Natural resource potential and economic development dynamics of the Andean countries, on the example of Venezuela, Colombia, Ecuador. Economic and geographical characteristics of the Andean countries (on the example of Venezuela, Colombia, Ecuador)
Another region of Latin America - Andean countries. The longest (about 9 thousand km) and one of the highest mountain systems in the world - the Andes - not only “strings” the countries of the region on itself, but also is their kind of economic core, serving as a pantry of mineral raw materials. At the same time, the Andes make it difficult for interstate economic relations and communication of the Andean peoples; rather strong earthquakes periodically occur here.
The mountains come out in a wide front Pacific Ocean, in the north - to caribbean. The eastern border with the countries of the Out-Andean East runs along the foothills of the Andean Ranges. The unity of the physical and geographical countries of the subcontinent is due to the fact that they are located within the folded belt on the border of the lithospheric plates of the Pacific Ocean and South America.
Common to all countries in this region is the great world economic importance of their mining industry (oil in Venezuela, copper in Chile and Peru, tin in Bolivia, etc.). In the tropics, plantation agriculture (coffee, bananas, sugar cane) has developed. Peru is a world leader in fisheries.
Today, all countries of the Andean geopolitical coalition are republican, however, on some foreign policy issues, the leadership of these states does not have a unanimous opinion. Thus, the top leaders of Venezuela and Bolivia propagate the course of socialist development and do not accept the imposition of political will by the United States. At the same time, the economy of these states is seriously dependent on the United States. For example, Venezuela alone imports nearly $6 billion worth of products from the United States. These are cars and Construction Materials, and electronics.
In terms of historical heritage, representing Special attention Peru is the state of the Andean subregion of Latin America. Once upon a time, the ancient Incas lived in Peru. The exploration of these lands has been going on for more than a hundred years, and interest in the culture of this people has not dried up to this day. Every year, millions of tourists come to Peru to see with their own eyes the temple complexes of the ancient capital - Cusco. The historical memory of the greatness of the Inca Empire is reflected even on banknotes - local salts. So, on a banknote with a denomination of 5 soles, there is an image of the ninth ruler of the Incas - Pachacutec Yupanqui.
In Peru, in addition to Spanish, people speak Quechua, the Aymara language and other Indian dialects.
The most controversial attitude in the subregion is towards Colombia. The country has serious mineral reserves, but due to internal political strife, primarily related to drug trafficking, the development of the state is slow.
Ecuador is the least efficient developing country in the subregion. It's connected with high level corruption in power, as well as with the policy of interference of the authorities in economic processes.
In the Andean countries, agriculture is developing well. Thanks to this, vegetables, fruits, and wine are imported from the Andean subregion to many countries of the world throughout the year.
There are great socio-economic contrasts in the region. Thus, Venezuela is one of the most developed countries in Latin America, while Bolivia and Ecuador are underdeveloped countries.
The formation and consolidation of states led to changes in their economy. The states were included in the system of the world capitalist division of labor as suppliers of raw materials and foodstuffs. Slavery in the countries was abolished.
Bolivia is one of the least developed countries Latin America. Economic backwardness is the result of the long-term imperialist exploitation of the country's natural resources. From the beginning of the 20th century Bolivia has become a supplier of certain types of mineral raw materials for non-ferrous metallurgy in Western Europe and the USA. The mining industry, oriented to the foreign market and subordinated to the financial capital of the developed imperialist powers, has received the greatest development. Semi-colonial forms of exploitation emerged. The predominant development of one industry has led to large disproportions in the economy. Concentration of production and population in highland areas, disunity of internal economic regions.
Peru is an agro-industrial country. The mining industry, non-ferrous metallurgy, fishing and fish processing are of great importance. After 1968, the country embarked on the path of progressive socio-economic transformations. Production took a course towards strengthening national independence. The most important branches of the mining industry, almost the entire electric power industry, the main branches of heavy industry (ferrous and non-ferrous metallurgy, mechanical engineering, including shipbuilding, chemical, cement), and the pulp and paper industry came under state control. State control over foreign trade, the banking system, transport and communications has increased.
