALBA to constitute of a counterhegemony against the FTAA it has to change the institutions that are dominant in society. This is done through capturing the agents of Culture, Media, Education, Energy and Finance. In addition, ALBA has to build counterhegemonial institutions within these agents. Secondly, ALBA has to demonstrate that is a form of collective action based upon solidarity, carrying on a conflict and breaking the limits of the system. Thirdly, ALBA has to increase the material resources available to the subordinate group and provide a coherent and persistent articulation of the subordinate’s group’s demands.
Page 15 This chapter will explain in what context the FTAA and the ALBA emerged. In doing so, first the FTAA is explained. The first part of this chapter will therefore relate to the emerging factors of the FTAA, the problems encountered that diminished its influence in a later stage, the concept of US-led hegemony and the relevant ideology of the FTAA. Subsequently, the ALBA will be discussed; assessing its founding documents, initiated countries and the ideological principles that stood at its founding. After the reader has been familiarized with the FTAA and the ALBA, a short summary is given that underlines the axiological differences between both organizations.
2.1 The Free Trade Agreement of the Americas (FTAA)
Page 16 policies of industrial expansion and leveling the asymmetries between countries form a distinctive role. Again, neither of these is seen in the FTAA process. Its aim is merely reduced to freeing the trade between the countries of the agreement (Ruiz 2007, 296). Charles H. Blake argues in the same context as Ruiz. As he points out, it is hard to imagine a vigorous FTAA that can be formed without the regional development funds as is encountered with the European Union. In addition, Blake points out that the inability of negotiators to acknowledge these differences is a main driver behind the weakening of power of the FTAA.
During the Summit of the Americas in 1994 Miami, the FTAA was officially initiated by the US. Quoting secretary of the United States, Colin Powell: “Our objective is to guarantee our national business control of a territory that stretches from the Arctic to the Antarctic, and free access, without difficulties, for our products, services technology and capital throughout the hemisphere” (Cole 2001, 324). But is trade of goods and market access truly the motivator behind the FTAA integration for the United States? This is clearly not the case. Neither markets nor trade in goods form the core interests for the United States-led economic integration. According to Philips there are two distinctive forces that catapulted the US interest in FTAA. First, as already established, market access and free trade in goods do not fully compose of the interests of United States; rather these interests are focused around the new agenda. The new agenda entails a broad scalar of (non-good) services aimed at investment, intellectual property rights, environmental protection, competition policy and labor standards. Second, in the 1990s there was general delusion with developing countries towards the implementation and conduct of the WTO. The United States decided to bridge this gap and set up a range of bilateral and regional agreements registered in the FTAA (Phillips 2005, 6). Hence, the FTAA is a United States-led initiative that has no true objective of enlarging market and improving trade of goods, yet is focused more on the new agenda. In line with this new agenda, it is not about a liberal economic model that seeks integration; the agreement does not stretch further than free trade and only focusses on liberalization in the area of services and investment. During the FTAA meetings the key concepts were democracy, free trade, prosperity, economic growth and environmental sustainability.
Page 18 regional hegemon. Perhaps never in Latin American history has the United States hegemony been this openly questioned by Latin American and the Caribbean states alike (Kellogg 2007, 207).
Thus, moving back to the Mar del Plata meeting in 2005, the FTAA should be seen as a product of US hegemonial and regional influence. In this context the FTAA is part of the thirty year project of the United States in which it attempts to consolidate its neoliberal hegemonic ideology. The aim of the FTAA was to become the end product of this consolidation; a neoliberal web stretching from North to South, institutionalizing regional hegemony.
2.2 La Alianza Bolivariana para las Pueblos de nuestra America (ALBA)
Until now this chapter has discussed the realization of the FTAA and the role the United States played as regional hegemon and initiator of the agreement. This paragraph will explain the Bolivarian Alternative for the Americas (ALBA) and its position as counter hegemony is illustrated in the context of FTAA hegemony. In accordance with Gills, ALBA is a coalition of social forces that links Latin American and Caribbean governments with one another, confronting the United States-led dominant ideology and focusing on development rather through endogenous then exogenous factors (Bancerz 2010, 9).
Page 19 economic platforms; the Venezuelan state being the most extreme tilted against anti-neoliberalism. However what all mentioned regimes have in common, is the criticism on the inadequacy of social safety nets when the Latin American economies shifted from state capitalism to market capitalism in the 1980s and 1990s (Blake 2009, 101).
The above projected view of Leftist tendencies has also been established by the Latinobarometer. The Latinobarometer is a Chile based non-profit Non-Governmental Organization which annually publishes the attitudes towards democracy, institutions and other topical issues in all of Latin America.In 2007, in the middle of resurging Leftist governments, the barometer demonstrated that between 1998 and 2007 Latin American public support for market economy had fallen by 14 %. The only odd-fish was Mexico, presenting a 9% growth in support for laissez-faire policies. The Latinobarometer concluded that in 10 years’ time, 4/5th of Latin American countries had
dropped their support for market mechanism (Latinobarometer Survey 2007). This same type of investigation has been carried out by the Washington D.C.-based Pew Global Attitudes Survey. They describe themselves as a nonpartisan “fact-tank”, carrying out surveys with topics ranging from immigration control to support of globalization. Their survey measured the positive view towards Trade, Foreign Companies and Free Markets. In all seven cases, there was a higher positive attitude towards Trade than towards Free markets (Pew Global Attitudes Survey 2007, 13). This argument is in support for the emergence of economic cooperation as the ALBA; emphasizing trade, but conducting this outside the paradigm of the free market principles.
