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COHA

Brazil Spearheads UNASUR Defense Council, but in a Surprise move, Colombia Withdraws

• Implications for Brazil
• The Venezuela-Colombia Rift
• Regional Autonomy
• The Rebirth of the Fourth Fleet and with it the Ghost of Gunboat Diplomacy
• The new Pattern of United States-South American Relations

Member states of the Union of South American Nations (UNASUR) signed a pact on Friday, May 23 in Brasília to establish judicial and political components for the emerging, limited union. On the docket was a plan to create a military coordinating component of UNASUR, the Conselho Sul-Americano de Defesa (CSD). However, the CSD was destined to be founded without the important exception of Colombia, which recently confused its neighbors by revoking its intention to join. Brazil, in collaboration with Venezuela, spearheaded the creation of the defense portion of the pact, which will be increasingly NATO-like in structure.

Successfully founding the CSD, which had been scheduled to include Colombia, would have represented an enormous victory for what has been called President Luiz Inácio Lula da Silva’s “pragmatic left” leadership. It was no secret that Brasília hoped to use the CSD to strengthen regional ties across highly sensitive boundaries, with Colombia on the right, Venezuela on the left, and Brazil hoping to act as the mediating middle. However, the withdrawal of Bogotá, with one of the region’s most advanced militaries, has significantly weakened the pact from its onset. Brazilian defense minister, Nelson Jobim, described the basic tenets of the CSD as an integrated alliance without an operating field capability. CSD forces would cooperate, for example, in contributing to UN and other humanitarian missions if necessary. The alliance will also be expected to coordinate military technology and resources.

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COHA

Still on the Drawing Board: the Banco del Sur a Half Year Later

COHA and the history of the Argentine human rights situation

COHA Director Larry Birns was recently mentioned in Hugo Alconada Mon’s article, “Piden desclasificar los archivos sobre los desaparecidos,” in La Nación. The article may be accessed by clicking on the following link:

http://www.lanacion.com/ar/politica/nota.asp?nota_id=1013271

• In the wake of the third summit of heads of state for the Union of South American Nations (UNASUR), the newest development is the creation of a South American Defense Council. One question still in the air, however, is what happened to the Banco del Sur, the South American development bank that was so heavily hyped a half year ago?
• The Banco del Sur may become an important actor throughout the continent, but for this to happen its members first need to agree on the subscribed capital upon which it will be levied.
• Once the bank’s capital subscription is decided, future challenges await: How to allocate the voting shares distribution and how to achieve high quality portfolios and credit ratings.

In December 2007, presidents from seven of the thirteen South American countries met in Argentina to create the Banco del Sur, a development bank originally advocated by Venezuela’s President Hugo Chávez as a substitute for international financial institutions like the International Monetary Fund (IMF )and the World Bank. However, as the Banco del Sur is still on the drawing board and its purpose still debated, the only relatively fixed points are the countries which have agreed to be members: the leftists Bolivia, Ecuador and Venezuela, and the moderate left-leaning Mercosur countries, Argentina, Brazil, Paraguay and Uruguay. The question at hand is whether the newborn Banco del Sur will be able to live up to the challenges of running a successful sub-regional development bank while still making a coherent and strong ideological statement.

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