The Hague International Model United Nations Latin America 2014 | 14th–16th August 2014
Forum:
Economic and Social Council (ECOSOC)
Issue:
Developing the relationship between the Latin American regional
economic communities, the United Nations and the Organization of
American States
Student Officer: Mateo SARAVIA
Position:
President
Introduction
Since 1945, the United Nations organisms have seek cooperation with regional and sub-regional
organizations, with the objective of working in coordination with them and achieving comprehensive solutions
to the problem which arise in the regional communities’ areas of influence. Chapter VIII of the UN Charter
explains the role of the United Nations, particularly the Security Council, and the kind of coordination that it
looks forward to when dealing with a regional matter. Addressing with international issues in conjunction with
regional communities is far easier than working in separate ways, which generates conflict and turns out to be
counter-productive more often than not.
Coordination with the United Nations (UN) and the Organization of American States (OAS) may also contribute
to economic issues that affect both national and regional markets. These may include drug trafficking,
environmentally sustainable economic policies, intelligent use of resources in the industry, etc. Dialogue,
between these organizations is already taking place, but the more communication, the better results there will
be.
Definition of Key Terms
Regional economic community
A regional economic community is an organization of States that share a same geographical area and
look to foster economic integration between the nations of that area, through the harmonization of
external tariffs, economic policies, taxation, etc. By imposing a common market, and therefore a regional
economic system of policies, States are surrendering a certain portion of their sovereignty in favor of
regional integration.
Economic integration
Process by which a number of nations from a same geographical area agree on reducing trade
barriers in favor of economic development and the realization of economic objectives.
Stakeholder
A person, group or organization that has interest or concern in an organization. Stakeholders can affect
or be affected by the organization›s actions, objectives and policies.
Trade bloc
It is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where
regional barriers to trade, (tariffs and non-tariff barriers) are reduced or eliminated among the
participating States.
Single Market
A type of trade bloc involving more than one nation based on a mutual agreement to permit the free
movement of capital, labor, goods and services. A single market can also require the coordination of
various social, fiscal and monetary policies among participating nations.
Trade barriers
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A set of restrictions imposed in a country’s borders that affect transnational exchange of goods.
Black market
Economic activity that takes place outside government-sanctioned channels. Black market transactions
usually occur “under the table” to let participants avoid government price controls or taxes. The black
market is also the venue where highly controlled substances or products such as drugs and firearms are
illegally traded. Black markets can take a toll on an economy, since they are shadow markets where
economic activity is not recorded and taxes are not paid. In the financial context, the biggest black
market exists for currencies in nations with strict currency controls. (Definition by Investopedia, see
bibliography).
Transnational Organized Crime (TOC)
Crime performed and organized in a particular region, exceeding a nation’s borders. It is carried out by a
network of crime groups or individuals working in separate countries. They are frequently related to
violence, corruption and tax avoidance, and their main trade objectives are drug and gun trafficking,
money laundering, human and human parts trafficking, cyber-crime, animal species and nuclear material.
Background Information
History of Latin American integration
Latin American independence leader Simón Bolívar was the first to promote regional integration among the
newly formed States, after the wars of independence. Many of his ideals fell apart, though, given the weakness
of Latin American governments at that time and the reluctance by Bolívar to invite more powerful nations
such as Brazil and the United States, which he viewed as an obstacle to the development of the rising South
American nations.
As a result of global problems in the 19 th c., American States convinced themselves of regional cooperation
as a way of staying strong when facing the issues of the Cold War. This led to the establishment of the
Organization of American States (OAS) in 1951. Unfortunately, tension arouse quickly in this new community,
due to the dominance of the United States and the opposition it received from Latin American communist
countries. This triggered action by Latin American countries, which seek organizations which would not
depend on the United States, hence relying on cultural and linguistic roots as a mean of integration. Many
organizations such as trade blocs, which looked to foster economic integration rather than diplomacy, were
created. The main economic communities as we know them today stemmed from this process.
Overview of Latin American economy
Throughout its history, Latin America has suffered the consequences of European domination, which cause
them to quickly run out of certain natural resources, preventing them from developing steadily. Currently,
economists divide the continent in two main economic regions, the Pacific, which encourages free markets and
the Atlantic, which relies more on government intervention. It is believed that the Pacific countries are poised
to a quicker development than the Eastern ones, which often pay the price of heavy protectionism and unwise
policies, resulting in inflation and problems that affect population such as lack of energy.
