The countries of the Andean region of Latin America (covering Bolivia, Colombia, Ecuador, Peru and Venezuela) have experienced political instability and economic difficulties in recent years, which have compounded structural problems of poverty and inequality, slow economic growth and financial volatility. This publication examines a number of key challenges for economic development in the region, focusing on governance issues and the need for broad state institutional reforms.

Political Crises, Social Conflict and Economic Development is a rare attempt to undertake comparative political economy analysis of the Andean region and thus represents a welcome contribution. . . It is clearly written and will engage scholars interested in Latin America from a wide range of disciplines. Jonathan di John, Journal of Agrarian Change This collection of essays on the political economy of the Andean region goes to the heart of the struggle these smaller economies face in completing crucial reforms and achieving higher growth. Andrés Solimano has brought together the best and the brightest talent from each country, the result being the most compelling analysis ever of how enclave development and a historical dependence on primary exports renders these countries distinctly Andean. As the essays argue, the political solutions and economic remedies must address this phenomenon, rather than mimicking those strategies of the larger emerging market countries in the region. Carol Wise, University of Southern California, US The contributors to this authoritative volume analyze the impact of political crises and social conflict on economic performance in the Andean region of Latin America. The blend of theory and case studies is also relevant for understanding other complex societies in the developing world and transition economies. The book provides illuminating insights on how to understand, and survive, the complicated interactions between volatile politics, unstable democracies, violence, social inequality and uneven economic performance. Recent political economy theories are combined with valuable quantitative and qualitative information on presidential crises, breakdowns of democracy, constitutional reforms, quality of institutions, and social inequality and exclusion to understand actual country realities. Part I provides the conceptual framework and a regional perspective of the book. Part II contains five political economy country studies Bolivia, Colombia, Ecuador, Peru and Venezuela written by leading scholars in the field and former senior policymakers, including a former President. Together, the chapters highlight the detrimental effects of political instability and social conflict on economic growth and stability, as well as the feedback effects from poor economic performance on political instability and institutional fragility. The country studies warn that narrow economic reforms that do not pay adequate attention to politics, institutions and social structures are bound to fail in bringing lasting prosperity and stability to complex societies. Examining new and rich information on episodes of political turmoil, military interventions, forced presidential resignations, constitutional reforms and social uprisings, this book will be required reading for all those interested in the interface of politics and economic development.

State and Society in Conflict analyzes one of the most volatile regions in Latin America, the Andean states of Colombia, Venezuela, Ecuador, Peru, and Bolivia. For the last twenty-five years, crises in these five Andean countries have endangered Latin America's democracies and strained their relations with the United States. As these nations struggle to cope with demands from Washington on security policies (emphasizing drugs and terrorism), neoliberal economics, and democratic politics, their resulting domestic travails can be seen in poor economic growth, unequal wealth distribution, mounting social unrest, and escalating political instability. The contributors to this volume examine the histories, politics, and cultures of the Andean nations, and argue that, due to their shared history and modern circumstances, these countries are suffering a shared crisis of deteriorating relations between state and society that is best understood in regional, not purely national, terms. The results, in some cases, have been semi-authoritarian hybrid regimes that lurch from crisis to crisis, often controlled through force, though clinging to a notion of democracy. The solution to these problems—whether through democratic, authoritarian, peaceful, or violent means—will have profound implications for the region and its future relations with the world.

"The instability, corruption, displacement of people, and violence generated by Colombia s unholy trinity of narcotics traffickers, insurgents, and paramilitaries is spilling over into virtually all of northern South America and Panama. Thus, the stability and political sovereignty of the region are being compromised. And, at the same time, progress toward achieving the Free Trade Area of the Americas (FTAA) and the economic integration of the Western Hemisphere by 2005 is being severely threatened. The author outlines some of the detail and implications of the regional security crisis in the Andes and makes recommendations for U.S. civil-military involvement in the hemispheric security arena. She argues for the United States to lead in the articulation of strategic objectives, while designing a defensible and feasible policy that critical elements in North America, Central and South America, Europe, and Japan can understand and support. She specifically argues for the U.S. military to build stronger and more cooperative security relationships within the circle of affected states around Colombia."--Summary.

