On May 23 a Constitutive Treaty was signed which unites 12 countries of South America in a new political structure called UNASUR, modeled somewhat after the European Union. This signing had been scheduled for late March at a summit in Cartagena, Colombia, but diplomatic relations were ‘strained’ after the military incursion by Colombia into Ecuador. The initial plan was to have President Uribe of Colombia assume presidency of UNASUR, but Ecuador and Venezuela rejected that following the military action.
The period of stressed relations, which included the recalling of ambassadors, was calmed at the Rio Summit in the Dominican Republic, when the new president of Argentina challenged the respective presidents to reconcile. When the Treaty was finally signed in Brasilia, Michelle Bachelet, president of Chile, assumed the rotating presidency of UNASUR.
Bolivia. Since the beginning of May, there have been four autonomy referenda in the provinces of Santa Cruz, Beni, Pando and Tarija. In these provinces, where much of the wealth and many of the natural resources of the country are concentrated, large sectors of the population do not support President Evo Morales. Between the May 4th and the June 1st referenda, a shocking incident occurred in the city of Sucre. About 50 indigenous people were accosted by a right-wing mob, stripped of their clothes, beaten and forced to repeat racist phrases. This incident highlights the tension in a country that has elected the first indigenous leader in 500 years, with an indigenous population as high as 70%.
The Bolivian government continues to re-nationalize industries, including three oil companies and the largest telephone system. Transredes, a gas pipeline company (formerly owned by Enron and subsequently by Shell and Ashmore Energy) was also nationalized after the company began a process of selling the pipelines to the anti-Morales governor of the Tarija department.
In a surprise move on May 10, the Senate passed and the president signed a law calling for a recall referendum to happen within 90 days. The mandates of the President, Vice- President and the State Governors are all subject to voter approval. To stay in office, each official must get at least as many votes as they received when they were elected. A new election must happen between 90 and 180 days to fill any positions made vacant by this referendum (scheduled for August 10th).
Ecuador. President Correa has entered into an interesting process which may serve as a model for other countries with massive debts. They have launched a Debt Audit Commission, which will audit all public and private debt to determine its legitimacy based on legal, economic, social and environmental impacts. According to the instructions to the Commission, “debts which are found to be illegitimate will not be paid.” Ecuador has also decided not to formally join ALBA, the economic and political initiative which currently includes Venezuela, Bolivia, Nicaragua and Cuba. It is thought that President Correa is upset about the departure of Venezuela from the Andean Community of Nations and is also looking to develop a special trade relationship with the US, although not a free-trade agreement of the model currently being promoted by the US.
Venezuela. The US recently announced that it would re-activate the 4th Naval Fleet, to patrol Central and South American waters. There have been widespread reactions to what is perceived as a hostile act against democratic governments of the region. The 4th fleet was originally commissioned during the Second World War to prevent Venezuelan oil shipments to Germany.
Most recently, the Venezuelan and Ecuadorian presidents have called for Colombia’s FARC rebels to unilaterally disarm. This could undermine the ability of the government associated para-militaries and army to justify violence against non-combatants under the pretext of combating the FARC.
[The author is Director of the QuixoteCenter and Coordinator of the Alliance for Responsible Trade (ART).]