Main Latin American economic communities and their relationship with the UN and the OAS
Andean Community of Nations (CAN)
The CAN is made up by Bolivia, Colombia, Ecuador and Peru, which are located in the mountainous region
of the Andes in northwestern South America. Apart from being a trade agreement, it fosters integration in
other ways such as the free flow of people and the creation of a common passport. The CAN has signed a
cooperation agreement with the MERCOSUR, stating future intentions of creating a continent-wide economic
community.
The Andean Community works in coordination with the OAS by exchanging data, and in the solution of
issues of common interest such as environment, citizenship, border control and trade. The relationship
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between the CAN and the UN is still in its first stages. There have been certain joint agreements, though,
particularly in matters of education through technology (2005) and sustainable development (2008).
Southern Common Market (MERCOSUR)
MERCOSUR is an economic and political agreement between Argentina, Brazil, Paraguay, Uruguay and
Venezuela. The main objectives of this organization are free transit of goods, manpower and capital, the
establishment of a common external tariff, adjustments on Member States’ laws and free competition among
Member States in the global market.
As for its relationship with the United Nations, MERCOSUR has reiterated its support for the UN campaign
against hunger, and the organization takes a big part in it. What is more, the UN has assisted MERCOSUR
Member States in the evaluation of regional economic development in relation to environmental sustainability.
In spite of these examples of cooperation, MERCOSUR Member States have recently requested action by the
UN in response to alleged acts of cyber espionage by the United States, which, they claim, jeopardizes the
privacy and stability of their governments. Tension has arisen in recent years between MERCOSUR and the
Organization of American States because of the issue of Paraguay. This landlocked nation was suspended
by the Members of the Southern Common Market following controversy surrounding President Lugo. It is
believed that the suspension was caused by the Paraguay’s refusal to accept Venezuela’s application to join
the MERCOSUR. This became quite evident when, once Paraguay was out, the other nations took advantage
and included Venezuela. Afterwards, they tried to suspend Paraguay from the OAS too, but the United States
objected. The view that the US have dominated the OAS since its creation is deeply installed in South American
countries.
CARICOM and its Single Market Economy strategy
The Caribbean Community, or CARICOM, is the organization that integrates 15 of the main Caribbean nations
with the objectives of achieving economic integration, creating projects to foster development and coordinating
foreign policy. In 1989, CARICOM’s main authorities, decided on the creation of a Single Market Economy to
be adopted among Member States. This project would be done through a set of phases that include particular
objectives. These stages have been delayed due to a variety of causes, but the idea of creating a single market
and unifying the monetary system, as well as strengthening economic links with other States, remains.
As a result of the alarming number of natural disasters that the Caribbean region has underwent in recent
history, CARICOM has contributed significantly in issues of climate change, and has open the doors for
the UN to provide assistance. Together they have set an example of coordinated work for the well-being of
society. UN Secretary General mentioned his participation in a CARICOM-UN meeting in July 2013, where
the issue of climate change was addressed, along with “sustainable development and transnational organized
crime”. Another important meeting was held in April 2014, which highlighted the importance of “international
action, in the United Nations framework, against climate change”. In 2012, the UN Secretary General wrote
a report on cooperation between the UN and several regional organizations, including CARICOM. The report
showed evidently how steadily the relationship between CARICOM and a plethora of UN offices has evolved.
They now support the Caribbean Community in plenty of areas, such as health, environment, crime, etc.
CARICOM has also been an active partner of the OAS, having taken part in a number of joint missions
in less developed countries, such as Haiti and Antigua y Barbuda, ensuring transparency and freedom of
election. Cooperation between CARICOM, the OAS and the UN started in 2003, which marked the starting
point of annual meetings between the Heads of each organization, tightening the relationship and discussing
ways of solving regional issues.
Latin American Integration Association (ALADI)
Established by the 1980 Montevideo Treaty, ALADI is the largest economic organization, in surface, in
Latin America. It is comprised of 13 members and its main objectives are fostering economic integration and
reciprocal trade, reducing trade barriers and contribute to the enlargement of the markets. The organization is
open to the accession of any Latin American country which applies.
