Monday May 16, 2022
  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast
Versión Español
PanAm Post
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
PanAm Post
No Result
View All Result

Home » ALBA-Petrocaribe: Weakened States in Denial

ALBA-Petrocaribe: Weakened States in Denial

María Teresa Romero by María Teresa Romero
December 19, 2013
in Caribbean, Central America, Columnists, Cuba, Economics, International Relations, Opinion, Politics, South America, Venezuela
0
0
SHARES
0
VIEWS
FacebookTwitterTelegramWhatsapp

EspañolSince the 12th Summit of the Bolivarian Alliance (ALBA) was held last July in Ecuador, Nicolás Maduro has been pushing to integrate Mercosur, Petrocaribe, CARICOM, and ALBA into a “powerful economic area of shared development” — where power imbalances among its member countries are respected and even used as an advantage.

On December 17, during the second Extraordinary Summit of ALBA and Petrocaribe, hosted in Caracas, participants proposed further integration through the creation of a Special Economic Area — akin to the economic community that predated the European Union. According to the Venezuelan chancellor, Elías Jaua, within this framework participants would also continue working on a possible union between Mercosur and CARICOM.

RelatedArticles

The new socialist supremacisms: a maoist cultural revolution undermines the US

The new socialist supremacisms: a maoist cultural revolution undermines the US

August 21, 2021
GETTR: the powerful weapon of Trump and international right wing

GETTR: the powerful weapon of Trump and international right wing

July 13, 2021

The natural name for this alliance was Eco-Alba (as in economic-ALBA), since ALBA alone is a political organization, rather than an economic one. Although closely related, Petrocaribe emerged as an industry-specific alliance, where Venezuela supplies fuel to member countries with highly favorable conditions, including soft loans, low interest rates, and the option to pay with services and products. Since Venezuela provides the financial resources and oil, the country commands both ALBA and Petrocaribe.

According to Venezuela’s Minister of Oil, Rafael Ramírez, “In the last six years, the country sold 232 million barrels of oil to Petrocaribe’s 17 member countries.” Venezuela may be going through a severe economic crisis and have reduced oil production, but both member blocks still don’t have any option other than to continue to follow Maduro’s orders — assuming they are still interested in conserving their benefits, even if these have decreased.

The real challenge lies in achieving integration with CARICOM and Mercosur. These organizations are sub-regional blocks whose economic well-being does not depend on Venezuela, even if the country’s arrangements may be useful for them. Further, their members have interests and approaches that may not agree with the ones set out by the Bolivarian Revolution.

Brazil and Argentina, for example, are key Mercosur members and have been close allies of Venezuela’s regime — at least during the tenures of Lula Da Silva, Dilma Rousseff, and Mr. and Mrs. Kirchner. However, it’s unlikely this initiative will appeal to these two countries, since ALBA and Petrocaribe have expressed their clear intentions to “go against the Pacific Alliance” and their alleged “neoliberal” approach. Among other aims that would generate friction, ALBA members have announced their desire to establish a single currency for member countries and to create the Salvador Allende University of Health Sciences.

Brazil, Argentina, Uruguay, and Paraguay have all failed to identify themselves with Venezuela and Cuba’s Bolivarian project, and they haven’t even expressed any interest in joining ALBA. In fact, the members from Mercosur and CARICOM are aware that ALBA and Petrocaribe, and especially Venezuela as their main promoter, are weakened. It’s no coincidence that last November, Guatemala declined to become a full member in Petrocaribe, because Venezuela’s imposed conditions changed and weren’t as alluring as before.

Further, it’s necessary to highlight that Venezuela hasn’t been able to increase its oil production. In fact, between November 2012 and June of this year, it has fallen by more than 50,000 barrels per day. Also, oil exports have fallen to below 1.7 million barrels per day.

The idea of this superior block competing against the Pacific Alliance will only remain on paper, given economic realities. Venezuela’s regime will have to settle with the ALBA-Petrocaribe union arrangement. In the end, this new “ALBA-Petrocaribe Special Economic Area” will become another expensive influence block — at least for Venezuelans — that attempts to project Cuba and Venezuela’s power in the region.

Translated by Marcela Estrada.

Tags: albacaricomMaduromercosurpetrocaribe
Previous Post

Anti-Sweatshop Activists and the Crony Capitalists Who Love Them

Next Post

ALBA: Ecuador’s Correa Doubling Down on Bolivarian Influence

María Teresa Romero

María Teresa Romero

Romero is a journalist with a PhD in political science, specializing in international politics. She's a professor at the Central University of Venezuela, a columnist in several Venezuelan and international newspapers, and the author of several books.

Related Posts

The new socialist supremacisms: a maoist cultural revolution undermines the US
Columnists

The new socialist supremacisms: a maoist cultural revolution undermines the US

August 21, 2021
GETTR: the powerful weapon of Trump and international right wing
United States

GETTR: the powerful weapon of Trump and international right wing

July 13, 2021
News

Maduro’s Trial Falls Behind Despite Coordination Between Interim Government and ICC

June 15, 2021
Three Signs That Elon Musk Has the World at His Fingertips
Columnists

Trump Against Suppression of Human Rights

February 1, 2021
Three Signs That Elon Musk Has the World at His Fingertips
News

15 Republicans Who Voted Against Trump Are Already Facing the Consequences

February 1, 2021
Three Key Moments to Remind Us That the UN Is a Nest of Oppressive Regimes
Asia

Chinese Regime Silences Relatives of COVID-19 Fatalities During WHO Visit

January 29, 2021
Next Post
Venezuela: Controlled Currency Devaluation on the Way

ALBA: Ecuador's Correa Doubling Down on Bolivarian Influence

Subscribe free and never miss another breaking story

  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast

© 2020 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact

© 2020 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. Privacy and Cookie Policy.