7.3. Central America and Caribbean

Integration processes are extend also in Central America and between the countries of Caribbean. Since 1960 the Central America Common Market - CACM as the trade and economic unifications of Guatemala, Honduras, Costa Rica, Nicaragua and El Salvador is functions. In 1976 the project of reorganization CACM in Central America economic and social community has been develop.

Under the economic maintenance the conclusion of bilateral free trade agreements is close to the multilateral integration agreements, because promotes the scales expansion of trade and markets, that ultimately has a positive impact on economic growth. However, the conclusions of bilateral agreements and contracts is simple and dynamical, demands less time and bureaucratic coordination in comparison with multilateral negotiations about economic integration. Finally both models don't contradict each other, rather complement and expands the possibilities of partner to overcome with their products on the new markets.

Central America Common Market Treaty of Managua 1960 Guatemala Honduras (1962) Costa Rica (1963) Nicaragua El Salvador

Since 1973 on the basis of Caribbean Free Trade Association (1968) functions the Caribbean community as the political and economical association of the countries of Caribbean - CARICOM. The Caribbean community

include Antigua, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Monte- Serrate, Saint Christopher-Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago, Jamaica.

The purpose and common interests of CARICOM: • strengthening the trade and economic connections between members of the union; • economic integration for accelerated, harmonious and balanced development; • achievement the higher economic efficiency and a higher level of economic independence; • enhancing the cooperation in social, scientific and cultural fields; • coordinating the foreign policy of sovereign states in this zone.

An Important economic mechanism of CARICOM is a Caribbean common market – a regional trade and economic associations which include both the independent states, associated countries and colonial territories of Caribbean which are under British control. Activity of the Caribbean common market is subordinated to achievement of the same purposes which achieves CARICOM.

Caribbean Free Trade Association CARIFTA Belize Grenada Dominica Mont Serrate St. Vincent Saint Christopher Saint Lucia Trinidad and Tobago Jamaica

Integration processes in Latin America and the Caribbean is connected with the activity of Inter-American Development Bank (IADB), created in 1959 by the member countries of the Organization of American states as the intergovernmental credit organization. In the Inter-American Development Bank represent 28 countries of the region and 18 not regional stakeholders, including Australia, Belgium, G. Britain, Denmark, USA, Spain,

Portugal, Switzerland, Japan and the Inter-American Investment Corporation, Caribbean Development Bank, the Central America Bank for Economic Integration.ПрослухатЧитати фонетично

IADB promotes the state and private investments into economy of the Latin American countries; uses own capital and funds that received in the monetary markets, to finance the participating countries; promotes specialization and cooperation of manufacture, foreign trade development. The international economic integration in Latin America is complemented by political integration. Since 1948 is functions the Organization of American States (OAS) as an international regional organization, which includes Latin America, Caribbean and USA.The main goals of the OAS are: to support peace and security in the region, peaceful settlement of disputes between the states; to promote the together solution of political, economic, legal problems, and also the social, economic and cultural development of the member states.

Similar functions are carried out by the Rio Group that is founded in 1986, designed more quickly, compared with the bulky OAS, to solve the intergovernmental and interstate problems, to expand political cooperation through a special common interest.

Rio Group 1983-1986 Argentina Bolivia Brazil Venezuela Ecuador Colombia Mexico Panama Paraguay Peru Uruguay Chile

The mission of Rio Group is to identify common positions, supporting the Latin American cooperation and integration organization, finding their own solutions to regional problems. In general integration process in Latin America reflects the new realities in the economic development of the region, which due to the need of " adequately answer" on the challenges of the XXI century, adapting to strengthen of economic

interdependence of countries and the need for sustainable economic development in a global world economic relations.

Under the influence of centripetal and centrifugal (integration and disintegration) trends in integration associations were not observed accelerated consolidation or integration. So-called traditional communities in the conditions of the braked integration in the last decade didn't progressed, they stopped at the level of pending trade agreements and internal contradictions.

These trends and processes influenced at the emergence of new groups, such as the Inter-American project or Pyeblo-Panama Plan, Bolivian Alternative for Americas - ALBA, South American Union of Nations - Unasur. They are quite different in political, economic and other characteristics, however, on the conclusion of analysts, they have one common feature - not focusing on the problems of scale and arrangement of mutual trade and prefer the cooperation around issues of social and economic infrastructure development. Obviously strengthening the influence of political and ideological differences between Latin -Caribbean America, in the result it is lost interest in classical forms of integration.

In the conditions of world financial crisis and search ways of overcoming its consequences the country of the Latin-Caribbean America give special value to activity of the international financial institutions that operate in the region, such as the Inter-American Development Bank, Andean Development Corporation, the Central America Bank for economic Integration, Caribbean Development Bank.

ALBA Bolivian Alternative for the Americas Bolivia Venezuela Honduras Nicaragua Ecuador Republic of Cuba Commonwealth of Dominica

These financial institutions have experience in solving the crisis problems, accumulated in 80-90's of the last century.Therefore association the efforts of some regional credit institutes in a situation of 2007-2010 became quite logical. In 2008 the Development Bank, Andean Development Corporation and the Latin American Reserve Fund have reached

an arrangement about creation for the period of crisis the special fund in volume $10,6 billion for the purpose of rendering assistance to the governments of the member states in case of emergency situations. It gives the grounds to believe that in prospect the country and grouping can rely on existing resources of financial institutions that operating in region.

The idea of creation in the Latin-Caribbean single regional currency is not so fantastic. At least the leaders of Bolivian alternative for the Americas in November, 2008 have agreed about formation the mutual system of calculations on a basis of a common settlement monetary unit sucre with prospect of its transformation into real currency.

With the introduction of sucre is connect creation of a single monetary zone within dedolarization groups and national economies. The main goal of building regional financial system - financial independence from the dollar as a global currency, establishing a mechanism to reduce the impact of world financial crisis. By the way, Brazil and Argentina from October, 2008 carry out mutual calculations by national currencies. A similar agreement signed in February 2009 between Brazil and Colombia. It is possible that cooperation in agreeing common positions of Latin American countries will be an essential link in restructuring the world financial system.