DOCUMENT RESUME

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AUTHOR Carlscn, Reynold E. TITLE The Andean Common Market: An Experimentin Regional Cooperation. INSTITUTION Institute of International Education, New York, N.Y. REPORT NO 11E-2 PUB DATE 75 NCTE 15p.

EDRS PRICE mF-$0.83 HC-$1.67 Plus Postage. DESCRIPTORS Business; Developing Nations; *Economic Development; *Educational Development; Foreign Countries; *High Education; Industry; *International Organizations; Program Descriptions; *Regional Cooperation; Regional Programs IDENTIFIERS *Andean Countries; Grupo Andino; Latin American Free Trade Association

ABSTRACT The Grupo Andino (GRAN) was formed in 1969 as an effort at economic integration by six LatinAmerican countries (, , Columbia, , ,'and ). It'was an outgrowth of its predecessor, the Latin American FreeTrade Association (LAFIA), which had been formed in 1960 witheleven member countries. The Andean Group (GRAN) from the beginningaddressed itself to the key factors that had weakened the LAPTA group.Thus (1) it put great stress on strong political support fromeach of its countries,(2) the sectorial program of industrialdevelopment was specifically aimed to increase 'the industrial capacity of thesix member), countries while, at the same time,(3) a scheme of automatic tariff reductions with relatively. few exceptions wasadopted, thereby avoiding the paralyzing effect of bilateral countrynegotiations on hundreds or thousands of individual items. Itsambitious blueprint includes the development of regional programs in suchbasic sectors as metalworking, automotive, paperand pulp, fertilizers, and steel. The-Andres Bello program is the educational arm of GRAN. Itsprojects have been a regional network of educationaltelevision-Programs transmitted by satellite and the establishment of aregional school for training in public sector administration. (JT)

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4 ..,

The Andean Common Market An Experiment in Reg' (Mai Cooperation

by Reynold E. Crison

4

,.1. I E Institute of international Education 2 S 144 Issues in International Education

The publication of this series of papers reflects the Institute's continuing concern with the critical issues in international education In recent years this concern has beer, expressed particularly through the Ind tute's sponsorship of the International Councils on Higher Ediicati tech bring together chief executives of uni%ersirres in the S. and other regions of the world for examination of topics of shared intetest. Essays prepared as subjects for discussion at these conferences will form a portion of the series, which will draw upon other resources as well.

The past two decades have been a period of enOrmousgrowthin education throughout the world. As the role of education has Increased in dimension, the choices involved in educational decision-making have increased in complexity and in social impact It is hoped that this series will contribute to the ongoing debate on the issues of international education Stough examination of alternative viewpoints and through the publication of news. information As international education in our era has broadened its scope beyond traditional activity to include developmental ,assisiane and other concerns, the range of topics covered in pi*: series will reflect this breadth of interests in the field

Papers in this series are prepared under the direction of the Office of Planning and Analysis. the program planning and development arm of III'_:

0197S Htn,titwie of Internation.111 du,ation 809 l'n,tteerNation% Plaza. Nev. York N Y 10017 3 N The Andean Common Market An Experiment in Regional Cooperation

by Reynold E. Carlson

Rev, oh! L. Carlv'm haN had a long and tmgin s lied career as an economic derelopment id? 1,1a1 and dumb), t in La Interior. iie r.fluently base lama.'Pern. a.s Regional Program Ad, nrmi the Ford Eimundation, and has several other senior Foundation ions in the area ',whaling that of Resident Representatire in both Argentina and Brazal. Dr. Carlson has taught e«womicA at Johnv llopkias and Vanderbilt, and has ser''c'd a.s economic ion.sultict to the United .Vithons and the World Bung. From 1 966 through 1969, he was U.S. Ambassador ti,

cacti iLS the //hie(ithch.scus.sion at the 1 974 Camas conierence o the Owned 5 on Higher Education in t le American Repnbho, The meeting trot he sivteenth in an annual se'rie's of ter-American educators «mferences au was organized ht HE through a grant from the Tinker lonndatum of Vest' York.

