International Monetary Fund

This entry was posted by on Tuesday, 16 April, 2013 at

The triumph of Correa in Ecuador, re-elected with 51.7% of the vote, strengthens the leftist movements that are taking place in the region. This block, consisting of Venezuela, Bolivia, Nicaragua, Cuba and Paraguay, has been chosen by strengthening the participation of the State in the economy and rethink its relationship with the United States. The socialism of 21st century, named for President Correa, seeks both redistribution of wealth and divorce from global financial and banking institutions (the International Monetary Fund and the World Bank). Thinking of this block highlights it the words of belt: changes are possible but out of the capitalist system, within the new socialism. These changes are being sought through new integration processes, such as the common market of the South (Mercosur) and the Bolivarian alternative for the Americas (Alba). MERCOSUR is a trade bloc that promotes the free exchange of goods, people and services.

Argentina, Brazil, Paraguay, Uruguay and Venezuela are parties (the main economic axes). Although Mercosur has not entered into force for lack of ratification by the parliaments of States parties, it is a firm regional consolidation attempt. Likewise, Alba puts emphasis on the fight against poverty and social exclusion, using doctrines of left to reach this goal. Collaborations and strategic alliances in the political, economic and social sector are achieved. At the international level, they have great challenges and opportunities. To be exporters of raw materials, mainly oil and gas, currently suffering from low world commodity prices. This will hinder its public spending to stimulate their economies during the current crisis. However, also looms a new diplomatic era between the United States and the region with the entry of Barack Obama to the American Government.

This regional phenomenon is a response to aggressions perceived by international agencies. Mistrust of the United States is the factor that binds these four Nations. Therefore, it will be important to analyze the development of this block, as they seem to consolidate its approaches part of Latin America.

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