Page 20 In recent years ALBA has grown from a two country organization to an eight county organization, encompassing the countries of Bolivia, Ecuador, Venezuela, Cuba, Dominica, Antigua and Barbuda, Saint Vincent and the Grenadines and Nicaragua. Besides these specific countries engaging with full membership, there are several countries that are integrated with ALBA through various institutions. These countries are Argentina, Colombia, Paraguay and Uruguay; being in one way or another related to the ALBA institutions of Petrosur/Petrocaribe/Petroandina, Telesur, Universidad del Sur, Banco del ALBA and various regional health agreements (Cole 2012, 325). The character of the above mentioned institutions is that they attempt to regionally integrate Latin American and Caribbean countries. Hence, they are not necessarily exclusive for ALBA members. Crucial aspect of the emergence of ALBA and its increasing numbers of members and regional influence are the political regimes that, in the past 12 years, have switched to left-leaning heads of state.
The ALBA organization is based upon four pillars, consisting of: cooperation, complementary action, solidarity and respect for the sovereignty of nations. The most surprising and unique pillars are that of complementary action and cooperation. Complementary action and cooperation ranges from the sharing of technological information, education exchange program to cheap oil loans and sharing healthcare. For example, Venezuela has set up an oil program where member countries of ALBA can purchase oil on credit, with the interest rate set at 1 %; besides this the borrowing countries can decide to pay their debt with raw products (bananas, coffee, sugar) instead of currency. Healthcare cooperation is mostly led by Cuba, where it has received over 10.000 Venezuelans and trained them skills in technology and medicine. Complementing this, Cuba has permanently send 30000 Cuban doctors and healthcare workers to Venezuela and other ALBA countries (Kellogg 2007, 192).
The second pillar is that of complementary action. The Banco de Alba is at the center of complementary action and focusses on trade imbalances between member countries. The Bank’s objective is to help social sustainability and economic development, reduce poverty and asymmetries and strengthen integration and promotion of just economic exchange between the ALBA member states. The SUCRE is the regional currency adopted by the ALBA Bank (Suce Inform 2012, 22).
2.3 Differences between the ALBA and the FTAA
Page 21 its massive support and formation by mass movements has been created through a bottom-up construction. Second, the role of civil society differs in both cases. The FTAA does not actively involve parts of civil society (NGO’s, indigenous movements, environmental groups). In general, civil society has no influence on economic integration meetings and very limited access to political integration agreements. This is in contrary to ALBA that has set up a special council which channels the demands of mass movements. This council institutionalizes the mass movements and facilitates policymaking for these groups (Harris and Azzi 2009, 14). Third, as Bancerz argues, there is a difference in the motive of the working groups that were set up to make political and economic integration work in both organizations. The FTAA working groups were focused on free trade, efficiency and liberalization; while the ALBA working groups had an obvious socialist underpinning. Fourth, the FTAA advances increasing investment and exports, in effect continuing exploitation of cheap labor and primary goods, further hampering the development of Latin America and the Caribbean. While on the other hand, the ALBA focusses on the (regional) endogenous development and wishes to exchange goods and services based on need and not advantage. Fifth, there is large difference in the treatment of smaller economies relative to bigger ones. For example, the FTAA does not consider a small economy in its policies, while ALBA defines a small economy in its Compensatory Funds for Structural Convergence program. Therefore, ALBA more passionately strives to eliminate asymmetries between nations while the FTAA hardly attempts this. Finally, the FTAA did mention environment in its early founding documents, but in future developments hardly touched this topic. Comparing this to ALBA, their rhetoric fully considers the environment, where it officially states that “capitalism destroys mother nature through unsustainable practices of productions and consumption that is unequally divided among the world’s population” (Bancerz 10, 2010).
In sum, the FTAA can be seen as a product of US hegemonial and regional influence, designed to be a neoliberal web spreading from North America to South America. Yet, in 2004 the regimes of Venezuela and Cuba signed a treaty that would later build-up to the ALBA. It radically clashes with the FTAA and was designed as a regional bloc that stands against neoliberal projects. The following chapters 3, 4 and 5 will examine to what extent ALBA has moved away from the drawing table and been able to sustain itself as a counterhegemony.
Chapter 3: ALBA in context of Antonio Gramsci’s War of Position
Page 22 norms that finds its origins in agents. The counterhegemon must gain influence in the institutions of these agents to change society. The following agents will be studied to assess whether ALBA has been able to engage in a war of position: Culture, Media, Energy, Finance and University. These agents each form a separate sub-chapter. Consequently, ALBA’s key institutions within these agents will be examined. These agents are strongly interrelated with one another as they form the modern-day civil society. Therefore, ALBA must integrally capture each of these agents to be able to enhance its war of position.
