The European Union, to this day, remains one of the most well known geopolitical unions in the world, with its member countries working together for a stronger united front in the global market. Latin America hoped to build its own, but it wasn’t up to par compared to the European Union. Leonardo Gonzalez Dellan explains why.
Latin America has had its fair share of attempts in creating a unified economic block for the whole continent, such as the Union of South American Nations, the Mercosur, and the Pacific Alliance. However, due to lack of consensus in terms of regulation and political divergence, the region has failed in creating a front in the global economy.
One challenge that the continent needs to address is the divergent politics in the region. Despite the continent’s linguistic similarities, each country has its own political alignments, goals, and strategies that many not be compatible with others. Because of this, it is difficult to form economic plans that would be applicable to all member countries.
Additionally, a union of the countries is not limited to economics as well. For sure, this would eventually affect policies in the government, and sanctions for those who do not comply. This would further complicate things with countries what do not already agree politically right from the start. Even the very fact that not all countries are democratic could also prove to be a challenge, not only now as the continent tries to start a union, but also in the long run.
High Risk, High Reward
Despite these challenges, experts like Mr. Dellan still believes in Latin America’s future as a unified economic block. The continent has vast natural resources, and is working towards incorporating advanced technologies in diversifying its array of products and services. While the European Union may have more complicated policies, a simple agreement Latin American countries to work together as a continent would prove to be much more beneficial than individual countries trying to make deals with huge geo-economic blocks. This is because a solid front representing the whole Latin American region would have more political and economic power to negotiate better deals compared with lone countries. Additionally, through cooperation, Latin American countries could also optimize its vast natural resources—an advantage that the region has had for so long.