Georgetown forum; Latin America nationalism

Latin America nationalism and economic integration the topic for the eleven hundred and sixty four its consecutive broadcast of the Georgetown University radio forum. Another in a series of educational and informative programs from Washington D.C. The Georgetown forum was founded in 1946. This is Wallace Manning speaking to you by transcription from the Raymond Rice studio on the campus of Georgetown University historic Jesuit seat of learning in the nation's capital. Today's discussion will be Latin America nationalism and economic integration by dissipating our Dr. FRANCISCO B Garcia Amador director of the department of legal affairs Organization of American States. Dr. Joseph L. try on associate professor of economics at Georgetown University and Dr. seek brayed Carr Boni associate professor of economics at Georgetown University. Because the development of Latin America under present day conditions is best achieved by economic integration.

The decision to create a common market there is well taken. The nations as a group can do things which they could not possibly achieve individually. But a common market has implications for the sovereignty of constituent republics. Strong nationalism which exists everywhere is a limiting factor and yet something must be done with speed to increase the flow of world capital on a supra national level. We've asked our panel today in this the second in the series of five programs to evaluate the forces at work in the Latin American political and economic border. We're going to begin by asking Dr. Garcia Amador to make an opening statement. Thank you. In Latin America that region which is in the process of development economic integration exhibits that do not appear in the highly industrialized countries first of all integration is one of the essential factors for the balance

the countries of Latin America understand that so long as their economies remain isolated the independent National Economic and Social Development will remain. Let's try to move on. Integration will strengthen Latin American they were at or at levels in the international sphere but the great interest with regard to trade or the bike culture are illegals foreign trade will continue to play for some time to come. These two factors not only explain the need and advantages of Latin American integration they also reveal it to be an irreversible economic social and political process. However there is another characteristics common to the region as a whole are not evident when Latin American nations are study from an institutional point of view. Until such time as the Latin American cum market is created as formerly ugly by the Persians in 1967 the two current processes in

American Free Trade Association and the Central American common market will continue to need for both structure and nature of their games. The two processes differ in their fundamental aspects. In fact they differ as much at the European Free Trade Association and the European Common Market do. Indicate that it's a free trade area one with only a modest degree of economic integration rate among its 11 member countries. Basic framework as provided by the man to be there is a rather simple one. The conference of the contracting parties and the standing executive committee also provides for a secretary and setting advisory bodies. The conference

atypical interval composed of delegates will act in accordance with instructions from their governments unanimity is required for all substantial decisions. National interests prevail to the detriment of the general community. Executive Committee source or composer or government representative does not the voting system except the matters delegated to it by the Congress and it has broad authority with regard to the application of the members act in accordance with national The secretary has no powers or functions other than those of the Advisory Board. Of the national interest in the function of the latter however is not the only from the nature of the structure of it

to be rather concerned about the spirit and criteria with which the provisions of the are interpreted and applied that were constructed. Nothing in the structure or the medical training would prevent a more dynamic development this has been proven by taking within laughter. The structure of the American common market on the other hand are substantially more developed than those of you not only to the fact that this economic integration process has reached the stage of a common market of integrated industrial development but also to the deeply rooted

tradition among the Central American concept of necessity of supranational institutions and mechanisms that has helped to ensure that effective central american structure is extremely complex along with institutions of organs which have the power to take decisions. The Central American Economic Council composed of the minister of economy and the Executive Council or the vice minister of economy. There is a bank of economic integration of Industrial Research and Technology and Public Administration and all of it. It may be said without They say you're Asian and that they're more effective coordination among the regional. This is primarily due to beginner secretariat which has achieved a highly technical level. Exercise is important by word of

initiative and keeps watch for the proper functioning of the common market as a result of the institutional structure and of the pragmatism and to begin with which the Central American nation have acted through community law house gravelly being ever being married and in addition to the need of integration in terms of the same the common market is currently governed by numerous rules and principles emanating from decisions taken by the supranational institutions or orders which as a consequence are binding on the estate on each estate it should in this connection that being a recent case of conflict with constitutional provisions bring Court upheld the supremacy of the original law. People are

growing B.S. goodness. The similarity of these legal teeth in the European community looks like a trend. I think that Dr. Garcia Amador has outlined the institutional arrangements which are present in Latin America today particularly for furthering integration the two major organizations for this purpose. And really what we need to tackle now is something to discuss what nationalism is and how it may frustrate the efforts that are being made towards integration. I like to think of nationalism as being a response of a culture to. Conflict with another culture. You know this is looking at it in a very very broad sense but when we speak of nationalism what we're talking about is some

sort of a culture responding to the outside conflicts other cultures. And in the context of Latin America it means that we that the nationals of a given country will be favored in some respect over those of other countries that foreign investment will find itself restricted in favor of nationals of a given country and protection will be offered to nationals of a given country in order to further their interests. But when you do when you look at it you find that a culture is something which you can identify at various levels not just in the nation but also subgroup the Indian culture within Peru I think is one which is a subculture. And you can also identify it at higher levels. The if you like