4 I. The Problems of LAFTA.

dam Smith's seminal would then admit both products at observation that "division m111111,11 tariffs. Argentina, for example, ut laho is limited by the dropped tariffs from 90'; toI C, extent of the market.' has However, sonic two years elapsed horn f ruit in Latin Amencii. between the opening of negotiations and Four major efforts at economic final approval in the form of a integration have fit'.en launched in reclyt complementary agreement. Given such year~. The Latin American Free Trade delays when the producers In questiop Association (LAFTA) and the Central are actively promoting an item, one can American Common Market ((ACM) imagine what happens when competing were the first in 1960, followed by the. producers are indifferent or in open Caribbean Free Trade Association op position to any scheme. (CAR I PTA I in 1968 and the Grupo . Andino(GRAN) )111.1969. This paper is A second basic problem for LAFTA had devoted to GRAN with some initial been built -in at the very beginning. the reference lo I Al I A .14 its precursor. wide variation in stages of development of the member-countries. The Big Three LA l'A's eleven member countries Braril, Argentina and Mexico garnered include Mexico and all of the South the bulk of new industrial investment. American nations. Its ambitious target while lesser members weze in danger pf was to eliminate tiff harriers and other becoming little more than satellites.' At administrative restrictions within the the outset, a special category was region by 1973. This goal.was to be established for the less-developed achieved by developing a "common countries (Bolivia, Ecuador. Paraguay, list- of commodities which would move and eventually Uruguay when 1967 it freely throughout the region and a series had killen. on parlous tunes). of "national lists by mons of which tart fs would be reduced triennially by The general dissatisfaction of most negotiations between the countries. \ LAI:TA members can be partially Neither list, prospered since virtually attributed to (I) the virtual withdrawal every item was negotiated. usuallt !in a of effective political support from key quid pro (140 basis, with individual member countries, (2) the lack of any cOuntries rctallnlig a veto power. conspicuous gains in their own industrial development and (3) the disappointing As the liberation movement slowed to a trade volume generatekl over the decade halt. LAE IA turned to the promotion .of LAFTA's operations. A few statistics or"complementary' agreements" will serve to quantify the minimal trade between two or\more countries, whereby rAults achieved by LAFTA over the specific commodities could move at decade 1961-72 and.the, increasing gap reduced (f not /ern) tariff rates between between the Big Three and the rest of the signatory members. in turn ' ' the region (see Appendix 1). evolved into a labdrious procedure Fo illustrate the problems in Dived in the f he principal interest df LAFTA . t complementary process. one might cite a members, especially of the smaller and recent case involving Sperry Rand and middle-tier countries, has always focused Olivetti. The two companws decided to on the degree to which the LAFTA rationahre their plank in Argentina. program could promote the exports of Brant and Mexico by concentrating their individual countries to the region. production on specific items. e.g.. In 1961 mini-zonal exports within the typewriters and office -calculating. LAFTA region were 7'; of, total exports. machines. Each of the three countries :1.' 1972 they had increased to only 12',' 4'

*ea

. . of the total_The.se..incre'ases Were largety within LAFTA. "measures to accelerate in agricultural and b4sic Taw matecials progress in the lesser developed countries and W.ppld havvz occurrya eyelid- LAFTA and with.those of insufficient markets to lia'd not existed. Over the same decade ' achieve harmonious' and balanced intra-zonal import rose from Fic; Co only, development." (quoted from the LAFTA 10(7c of the total. I-4 two larger countries treaties)." during the-same decade, Mexico increased, intrazonal exports from _2' ;to 8'; , wh4 At Pnnta del.Fste in 1967 ("De'claration Venezuelan exports ;dropped from 7'; to , of the PrOsidents of Americai-,the move 5'with the absolute dollar volume of ,to develop subregional agreements.gained its exports to LAIJA countries actually momentum. In the same year the declining. In the Middle-tier countries Foreign Ministers of'the LAFTA the intra-zonal increment was more countries gave their blessing to the idea. substantml: Colombian exports rose 1 The year 1968 was largely taken up with from .2`,: to 13'; mid Chilean exports the preparation of drafts of the even Mal from 7'; to 14';. i'eru on the Other hand agreement by committees of government reflected no intra-zonal gain. starting at experts. As a prior step, the GRAN 7'; and ending at W; a decade later. countries established the Andean Feuador among the lesser-developed Development Corporation (CAI:). In members did improv e,t rum 9'; to 17';., 4. May 1969 the Acueedode Cartagenawas adopted with Venezuela abstaining. Only

a few weeks later, the LAFTA group <, II. Integration: formally recogitOed GRAN as compatible with the origiliatTgoaty of Montevideo the Andean Group under which LAFTA was Constituted. .After ratification by three' Countries the he Andean Group (GRAN) new'orgaIntation begau,ito function. . . from the beginning add[essed itself to the kt,v, The political framework- within which factors that had weakened GRAN'operStes is vigorously restated at the LAFTA group Thus each sifccessiepeestangpf the Foreign (1) it put great stress on strong political Ministers: It is indeed the glue which A supliort from eak:fi of their countries, holds the organization together and the 2) the sectoriiii tIrogram of industrial formal term to ..'inciunce the entry.,. 9. development was specifically aimed to of new nwinbers is `adhaiori," a not increase the industrial capacity of the inappropriate phrase! The c'entral theme' six member countries while'', at the same at these meetings is'a reaffitniiition cifi time. (3) a scheme of automatic tariff the principal objective of (IRAN, namely, , terenablea group of sik cotintries to .reductions wyth4elat wily 'few excep t Rim( , was adopted. hi4reby avoiding the work in unity and 'within the region as a, paralyzing effect of bilateral country bloc in clealing with the rest- of the world, .!`F