3.1 War of Position
War of position is an essential instrument to achieve counter-hegemony. This signifies that if ALBA wishes to gain control from former neoliberal policies its must develop its own institutions that capture agents that once belonged in the neoliberal sphere. For example, where during the FTAA heydays the hegemony institutions could be witnessed with CNN belonging to mass media or the dollar belonging to finance, ALBA must now form a counterhegemony by capturing these agents and building its own institutions. In the course of this section each agent and its relevance with the ALBA will be explained.
The Agent of Culture
Culture is one of the major undertakings the ALBA and immense resources have been invested towards the construction of a cultural framework that fits the ideologies, development and self-image of the ALBA nations and their people. As stated by the Social Commission of ALBA: “The cultural identity provides us a solid platform for the integration and union of our peoples.” (Building an Interpolar World 2013, 33). ALBA’s influence in the cultural agent is demonstrated in the ALBA Grand National of Culture. This meta-institution comprises 5 programs that include 64 actions. Program 1: The production, distribution and promotion of cultural goods and services. Program 2: Articulation and development of networks with social movements and cultural entities. Program 3: Training of human resources for culture. Program 4: Legitimation of the Latin American and Caribbean cultural values. Program 5: Socio-cultural impact of development among our peoples (ALBA official website Culture, 2013). Amongst the 64 actions, the most important significant actions include Alba TV, Museo Caribe, Portal Alba, Radio Alba Ciudad, Radio del Sur, Portal Cine, TeleSur and various sports tournaments. The most relevant programs will be discussed in the following paragraphs.
Page 23 To enhance its influence in culture it is important for the counter-hegemon to dominate the media. Telecommunications is now what the role of the press was when Gramsci theorized his ideas. In order to expand the influence of the telecommunications network, the ALBA Satellite project was launched at the VII Summit: Supplying telephone and internet logistics in rural areas through satellite support. This will be done through the Commission for Telecommunications, which integrates the responsible organizations (ALBA VII Summit Telecommunications , 2013).
Telesur is an interesting standout in these activities. Besides being an ALBA initiative, it also has connection with non-ALBA states. The Argentinean en Uruguayan governments hold 20% and 10% respectively of the stakes. The Venezuelan government is the largest stakeholder and possess 51% of the news channel. Even though the Cuban and Argentinian authorities arrange a significant deal of national logistical support for the radio station, the major funding lies in hands of the Venezuelans. The estimated annual budget is said to be 20 million dollars. The board argued for a news station that enhances a balanced and pluralistic view, somewhat resembling that of the BBC. Importantly, the channel was set up with the support of ALBA and has as goal to channelize a regional news company connecting various left-wing Latin American and Caribbean countries. Relevant to this thesis is that the radio station claims to be a counter-hegemonic vision to Western media like CNN and the BBC. In doing so Telesur acknowledges and respects these news channels but gives critique of their lack of plurality. CNN is perceived to be a reflection of United States culture, values and the United States view of the world (Painter 2006, 18). Many proponents of Telesur emphasize that the Latin American region has too long been dominated by Western films, music and radio and applaud that the continent has finally stepped forward in broadcasting an integrationalist view of Latin America (Painter 2006, 18).
A second good example of the media and a change in perception and ideas is the Ville del Cine. It is a Venezuelan initiative that provides filmmakers the platform to movies, documentaries and animation films. Their newest studio, being 2400 square-meter-wide, was opened in 2006 and is controlled by the Ministry of Power for Culture. The Ville del Cine is in line with the Boliviarna revolution and is supported by and affiliated to members of ALBA. In 2008 the Film Law was introduced which entailed that 20% of the films produced must be Venezuelan (Zweig 2011, 133).
Page 24 incorporating the Venezuelan government and the ALBA cultural state bureaucrats with grassroots artists. Hence, it resembles the war of position; where battle is fought out in the everyday context, especially in civil society, culture and media (Zweig 2011, 136).
The Agent of Energy
Energy is arguably the most important agent in ALBA nations. The largest ALBA nations reap the majority of their trade income from energy: Bolivia (81.4%), Cuba (54.9%), Ecuador (58.5%) and Venezuela (93.1%) (WTO statistical database, 2013). Is has become evident, within the hegemonic and counterhegemonic framework of this thesis, that energy integration is an issue that belonged to the former FTAA framework and now forms a pivotal role in the ALBA process. Energy is one of the key dimensions and can be considered as an essential facilitator of the ALBA process. This section will demonstrate that ALBA’s been able to establish dominance in the agent of energy.
In the heydays of the FTAA energy integration was promoted through the Hemispheric Energy Initiative. As stated in founding Hemispheric Energy Initiative documents, the neoliberal energy integration scheme was oriented towards international policies that would promote regional integration, the deviation from state controlled energy processes, the opening of markets, privatisation of the energy sector and naturally a larger role of multinational corporations in the the private sector (Hemispheric Energy Initiative 2001, 4). One of the reasons why the Hemispheric Energy Initiative failed was that it focussed too much on private investment. Some authors, like Eduardo Mayobre, a researcher for the Latin American Institute of Social Investigation (ILDIS), go as far to debate that the unregulated nature of private investment within the Hemispheric Energy Initiative can be traced back to one of the main obstacles of the crumbling FTAA process. Eventually the leading reason behind the failure of the Hemispheric Energy Initiative was that, by constitution, most Latin American states reserve the right of petrol activities to the state. Notwithstanding, the petrol industry in most ALBA countries in the 1990s was largely characterised by significant profits made by the private sector (Mayobre 2005, 43).