This monograph is an invaluable contribution to the ongoing study of Plan Colombia begun in February 2001 by the U.S. Army War College and the Dante B. Fascell North South Center of the University of Miami. In her presentation, Dr. Judith A. Gentleman of the U.S. Air War College demonstrates the widening impact of the "spillover effect" into each of Colombia's neighbors and into Brazil and Panama. She then proposes sensible ideas worthy of policymakers' consideration. For some time it has been apparent that the crisis of Colombia is no longer confined to that country. In fact, under no imaginable scenario can Colombia's problems be contained within it. The activities of drug traffickers and guerrillas are on the rise in the entire region, coming from Colombia. Given such compelling evidence of spillover, why has a regional, cooperative response been so slow in taking shape? Dr. Gentleman goes right to the heart of the matter: a pattern of competing objectives and inherent tensions. To begin, Plan Colombia was seen in the region as a U.S.-inspired initiative by Colombia, about which the neighboring countries were not consulted in advance. Its objectives, while broad, were supported only in their military component (and by the United States alone). Moreover, the United States and Colombia were not really in harmony as to the true objective, which, for the United States was suppression of the drug trade; and for Colombia, pacification of the guerrilla insurgency. The Andean countries have also come around slowly and grudgingly to the concept, as the author points out, that only extensive international cooperation will work in an age of globalization. To do so, however, requires at least partial renunciation of the cherished principles of "nonintervenv tion, national self determination, and sovereignty." Meeting in Cartagena in April 2001 before the Quebec City Summit of the Americas, Andean leaders agreed on a regional counternarcotics strategy. They also called on the United States to renew the Andean Trade Preference Act and to include Venezuela in it. Such agreement is a great step forward. Much depends on the support of the United States for such a comprehensive regional approach. The Bush administration has responded positively with its new Andean Regional Initiative (ARI) of over $800 million, announced in May 2001. It will expand assistance into seven countries in the areas of alternative economic development, infrastructure development, human rights activities, and initiatives other than fighting narcotics trafficking. The new U.S. approach may well draw the promised (but not delivered) European assistance to the developmental aspects of Plan Colombia. Dr. Gentleman recommends, however, that the new U.S. regional approach avoid simply responding to "political constraints rather than strategic analysis," by which she means "the political predilections" of Colombia's neighbors. She makes the case that a better level of analysis be applied to design a "defensible and feasible" policy and that a "special envoy" be appointed for the Andean region to oversee and coordinate the program.

This open access book discusses financial crisis management and policy in Europe and Latin America, with a special focus on equity and democracy. Based on a three-year research project by the Jean Monnet Network, this volume takes an interdisciplinary, comparative approach, analyzing both the role and impact of the EU and regional organizations in Latin America on crisis management as well as the consequences of crisis on the process of European integration and on Latin America’s regionalism. The book begins with a theoretical introduction, exploring the effects of the paradigm change on economic policies in Europe and in Latin America and analyzing key systemic aspects of the unsustainability of the present economic system explaining the global crises and their interconnections. The following chapters are divided into sections. The second section explores aspects of regional governance and how the economic and financial crises were managed on a macro level in Europe and Latin America. The third and fourth sections use case studies to drill down to the impact of the crises at the national and regional levels, including the emergence of political polarization and rise in populism in both areas. The last section presents proposals for reform, including the transition from finance capitalism to a sustainable real capitalism in both regions and at the inter-regional level of EU-LAC relations.The volume concludes with an epilogue on financial crises, regionalism, and domestic adjustment by Loukas Tsoukalis, President of the Hellenic Foundation for European and Foreign Policy (ELIAMEP). Written by an international network of academics, practitioners and policy advisors, this volume will be of interest to researchers and students interested in macroeconomics, comparative regionalism, democracy, and financial crisis management as well as politicians, policy advisors, and members of national and regional organizations in the EU and Latin America.