In the west, the South American continent has natural protection from the whims of the Pacific Ocean in the form of a large mountain range - the Andes. It was the Andes that were the consolidating factor in order for a special subregion to be singled out on the territory of South America, called Andean countries. in number Andean countries includes Chile, Colombia, Peru, Venezuela, Ecuador and Bolivia. This is the longest sub-region of South America, because it extends from Tierra del Fuego in the south to the Caribbean lowland in Colombia in the north of the mainland. Such geographical position suggests that each of the countries of the described subregion has special climatic conditions.So Chile, more than other states, has the right to be called the Andean country, because over 4630 km the main territory of the state is occupied by the Andes. Chile, together with Colombia, differs from other sub-regional countries in that they have access to both the Atlantic and the Pacific Ocean. official language all Andean states is Spanish, which emphasizes the integration component of cooperation. The subregion is developing well, with Chile showing the highest growth rates. After a string of major political upheavals in the 20th century, Chile bounced back economically with balanced reforms and a pragmatic approach to commodity exports. On the territory of Chile, large-scale mining of minerals such as coal, copper and silver is carried out. The main exporters for all Andean countries are the United States, China and Brazil. At the same time, Chile has to import the main raw materials - oil and oil products from Venezuela. Today, all countries of the Andean geopolitical coalition are republican, however, on some foreign policy issues, the leadership of these states does not have a unanimous opinion. Thus, the top leaders of Venezuela and Bolivia propagate the course of socialist development and do not accept the imposition of political will by the United States. At the same time, the economy of these states is seriously dependent on the United States. For example, Venezuela alone imports nearly $6 billion worth of products from the United States. These are cars, building materials, and electronics. From the point of view of historical heritage, Peru is a state of particular attention in the Andean subregion of Latin America. Once upon a time, the ancient Incas lived in Peru. The exploration of these lands has been going on for more than a hundred years, and interest in the culture of this people has not dried up to this day. Every year, millions of tourists come to Peru to see with their own eyes the temple complexes of the ancient capital - Cusco. The historical memory of the greatness of the Inca Empire is reflected even on banknotes - local salts. So, on a banknote with a denomination of 5 soles, there is an image of the ninth ruler of the Incas, Pachacutec Yupanqui. In Peru, in addition to Spanish, the people speak Quechua, the Aymara language and other Indian dialects. The most ambiguous attitude in the subregion is observed towards Colombia. The country has significant mineral reserves, but due to internal political strife, primarily related to the drug trade, the development of the state is slow. Ecuador is the least efficient developing state in the subregion. This is due to the high level of corruption in the government, as well as the policy of government intervention in economic processes. IN Andean countries agriculture is developing well. Thanks to this, vegetables, fruits, and wine are imported from the Andean subregion to many countries of the world throughout the year.
The Andean countries are the states of the Andean Community. It was formed in 1969 by six countries: Bolivia, Ecuador, Chile, Peru, Venezuela and Colombia.
Currently, this group functions as a customs union. A common trade policy was introduced in relation to other states.
Geological structure and minerals
South of the desert, the amount of precipitation increases to 1500 mm per year.
average temperature in January it is +22°С, in July - from +12°С to +18°С.
In the part where rainfall allows, temperate rainforests grow. As precipitation decreases, hard-leaved forests appear, shrub vegetation that turns into a desert.
Patagonian Andes
This part of the mountain system is the lowest and fragmented. On their western slopes, about 5000 mm of precipitation falls annually, and the temperature in summer and winter is +15°C.
On the western slopes, the amount of precipitation decreases to 1500 mm, and the average annual temperature increases to +20°С - +24°С.
Andean Community
All Andean countries share a common history. Even before the development of these lands by the colonialists from Western Europe, the inhabitants of the mountains - the Indians - developed their culture and economy. The ancient state on the territory of the Andes was strong economically and socially. Not only agriculture and animal husbandry developed here, but various minerals were also mined. All this was destroyed with the coming to power of the conquerors from Great Britain, France and Portugal.
The colonies brought quite a lot of income to the first countries. went in one direction. But after the liberation of states from colonial dependence, the Andean countries went different ways, therefore, the modern economy of Latin America is significantly different.
To improve their situation, the Andean countries formed a union - the Andean Community. In this way they wanted to expand national markets that were fragmented. As a result, a common customs tariff was introduced, general industrial planning took place, and various incentives were granted to the least economically developed states - Bolivia and Ecuador.
One of the main features of the AU is the creation of an institutional structure where the supranational function is limited. The Andean Community model is similar to the model with only minor differences.
The AU has three main bodies:
Presidential Council. Here comes the definition of integration policy, taking into account the interests of the subregion. The results achieved are evaluated.
Council of Foreign Ministers. Performs various functions related to foreign policy affairs. Basically, this is the coordination of the group's participation in various international negotiations and organizations.
