Bolivarian Alternative

ALBA: Bolivarian Alternative for Latin America and the Caribbean Friday, Jan 30, 2004 By: Teresa Arreaza This document is a summary of information on the ALBA published by the Banco the Comercio Exterior (Bancoex) venezuelanalysis.com

The ALBA (Alternativa Bolivariana para las Américas), as its Spanish initials indicate, is a proposed alternative to the U.S.-sponsored Free Trade Area of the Americas (FTAA, ALCA in its Spanish initials), differing from the latter in that it advocates a socially-oriented trade block rather than one strictly based on the logic of deregulated profit maximization. ALBA appeals to the egalitarian principles of justice and equality that are innate in human beings, the well-being of the most dispossessed sectors of society, and a reinvigorated sense of solidarity toward the underdeveloped countries of the western hemisphere, so that with the required assistance, they can enter into trade negotiations on more favorable terms than has been the case under the dictates of developed countries.

By employing more effective mechanisms to eradicate poverty, ALBA—as proposed by the Venezuelan government—provides a counterweight to the policies and goals of the FTAA. This alternative model also identifies the most crucial impediments to achieve a genuine regional integration that transcends the prerogatives of the transnational corporations. One of the obstacles to confront is the deep disparity that exists in development between the countries of the hemisphere, whereby poor countries such as Haiti or Bolivia are compelled to compete with the world’s leading economic power. In order to help overcome trade disadvantages, ALBA pushes for solidarity with the economically weakest countries, with the aim of achieving a free trade area in which all of its members benefit (a win-win alliance).

Venezuela has voiced the need for identifying the economies with the greatest deficiencies and their principle requirements, arguing for a transfer of resources to the most underdeveloped countries so that these may develop the economic infrastructure they require to compete on more favorable terms with more developed economies. In order to do this, the corner stone in the design of the ALBA is the proposal for a “Compensatory Fund for Structural Convergence,” which would manage and distribute financial aid to the most economically vulnerable countries.

The ALBA favors endogenous development and rejects the type of employment that the sweatshop (maquiladora) industry generates because it does not contribute to the upsurge of the agricultural and industrial sectors of the poor countries and does not contribute to the elimination of poverty.

While not operating as a mere export-oriented activity under ALBA statutes, agriculture instead would prioritize the food self-sufficiency of every country before focusing on profit-making processes. The agricultural sector cannot be deliberately subjected to market liberalization, while developed countries maintain policies based on multi-million dollar subsidies and high import tariffs to protect their own internal production, thus flagrantly contravening the principles of free trade.