The Emergence of sub-Regional Representative Institutions in South America in the twenty-first century: Difference, Similarity and Path Dependence TAEHEOK LEE PhD University of York Politics December 2014 ABSTRACT There is a large body of research dedicated to exploring the concept of regionalism (including ‘old’ versus ‘new’ regionalism) and how this applies to Latin America. Subsequently, this thesis poses the question of whether market-led regionalism can be used to deliver greater inclusivity and socially progressive policies that increase equality in Latin America. In this vein, this thesis argues that regionalism studies do not provide the key to understanding why there still seem to be under-represented groups who are suffering injustice despite recent changes in the political landscape in Latin America, particularly in terms of regional levels of projects and policies. Within this context, this thesis develops a conceptual framework that distinguishes different phases of Latin American new regionalism. Subsequently, this study focuses on exploring the degree to which local actors’ involvement in the procedure of regional projects, which is one of the characteristics of regionalism, is well-studied and understood. Specifically, the research will explore in-depth the regional projects and policies of the Initiative for Integration of Regional Infrastructure in South America (IIRSA) under the umbrella of the Union of South America (UNASUR). For explorative purposes, this study was conducted at a local level, in which structural projects (i.e. the building of roads and bridges) are taking place. This study is centered upon a case study of several local areas in the state of Acre in Brazil, where one of ten region-wide projects, so called ‘Axes’, is actively progressing. In order to understand the changing context of South American regional integration, our analysis requires a focus on the following two factors: the historically-embedded societal structure and the increasing presence of China in the region. Specifically, this thesis highlights China as a new superpower entering this scene to replace the U.S., previously the sole actor in this region. It argues that despite this changing context and the rising power of China, it has not had a major impact on regionalism itself as well as increasing public input in regional governance, although it facilitates Latin American regional development and enhances geo-political status by reducing their dependence on the U.S. Finally, this round of research found that there is significant continuity in the lack of public engagement at the level of regional projects in South America, even when leftist governments, in this case in Brazil specifically, are in power. 2 TABLE OF CONTENTS ABSTRACT ------------------------------------------------------------------------------------ 2 TABLE OF CONTENTS ----------------------------------------------------------------------- 3 LIST OF TABLES ----------------------------------------------------------------------------- 8 LIST OF FIGURES -------------------------------------------------------------------------- 10 LIST OF GRAPHS --------------------------------------------------------------------------- 11 LIST OF MAPS ------------------------------------------------------------------------------ 12 LIST OF BAR CHART --------------------------------------------------------------------- 13 LIST OF DIAGRAM -------------------------------------------------------------------------- 14 ACKNOWLEDGEMENTS ------------------------------------------------------------------ 15 AUTHOR’S DECLARATION -------------------------------------------------------------- 16 INTRODUCTION ---------------------------------------------------------------------------- 17 Defining the Problem (Issues) and Research Questions ---------------------------17 Brief Background of Research ----------------------------------------------------------------19 Analytical Research Approach ---------------------------------------------------------------22 Research Methods ------------------------------------------------------------------------------ 24 Aim of Study ------------------------------------------------------------------------------------ 25 Thesis Outline --------------------------------------------------------------------------------- 26 CHAPTER 1: UNDERSTANDING REGIONALISM, WITH SPECIAL REFERENCE TO LATIN AMERICA --------------------------------------------------30 1.1 Introduction -------------------------------------------------------------------------- 30 1.2 Region, Regionalism, and Regionalisation ------------------------------------- 33 1.2.1 Regions ---------------------------------------------------------------------- 33 1.2.2 Regionalisation and Regionalism ----------------------------------------- 