General secretariat. This is an executive body, headed by the Secretary General, elected by the Council of Ministers.
Other subsidiary bodies: Andean Parliament, Andean Court, General Secretariat, etc.
Andean countries in South America- it's like the European Union in Europe.
Mountains with a wide front go to the Pacific Ocean, in the north - to the Caribbean Sea. The eastern border with the countries of the Out-Andean East runs along the foothills of the Andean Ranges. The unity of the physical and geographical countries of the subcontinent is due to the fact that they are located within the folded belt on the border of the lithospheric plates of the Pacific Ocean and South America.
Depending on the position in a particular climatic zone and on differences in orography and structure, the territories of the Andean countries are divided into regions, each of which is distinguished by its own features of relief, climate and altitudinal zonality. Within the study area, physiographic countries are distinguished: the Caribbean Andes, the Orinoco Plains, the Guiana Highlands and the Northern Andes. [P.1]
The Caribbean Andes is the northernmost part of the Andes and the only one where the ridges have a sublatitudinal strike. Unlike other parts of the Andean mountain system, the Caribbean Andes are formed within the Caribbean-Antilles folded region, which may represent the western part of the ancient Tethys Ocean and moved here as a result of the opening of the North Atlantic depression. The region is located on the border of the tropical and subequatorial belts in the zone of action of the northeast trade winds. Its nature differs significantly from the rest of the Andes. This is the territory of Venezuela.
The relief of the country is represented by young folded mountains, consisting of two parallel anticlinal ridges, separated by a synclinal longitudinal depression. It contains Lake Valencia - one of the few drainless lakes on the mainland. The region throughout the year is exposed to tropical air masses that come here with the northeast trade wind. The amount of precipitation on the coast and leeward slopes of the mountains is 300-500 mm per year. Windward slopes get up to 1000 -1200 mm. Moisture coefficient more than 1.0. Temperature amplitudes are very small in the region - 2-4°С. Caracas, located in a transverse valley at an altitude of 900-1000 m, is called the city of "eternal spring". Vegetation plants throughout the year. These conditions are favorable for growing coffee, cocoa, cotton, sisal, tobacco on the gentle slopes of the mountains and in the valleys. Many stormy mountain rivers.
The soils are red ferralitic in seasonally moist forests and tall grass savannahs and brown-red ferralitized in xerophytic forests and shrubs. The region is dominated by xerophytic vegetation. Monte formations (mesquite bush, cacti, spurges, prickly pear, etc.) are widespread at the foot of the mountains and in the lower belt. On the low coast, mangroves are common along the shores of lagoons. On the slopes of the mountains above 900-1000 m, rare-layer mixed forests of evergreen, deciduous and coniferous tree species grow. Palm groves stand out. Above are meadows, often overgrown. The coastal strip and intermountain troughs of the Caribbean Andes are oil-bearing.
Minerals found here: salt, gypsum and, at high altitudes, veins of coal; the Cordillera are especially rich in gold, silver, platinum, mercury, copper, iron, lead, topazes, amethysts and other precious stones.
Orinoco plains. Within the region are the flat territories of Venezuela and Colombia. Located in the river basin. Orinoco within the syneclise of the same name between the Andes and the Guiana Highlands. In the northeast, the plains face the Atlantic Ocean, and in the south they border on the Amazon. The plains of the Orinoco are dominated by a flat relief with distinct erosion steps. Meses and Piedmonts are dissected by deep valleys of tributaries main river. Alluvial lowlands stretch along the central river in a strip, above them, in steps up to a height of 200-300 m, flat isolated areas rise - mesas, and at the foot of the Andes there are higher foothill plateaus - piedmonts. All the plains of the Orinoco bear the common name Llanos (from the Spanish "llano" - "plain").
The region is located in the area of circulation of the equatorial monsoons. A feature of the region's climate is seasonality in the distribution of precipitation. The rainy period lasts on average from April to October, the dry period - from November to March. In the north, where the northeast trade wind penetrates much earlier than in the southern regions, the drought period is longer. The rainy season lasts only three summer months. Towards the south, during the transition to the equatorial precipitation regime, the duration of the rainy period gradually increases. The total annual precipitation in the north is 800 mm, in the south - up to 1000 mm. The average temperature is 25 - 29°C. Moisture coefficient in this area is 0.55 - 1.0, slightly arid zone. Vegetation plants throughout the year.