negotiations on ilindreds'or thousands :specially threat powers: Whew the '. 4- of individual items. goipg gets tough.'"unq" becoipesth&, 'rallying cry. One o5serves that file The political dimension of'GRAN dissolution oI' political support for o became evident in the first days of the 7 LAFTA made the organization negotiations whicb led to the adoption of progressively more inetfictuatuntil' the Acverdo der artagena. Its continumtg iifractured into several sub-gr6lips presenc. is conveyed in the regular Which Seemed unable to deal with ineetmgs.of Mel:on:1Di Minister, of the .other. Atoments of crisis. aswheii member countries. Bolivia, Chile, possible ruptures threatened GRAN . EcuAlor, Peru and Venezuela .I country relations, the political t:ac.lor was' GRAN began ini 966 when the decisive in restoring equilibrium:. .4 Presidents of Colombia,.Chile. and Venezuela. in the "Declaration of Bogota." started joint action to iiclua:

' 3 .F. :

't r

. . .., , A few instances may sereasillustrations. re,..it tier: pressures and coin root the'. When gelatin& was deposed as President ctimpiercial blocs of the AV./zinced . . ...,, of Peru rnt1968. it seemed evident that countries. ,--,' thf hew regime would follbw a strongly . . Notuatlistanding, these. activines.on nationalistig line. which tilt; Colombians Ow considered to bed threat to their 'political front, thIre- is 'a grtlwing toirt.cern. . that.decistons otlia'Junta are not being interests. Accordingly,/ he then 4 Colombian Foreign MiniAer.,Lopez implemOptV ev.ered of the member ' Mithelsen, made a special trip to meet countriesApternal Iawti are not being ; Mereadb Jump, then Peruvian Foreign adoPtidt6acioinnlodate the nt.'wrtifeS . -i..Irfinister, in and exchange mutual of Ow game, The lesser developed countries like Bolivia aild Pc.uador . . .1- 'a&surances. In a second Instance: whun ... . incran.singly complain that the tat-1ft c emadorbegan to feel neglected as the , tloor relation" in GRAN, Colombia Concession ; granted on export t1niopgh its political-channels made a cOnfinochtie have not resulted in any' istvcial effort. to Mister the sagrg faith substantial increase in (flew export of .rlcidorinthe'ne* organization. volume, not to montiOnihefact thin' if Again, when Allende was elected in 1970 these'concessions. per se. do nothing td. at a time at which Colombia had a mi:rease the productive capacity of conservtive,,government. the possibility exportable materials in these countries. citoling.tf.lat ion; see-med imminent. For tixample. President Banzer o Bolivia until Presulasit POstraniand Foreign recently noted that, despite the benefits Mini.;,ter ('arri /osa of Colombia of tariff reductions on some 3.000 items, " developed a working entente which Bolivra in effect has "nothing to export." ;Would accoramodate' the'new.Chilean ,101nriticannot generate exports because govern_nt. Finally..W.Iin it appeared localOterprises are unable to get the that thiie.was danger of,;44:nating guarantees needed to finance an Venezuela if GRAN :ofttrtued WithOut expan:ion in their industrial capacity. it. the pAtit.`al drive for "unity'' w,ty Inds4 some exports, e.g. sulfur,seem . potent enough "totener4e'toikessions. Oliatilj to find a market in the GRAN tountrses because of "disloyal". e '.: even aganM.,pritate set ,or interests in ,.1. both-Colonibla kind Vent I competition from outside the subregion. 5 Aa ge.4,ture of solidarity and unity the firsVnithinational firm under GRAN '*1. The Foceign Ministers never rose an . oppgrtunity tote their Per'Pdic GRAN sponso'rship is to be located in La Paz meetings.to,make "declaratti'Ms"..of with extraordinary financing of SI character. not riete0arily million from the Andean Development relev,;ht t' the huAmess at hand. For or'poration (CAF) and additional capital .1 exanigille, at their last meeting in August support from other member countries 1913 at Lima. the Foreign Mitnyers over and above their regular quotas to went on record to protest, ( liFitnch AI'. The Swedish firm Atlas Cope& neclear.testh4 to the-Paciti., (..'s 1 the provides management, technology and alleged use of coercion in deterinining tisk capital for the enterprise, which will the It!ndittg policies of the Inter-American produce drilling bits andyneumanc Deyaopmerit Bapk. (3) otherforms of drills for the regional market. economic "aggission"-against countries Flie second "defect" in LAFTAwhich 41tempang ha& vliairgeOia their left the middle- and lower-tier countries eco.nomicnd.social-st ritttures ((1htle.) disenchanted was the lack of any policy 4, OPejen -1od'ev'elop t heir,oW,n it-anral or prodam to foment industrial ihi,1 man time resdurce,s (Pe ruto duvelopmtnt within 'their !rational :fially*. (41 to register concern about the economies. GRAN turned 'this into oire activities of foreign Multmational. of its mayor targets. sectorial industrial 4 corporations and to seel,;gttarfintee tjeelopment. their acquiescence to the legislation of e ..i.ountries.m which they operate. In short. "unity" is recognized as necessary to 7

