Thursday, January 08, 2009

Alba: An emerging alternative to neoliberal economics

Amid the current financial crisis gripping worldwide today, is it enough to "redesign" the neoliberal economic and financial system?

Noted development studies and political economy professor and 2008 University of the Philippines Centennial Professorial Chair Awardee Roland Simbulan writes about an alternative to neoliberal economics. "It symbolizes the new solidarity and internationalism that draws inspiration from the integration of initiatives from popular organizations and progressive states," he explains in a Philippine Daily Inquirer commentary last Jan. 5.

Emerging alternative to neoliberalism

Roland G. Simbulan
Source: Philippine Daily Inquirer
Jan. 5, 2009

THE crisis of neoliberal economic theory and practice is only proving that an economic and financial system based on the logic of deregulated profit maximization cannot go on. But is it just enough to reform or “redesign” neoliberal capitalism? Those who think that it can be saved by mere bailouts of big business failures by governments will be disappointed.

As the world reels from the crisis of neoliberal capitalism, an exciting process is happening in Latin America led by Venezuela and Cuba. It is a process that is emerging as an alternative to profit-oriented neoliberal economics and a foreign policy subservient to the United States, the IMF-World Bank and the World Trade Organization. It symbolizes the new solidarity and internationalism that draws inspiration from the integration of initiatives from popular organizations and progressive states.

In Latin America, taking concrete shape right in the backyard of the US Empire, there has emerged the Bolivarian Alternative to the Americas (Alba), which is an alternative form of regional integration that is not based on trade liberalization. If not on US-sponsored free trade agreements, what is it based on then? It is based on the vision and idea of social welfare and equity, advocating a socially oriented trade bloc. It is a regional solidarity whose purpose is to eradicate the poverty of the most dispossessed sectors of society. Its linchpin is to allow the economically weakest countries to gain more favorable terms in trade negotiations, thereby undercutting the prerogatives of profit-driven transnational corporations. But it is more than a new and alternative trade agreement.

Read here for more.

Here are some online materials about Alba:

ALBA Venezuela’s answer to “free trade”: the Bolivarian alternative for the Americas
Source: Focus on the Global South

The Bolivarian Alternative for the Americas (ALBA) represents the first attempt at regional integration that is not based primarily on trade liberalization but on a new vision of social welfare and equity. Alternatives are often either theoretical to the point of impracticality, or so micro that scaling up presents huge challenges; ALBA is both large-scale and, to an increasing degree, taking concrete shape. While many aspects of the project are still unrealized or only in the process of realization, and despite some apparent contradictions between theory and practice, ALBA is an important case study.

Read more here.

ALBA: Bolivarian Alternative for Latin America and the Caribbean
Teresa Arreaza
Source: Venezuelanalysis
Jan. 30, 2004

The ALBA (Alternativa Bolivariana para las Américas), as its Spanish initials indicate, is a proposed alternative to the U.S.-sponsored Free Trade Area of the Americas (FTAA, ALCA in its Spanish initials), differing from the latter in that it advocates a socially-oriented trade block rather than one strictly based on the logic of deregulated profit maximization. ALBA appeals to the egalitarian principles of justice and equality that are innate in human beings, the well-being of the most dispossessed sectors of society, and a reinvigorated sense of solidarity toward the underdeveloped countries of the western hemisphere, so that with the required assistance, they can enter into trade negotiations on more favorable terms than has been the case under the dictates of developed countries.

By employing more effective mechanisms to eradicate poverty, ALBA—as proposed by the Venezuelan government—provides a counterweight to the policies and goals of the FTAA. This alternative model also identifies the most crucial impediments to achieve a genuine regional integration that transcends the prerogatives of the transnational corporations. One of the obstacles to confront is the deep disparity that exists in development between the countries of the hemisphere, whereby poor countries such as Haiti or Bolivia are compelled to compete with the world’s leading economic power. In order to help overcome trade disadvantages, ALBA pushes for solidarity with the economically weakest countries, with the aim of achieving a free trade area in which all of its members benefit (a win-win alliance).

Read more here.

No comments:

Blog directory