The rivers of the Orinoco system are notable for the variability of their flow. During the rainy season, the rivers overflow widely, and in the west - within the so-called Low Llanos - continuous water spaces are formed. The conditions for navigation on the rivers are improving. In the dry season, many tributaries of the Orinoco almost dry up, and instead of reservoirs in the floodplains, swamps remain - breeding grounds for malaria.
The region is dominated by savannas. Tall-grass grass formations prevailing in the southern part of the Llanos are replaced by more drought-resistant phytocenoses to the north. Red ferralitic soils of seasonally wet forests and alluvial soils of river valleys are common. Among the woody vegetation, xeromorphic mimosas, acacias, chaparro shrubs, and cacti are common. Mauritius palm grows in low basins. Along the rivers, gallery forests are common, dominated by palms (Copernicus and Mauritius) and legumes.
The Orinoco plains are relatively sparsely populated, and the rich agro-climatic and land resources are far from being fully utilized. The most important mineral resources of the region are oil and gas in the northeastern part of the depression. Oil and gas production contributed to the development of territories, and now cities and towns are springing up there, roads are being laid, industry and agriculture are developing. Anteaters and armadillos, tapirs and peccaries, other herbivores preyed on by jaguars and cougars live in areas with preserved natural vegetation. The Llanos landscape is characterized by termite mounds.
Guiana Highlands and Guiana Lowlands
The region is located between the low plains of the Amazon and Orinoco within the ledge of the South American platform - the Guiana Shield. The region is located in the southern region of Venezuela. The northwestern, western and southern borders run along the foothills of the Guiana Highlands. In the northeast and east, the region faces the Atlantic Ocean.
A swampy lowland covered with hylaea stretches along the coast, which is composed of alluvium of numerous rivers flowing down the slopes. Above it, a crystalline massif of the uplands rises in ledges. The ancient foundation within the shield is overlain by the Proterozoic sandstone cover, which was severely destroyed by weathering and erosion in hot, humid climates. The structures experienced vertical movements along numerous faults and, as a result of neotectonic uplifts, an active incision of the erosion network. These processes created the modern relief of the region. The surface of the highlands is a combination of mountain ranges, massifs, plateaus with different origin and structure, and basins in tectonic depressions developed by rivers. In the east and north of the highlands, the surface is a wavy peneplain (300-600 m) with crystalline residual and horst massifs and ridges 900-1300 m high, and in the north up to 1800 m. Sandstone flat-topped ridges and separated from they are isolated plateaus (tepui) with a height of more than 2000 m.
The Roraima massif rises to 2810 m, Auyan Tepui - to 2950 m, and the highest point of the La Neblino (Serra Neblino) highlands - to 3100 m. the highlands form steep tectonic steps, rivers fall from them in waterfalls of different heights. There are also many waterfalls on the steep slopes of table sandstone and quartzite massifs, one of which is Angel on the river. The churun of the Orinoco Basin is over a kilometer high. The region has a large hydropower potential, which is still little used. Favorable conditions for the construction of hydroelectric power stations.
The exposition and height of slopes, the position of plateaus and massifs within the highlands play an important role in shaping the climate of the region. Thus, the coastal lowland and windward eastern slopes receive orographic precipitation from the northeast trade wind throughout the year. Their total number reaches 3000-3500 mm. The maximum is in the summer. The lee slopes and interior valleys are arid. Humidity is also high in the south and southwest, where equatorial air dominates all year round. Most of the highlands are in the zone of action of the equatorial monsoons: there is a wet summer and a more or less long dry winter period. Temperatures on the plains and in the lower mountain belts are 25-28°C throughout the year. On high plateaus and massifs 10-12°C and windy.
According to the variety of climatic conditions, the vegetation cover is quite variegated. The parent rock on which soils are formed is almost everywhere a thick weathering crust. On the damp eastern and western slopes of mountains and massifs, gileas grow on yellow ferrallitic soils. The Guiana lowland is also occupied by the same forests, in combination with swampy areas. Monsoonal, usually deciduous, tropical forests are widespread; savannahs and woodlands on red ferrallitic soils form on dry leeward slopes.
The bowels of the Guiana Highlands contain the largest deposits of iron ores, gold, and diamonds. Huge reserves of manganese ores and bauxites are associated with the weathering crust. In the countries of the region logging is carried out.
Northern Andes. This is the northernmost part of the Andean system, extending from the Caribbean coast to 4-5 ° S. sh. The eastern border with the Orinoco plains runs along the foothills of the mountains, while the southern border is drawn along transverse tectonic faults. Approximately in the same area there is a border of climatic zones - tropical and equatorial with sharp differences in moistening conditions and the structure of altitudinal zonality on the slopes of the western exposure. Within the region are areas of Venezuela, Colombia and Ecuador. In areas with subequatorial climatic conditions, constantly moist forests grow at a certain height above sea level - hylei, which is why the Northern Andes are called Equatorial.