4 I"' ' . , I !.. i !..'it,'' , ., ...*. .

. t . -".. 'r . .

, i .4e' A, 1, well known, milu,ti iati4dt ion as Just held in Lima in l'ehruary..1974. % 14 ...7 charactortz.ed the decadeQ)ctlic 19110's. v. Nfbreovei, the inchna'tion of most .Virtually every country...e.M-Qed its countries to equate industry with flight industries thpou41,1programs of economic development has been import substitution to meet the doinestic dominant thrust, e.g.. Ile import) market demand tot irprable or yaostitution program of the I 96's. The nondurable consumer.-graoils: Paving thesis of "dependency" is the current exhausted that secho, each country was vogue. industrialization is considered/he' soon looking to a sei.Antl wave all remedy for it because it 'creates industrial t xpansionv)Asuall3eid. employmentand improve prospects for semi-finished products vibtch rt.kiirtred a more equitable income distiifibtion., more advanced technOlokles:aftire capital intensive methods.; and. above all, expand6d marKets in the region: Without markets signitiicarn econoiTesa scale III. Integrating .Industry could riot be realized ainyinal product he GRAN instrument to prices wbuld be far above competitive ,Ievels in Mexico. Brazil or Argentina:mot this end is*the sectorial. to mention Europe or the U.S. industrial programAts. ambitious bruepnnt envisages th,development of regional GRAN started out recognizing that its six. member., comprise six separate programs in such basic sectors as markets, different in sirs.. per capita metalworking, petrochenneals, income and Thistly to generate savings, automotive, paper and pulp, fertilizers, and steel. The st.Ts in each process With wide ranges in educationalticaJonal levels involve GRAN devisions,oil.i. I) location and' technical capabilities. In political terms the lesser developed and the of plants in relation to raw material and middle-tier countries expected to share present or potential productive capacity. more equitably in the benefits of growth (2) a common external tariff concurrent and to participate in the "harmonization" with progressive tariff reductions of disparate development policies. In between member countries, economic terms the consolidation of six (3) harmonization of na:'onal national markets into a single -regional e g., in regard to foreign investments,and market is gradually being achieved y 14) piogramming financial resources. successive automatic reductions in tariffs and other trade restrictions mei a The first program was launched in Aligust ten year period. 1971-1980 Access to 1972 Pot the metal mechanics industry. markets. however, is a necessary bur not a good sector in which to start because sufficient condition to achieve their itis not characterized by large -scale aspirations. The sufficient condition can en.terpriscs using advanced technology he met only by stimulating investments that is heavily capital-intensive. GRAN in a country's industriahplant.facilitating first prepared a list of 200 metal the transfer ot reliant technology and products grouped into 72 product lines providing the resources in capital, (including sonic 22 already being management skills and trained labor. manutactured), which were then allocated (Decision No. 57) between the By way of digression, it is obvious that member countries. Fifty-one product industry is only one facet of econonic lines were assign&I to the larger growth and usually represents a smaller countries, Colombia. Peru and Chile component in gross domestic product (Venezuela was not yet a mehiber), and than, for example, agriculture. The 21 product lines were earmarked for complexities of agricultural regional Bolivia and Ecuador. The original development have relegated it to second allocations ate now being reviewed to place in GRAN priorities. Indeed the accommodate Venezuela. Each country first meeting ot agricultural ministers is expected to complete feasibility studies on its assigned products by 1974, or in the case of 13o1ivia and Ecuador by