Page 25
Country Enterprise Country Enterprise Country Enterprise
Argentina YPFB Bolivia YPFB Venezuela PVDSA
Brazil PETROBRAS Ecuador PETROECUADOR Belize Belize Energy Limited
Venezuela PVDSA Colombia ECOPETROL Cuba Cuvenpetrol
Uruguay ANCAP Peru PETROPERU Dominica PDV Caribe Dominica
Venezuela PDVSA Nicaragua ALBA de Nicaragua
Republica Dominicana Refineria Dominicana de Petroleo
Jamaica PETROJAM
Saint Kitts and Nevis PDV Saint Kitts and Nevis
Saint Vincent/Grenadines PDV Saint Vincent and the Grenadines
PetroSur PetroAndina PetroCaribe
that guarantees the growth of aggregated value of crude petrol and gas, with the production of sub products petrochemical necessary to impulse a sustainable development in Latin America and the Caribbean” (PetroCaribe Ministerio de Relaciones Exteriores Venezuela, 2003). The regional energy integration initiative consists of three regional subdivisions; PetroAndina, PetroSur and PetroCaribe. Interestingly, what distinguishes PetroAmerica from former energy initiatives, is the social dimension, described in their founding documents: This is firstly demonstrating in their founding documents: ‘’PetroAmerica is a proposal of energy integration between the Peoples of the continent, embraced by ALBA and finds it fundament in the principles of solidarity and complementary in just and democratic use of the resources and development of its peoples. PetroAmerica is geopolitical enabler oriented towards the establishment of mechanisms of cooperation and integration, using the energy resources of the Caribbean, Central America and South America as basis for the improvement of social economic position of the peoples of its Continent“ (Informe PetroCaribe 2005, PDVSA). This section will mainly focus on PetroAmerica as an institution, while the social dimension will be further explained in chapter 5 of Robert Cox.
Table IA PetroAmerica countries and their state-oil enterprises
Source: YPFB, PETROBRAS, PVDSA, ANCAP, PETROECUADOR, ECOPETROL, PETROLPERU, Belize Energy Limited, Cuvenpetrol, PDV Caribe Dominica, ALBA de Nicaragua, Refineria Dominicana de Petroloe, PETROJAM, PDV Saint Kitts and Nevis, PDV Saints Vincent and the Grenadines (2014).
Page 26 PetroCaribe was ratified on the 29th of june 2005 by the following 14 countries: Bahamas, Belize, Cuba, Dominica, Grenada, Guatemala, Guyana, Haiti, Jamaica, Nicaragua, Domincan Republic, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Saint Lucia, Suriname and Venezuela. It is important to underline the differences between the different sub divisions of PetroAmerica. It is evident that PetroSur and PetroAndina are in a stage of lesser integration then PetroCaribe (Cardosa 2006, 46) (Mayobre 2005, 6). PetroSur and PetroAndina are still very much at the level of binational projects. Practical implications are not always visible as the proposals of PetroAndina and PetroSur are far less explicit then the provisions agreed upon by PetroCaribe states (Cardosa 2006, 45). This is also evident when going through primary sources of PetroAmerica. PetroSur and PetroAndina are described on the website of pvdsa.com with their founding documents and provisions. Yet PetroCaribe disposes over an inherent website with a wide variety of up-to-date information. In this sense, PetroAndina and PetroSur cannot be deemed serious in an attempt for dominance in the agent of energy. However, PetroCaribe is a different story- as the following paragraph will demonstrate.