The Andes within the region consist of several chains separated by deep depressions. The northern part of the country has a particularly complex structure. A narrow, low, strongly dissected Coastal Cordillera stretches along the Pacific Ocean. The Western Cordillera begins at the Gulf of Darien and stretches to the borders of the region. The Eastern Cordillera within the Northern Andes branches into the Central Cordillera with the Sierra Nevada de Santa Marta massif (up to 5800 m high) and the Eastern Cordillera. The graben-shaped valley between the Western and Central Cordillera is occupied by the river. Cauka, and between Central and Eastern - r. Magdalena. The entire mountainous region is 400-450 km wide. South of 3° N. sh. The Western and Eastern Cordillera are approaching, and within Ecuador, the system narrows to 100 km. Between mountain ranges there is a zone of powerful faults. The main peaks of the ridges are, as a rule, extinct and active volcanoes (Cotopaxi, Chimborazo, Sangay, etc.), covered with snow and ice. The area is also characterized by high seismicity. Earthquake epicenters are usually confined to the faults of the intermountain depression.
The region has a hot, constantly humid climate. The slopes of the mountains facing the Pacific Ocean receive 8,000-10,000 mm per year. The air is saturated with moisture, as it is formed over the warm currents of the equatorial latitudes of the ocean. Climbing the slopes of the ridges, it gives off moisture in the form of heavy rains. The eastern slopes are under the influence of monsoon circulation, but orographic precipitation falls here in winter, although the annual amounts are slightly less - up to 3000 mm. Even the interior regions are not distinguished by aridity. A short dry period in winter occurs only in the north-east of the region.
In the Northern Andes, a system of altitudinal belts is clearly expressed.
The lower belt is tierra caliente ("hot land") with constantly high temperatures(27-29°C) and big amount precipitation is occupied by hylaea. Due to unfavorable conditions for humans, the belt is poorly populated. Above 1000-1500 m, the tierra templada ("temperate land") begins. It is cooler here (16-22°С), precipitation is up to 3000 mm on the windward slopes and 1000-1200 mm on the leeward slopes. This is a belt of evergreen mountain gili or deciduous evergreen forests with best conditions for life. Favorable conditions for growing crops such as coffee tree, corn, tobacco, etc. The belt is called "coffee" or the belt of "eternal spring". Above 2000-2800 m is tierra fria (“cold land”). Average monthly temperatures here are 10-15°C. At these heights, orographic clouds are constantly formed, so the alpine hylaea of low-growing evergreen trees (oaks, myrtle, some conifers) with an abundance of ferns, bamboos, club mosses, mosses, lichens is called nephelogilea (“foggy forest”). It has a lot of vines, epiphytes. From a height of 3000-3500 m, the tierra elada ("frosty land") begins. Average monthly temperatures in this zone are only 5-6°C, daily amplitudes are more than 10°C, night frosts and snowfalls can occur all year round. In the subnival zone, vegetation of mountain meadows (paramos) is formed from grasses (bearded wolves, feather grasses), undersized shrubs and tall (up to 5 m) strongly pubescent Compositae with bright flowers. In the periglacial zone, stony placers are common, sometimes covered with mosses and lichens. The nival belt starts from a height of 4500-4800 m.
Among natural resources large reserves of oil are allocated in the depressions. Especially rich are the oil and gas basin of the Maracaibo depression, where there are several dozen large deposits, and the tectonic valley of Magdalena. In the river valley The Kauks mine hard coal, and on the Pacific coast, alluvial gold and platinum. There are also known deposits of iron, nickel, molybdenum, copper ores and silver in mountainous regions. Emeralds are mined near Bogotá. The region also has good agro-climatic conditions for growing tropical crops. There are many valuable species of trees in the mountain hyla, including cinchona, cola, balsa with light non-rotting wood.
Intermountain valleys and basins of the Northern Andes at altitudes of 1000-3000 m are densely populated and developed. fertile soils plowed up. In the valleys-grabens and basins are located big cities, including the capitals of Ecuador (Quito - at an altitude of about 3000 m) and Colombia (Bogota - at an altitude of about 2500 m).