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Actions of cooperation between ALADI and the UN have been frequent in the past few years. ALADI’s
Secretary General has arranged meeting with delegates of the UNDP (United Nations Development
Programme), with whom he discussed and expressed support to the fight against climate change and the
idea of encouraging the formation of small local companies in developing nations, due to the fact that they
present no harm to the environment. Dialogue between the two continued in 2013, where a memorandum of
agreement was subscribed on the issue of sustainable use of biodiversity in Latin America. The Secretary of
the UN Convention on Biological Diversity took part in the event.
The relationship between ALADI and the OAS has been fairly good as they have worked together in issues such
as capacitation of border control personnel, which is essential when establishing common regional policies.
Central American Integration System (SICA)
SICA is the most important Central American organization, being made up by 8 States. It is a political and
economic community, which aims for regional peace, economic development and democracy. The organization
boasts a common parliament and a Central American Court of Justice, and is discussing the possibility of
unifying the monetary system and creating policies for interstate flights to be considered domestic.
SICA stands out for its relationship with the UN, to who is an affiliate under the Tegucigalpa Protocol, and
has offices at the UN Headquarters. It is also invited to act as an observer in the General Assembly. In 2012,
SICA encouraged the UN to lend support and resources to Central American countries facing high crime
rates stemming from transnational organized crime. Both organizations planned the realization of a thematic
debate, which hosted a various number of delegations (See Appendix for a webcast of the debate). These
kinds of illicit activities, the UN claimed, “jeopardize security, obstruct the functioning of public institutions,
undermine respect for human rights, and threaten legitimate economic activities”. Events of this sort are
great examples of regional coordination in favor of the fight against a specific issue. SICA also holds tight
relationships with the UN Educational, Scientific and Cultural Organization (UNESCO), which date back
to 1996 and the signing of a joint agreement of cooperation, under which coordinated actions between this
organisms is performed (See Appendix).
The relationship with the OAS has made progress. The Secretaries General of both organizations held a
meeting in March 2014 to discuss ways of cooperation and the priorities of the OAS. The OAS also expressed
its support towards the fight against drug trafficking that SICA is leading in Central America. A few years ago,
when Honduras’ democratic system fell apart, tension arouse between SICA and certain countries in the OAS,
particularly the US, who did not want Honduras to rejoin the OAS after the suspension due to undemocratic
activity.
Economic integration worldwide and UN involvement
When looking for solutions to the issue of integration between Latin American economic communities
and the UN, delegates ought to assess how other regions are interacting with the UN in this regard. The
United Nations works in coordination with many organizations across the world, and does it through many
of its secondary organisms. The United Nations Development Programme (UNDP), the UN Office on Drugs
and Crime (UNODC), the UN Economic Commission for Africa (UNECA), the World Bank, and the UN
Department for Political Affairs (DPA) are some of the examples. In a Security Council meeting in August
2013, Secretary General Ban Ki-moon mentioned several examples of regional cooperation. These ranged
from the “wide-ranging” cooperative work with the European Union to more particular and national issues
such as the cases of Somalia and Congo. In the case of Latin America, he pointed out joint missions with the
OAS, dialogue and combating illicit trafficking. Coordinated work between the UN ad regional communities,
as well as the OAS, has resulted in successful solutions to problems that affect the economic landscape of
a particular region. Organized crime, drug trafficking and climate change are current Latin American issues
which take an important toll in the economy. They enhance the so-called black market and generate insecurity
and competition with true, legal markets and companies. It is frequently accompanied by heavy tax avoidance
and illegal transnational movement of goods, affecting a country’s economy as a whole.
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Major Countries and Organizations Involved
United Nations Development Programme (UNDP)
The UNDP is the main UN organism for development and is playing a big role in addressing Latin American
issues. However, the challenge lying ahead for them will be to coordinate their work with the economic
communities, instead of heavily relying on UN-country relationships to come up with solutions. The only
economic organization in Latin America which is included in UNDP projects is SICA, which aims for combating
youth violence in Central America. Based in Panama, the contribution of the UNDP in Latin America has
been, nonetheless, praiseworthy. It has dealt with hunger, crime, poverty and draws up yearly reports on the
general situation of Human Development in the continent.