S ti 1975,rued actual production should he progress. About:4,200 items itrthe underway three years later In cases of international custowz non}ericlature have noncompliance tht'products will be been analyzed. Of this tolal a limited reassigned. number are tempotarily excluded from automatic reduction as "exceptions" at Finding the financial and technical, the request of single countries which fear resources to implement this sectorial excessive competition at the outset when plan will be a major problem: so a their protertivs guard is lowered, but separate entity. the Andean l)evelop'ment these exceptierfis eipirein 1980. The 'Corporation (CAF). NVI1S organized in three larger members, Colombia, Peru 1968 with headquarters in Caracas. 1 is and Chile, are making annual reductions. functions are ) to provide leehnical of 10% in their.tariffs which began in assistance in feasibility and preinvestment 1971, so that by 1980 all items will studies, (2) to facilitate the acquisition move freely in the G.RA.N region. Bolivia of appropriate technologies and (3) to and Ecuador as lesser developed 4 mobilize and channel capital to regional countries received special concessions in as well as country projects. CAF's own that tariff reductions on their products resources are modest in relation to the are lumped into three years instead of magnitude of the task. Its capital is S'100 ten. Venezuela upon entry immediately million, of which $75 million is to be paid enacted the tariff reductions that had in by the member countries otter the nest accumulated to date. eight years. On the assumption that this leverage can mobilize $4 of outside Cumulative Tariff Reductiqns (percentage) resources for every SI of capital it 1971197219731980 anticipates a lendi4capacity of $400 million, Outside resources to date Colombia, Peru, Chile 10 20 30 100 include AID (S15 mi'lion plus 5200,000 Venezuela 30 100 for technical assistauke relending to the ,Bolivia, Ecuador 40 70)100 I:. private sector), Inter-Amcri'can Development Bank (55.4 million), and The common list inherited frordLAFTA Mexico (SI million for feasibility studies was duty-free from the outset:'some and S5 million for loans).) Although 1,200 items have been withheld from present resources are indeed limited it is automatic liberation pending assignment expected that as CAF progresses in its to countries under the sectorial industrial programs other non-GRAN countries programs. A common external tariff on such as Brazil or the international lending products from outside the GRAN region agencies will provide substantial now ranges from 30',;; to 80(/,', lending amounts. some protection to new country and/or. regional industries being promoted as The third sector of disenchantment with well as tempering foreign competition for the LAFTA program was the minimal the relatively high-cost enterprises that expansion in exports achieved over a already exist its the member countries. decade. Accordingly, the most active area of GRAN activities to datehas been The areas noted ove do not exhaust the commercial sector in which the range of GRAS activities, some of liberalization of trade between the which are carried out by GRAN's own member countries is being achieved by staff and others by contract through automatic tariff reductions, thus laying other agencies. The annual GRAN budget the groundwork for a regional market, is estimated at $2.2 million in 1974. It is Taking note of LAFTA's defects in this/ assessed from the member countries at area, GRAN has moved withall 6% each from Bolivia and Ecuador and deliberate speed and is'achieving real 22% each from the other four members. International agencies have also proven a 1 he Mexican capital eat marked for aoanNwill he tied major source of financial suptort, (70'; to NI-:-0:4 mot ot equipment) anc1will 'providing a total of $3.6 million in the probably %et a pattern for other nonGRANcountry Nubscr period 1970-1973. Of this total S1.3

9 million came from UN funds ( I ) to k Ford Foundation (SI 15,000) are underwrite a thiee-volume study2 by the tderwriting the services of experts and Economit-Commission for Latin America coultants in a variety of fields in and the Latin American Institute of addi rt to technology, e.g., tourism, Economic and Social Planning (ILPES) taxatio.industrial programs, legal analyzing basic strategies for the aspects o foreign investments, Latin development of the Andean region and American' ultinattonalienterprises and (2) to finance technical assistance the developn nt -of an economic research in the GRAN secretariat. provided by such agencies as FAO.. component wi UNESCO, UNIDO and UNCTAD. Notwithstanding imany efforts thus Recognizing the primordial ithportance far, GRAN treely acowledges that of technology in the industrial sectbrial much remains to be dh to to made the prografns, a major effort is being made to regional market a realiaIts first priority identify available technologies of varyin is the pressing need for m 'er countries complexities, problems in their-transfer to implement GRAN actio and to the GRAN conntries, their cost. etc. Decisions (72 issued to date) at have The Canadian Development Research not been incorporated into lawvither Agency (MC) has been a principal due to administrative inertia or a .ck of contributor (51.3 million to date) to this knowledge on the part' of subordin e program for technological transfer aswell offices. so that, unilateral action will 'ot as to related studies in industrial continue to negate tariff reductions. development. With these outside Liberalization per.se is not enough. , resources plus substantial inputs from its however. There'i;; a lack of know-how, own staff. GRAN is (I) surveying the esptcially on the part of smutl and effect of simple changes in production middle-sized firms which have no technique for medium-size firMs., e.g. the capacity for market research or bulk of the Bolivian mining industry. experience in promoting.aird financing I (2) performing case studies using different export trade..Some firms which ' mixes of skilled and unskilled labor. expanded capacity in anticipation of (3) locating sources of information on additional exports have failed to achieve foreign technology tor bargaining with them. As yet there is no juridical body potential foreign investors. (4) surveying within GRAN to'receive complaints. two or three investment programs in the interpret regal aspects or monitor GRAN region to_ascertain the extent to compliance: The technological gap which ,technical know-how must be continas its a major ob§tacle. Research and development efforts are isolated ,imported and finally. (5) preparing plans for development of certain industries and /off- duplicated, which not only wastes which the product has a high social scarce resources but fails to achieve any content. e.g.. low income houshig. The negotiating strength. In short, the priority high priority that GRAN has assigned to 'task of the member countries at this the development of technological stage is to concentrate on compliance. resources in the Latin American areahas obvious interest for engineering and technical institutes in the entire region.