Supernatural and national culture of Latin America where individuals identify themselves with not just their own country but their the culture of Latin America in its entirety and ARC our problem here is to examine the implications of this sort of nationalism What kind will prevail how it will how it will affect the process of integration. We're going to think will prevent quite truthfully I'm rather pessimistic about it. A lot of Americans talk about Continental nationalism in which by which they mean identification with the interests of not in America as a whole. But I think that our experience up to this point has been rather discouraging. The progress under Laughter has been very slow. The amount of reduction in protectionism has been

relatively small the increase in trade which has taken place among Latin American countries has also been relatively small. And I think we can characterize the experience so far as being rather discouraging. Dr. Gerberding Bassiouni rest professor I have to freedom to speculate about nationalism and integration a little bit more. It seems to me that nationalism has indeed to kind of pedagogic and positive quality do it. As a matter of fact no nation that doesn't say yes to itself. In other words it isn't nationalistic. I will not do anything for its progress and its development. Internet in America everyone of the Republic has such a nationalism which does never API in utterly clearly a form. It is ease of political or it to sculpture all or it is it cannot make it is America mated. It is carried by various tried all of

society. The oligarchy and let in America's armed forces are whatever middle class say exists the intellectuals including my good colleagues a professor and the students know the limiting factor of nationalism is of couse reached when as certain kind of xenophobia set scene then a phobia against a sister republic and a sub continent where there was enough o be r s far as the United States or in the other great power in the world are concerned. By then up cause nations may do some slang which will hampered not only development but also integration and the sub ordination under supranational a sorority which is absolutely necessary is stuck to go see I'm a dork who lives with these questions day by day and the Pan-American Union has pointed out so we'll. I would like to

say Eve that in LET in America there is another phenomenon that we have to respect. They have two types of nationalism a very narrow one. The Republic nationalism each country by itself. And then a regional nationalism. We let an American stew gather against anyone outside and it is a slice rand which is a particular dangerous and which we have invade our own interest and in our own to overcome. So when that is done when they understand that banding together will by themselves they can only gain by working with us. Then nationalism and integration both saved and in conjunction they can attain the item and go off economic development under conditions of modern technology and modern cost structures to have a doctor per se and I don't know when I am going to disagree to some extent too.

The expressions made by my colleagues but I would like to raise a point in this connection I would like to invite you not to overestimate nationally as a factor against economic integration in Latin America. Of course nationalists move if they're deeply rooted in that in America. There's no doubt of that. But there is no the only part of the world. Everywhere you find nationalism and you find processes of integration quite about like in Europe. But this type of nationalism that exists in that in America is not the main factor obstructing progress. They say laughter as I said

in my statement of course in the eventual creation of the that the American government. The main factor is economic and commercial exclusivity in other words it is difficult for the national economies of Latin America as a whole to take a break from one day to another. I can give you a practical short example of how this is working in connection with sub regional movement. The Andean group the difficulties that I've encountered particularly by Bennet's whether to join the group lies in the fact that Bennett is a highly industrialized is highly developed from the point of view of salaries and so on. As compared to other members

of the group that will say Ecuador rise salaries are very low. So the Venezuelan commercial and economic interests are worried because they will gain complete free trade. The problem which is being manufactured at a lower rate rate and therefore they will being a much better competitive position in the Venezuelan market than the Bennetts were and proud of themselves. When the break is it established were you you trying conditions different you know it was where you find a group of countries the same economic development more or less like in Central America you find probably one thing I would like to add here is going back to the problem of nationalism is

that no matter how much you hear about nationalism as an obstacle to a do to develop a truly introducing framework that require one to handle a common market in Latin America that is that they are opposed to the idea of having super national organs. I can give you example that the Latin Americans are not always so much opposed to that in the in the fact that Latin American countries are party to two treaties who are to supranational contemplated namely the UN charter. And the entire American lady of reciprocal assistance in both cases there is an order in the Security Council in the case of the UN and the order of consultation in the case of being that American media

rail can take decisions by two thirds which are binding upon the rest on highly political matters. So you see nationalism has not prevented in the past. Latin America too and supranational bodies. If you take the supernational you can take it to pronounce you know and I want to come said the national doctor. As a teacher of development economics I'm interested in what economic benefits will come out of integration and I think that we ought to examine this question in both the short and the long run aspect. In the short run I'm convinced that in Latin America the benefits are relatively small. And one reason that I say this is because if you open up trade within Latin America how much

does a country like Ecuador for example stand to benefit its principal exports are bananas. And where does it export them to not to the rest of Latin America. It won't gain in this particular direction. And I think that this picture is repeated in a good share of the Latin American markets or exports or outside of Latin America as a consequence of simply freeing trade within Latin America will not particularly benefit them in the short run. For this reason I think that many many people who stand to benefit by nationalism. It seems that there's a relatively small cost involved. They are the immediate benefits are not apparent and as a consequence they can indulge in nationalism at a relatively low cost.