Page 27 Table IB: Energy Figures PetroAmerica countries
Source: International Energy Statistics (2013)
Table IB indicates the production and refinery of oil and gas in the PetroAmerica nations. A large part of this production is in hands of the state enterprises (see table IA). Because of gas and oil nationalizations the most significant state enterprises are in Argentina, Bolivia, Cuba, Ecuador, Peru and Venezuela. However, it is important to note that nationalization is not a dichotomous variable. A classic nationalization would suggest the state taking full control of all aspects of the industry. However in most cases less aggressive nationalizations (except Cuba) have taken place through the expropriation or purchase of certain foreign assets or a restructure of tax and royalties to increase the take from a foreign enterprise (Berria, Marak and Morgenstern 2011, 4)
World 89153,71269 88004,209 115993,4 23741,16951 37521,418 24730,7382 36599,869 Argentina 735,20285 630,575 1369,163 76,55359 267,33455 94,49605 7,063 Belize 3,23934 0 0 3,49333 0 0 0 Brazil 2651,93882 1917,333 514,8927 457,40792 370,1012 158,37345 0 Bolivia 54,17799 41,2 557,6239 14,69688 0 6,91545 470,3958 Colombia 969,15952 290,85 386,6993 49,79038 0 92,40762 74,51465 Ecuador 504,50844 176 8,4756 103,57438 0 28,61332 0 Cuba 50,80414 301,4 36,37445 4,87658 0 11,31764 0 Dominica 0 0 0 0,91586 0 0 0 Granada 0 0 0 2,00411 0 0 0 Guatamala 14,01715 0 0 71,38501 0 4,91137 0 Guyana 0 0 0 10,77719 0 0 0 Jamaica 2,11961 36 0 32,91863 1503 0 0 Nicaragua -0,1535 20 0 12,32562 0 0,51852 0 Peru 160,42798 198,95 400,8253 42,07142 0 80,55877 199,1766 Republica Dominicana 0,0611 50 0 85,48874 32,84295 0 0
Saint Kitts and Nevis 0 0 0 1,78425 0 0 0
Saint Lucia 0 0 0 2,91407 0 0 0
Saint Vincent/Grenadines 0 0 0 1,47433 0 0 0
Uruguay 1,18286 50 0 23,66675 2,8252 4,65619 0
Suriname 15,27493 7 0 6,45386 0 1,01548 0
Venezuela 2489,24235 1282,1 886,7597 0 74,51465 479,99411 0
Source: International Energy Statistics, United States Government Country
Production Import Export
Page 28 In sum, PetroCaribe is in the furthest stage of energy integration compared to other PetroAmerica initiatives. Recently there has been a summit where 18 Caribbean delegations have approved a PetroCaribe special Economic Zone; developing a commercial exchange space (Ministry of Foreign Affairs 11th PetroCaribe Summit 2013, Exchange Space). In the years that have followed since its founding, PetroCaribe should be seen as a serious energy integration scheme where issues surrounding Caribbean energy have been taken to a supranational level. Owing to a beneficial finance scheme, infrastructural support and an Aid Fund the regional PetroCaribe can be considered as one of ALBA’s success stories in terms of materializing influential politics in the Latin American and Caribbean region. The fact that the PetroCaribe loans outnumber Inter-American Development Bank and European Union loans is a major proof of this. In the framework of hegemony and counter hegemony PetroCaribe clearly moves away from neoliberal policies as trade in energy is done through state enterprises and at below international market price, where profits are balanced out with complementing a member states economy. Hence, PetroCaribe has positioned ALBA as a counterhegemony within the agent of energy in the nations of Bahamas, Belize, Cuba, Dominica, Grenada, Guatemala, Guyana, Haiti, Jamaica, Nicaragua, Domincan Republic, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Saint Lucia, Suriname and Venezuela through its PetroCaribe energy scheme. Yet, the countries of Bolivia and Ecuador are not included in ALBA. However, the state oil companies of these countries produce the majority of the oil product and are affiliated to ALBA. In this sense, one can conclude that ALBA has been able to capture the agent of energy through nationalizations of state companies and its PetroCaribe scheme since the neoliberal Hemispheric Energy Alliance from the 1990s.
Agents of Finance Banco de ALBA
Banco del ALBA is an international financial institution founded in Caracas on the 26th of September 2008, by the ALBA head of states. The Bank is designed to strengthen, integrate and promote just, dynamic, harmonious and equal economic exchange between the ALBA member states. The Bank focusses on the following areas: economic development in key sectors of the regional economy; development in health, education, regional development and social security; promote and strengthen micro, small and medium sized enterprises; organize the binational or grand-natinonal ALBA enterprises and the development and promotion of just commerce in trade of goods and services (Sucre Inform 2012, 17). The SUCRE is the officially currency of the Bank and will be explained in the following section.
Page 29 The SUCRE (XSU) came into function in 2010 and was designed as a regional currency to facilitate trade payments between the ALBA nations. The states of Bolivia, Cuba, Ecuador, Nicaragua and Venezuela are the ALBA nations that momentarily are using this currency. Because of the East Caribbean dollar Saint Vincent and the Grenadines, Antigua and Barbuda and Dominica are not yet fully integrated into the SUCRE.
It is implemented as a mechanism to canalize international trade and support cooperation, integration and economic complementation, promoting integral development in Latin America and the Caribbean. By replacing the dollar with the SUCRE the nations wish to decrease the US financial control. At the moment the SUCRE is still a virtual currency, but in the future the currency is meant to become a hard currency. (Sucre inform 2012, 19).
Figure 2A. Sucre Exchange Rate (XSU/$)
Source: Informe Sucre 2012.
Figure 2A that shows the SUCRE exchange rate against the USD, rising since 2010. The strength of the SUCRE is determined by the currency basket of the participating countries (Sucre Inform 2012, 19)
Page 30 Current Account surplus, meaning exports are larger than imports, the value of the SUCRE is higher. This demonstrates that the SUCRE tries to find equilibrium between the balance of trade of the participating countries (SUCRE Inform 2012, 21).
Figure 2B demonstrates the volume of operations conducted with the Sucre. In 2012 the number of operations heightened by 513.9% compared to 2011. In 2012 a total of 852 million Sucre was used for transaction, the equivalent of USD 1.065 billion (Informe SUCRE 2012, 23).