Economic Commission for Latin America and the Caribbean (ECLAC)
This organism was created by a 1948 UN resolution. It is in charge of fostering regional cooperation in Latin
America and publishing research papers and gathering data about Latin American economy. It has worked
together with CAN, MERCOSUR and ALADI by agreeing on common economic standards for the region
and the possibility of establishing relationships with new trade partners. What is more, they agreed on hosting
events to analyze regional integration in Latin America in comparison to the European and Asian models.
There is still work to be done for ECLAC, particularly because of its importance as a bridge between economic
communities in Latin America, the UN and the global market.
United Nations Security Council
The role of the Security Council in regional integration has been clear since the creation of the UN Charter
(Chapter VIII). The SC is to encourage pacific solutions to regional issues through the organizations, which
have to account for their actions in front of the Security Council. It has been a place for discussion on the
subject too. Under the Presidency of Argentina, an important session took place in August 2013, where the
Secretary General spoke of how the UN has cooperated with regional organizations around the world. Matters
dealt in the SC have a closer link to economic communities than it may appear. Issues of security such as illicit
trafficking of guns, drugs, medications, human body parts, animal species, etc., are detrimental to a country’s,
and its region’s economy in many ways. Aggressive tax avoidance, violence, effect on legal markets, loss of
manpower and youth to the illicit market are some.
Organization of American States - General Assembly
The General Assembly of the OAS is the main body of the organization, where every Member State takes part.
One of the main roles of the Assembly is “to promote collaboration, especially in the economic, social, and
cultural fields, with other international organizations whose purposes are similar to those of the Organization
of American States” (OAS Charter). It will be key on the process of advancing relationships with regional
economic communities in Latin America. It will be equally important for the organizations to open the doors
to the OAS contribution, as they have been reluctant to do it in the past due to the alleged “United States
domination”. What is more, the GA must have a say on the issue that divides the continent currently, which
is US cyber espionage on South American States, which have already expressed their concerns to the United
Nations.
United States
The status of being one of the most economically powerful countries in the continent comes with a big
responsibility in the field of economic integration. The US must iron out relationships with Latin American
countries, particularly concerning the aforementioned issue of cyber espionage, as well as the role it has in the
OAS. Giving more participation in the continent-wide organization to Latin American countries will certainly
be beneficial for everybody. According to Estevadeordal (2012) the US are, at present, “less enthusiastic about
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trade agreements” with Latin American nations. All in all, the US must convince nations to work coordinately
through the OAS instead of continuing to form fragmented communities in their own sub-regions.
NOTE: Latin American economic communities are also play essential roles for the issue at hand, but their
positions have already been mentioned under the “Background information” headline.
Timeline of events
DATE
EVENT
1948
ECLAC is created with the aim of fostering Latin American integration.
1996
SICA signs joint agreement of cooperation with UNESCO
2005
The Security Council discusses the issue of regional organizations for the first time.
2012
The UN Secretary General reports on the relationship of the UN with CARICOM, among
other organizations.
The suspension of Paraguay in MERCOSUR raises continent-wide tension.
2013
Argentina headlines a Security Council open debate on regional organizations.
2014
SICA and OAS Secretaries General discuss better ways of achieving cooperation.
Relevant UN resolutions and documents
•
Chapter VIII of the Charter of the United Nations, which specifies the position of the organization
towards regional cooperation and explains the role of the Security Council in this regard.
•
Resolution issued by the Security Council in October 17 2005 (S/RES/1631/2005). The first to be
adopted by the SC on regional organizations.
•
Report by the Secretary General to the General Assembly and the Security Council in August 9 2012
(A/67/280–S/2012/614)
•
Agenda of the Security Council open debate of August 6 2013, with the Presidency of Argentina.
•
Letter form the Permanent Representative of Argentina to the Secretary General previous to the SC
debate.
•
Statements by both the Secretary General and Member States in the aforementioned SC debate.
•
UN documents, letters and statements referring to the General Assembly debate on “Security in Central
America as a regional and global challenge”. This debate was organized in conjunction with SICA and
UN offices.
NOTE: Many of these documents can be found in the “Appendices” section.
Previous Attempts to solve the Issue
The issue of developing the relationship between Latin American regional economic communities, the OAS
and the UN has been dealt with in many international spheres but there has not been a formal diplomatic
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debate and a resolution specific to the subject. Despite being isolated, many significant events in favor of
advancing these kinds of relationships have taken place:
• Resolution 1631 (2005) by the Security Council marked the first time the topic of regional integration
was discussed at a SC meeting. However, the topic was not limited only to Latin American regional
communities.
