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Rethinking Economic Integration After the Failures of Neoliberalism University of Tennessee, Knoxville TRACE: Tennessee Research and Creative Exchange Masters Theses Graduate School 5-2009 The Bolivarian Alternative for the Americas: Rethinking Economic Integration After the Failures of Neoliberalism Shannon D. Williams University of Tennessee - Knoxville Follow this and additional works at: https://trace.tennessee.edu/utk_gradthes Part of the Sociology Commons Recommended Citation Williams, Shannon D., "The Bolivarian Alternative for the Americas: Rethinking Economic Integration After the Failures of Neoliberalism. " Master's Thesis, University of Tennessee, 2009. https://trace.tennessee.edu/utk_gradthes/82 This Thesis is brought to you for free and open access by the Graduate School at TRACE: Tennessee Research and Creative Exchange. It has been accepted for inclusion in Masters Theses by an authorized administrator of TRACE: Tennessee Research and Creative Exchange. For more information, please contact [email protected]. To the Graduate Council: I am submitting herewith a thesis written by Shannon D. Williams entitled "The Bolivarian Alternative for the Americas: Rethinking Economic Integration After the Failures of Neoliberalism." I have examined the final electronic copy of this thesis for form and content and recommend that it be accepted in partial fulfillment of the equirr ements for the degree of Master of Arts, with a major in Sociology. Paul Gellert, Major Professor We have read this thesis and recommend its acceptance: Harry F. Dahms, Jon Shefner Accepted for the Council: Carolyn R. Hodges Vice Provost and Dean of the Graduate School (Original signatures are on file with official studentecor r ds.) To the Graduate Council: I am submitting herewith a thesis written by Shannon D. Williams entitled “The Bolivarian Alternative for the Americas: Rethinking Economic Integration After the Failures of Neoliberalism.” I have examined the final electronic copy of this thesis for form and content and recommend that it be accepted in partial fulfillment of the requirements for the degree of Master of Arts, with a major in Sociology. Paul Gellert Major Professor We have read this thesis and recommend its acceptance: Harry F. Dahms Jon Shefner Accepted for the Council: Carolyn R. Hodges Vice Provost and Dean of the Graduate School THE BOLIVARIAN ALTERNATIVE FOR THE AMERICAS: Rethinking Economic Integration After the Failures of Neoliberalism A Thesis Presented for the Master of Arts Degree The University of Tennessee, Knoxville Shannon D. Williams May 2009 ii Copyright © 2008 by Shannon D. Williams All rights reserved. iii For Jaime and Elijah iv Acknowledgements I want to thank my committee members for their patience and guidance throughout this project. I want to thank Harry Dahms for the support and advice that he gave me early on as a graduate student. Harry has been instrumental in helping me make the difficult transition from an undergraduate to a graduate student. I am deeply indebted to Jon Shefner who introduced me to the political economy of Latin America. Jon’s analysis and portrayal of the region’s social movements have been inspiring and influential on my own academic work. It was as a student in his class that this project first emerged. The classroom discussions, along with our many conversations, greatly facilitated the development of my ideas on this topic. I want to especially thank the chair of my committee, Paul Gellert, who has mentored me throughout this process. His guidance and support has been invaluable, especially during the difficult times. Paul’s commitment to this project has gone well beyond the standard requirements of a committee chair. Lastly, I want to thank Dick Futrell and Paul Paolucci who have undoubtedly contributed the most to my intellectual development. Both are master teachers and deeply committed to their craft. I owe all of my success as a graduate student to the topnotch education that I received under their teaching and guidance as an undergraduate. I am forever indebted to them for the encouragement that they have given me over the years. Had it not been for their mentoring and support I would have never pursued a career in academia. v Abstract The deteriorating societal conditions that have accompanied the implementation of the neoliberal model in Latin America have been well documented. This analysis draws heavily on this work to identify the emergence of de-industrialization, displacement of food production, exclusion of basic human services, and excessive unemployment following the application of neoliberal reform. Such ill effects have ushered in a strong anti-neoliberal current that has opened up new spaces for discussion and debate about alternative development models for the region. Perhaps the most radical alternative to emerge is the Bolivarian Alternative for the Americas (ALBA). ALBA’s architects have been explicit in their denunciation of neoliberalism and insist that ALBA is an alternative that has been designed to rectify the ills associated with neoliberal reform. The following analysis examines ALBA as an alternative idea and practice of development. The following analysis examines the ways in which ALBA is formulated as an abstract alternative to neoliberalism and highlights the concrete policies and projects that distinguish it from the defining aspects of the neoliberal model. vi Table of Contents Chapter 1 Introduction ........................................................................................................ 1 Chapter 2 The Development Era in Latin America ........................................................... 5 Import Substitution Industrialization (ISI)...................................................................... 8 The Demise of ISI and the Emergence of Neoliberalism in Venezuela ....................... 19 Chapter 3 Neoliberalism .................................................................................................. 25 Trade Liberalization...................................................................................................... 27 Privatization .................................................................................................................. 37 Financial Sector Deregulation....................................................................................... 42 Summary....................................................................................................................... 46 Inequality, Unemployment, and Poverty ...................................................................... 48 Dismal Economic Growth............................................................................................. 49 Chapter 4 ALBA and the Call for a More Egalitarian Form of Integration .................... 51 ALBA in Theory........................................................................................................... 53 Grannacionale (in theory) ............................................................................................. 57 Comparison of the Theoretical Orientations of ALBA and Neoliberalism. ................. 57 ALBA in Practice.......................................................................................................... 59 Grannacionale (in practice)........................................................................................... 60 The Peoples Trade Agreement (TCP)........................................................................... 64 The Bank of ALBA....................................................................................................... 66 Chapter 5 ALBA and Neoliberalism................................................................................ 69 Grannacionalization Vs Privatization ........................................................................... 71 The TCP Vs Liberalized Trade..................................................................................... 73 The Bank of ALBA Vs Financial Deregulation ........................................................... 75 Regional Participation................................................................................................... 79 Chapter 6 Conclusion....................................................................................................... 84 How Viable is ALBA?.................................................................................................. 86 External Threats............................................................................................................ 88 Global Recession and Technological Dependence....................................................... 90 US imperialism ............................................................................................................. 92 Peak Oil and US Hegemony ......................................................................................... 95 Works Cited .................................................................................................................... 102 Appendices...................................................................................................................... 113 Appendix 1 Grannacionales of ALBA........................................................................ 114 Appendix 2 TCP Agreements of ALBA..................................................................... 116 Vita.................................................................................................................................. 119 1 Chapter 1 Introduction The devastating effects
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