The territory of the countries, Venezuela, Colombia and Ecuador, is rich in fuel, ore minerals and precious stones. [P.2]
Oil and gas-bearing main deposits are confined to foothill troughs and intermountain depressions of the Andes. They are also included in the depressions of Maracaibo and Magdalena (Maracaiba oil and gas basin and Orinoco oil and gas basin), and are also present in the outer foothill area - in the region of Guayaquil Bay. The main deposits are concentrated in Venezuela, but are also present in Colombia and Ecuador.
The richest deposits of iron ore in the north of the Guiana Plateau in Venezuela (deposits of Cerro-Bolivar, El Pao), young sedimentary deposits in Colombia. Nickel mineralization is represented by silicate garnierite ores in the weathering zone of ultrabasic rocks of Venezuela (Doma de Erro deposits). Cobalt ores are present in nickel deposits and are represented by the same mineral associations concentrated in Colombia and Venezuela. Large deposits of porphyry copper ores in Colombia (deposits of Pantanos, Pegadorcito, etc.) and Ecuador (deposit of Chaucha). Placers of gold and platinum are found in Colombia (basins of the Magdalena, San Juan, Atrato, etc.) rivers. Along with platinum, the ores also contain ruthenium, rhodium, palladium, osmium, iridium and gold. IN last years Large gold deposits were discovered in the Orinoco basin in Venezuela.
Diamond deposits are confined to rocks of the Precambrian age. Guiana Province, connected to the Guiana Shield, is located in the northern part of the South American Platform and captures the southeastern margin of Venezuela. The emeralds of Colombia are very famous, numerous deposits of which (more than 150) are located north and northeast of Bogotá. The largest deposits in the world: Muso, Chivor, Cosques and Peña Blanca.
Finally, the desert climate contributed to the accumulation on the coastal rocks of a specific fertilizer - guano bird droppings.
Thus, we examined the resource availability of the countries of Venezuela, Colombia, Ecuador. The wealth of the territory is fuel (oil, gas), ore resources (iron ores, nickel ores, cobalt ores, porphyry copper ores, platinum ores, gold), precious stones (diamonds, emeralds). Also, this territory is rich in land, water (hydropower potential of rivers), forest and agro-climatic resources (favorable conditions for growing plants with the longest growing season - sugar cane, coffee, cocoa, rubber plants).
The Andean Community is one of the dynamic groupings in Latin America. In 1969, six countries Bolivia, Venezuela, Colombia, Peru, Chile (withdrew in 1976) and Ecuador signed the Cartagena
Treaty (or Andean Pact) establishing the Andean Group as a customs union within 10 years. The countries sought to expand national disparate markets, to promote industrialization within the framework of import substitution policy on a sub-regional basis.
Joint industrial planning, trade liberalization, harmonization of economic policy, the introduction of a common customs tariff, the provision of a special regime for economically less developed countries - Bolivia and Ecuador. The strategic goal of forming a common market has not been fulfilled, because. countries focused on enhancing mutual economic cooperation in the areas of trade, investment and industry. At the end of the 1980s successes in mutual trade were minimal: the countries were only able to reduce the rates of duties in mutual trade, which contributed to some growth in its volume. The main reasons for the failures in trade liberalization are related to the problem of external debt, which peaked in 1982, and the specifics of the provisions of the Cartagena Treaty, which contains big number exceptions that limited the effect of integration. As a result, the share of mutual trade within the Andean Group was only 2% at the end of the 1980s. The Andean Development Corporation was established to finance joint projects and the Andean Reserve Fund to stabilize the balance of payments.
In 1989 At the Galappagos Summit, the presidents of the member countries made an attempt to revive the integration group by signing the Isa Declaration, aimed at consolidating joint efforts, strengthening external relations, and uniting Latin America based on the formation of a common market. In 1990, the La Plaza Act was signed on the formation of a free trade zone and its directions were determined:
.liquidation of customs duties and non-tariff barriers in mutual trade;
. elimination of the system of preferences for less developed countries;
. rejection of joint industrial planning;
. granting national treatment to foreign investors.
In 1991, the Barahona Protocol set the goal of gradual integration from a free trade area to a common market - the Andean Community. In general, the 1990s are rich in various initiatives to revive integration efforts within the grouping. Thus, the Protocol of Quito (1995) provided for the reform of the institutional structure and the creation of the Andean common market within the framework of the concept of "open regionalism", increasing the international competitiveness of countries, deepening integration in Latin America and the Western Hemisphere as a whole, strengthening economic ties with the European Union. The Trujillo Protocol (1996) became a revision of the Cartagena Treaty and introduced significant changes in the institutional structure of the bodies. The Andean Pact was renamed the Andean Community of Nations, and the Andean Integration System was created.