Figure 2B. Number of operations in Sucre (XSU)
Source: Informe Sucre 2012. Agent of Education
Page 31 Tourism has been added as a master to the existing master programs in Education and Geo-Politics of Hydrocarbons.In sum, ALBA is increasingly forming a counterhegemony in the agent of education by spreading the values of ALBA through this system of universities. ALBA is able to exert influence, through UNIABLA, over state universities. As a result curriculums are being standardized and education programs are developed that focus on the values of ALBA.
In sum, ALBA is in a driving momentum towards complementing its ideas with institutions. These institutions are gaining importance throughout the region and are increasingly gaining influence in the most important agents- of which the discussed agents the civil society in Latin America. ALBA has proven to be most accomplished in the institutions of energy, culture, education and finance. Within these institutions ALBA has successfully been able to form a dominant counterhegemony. As Gramsci elaborates, hegemony can be witnessed in the ideological superstructure. Gramsci relates this to institutions and technical instruments that produce a prevailing course of discourse. In the case of ALBA it has become clear that the ideological superstructure has been captured through ALBA dominance in culture, energy, education and the institutions of finance. These institutions have been underpinned by technical instruments that consist of media network within mass media, loan schemes and aid funds within energy, state-university curricula influenced by ALBA and monetary instruments within finance. Some institutions, such as higher education, are still in the developing phase.
Chapter 4: Polanyi’s double movement
Page 32 Agreements and the Alianza Pacifico are the main focus. The Alianza del Pacifico is a regional free trade organization constituting of Chile, Colombia Mexico and Peru. The organization was created on April 28th, 2011 (Website Alianza del Pacifico 2014, About). As the FTAA process weakened the United States implemented several bilateral Free Trade Agreements with Latin American and Caribbean nations, these Free Trade Agreements have been backed by the new regional organization the Alianza del Pacifico. This organization is contrary to ALBA and fosters the neoliberal free trade agenda. Hence, sub-chapter three will investigate if the nations belonging to the ALBA have opposed bilateral Free Trade Agreements and the Alianza Pacifico; creating a new system where the former system of Free Trade Agreement proliferation of the FTAA is no longer applicable. Each subchapter is complemented with Polanyi’s double movement; describing how the enhancement of free market principles leads to an opposing movement that tries to implement an alternative model.
4.1 Solidarity in ALBA: A collective identity and acknowledgement of belonging to the same system
When studying the Joint Declaration of Venezuela and Cuba and the Accession treaties of ALBA nations it becomes apparent that the opposition against the FTAA process and neo-liberal programs forms a key issue of collective identity. In terms of belonging to the same system, the principles of economic complementarity, integral cooperation and respect of sovereignty and the attachment to the ALBA integration scheme form the ideals to which each ALBA nation commits, thus acknowledging they belong to the same order.
Joint Declaration: Cuba and Venezuela. ALBA Summit I, Havana. 14th December 2004.
During the 1st ALBA Summit Cuba and Venezuela brought forth a joint declaration in which they express their opposition against the FTAA and neoliberal projects in the Latin American region. This is an important document because the discourse that this document uses in terms of collective identity and future vision forms the basis for every nation accession document that follows. The opposition against the FTAA and neoliberal project is summarized in the following statements:
“We emphasize that the FTAA is the most accomplished expression of the appetites of domination over the region that would constitute of a deepening of neo-liberalism and would create levels of dependence and subordination without precedence in case it enters into force (ALBA Treaty Summarization in Building a Interpolar World 2013, 8).”
Page 33 only lead to an even greater disunity of Latin American countries, deeper
poverty and desperation of the majority sector of our countries, to the denationalization of the economies of the region and to an absolute subordination of the dictates from outside (ALBA Treaty Summarization in Building a Interpolar World 2013, 8).”
The above given statement is a summary of the collective identity: rejection of neoliberalism, the FTAA and stating that neoliberalism and the FTAA have brought damage (and will, if continued) to Latin America. This collective identity is not only found in this founding document, but can be traced back to every ALBA member state accession document, as will become clear in the following paragraphs.
The shared ideals to which Venezuela and Cuba commit is summarized in the next statement. This is crucial statement because it summarizes the fundamental ideals to which every ALBA nation commits, where each ALBA underlines the ideals of regional integration based on cooperation, solidarity and common will. Thus this commitment is the acknowledgement of each nation that they belong to the same system.
“We are making it clear that integration is, for the countries of Latin America and the Caribbean, an indispensable condition to aspire to the development amidst the increasing formation of big regional blocks that occupy predominant positions in the world economy, and that only an integration, based on cooperation, solidarity and common will to move all kinds of consumption towards higher levels of development, could satisfy the needs and longings of Latin American and Caribbean countries, and, at the same time, preserve their independence, sovereignty and identity (ALBA Treaty Summarization in Building a Interpolar World 2013, 8).”