On the other hand in the long run I'm convinced that integration is necessary and until the economic decision makers can be convinced that they have a long run interest which they're willing to sacrifice their nationalistic aspirations I think that your your optimism is perhaps not well taken at least this is my impression. Professor I don't know whether I disagree with you in the last point but I rely very much to tell you that I really did it with you. Now economic integration is fully realized will bring a lot of benefits to Latin America but not as much of a picture. It will take Latin America. I faced it

in the opening statement will depend for a lone lone time on the market for the selling of I think only of their basic commodities. But Latin America will with Latin American integration has an advantage not only in the intensification of trade within the region but also because it will constitute as I also said a position in which it's negotiating power. But the question of commiseration with will be of most import and we cannot expect very much perhaps from the first estate from economic integration so if I think on a resort he's concerned

about we can expect a lot from these other neighbors he didn't buy one because it has to be were there to allow only again law as an economic issue to speak academically. We face in Latin America as a great potential OPIC common market which by haps by the year 2000 office or a hundred million people as consumers that is staggering vision. If we organize industries in Latin America to suit to suit in to serve this market then I believe the dependence on oil of the world market will actually become less and less important to lay our resources in not only in terms of mineral deposits and agricultural materials

but certainly with regard to power and energy which are really inviting to be taken up by foreign investment as well as a national investment in a common effort. And when that is done I'm quite sure in industry and an economy can be organized for that market which will in many ways parallel the potential and the greatness of the market of the United States. May I say that perhaps we should not always compare the coming markets of Latin America with a European Economic Commission but also with a great common market that has been created since Alexander Hamilton in our own nation and which in many ways is perhaps a much better example then as a European on foreign or off the common market in Latin America. This are by national agencies that already exists in the United Nations. It is a Central American common market and

in laughter a do show and that is again buttressing my optimism that countries can collaborate if they overcome certain national Agere isms and are willing to join on technical and economic problems generally in good spirit good face and good optimism. Could could I temper this optimistic statement by saying that one very severe problem that we face is simply the fact that investment particularly in industry is inadequate in Latin America. A good share of it can only come from outside. And this is precisely the area where the nationalist. Manifestations will be worst and the restrictions on foreign investment in the form of Requirement of what proportion of nationals must be hired and similar restrictions are severe enough to discourage it. The volume of investment which is really needed and this is one reason why I'm am

relatively pessimistic at least in the short run. When the when Dr. Gerberding refers to the United Nations is that where in the United States it's included in this discussion what is the role of the United States. Is it to him to come in more better to participate or not to. I personally would like to say that the United States should participate let an American come market under all circumstances if Seto objections for many many reasons that I might be I would like to say they should participate with the voice and possibly not with the vote but participate they should. Dr. Tryon I certainly am in agreement that the United States should assist in this endeavor but again the nationalistic or super nationalistic sentiments are ones which caution us in this direction. Latin Americans respond rather negatively to interference from the United States in this respect.

Do you have an opinion on only a question of clarification with regard to the word participation. I will try to say that the United States will and should cooperate with Latin American Latin American economic integration but not to participate because to participate is to become a party in this case a party with a capital T Musial because the professor Dr. Boni will have a voice but not both. I would rather see the United States collaborating so closely both financially and he's had been doing in the past as you well know. Thank you very much Robert. You know he can get us. Thank you very much gentlemen for your discussion of Latin American nationalism and economic integration. Thanks to Dr. FRANCISCO B Garcia Amador director of the department of legal affairs Organization of American States. To Dr. Joseph

El Tri own associate professor of economics at Georgetown University. And to Dr. Siegfried Carr Boni associate professor of economics at Georgetown. You have attended the weekly discussion program the Georgetown University radio forum broadcaster which was transcribed in the Raymond Rice studio on the campus of historic Georgetown University in Washington D.C. next week you will hear discussed breakthroughs in cancer research. We welcome your comments and suggestions to address the station to which you are listening to this program has been presented in the interest of public education by Georgetown University. Your moderator. WALLACE banning this program was distributed by the national educational radio network.