One of the principal features of the AU is the creation of an institutional structure with limited supranational functions following the EU model. The institutional structure of the group, called the Andean Integration System, includes 3 main bodies: the Presidential Council, the Council of Foreign Ministers and the Commission, whose activities are of a supranational nature. The subsidiary bodies consist of the General Secretariat, the Andean Court, the Andean Development Corporation, the Andean Parliament. Also within the framework of the Community are the Andean Business Advisory Council, the Andean Labor Advisory Council, the Latin American Reserve Fund (finances countries with a balance of payments deficit), the Simon Bolivar Andean University (education, research, training and service provision), the Simon Rodriguez Convention (issues labor cooperation), the Hippolyte Unanue Convention (health issues), the Andrés Bello Convention (technology, education, culture and science).
Let us consider in more detail the composition, functions and role of each of the listed bodies of the Andean Integration System.
Andean Presidential Council- has been operating since the late 1980s, and regular meetings of the presidents of the partner countries have been held since 1989 2 times a year, at present - 1 time a year. Despite some political differences (for example, in 1992-1995, when the meetings of the presidents were not held due to the events in Peru), the Presidential Council serves as an important tool in achieving integration goals. Since 1990, it has received the status of the supreme body of the AU. Its functions are the determination of the integration policy of the grouping, taking into account the interests of the subregion, the assessment results achieved group activities.
Council of Foreign Ministers- carries out the Community's foreign policy activities on the basis of regular (twice a year) meetings of the Ministers of Foreign Affairs of the Member States. It is designed to coordinate the participation of the group in international organizations and negotiations, to conclude agreements with non-member countries and with other groups. Decisions are made in the form of declarations and actual decisions. Often the Council of Ministers duplicates the activities of another body - the Commission, which is the only legislative body responsible for developing decisions of the AU. The commission consists of official representatives of each country at the level of ministers of trade. Meetings are held 3 times a year with the invitation of specialists, depending on the nature of the issues under discussion. Functions of the Commission of the Andean Community: development, implementation and evaluation of a common policy in the field of economic integration on trade and investment; taking measures to achieve the goals and objectives set by the Cartagena Treaty; coordination of the joint position of member countries in international organizations and negotiations with third countries and groups. Decisions made on trade issues are binding on member countries.
General Secretariat of the Andean Community- an executive body headed by the Secretary General, who is elected by the Council of Foreign Ministers of the AU. The General Secretariat prepares draft decisions for the Andean Council of Foreign Ministers, manages the integration process, resolves issues referred to its discretion. Decisions take the form of Resolutions (which distinguishes the AU Secretariat from the secretariats of other integration groupings that perform purely technical functions). Responsible to member countries for their activities. It is planned to further expand the functions of the General Secretariat, in particular, on budgetary issues. The headquarters is located in the capital of Peru, Lima.
Unique to Latin American practice is Andean Court(1985), designed to interpret decisions taken by the Presidential Council, the Commission and the General Secretariat, and cancel them if they are inconsistent with the legal foundations of the Andean Community. It consists of 5 judges who are independent in their activities from the country of which they are citizens. Since 1999, the competence of the Andean Court has expanded into new areas - arbitration, labor issues.
Andean Parliament(1980) includes the parliamentarians of the national congresses of each member country. It is planned that in 2007 the parliament will consist of parliamentarians elected on the basis of direct general elections, which is already used in Venezuelan practice. Participates in the legal process on the basis of the proposal of draft decisions of general interest; contributes to the harmonization of the legislation of the member countries and the coordination of the activities of the parliaments of the Andean countries with the parliaments of other states.
Andean Development Corporation serves as a financial institution of the AU, established in 1968. At the moment, it includes not only representatives of the countries of the Andean Community, but also other states of Latin America, which are also shareholders (Brazil, Mexico, Panama, Paraguay, Trinidad and Tobago, Uruguay, Chile and Jamaica). The objectives of its activity are: financial support of the integration process based on stimulating the attraction of foreign investments, increasing the level of infrastructure development, integrating financial markets and long-term capital markets, providing support to the private business sector in the participating countries. The main goal of the Cartagena Treaty (1991) was the formation of a phased free trade zone (by 1992) and a customs union. Colombia and Venezuela, Bolivia and Ecuador during 1992-1993. liquidated fullness in mutual trade. Peru refused to fulfill its obligations and only in 1997 an agreement was reached on the gradual accession of the country to the free trade zone from 2000 for non-sensitive goods and from 2005 for sensitive goods (within the framework of the Liberalization Program).