Other agencies have come forward to

.finance experts and consultants. The Organization of American States r59.000). the Inter-American Doelopment-Bank (S293.000) and the

2.1.1ases Gcnvralespars una I stratcgi.i Subrettional dc lsarolloNI.trL It. 1972. mtinco 11DR assistanke ts tied 66`.. to Canadian institutwns and t-pert,. %slide 14'% is available for non( anadian

10 7 One of the earlier. t nd more active IV. Integrating Education projects. tele-education. had its he so-caned Andres Bello beginnings in 1969 when a private Om. program.is the educational CAV1SAT, proposed u regional network Irmo!' GRAN. The Ministers of educational television programs of Education of the six transmitted by satellite. This project TAndean countries held their came up at the 1970 Ministerial I fiist meeting in Bogota in 1970, out of meeting at which it was decided that which enierged the ('oremo Andres such an important project should not he Belt) for "Educational, Scientific and left in the hands of a single firm, Cultural Integration" of the 'Countries in whereupon UNESCO and UNDP formed the Andean Region. It included a "plan a working group to review the feasibility of work" for that .first year. The second of such a proje0. This group has been at ministerial meeting took place. early in work since 1970 and reported at each of 1971 in Lima'and such meetings have. the three subsequent meetings. It was been held each Year thereafter. The reed in 1972 that Argentina and ministerial meetings are usually preceded uguay could he considered as members by meetings at the technical level two or ofndres Bello for the purpose of this three months earlier. at which time singly .roject.4 Final recommendations advisors review the various projects of theorking group were presented at prpposed and make recommendations the 197, Ministerial IV meeting in forSubsequent action by the Ministers. Caracas. e satellite system was tacitly, For example, in 1974 the technical recommen 'd rather than the micro-wave advisors met in-La Paz in January.' systems whit some countries. e.g.. followed in late Nlari.th by the Ministerial ,Peru. preferre V meeting. also in La Paz, A multinational Committee was then set At the 1972 Ministerial Ill meeting in up to institationalize the Quito a permanent office was establOied recommendations, Venezuela was to he' located in Bogota under the ,,requested to assume responsibility for direction of Octavio,Arismendi. proclucmg a number of programs-subject ex-Minisiter.of Education in Colombia to general supervision of this committee. under Carlos Lleras Restrepo. One of the On-the financial side it was noted that responsibilities of the Bogota secretariat the first round of UNDP country is tto survey possible sources olfinancial programs will terminate in 1975, so support. largely from international there was interest in initiating a proposal organizations: I BRD. IPB OAS, to that agency before that date. UNESCO. and UNDP. It appears that the Andean Development Corpdrat ion I('AF) 'A.seond major project of the Andres is also willing to lend its supportprovided Ikllo group envisages the establishnwnt that the Andres Bello group can'set up a of a regional school for training in 'public "Special Fund" to be administered by sector adininistration that-wouldIlls() CAE with regular quotas from the include' training in business administiatiOn for those'students who will assume an membervountries. The percentages of. .participation in the Special Fund are set iikroqingiy.important role in state enterprises. The idea for this institution. at 5`,;411Por Bolivia and Ecuador'. 20'; for Chile, Colombia and rent and 30'; for babe named t114 Escuela Empresarial Andhra. was first,introdded by Peru in Venezuela. these percentages being 1971 and has now.reacheteits final applied to whateve, global figure the formulation in the blueprint stage-. The. Ministers agree upon. As yet such a fund project waS unanimously approved by has not been set up. Peru, for example, contributes S10,000 annually to the hese nto countries tt ere allegiAly concerned Out support 01 the Bogota office. UNESCO Brazil. through the "t'nenca de LI Plata" regional has also indicated its interest in partial project might seize the opportunity to get a head 'support for projee4 relating to thk,_ tart in the tele-education 4id. hence they chose to iuin tortes ss ith the Andres Bello group. cultural patrimony of the various countries. the 'technical Ads i'ors Meeting early m After the initial tooling-up yeakwhich 1974,11 is expected that the 1974 will he financed by the Peruvial Ministerial V meeting will formally ofEducation, operating costs for a launchtheproject' It is generallyagreed normal year are estimated at that the school will be located in Lima SSQ0-600.000 Annually, Mobilizing with an international staff recruited resources of such magnitude willProvide largely fromsome of the more devdoped a major test of the'Andres Bello program. institutions in the Andean region. Tho,e selected tier the teaching faculty will un- Other projects in.different stages of dertakes refresher courses abroad for six to development are noted below, with each twelve weeks in 1973. De'velopment of a country presenting at least one project, library, preparation of teaching materials Chile.forexample, presented a project and adaptation of physical facilities for at the Ministerial II meeting in1971 on. the new institution will alsb he carried "Capacitacion Laboral," at the same but in 1975. time that Peru took the initial steps to put forward the Escuela Empresariat The. academic programis expected toile Andina as its project. :The Chilean . launched in early 1147n. Plans- are to offer project, however, did not prosper and it 111 a variety of short-term extension was dropped in the Ministerial III courses for participants drawh from the meeting in 1971. Co/ombia is preparing public'sector,121a.one-year, course for a volume describing the educational middle and lower level ltuitionaries on systeMs of the six member countries.

