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Regional Policies in the Andean Nations: A Comparative View

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Regional Problems and Policies in Latin America

Part of the book series: Advances in Spatial Science ((ADVSPATIAL))

Abstract

The Andean countries (Bolivia, Chile, Colombia, Ecuador, Peru, and Venezuela) constitute a special geographic and geopolitical environment in South America because of their distinctive location along the Andes mountain range. The Andean nations share a long, ethnical and cultural tradition that, dates back to pre-Columbian Inca and Aymara civilizations.1 Politically, that tradition can be traced back to military alliances during the wars of independence against the Spanish colonial regime led by Bolívar and San Martin in the early nineteenth century.

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Notes

  1. 1.

    The Andes are the longest mountain range in the world, the second highest (after the Himalayas), and extend along 7,250 km from Patagonia in southern Chile to the Caribbean coast in Venezuela.

  2. 2.

    The Andean Group was formed within the framework of The Latin American Free Trade Association – LAFTA – created in 1960, in which, besides the Andean nations, other Latin American countries like Argentina, Brazil, México, Paraguay, and Uruguay took part. The rationale of forming a subgroup within LAFTA was to associate economies with greater homogeneity than the broader set of countries in order to advance more quickly toward the formation of a common market.

  3. 3.

    Chile had left the association in 1976, during the Pinochet regime.

  4. 4.

    For a comprehensive account of these developments in Latin American integration, see: Sanahuja (2009).

  5. 5.

    The author of this article took part, as a consultant to the General Secretary’s office of the CAN, in preparing some foundational documents for this initiative. See Moncayo (2003, 2011).

  6. 6.

    See Boisier’s article in this same volume.

  7. 7.

    Regarding this experience, see: Rodwin et al. (1969).

  8. 8.

    During the period of 1960–1971, Venezuela created six large corporations to foster development in six specific regions (Guayana, Andean Region, Northern-western Region, Zulia, Northern-Easter Region, and Central-western Region). By the late 1970s and especially along “the lost decade” (1980s), these corporations faded away, and eventually disappeared in the 1990s (Sanabria 2010).

  9. 9.

    Economic Commission for Latin America and the Caribbean (ECLAC – CEPAL)

  10. 10.

    According to Alacevich (2010, p. 64), this mission was “a paradigm for future missions of the Bank, and its report was used for many years as a model for studying the economic conditions of a country”.

  11. 11.

    An analytic review of how Andean countries took on neoliberal policies can be found in Moncayo (2006, Chap. 2).

  12. 12.

    The American economist Jeffrey Sachs, hired by the Bolivian government, was the key advisor on this policy (see: Sachs 2005: Chap. 2).

  13. 13.

    In 1992, Fujimori performed a self-coup-d’état, with the support of the high military command. He closed Congress and constitutionally autonomous controlling bodies, and under pressure from the OAS member nations convoked a Constituent Assembly in 1993 that replaced the 1979 Constitution (Pease 2003, p. 105).

  14. 14.

    A complete analysis of development policies and instruments applied in Bolivia can be found in Muñoz-Reyes (2009).

  15. 15.

    The approval of the new Constitution by referendum on January 25, 2009 was the last episode of an intensely conflictive process during which blood was even shed, following two other referendums and a failed attempt to pass autonomy laws at the Constitutional Assembly of 2007. The forces in the conflict were the MAS, headed by President Morales, and on the other side the civic and business leaders from the eastern departments of Media Luna led by Santa Cruz (the other departments are Beni, Pando, and Tarija) (Burbano de Lara 2012, pp. 225–236).

  16. 16.

    In May of 2006, the Morales government decreed the nationalization of hydrocarbons, located mainly in Tarija and Santa Cruz (which, along with Beni and Pando, comprise the region known as the Media Luna or Half Moon).

  17. 17.

    As a result of an electoral process that marked the end of the traditional parties in Ecuador, the economist Rafael Correa assumed the Presidency of the Republic on January 15, 2007. Correa headed an alternative political movement known as “Alianza País” a heterogeneous alliance comprising diverse social, environmentalist and political organizations

  18. 18.

    An illustrative assessment of decentralization in Ecuador up to the early part of the last decade can be found in Carrión (2006).

  19. 19.

    Hugo Chávez was elected President of Venezuela (currently “the Bolivarian Republic of Venezuela) in 1998 (Dec.) and since then has twice (2006 y 2012) been reelected to consecutive 6-year periods.

  20. 20.

    Toward this end, Chávez has had at his disposal the huge revenues generated by high oil prices over the last decade.

  21. 21.

    A perverse effect of fiscal decentralization has been the intensification of the military conflict between the State and illegal armed groups, which has been going on for more than 50 years in Colombia. Decentralized resources can become an incentive for these illegal organizations to try to take control of the territories that receive more transfers (Sánchez and Palau 2006).

  22. 22.

    Legislative Act 05 of 2011. Royalties are payments to the State derived from the exploitation of non-renewable natural resources.

  23. 23.

    A complete description of these instruments can be found in World Bank (2007).

  24. 24.

    Authors such as Juan Ramón Cuadrado Roura, Antonio Vásquez Barquero, and the Italian theorists of industrial districts are the most frequently referenced.

  25. 25.

    A study on Colombia found that regional income inequality in this country decreased substantially between 1930 and 1990 (see: Bonet and Meisel 1999).

  26. 26.

    A meta-analysis of international studies on regional convergence conducted between 1990 and 2003 found that these same tendencies were happening in Europe (Moncayo 2004a, b).

  27. 27.

    On Bolivia, see: Schroeder (2007).

  28. 28.

    On Colombia, see: Galvis and Meisel, in this same volume (Chap. 9)

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  1. Research Associate Fellow (Non resident), United Nations University-Institute of Comparative Regional Studies (UNU-CRIS), Brugge, Belgium

    Edgard Moncayo-Jiménez

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  1. Economia Aplicada, Facultad de Ciencias Económicas, Alcalá de Henares - Madrid, Madrid, Spain

    Juan R. Cuadrado-Roura

  2. Universidad Adolfo Ibánez, Vina del Mar, Chile

    Patricio Aroca

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Moncayo-Jiménez, E. (2013). Regional Policies in the Andean Nations: A Comparative View. In: Cuadrado-Roura, J., Aroca, P. (eds) Regional Problems and Policies in Latin America. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-39674-8_22

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