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Submitted by Henri Kistler on
It is very interesting to notice how weak the practical side economic integration of South America persists. From local governments, more infrastructure, less bureaucracy, trade facility and rules stability are expected. It is naïve to think an economic actor wishes to build a supply chain using competitive advantages of different countries knowing that rules are not stable and cargo queues are formed at the border of countries such as Brazil and Argentina. Concerning the formal integration process, the Andean Community weakened as local politics became more important than integration. Mercosul and its more than 50 groups/subgroups/committees became more a Political Pyramid than an economic integration process, especially after Venezuela entered without fulfilling basic trade and services agreements. Unasul on its turn, was created only as a political tool. A simple return from Mercosul to a free trade area concept, could allow better results, even a merger between Mercosul, Andean Community and Chile. This would provide a far better basis for further integration than current building block process based on building more over weak structures full of holes, more alike slungs growing two stores high in detriment of urban planning.