) techniques of budgeting. accounting. The data 'collectiOn has recently been personnel and planning, 13) a one:year completed by thebrespective Ministries graduate eourle for university gradual* of Edication.Ecuadorhas submitted in economics interested in entering two projects, (11aceifter for the government administration and 141a preparation of plansfor school one-year advanced course for construction, with a multinational "development administrators" in committeenamed to oversee the mid-career. It is anticipated' that a institutionalization of the undertaking, Convenio may be established with one or and 121 the design of text book's in mote leading institutions in eachAndean mathematics and natural icienees at the country to serve as a channel for primary and/pi bilsic levels: The{ layer selection of younger professors from the project, however, was passed over at the lesser developed schools of public and/Or last TImical Advisors Meeting in La Paz business administration who will spend a ui carry 1974.Chilehas opted for a study -year in graduate study and then return on the "objectives of education"but to the home institution. The program will this project is repqrted as suspended, at also include a research dimenNon relevant least temporarily. pending new policy to regional topics and the preparationof directives from the Chilean authorities. teaching materials for institutions Bo/iiia pr4poses tokstablish a research throughout the Andean region. center on education in rural areas.

It is'evident that most of these proposed projects are still in embryo form. Only the two projec.ts discussed at length

.earlier in this,paper- tele-education and the Andean ,school ad,tninistratioh'-have reached a takeoff point where

I he two meettng cal siteonsepiperior of the lieu uHoolu.e. heed in late tieptentber I'/74 in l in la budget of 150,040 uasapprtned, target% ,ontributM be the Peru% tan go% er run01 ih Mark h 1,0 s the orgnuatlunal .true lure, program of studies. and plan% Int I manks.t1 %tippet t utll he ready fox they tom ye.tr I implementation depends upon mobiliring The countries of the kridean Group face 1mapcial resources. Whether the Ministry complex problems in developing a ot Education in a given countryhboth working pattern of coopen(Iion. The; able and Killing to tal:e the initiative. initial steps have been taken. Further e.g !the tam! ot Peril assuming financial steps in impleNenting these .ejects will responsibility for the first year of the show whether The GWI countries can skuela Empresarial Andma. is probably act together productnhtly in st.oport of, anecessar), but not stif I tcient condition their shared interests in education. for sueess

4

ti .1

'I

13

10 Appendix I. ;,"' 1'1AfTTiADEk (imiiioor of donors) I,

Exports(OB) , .. , . Imports (CIF)

Tdtal . Total/ I Laft% Todd' Total L'afta Rost IA(drld Latta Tgital TotalLatta RotWirld --c. - 1 1961 1972 1073 ( )1872 1961 1972 1972 . 1972 ...... ---- ,r. ,43% 120% $ 414 '61,614 .ARGENJINA 42%I',, 26% $ 4611 , $1,328 BRAZIL 7 iii 408 .' 3,583 10 ; 11 392 4,396 MEXICO 2 r. 9 144 I 1,440' 't 4 120 2,815 VENEZVELA 2 § 158 2,802 2 . 4 100 2,408 .., CHILE 7 14 157 106 t 17 ' 22 233 i 835 COLOMBIA 2 1$ 104 666, , 2 ` 11 105 870 e k.PERU = 7 8 74 870.. 7 '; ' 16 126 669 OuguAY 3 20 47 ..' 192 .22 39 70 110 CUADOFI- . 9 17 37 ' 179 '4 15 49 'It 220 "k, e, 30 '. 212 - 16 177 144 1113L1109% 12 28 , 1 i = 87 iARAGIJAY * 24 21 , 66 28 31 , 20r --,7-7" ' $1.543 ,, $12,326 / '61,666's $14,205 Lass 17 , i ...-

S.