The following statements demonstrate the collective identity of each nation. This collective identity is composed of each country underlining the problems that neoliberal reforms have brought in their country. In addition, the countries criticize the FTAA and demonstrate their willingness to join the alternative integration scheme of ALBA. The common ideals are cooperation, solidarity and sovereignty. This is validated by the fact that repeatedly the member nations bind to these ideals in the accession documents.
Page 34 Collective identity: Anti-neoliberal and FTAA discourse
“Recognizing that the implementation of the projects and policies of neoliberal character has led to the spread and deepening of dependency, poverty, plundering of our natural resources and social inequality in our region. The real integration between the countries of Latin America and the Caribbean is an indispensable condition for the sustainable development, safety and food sovereignty, and for meeting the needs of our people identity (ALBA Treaty Summarization in Building a Interpolar World 2013, 21).’’
This quote provides evidence of the collective identity on behalf of Bolivia because Bolivarian president Eva Morales acknowledges the failure of neoliberalism and the projects and policies (the FTAA) accompanied by them.
Common ideals that enable the belonging to the same order
“Convinced of the need to promote a real integration based on solidarity complementarity and humanity between our countries and peoples, on behalf of the Government of the Republic of Bolivia, we want to contribute to this process with the initiative of the Trade Treaties between the Peoples by endorsing the objectives, principles and conceptual basis of the (ALBA Treaty Summarization in Building a Interpolar World 2013, 21).’’
In the above given quote Eva Morales endorses the common ideals of cooperation and solidarity, while stating that ALBA is the alternative for real integration.
Summit IV Managua, Nicaragua. January 11, 2007. Accession of Nicaragua. Signed by president of the Republic of Nicaragua, Daniel Ortega Saavedra.
Collective identity: Anti-neoliberal and FTAA discourse
Page 35 and uprooting (ALBA Treaty Summarization in Building a Interpolar World
2013, 29).”
In the above given statement president Ortega stresses the collective identity on behalf of Nicaragua: criticizing neoliberalism and the inequality and poverty that has arisen from its policies.
Common ideals that enable the belonging to the same order
“The overcoming of the neoliberal model and its effects in the region implies a strategic alliance between the states and the peoples of LAC, based upon principles of solidarity, cooperation, complementary and mutual help, founded on the rescue and appreciation of our identity, participatory democracy and economic development with equity (ALBA Treaty Summarization in Building a Interpolar World 2013, 29).”
Consequently, president Ortega defends the common ideals of solidarity, complementary and cooperation (mutual help) while reaching out to ALBA for the construction of a strategic alliance (integration).
Summit VI Caracas, Venezuela. January 26, 2008. Accession of Dominica. Signed by prime minister of Commonwealth of Dominica Roosevelt Skerrit.
Collective identity: Anti-neoliberal and FTAA discourse
“After the odious neoliberal period that we lived in Latin America and the Caribbean, and which brought about the collapse or our economies, thus increasing social inequalities and shortage as to the living conditions of our population. The hope of our peoples is reborn with President Hugo Chavez and Fidel Castro. The proposal of the ALBA, emerged to represent the chances of re-launching our nations, especially because the options that came from the hegemonic centers of the world power constituted projects, anchored in old economic integration schemes, which has caused disaster in the 1980s and 1990s (ALBA Treaty Summarization in Building a Interpolar World 2013, 48).”
Page 36 Common ideals that enable the belonging to the same order
“Solidarity, economic complementarity, fair trade, integral cooperation and the strict respect of sovereignty constitute the fundamental concepts of ALBA, which causes a radical break with classic integration schemes, based on competition, hegemony, the fiction of free market and aspiration for political domination. The ALBA represents the social performance of social affairs as a hegemonic element of the economic relations and the international policies (ALBA Treaty Summarization in Building a Interpolar World 2013, 48).”
The quote above shows that the Dominican president agrees to the common ideals of solidarity, cooperation (economic complementarity) and sovereignty.
Extraordinary Summit VI Maracay, Venezuela. June 24, 2009. Accession of Ecuador. Signed by president of the Republic of Ecuador, Rafael Correa Delgado.
Collective identity: Anti-neoliberal and FTAA discourse
“The ALBA Is inspired by an integral political orientation, which claims that inalienable rights of its peoples and sovereignty of its countries, and rejects all kinds of tutelage and foreign intervention, as well as neocolonialist practices, in order to organize its future of dignity, common well-being and equitable development. (ALBA Treaty Summarization in Building a Interpolar World 2013, 94). “
The quote above provides evidence that the president of Ecuador, Rafel Correa, (indirectly) rejects neoliberalism by objecting against foreign intervention and neocolonialist practices.
Common ideals that enable the belonging to the same order
Page 37 which it forms part (ALBA Treaty Summarization in Building a Interpolar
World 2013, 94).”
In this quote the Ecuadorian president complies with the common ideals; promoting cooperation and becoming part of a new integration model.
