Regionalism in Latin America: prospects for the Latin American Economic System (SELA)

In October 1975, all twenty-five Latin American and Caribbean nations created a new, exclusively Latin American regional economic organization, the Latin American Economic System (SELA). The organization's two general goals are: (1) to promote regional cooperation for economic development, mainly through the creation of Latin American multinational enterprises; and (2) to establish a system of consultation for the adoption of common economic positions vis-à-vis third countries and international organizations. This paper is an exploratory inquiry into the prospects for SELA. The method of analysis employed is to draw from the literature on Latin American integration five problem areas common to integration efforts (weak institutional structures, an unequal distribution of the benefits of integration, nationalism, competing ideologies, and external pressures) to use in assessing SELA's probable evolution. SELA has the potential to further regional integration, but faces an uphill struggle to gain the active support of key countries; it is more likely to achieve its objective of coordinating the policies of Latin American states on international economic issues.