.4" -.Partiol Bibliography *ohs in Englith) * *)

. Otte of the best genertil souree,s for books andt)Ourttal i' F.14ATHIS.; Eionomic Int4gration of Latin America; articles in Spanish are the publications of Inslituto , ,,TheiNtogress'and brobms of !.AL TA. Alst in. of T,,exas. pan, la 1ntegracion tieAmericaLa t itia'(INT4 I-4, N . ',"Ifureau Busing's Research; . ,- t 1 Buenos Aires, Argentina.., .. . 4 I)Revista de la Integracion No. I 0)(1.191516ofiate.,, 1.. E419M6191:INICY:WhePolitics of Regio)sal Org nization .1i Ocrecno de la Integracion No. 140cir 1967110 date.. ,in Latin America The Lath, Alnericart FrTrade i , ,Atrpciaton, New York, Praeger. 1973. 1". AVM(' , C. AND1C and 0 POSSFR: -I Tlie"Ore.rri %ES/NNW, JR. Cefitral America Regicinal huesgratton.- Economic Integration for Qevelopingeountria ' Neil; York. Cai1tegie Endtvment f r International illistratcd hyrCaribbean Confines, London, 4 Peaye, 1969. Celngi Allen 'and/ Unwtn, 1971 R. PREB1SCH; Change and*DevetOpm nt Lain , BI 1.A lrf LASSA ernomn. Detielbolneet 6trid ; . America's Great Task, illw Ydrk, Traeger, 1971. i Integration. Mexico. Centro deibtudios r . SCHIAVO-CAMPO: ImpOrt Struct.fre and.lirport .4 Monetarlos Latnio.unericiinootGE.MKAO,Ip65: in thk'etitial American Conizon, R. BROWN- Transport and theXconfook 1,W -own Markel. Puerto Rico; University of Puerteeitico.t I .' o f Sbut It Arrieriea.W.islungto n. Breathe ,, i1972, / f Institution, 1966.. . s U.N. ('ONFERENCE 014TRADE AND , NI_ CAR NOY- Insiustriatiution ma Latin American ( ,)EVELOPMENT: Polsibilities for Integrated' Common Market. WaNhington.13roo).ings 1 Indust 21 Development in Central A meriev. New .4 , /1 Instilption. 19,2, . , "York,;United N4tiona, 1964, ' 7" 4". CA,S111.LO Growth and Integration in deirekal :,,' , V. URQUIDI: Free Trade and Ecamic 14egratioii , 4.I 4rnerilki, New York. Pra&ger, 1967_ /0 in Latin America. Berkeley. Unitversity of .5

4 S!DILL: .1 Latin 4mcrican Cirmihon Martel ' I ondon. California Priess, 1962. Oxfor4 University Press, 1466. , , ' tt.f. WIcINCZEK; Latin America Economic/ 1. GRUNWACH, M. WIONCZiCand M.ARJNOY 1 infestation.' Experience and Projects. New York, - Latin 'America Economic Itiregrationiand1'... .. Praeger, 1966. ,' . ' Pohces Washington. Be ookings 1mi itet ion, 193.1A )4. WiONCZEX: /arm American Free Trade - fEli. HAAS and P.0 SCHMITT FR: The Polities if Association:New York, Carnegie Endornent for F. onomies in /tut -1 rnerica Regconalltri, ih « International Peace, 1965. . , 1 Latin 4mericaa Free trade Assatiation liter Foto' L.E. ZIEGLBR:.kon2lary Accommodation of iYears di Operation. Denver, University of De:river! ., RegionalIntegratiol in Latin America. A ust#n,' 1965. , : - Bureati Butinesi Rikarch. University of Texas. 19/1., '. , R.D. IlAWEN Central 1rnerica. Regional Integrunim ... '. and Ecoromie Development. %).shington. National "t, Plannine Association, 1967. /..., r I

4

441 11" :About ;HE The.Institute of InternationalEducation was founded in1919 to understanding through education.It -promote international U.S. and administers scholarsbikandfellowship programs for the foundations, corporations foreign governments, universities, .0 and international organizations,ana provides support services to researchers and advisers onclevelopmentil assistance projects abroad. Seeking to promoteeffective educationalinterchange,IIE offers information argtonsultafive services though a network :of offices in the U.S. and overseasand carries on anextensive schedule of seminars andworkshops. HE acts as/he parent agency for the international Councils onHigher Education, whicn.bring together U.S1 and foreign universityheads and other educational policy-makers in a confirm* seriesof conferences.

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