35 1.2.2.1 Old Regionalism vs New Regionalism ----------------------- 36 1.3 Latin American Regionalism --------------------------------------------------------- 38 1.3.1 Latin American Old Regionalism ------------------------------ 38 1.3.1.1 New Phases of Regional Integration in Latin America under the auspices of Old Regionalism ------------------------------------------ 42 3 1.3.1.2 The Interim Period that Signalled the Beginning of New Regionalism ------------------------------------------------------ 48 1.3.2. Latin American New Regionalism -------------------------------------- 50 1.3.2.1 Phase 1: New Regionalism in the 1990s ------------------ 50 1.3.2.2 Phase 2: The twenty-first century New Regionalism --- 55 1.4 Conclusion ------------------------------------------------------------------------------ 66 CHAPTER 2: THE DYMAMIC NATURE OF LATIN AMERICAN SOCIETY AND ITS LEGACY: IMPLICATIONS FOR THE CURRENT SOCIO- POLITICAL DOMESTIC SYSTEM ------------------------------------------------------- 68 2.1 Introduction ---------------------------------------------------------------------- 68 2.2 New Institutionalism --------------------------------------------------------------- 71 2.2.1 Historical Institutionalism ----------------------------------------------- 72 2.3 The Origin of the Formation of Latin American Society and its “continuity” 73 2.3.1 Colonial Legacy to Modern Social Type ----------------------------- 74 2.3.2 Emergence of Populism along with Clientelism ------------------------- 75 2.3.3 A “Somewhat Different” Authoritarian Period ------------------------- 77 2.3.4 Next Phase: Pacted Democracy ------------------------------------- 79 2.3.5 1990s, the Washington Consensus, and Hierarchical Market Economy -- ---------------------------------------------------------------------------------------------85 2.3.6 Social and Political Movements in the 1990s and 2000s - 89 2.4 A Deeper Analysis of Latin America’s “left turn” ---------------------- 92 2.5 Conclusion --------------------------------------------------------------------- 99 CHAPTER 3: BRAZIL: MYTHYS OF NEW REGIONALISM IN SOUTH AMERICA ------------------------------------------------------------------------------------- 101 3.1 Introduction -------------------------------------------------------------------- 101 3.2. Brazil and its Dualistic Nature -------------------------------------------------- 102 3.2.1 The Genesis of Patrimonialism in Brazil: Machiavellian Rules of the Patrimonial society ------------------------------------------------------------------- 103 3.2.2 Getúlio Vargas and his Era ------------------------------------------------105 3.2.3 Rule of the Military (1964-1985) ---------------------------------------- 107 3.2.4 The Coexistence of the Civil-Military Regime ----------------------- 108 3.2.5 The New Republic (José Sarney to FHC & Lula) --------------------- 114 4 3.3 The Perception of Brazil and its Political Elites toward the U.S. and China - 121 3.4 Brazil and China: Shared Gains, Shared Hopes, and Political-Economic Ties -----------------------------------------------------------------------------------------------------127 3.5 Conclusion ---------------------------------------------------------------------------- 132 CHAPTER 4: METHODOLOGY: METHODS AND APPROACHES FOR THE ANALYSIS OF REGIONAL INSTITUTIONS IN SOUTH AMERICA ---------- 135 4.1 Introduction --------------------------------------------------------------------------- 135 4.2 Multi-level Analysis / Approach --------------------------------------------------- 137 4.3 The Institutionalist Approach ------------------------------------------------------ 138 4.4 Triangulation and Mixed Methods Research ------------------------------------- 141 4.5 Representative Sector ---------------------------------------------------------------- 143 4.6 Site Selection --------------------------------------------------------------- 144 4.7 Methods and Data Collection Techniques------------------------------- 147 4.7.1 Interviews, and its Background Procedure and Contents --- 148 4.7.1.1 Strategies used to access Stakeholders for Interviews ----- 150 4.7.1.2 Interview Procedure and Development of Interview Content --- ----------------------------------------------------------------------- 152 4.7.2 Questionnaires and related Data Collection Method ----------------- 153 4.7.3 Process-Tracing Method and its underlying “Powerful” Explanation for Causality --------------------------------------------------------------------- 155 4.8 Anticipated and Encountered Problems and Strategies to Overcome Them-- 156 4.9 Research Biases --------------------------------------------------------------------- 159 4.10 Research Ethics ----------------------------------------------------------------------