Extraordinary Summit VI Maracay, Venezuela. June 24, 2009. Accession of Saint Vincent and the Grenadines. Signed by prime minister of Saint Vincent and the Grenadines, Ralph E. Gonsalves. Collective identity: Anti-neoliberal and FTAA discourse
After the widespread and complete failure, in Latin America and the Caribbean, of the neoliberal period which is contrary to development, a new hope emerged among the peoples in favor of their humanization. Neo-liberalism which is contrary to development, led to a real collapse of our economies, increase in poverty, the extension and deepening of social inequalities, a marked deterioration in the living conditions of the peoples and an unprecedented tendency towards social and political alienation. The ALBA emerged as the possibility that our nations resume the path of progress, as opposed to the options offered by the hegemonic power centers worldwide and which are projects based upon economic integration schemes that have wrought havoc in Latin America during 1980s and 1990s (ALBA Treaty Summarization in Building a Interpolar World 2013, 97).” In the quote above president Gonsalves complies with the common identity where he rejects neoliberalism by stating that it is contrary to development and has led to collapse of economy, increase in poverty and the deepening of social inequalities.
Common ideals that enable the belonging to the same order
Page 38 In this quote president Gonsalves stresses the common ideals by acknowledging cooperation, solidarity and sovereignty. In addition, he underlines the importance of regional integration (integral cooperation)
Extraordinary Summit VI Maracay, Venezuela. June 24, 2009. Accession of Antigua and Barbuda. Saint Vincent and the Grenadines. Signed by prime minister of Antigua and Barbuda, Winston Baldwin Sepncer.
Collective identity: Anti-neoliberal and FTAA discourse
“Uncontrollable neoliberalism and the models associated with this kind of economic development have affected negatively all of us. The countries rich and proud in Latin America and the Caribbean have first had to suffer the consequences of the coercive and imperialist models of colonialism, and later as a result of the Washington Consensus. Flight of capital, and the abandonment of social infrastructure and other issues related to quality of life, impoverished the LAC countries that were rich in resources (ALBA Treaty Summarization Building a Interpolar World 2013, 101).”
In this statement prime minister Baldwin of Saint Vincent and the Grenadines rejects neoliberalism by summarizing the negative consequences of its policies in his nation and Latin America.
Common ideals that enable the belonging to the same order
“The ALBA guiding principles are totally opposed to those associated with the failed models of neoliberal development. The ALBA promotes complementarity, as an alternative to competition; solidarity, in front of domination; cooperation, as a substitute of exploitation; and respect for sovereignty, rather than corporate norms. Antigua and Barbuda openly adopts these principles (ALBA Treaty Summarization Building a Interpolar World 2013, 101).”
In this statement prime minister Baldwin complies with the common ideals, promoting cooperation, solidarity and respect for sovereignty.
Page 39 essential element of the collective identity that all ALBA nations carry with them. Secondly, each state ratifies the treaties in which they all state that the common ideals of economic complementarity, integral cooperation and respect of sovereignty are the fundamental ideals that must be anchored in future ALBA process. In addition to this, every ALBA summit bring forth Joint Declaration in which the ALBA nations express their common will and attachment to the ALBA integration scheme. Hence, by expressing their commitment to these ideals the ALBA nations acknowledge that they belong to the same order. Polanyi’s double movement is visible here where the enhancement of free market principles through the FTAA has resulted in the ALBA nations criticizing neoliberal reforms and taking up an alternative regional integration scheme.
4.2 Carrying on a conflict: The struggle for public utilities
In carrying on a conflict the fight over resources will be examined. Melucci’s interpretation of Polanyi defines conflict as the relationship between two actors which both fight over the same resources and both attribute the same value to these resources. Within this context public utilities form an important analytical point in this regard. One of the key arguments of the FTAA was privatization of this type of company. This is demonstrated in the FTAA Chapter of Services, where the FTAA explicitly states it wants to “free-up” access to and use of services offered to the general public to supply a service (FTAA Chapter of Services Article 1, 2003) In contrary, ALBA wishes to keep public utilities in the public domain and enhance them on an inter-governmental platform (see arguments below). Hence, the following section will demonstrate that within the FTAA and ALBA proposals and treaties there is a fight over resources in the form of public utilities.
Page 40 FTAA Chapter of Services, 2003
Article 1: Scope of Application
“This chapter applies to measures adopted by a Party relating to trade in services by providers/suppliers of another Party, including: (1) the production, distribution, marketing, sale and delivery of a service (2) the purchase or use of a service (3) the access to and use of transport, telecommunications networks and services in connection with the supply of a service (4) the presence in its territory of a service provider of another party (4) the provision of a bond or other form of financial security as a condition for the provision of the service (5) access to and use of services required by the Parties to be offered to the general public to supply a service. “ Article 2.2
“This chapter shall have universal coverage of all service sectors. The comprehensiveness of the coverage shall be linked to the extent and rate at which the modes of supply for the provision of services are liberalized. “
Article 3.6
“This chapter shall not prevent any of its Parties from being a party to or entering into an agreement of liberalizing trade in services between the parties.”
“This chapter shall not prevent Parties from entering into or being party to agreements in pursuit of liberalizing trade in services or wider economic integration at the sub-hemispheric level. “
Venezuela responds with a memorandum as a reaction to the FTAA Chapter of Services (FTAA Miami Ministerial Meeting 2003, Venezuela Memorandum section II). This memorandum objects to the FTAA services privatization proposal and argues they will lead to the loss of public services to the private domain.