At present, the Andean Community functions as a customs union based on the introduction of a common customs tariff and a common trade policy towards third countries. The rates of the general customs tariff are equal to 5% for raw materials and industrial equipment; 10-15% for semi-finished products and capital-intensive goods; 20% for finished products, and on average - 13.6%. OTT operates in 4 countries except Peru. The exceptions to the OTT are: a special regime for Ecuador, which allows the government to temporarily raise duty rates by 5%; the general regime for Bolivia, where duties have only two rates (instead of four) - at 5% and 10%; sensitive products. In 2005, a new OTT came into force (the second version according to the agreement signed in 2002) with lower duty rates and maintaining a special regime for economically less developed countries - Ecuador and Bolivia. His rates are 0%, 5%, 10%, 20%. In parallel with customs liberalization, non-tariff barriers are being eliminated and harmonized. Thus, the Andean system of standardization, testing, certification, technical rules and metrology was created. The nomenclature of the common customs tariff (NANDINA) was developed; Andean methodology for determining customs value; transit rules; the activities of the customs services of the member countries are being coordinated. Cases of application of protective measures in trade with partners in the Community are not uncommon. In particular, in the period 1991-2001. 14 cases of dumping, 12 cases of illegal application of protective measures, 3 cases of subsidies were considered. First, the FTA, and then the customs union, had a huge effect on the dynamics of mutual trade, the volume of which grew at a faster pace (5 times) compared to trade with third countries. So, for 1990-2001. the average annual growth rate of mutual exports of the Andean Community countries was estimated at 15% on average annually, while the average annual growth rate of total exports was 5% and exports to third countries - 4%. The share of mutual exports in total exports increased from 4.3% to 11.2% in 1990-2001, in value terms, the volume of mutual exports - from 1325 million dollars. in 1990 up to 5826 mln. in 2001
Common policy is carried out not only in trade, but also in such areas as automotive, agriculture, investment, competition, protection of intellectual property rights, trade in services. The Common Agricultural Policy is implemented within the framework of the Andean Price System, the Andean Plant and Animal Protection System. The Andean price system is designed to stabilize import prices for certain agricultural products, which are characterized by sharp fluctuations in world prices. Stability is achieved by increasing ad valorem duties when world prices fall above the established level, and, on the contrary, by reducing duty rates to 0% when world prices rise below the established level. Thus, the stabilization mechanism is designed to withstand fluctuations in world prices. In practice, it is used mainly in Colombia, Ecuador and Venezuela. In general, such a practice of stabilizing prices for agricultural products is contrary to the rules and regulations of the WTO, as it serves as a protectionist barrier to protect the national economy, and negatively affects the efficiency of the production of processed agricultural products.
In general, the member countries of the Andean Community have achieved maximum advantages in the free movement of goods. Meanwhile, in three other areas of the common market (free movement of capital, persons and free trade in services), progress is minimal. The principle of free movement of capital began to be gradually implemented on the basis of the national regime for foreign investments, patents, licenses and royalties (1991), free transfer of net income abroad. An agreement was reached recognizing the importance of removing restrictions on the movement of capital. In general, member countries have open investment regimes for long-term capital, liberalization of financial resources (in the banking and financial sector) is being carried out, which stimulates capital flows, both within mutual frameworks, and inflows from third countries.
Since 1991, the general regime for TNCs of the Andean Community (Andean Multinational Enterprises - AME) has been functioning. According to it, TNCs created with the participation of the capitals of partner countries receive advantages and benefits when operating in the territory of the AU. AMEs and their affiliates enjoy national treatment and are subject to the national laws of the host country. Another direction of the common market is the free movement of persons.
The main progress made so far is the development of a common Andean passport and identification document, allowing visa-free travel for tourists through partner countries. In practice, a visa-free regime is already in place between the AU countries, with the exception of Venezuela (in response, Bolivia obliges Venezuelans arriving in its territory to have a visa stamp). One of the fundamental features of the Andean Community (in addition to the supranational functions of the main bodies) is foreign policy cooperation as important tool consolidation of the integration process and strengthening of joint actions of countries, in particular, in the field of trade liberalization. In general, the Andean Community has gone through a difficult path of integration rapprochement from a free trade zone to a customs union and a common market that is currently being formed and is one of the most dynamic integration groups in the world.
