THE SOUTH AMERICAN WAY: SUB-REGIONAL INTEGRATION UNDER ALBA AND UNASUR AND INTERNATIONAL DISPUTE RESOLUTION

Abstract

This article describes two of the most recent sub-regional integration efforts in South America, namely ALBA and UNASUR, including the factors that have contributed to their development. The analysis offered here pays special attention to the role played by the Venezuelan government, particularly during the administration of former president Hugo Chavez, both in political and economic terms toward the rise and growth of ALBA. This article also explains how the heavy dependence on Venezuela’s support was also detrimental to ALBA for it has been negatively affected by the crisis currently faced by the Latin American country. In contrast to the case of ALBA, this article discusses the rise of UNASUR as a collective endeavor and the efforts of its members to create a regional framework that includes a novel proposal of a Centre for the Settlement of Investment Disputes. The methodology adopted is the qualitative analysis of information obtained in specific bibliography. In the final part, it is concluded that the two most recent efforts of regional integration in Latin America, represented by ALBA and UNASUR, went beyond traditional economic agreements to a more comprehensive enterprise, which addresses other social and political issues of common interest. of member states. However, in the case of ALBA, over-reliance on Venezuela's financial and political support was the driving force behind it and also the main obstacle to its development. In the case of UNASUR, the situation seems to be a little different and the structure is more stable. It will be necessary to wait for the launch of the Investment Dispute Settlement Center, which proposes to offer an alternative to the current mechanism sponsored by the World Bank to assess whether the effort was worthwhile for member states, their citizens and foreign investors doing business with these states.