•
A similar event took place in August 2013, when a formal SC debate took place under the presidency
of Argentina. The speech made by the Secretary General mentioned cooperation with Latin American
organizations.
•
In March 2014, the SICA and OAS Secretaries General met to discuss better ways of acting in coordination. This is an example of the advanced relationship that both CARICOM and SICA have with the
UN and the OAS, which has helped them deal with problematic issues in the Caribbean and Central
America.
•
Adding to the previous point, UN-CARICOM meetings, which are head on a yearly basis, are essential
for the development of talks between UN and Latin America.
Possible Solutions
It is not possible to come up with one solution that would fit every nation in the Americas because of the
different views present in the continent. Therefore, delegates should evaluate carefully the position of their
countries in the American context and to what extent are they eager to develop a deep relationship with the UN
and the OAS. A variety of solutions may be proposed, depending on the States:
•
The creation of a system that tightly links regional economic communities with both the OAS and the
UN. It may include hosting yearly meetings or assemblies were delegations of every community, the
OAS and several UN offices would be present and discuss matters concerning Latin American countries. The development of national and regional markets would be emphasized, as well as combating
illicit activities that may affect them. It would also include a reciprocal system of accountability and
planning of future actions between the organizations.
•
On the other hand, many nations may advocate the view that actions should be taken at a national level
in coordination with the UN and the OAS, if necessary, but without involving regional organizations
in national matters. Given the fact that nations within a same regional organization, in particular the
OAS, may not agree on certain terms, it may be better for them to communicate on their own with UN
offices.
•
The creation of a binding treaty or measure by the Security Council, to be voted by Member States,
which enforces them to account for their actions in both national and regional economy, as well as expressing their concerns on regional issues. The UN would then respond by providing intelligence and
resources to deal with the issues expressed.
Bibliography
1) Burges, Sean. “Economic Integration.” Encyclopedia Britannica Online. Encyclopedia Britannica,
n.d. Web. 14 June 2014. <http://www.britannica.com/EBchecked/topic/178433/economicintegration#ref1181257>.
2) “What Is a Stakeholder? Definition and Meaning.” BusinessDictionary.com. N.p., n.d. Web. 12 June
2014. <http://www.businessdictionary.com/definition/stakeholder.html>.
3) “What Is a Single market? Definition and Meaning.” BusinessDictionary.com. N.p., n.d. Web. 16
June 2014. <http://www.businessdictionary.com/definition/singlemarket.html>.
4) Luhnow, David. “The Two Latin Americas.” The Wall Street Journal. Dow Jones & Company, n.d.
Web. 15 June 2014. <http://online.wsj.com/news/articles/SB10001424052702303370904579296352
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951436072>.
5) “OAS, SICA Secretaries General Hold Talks.” Caribbean Journal OAS SICA Secretaries
General Hold Talks Comments. N.p., 3 Mar. 2014. Web. 16 June 2014. <http://www.caribjournal.
com/2014/03/03/oas-sica-secretary-generals-hold-talks/>.
6) “Black Market Definition | Investopedia.” Investopedia. N.p., n.d. Web. 16 June 2014. <http://www.
investopedia.com/terms/b/blackmarket.asp>.
7) Estevadeordal*, Antoni. “Economic Integration in the Americas: An Unfinished Agenda.” Economic
Integration in the Americas: An Unfinished Agenda (n.d.): n. pag. Www.brookings.edu. The
Brookings Institution. Web. 16 June 2014. <http://www.brookings.edu/~/media/research/files/
reports/2012/7/07%20summit%20of%20the%20americas/07%20economic%20integration%20
estevadeordal.pdf>.
8) “Charter, United Nations, Chapter VIII: Regional Arrangements.” Charter of the United Nations.
N.p.: UN, n.d. N. pag. UN News Center. UN. Web. 16 June 2014. <http://www.un.org/en/documents/
charter/chapter8.shtml>.
Appendices
Appendix I
Chapter VII of the United Nations Charter: http://www.un.org/en/documents/charter/chapter8.shtml
Appendix II
UN official webcast of the General Assembly debating the issues of security in Central America, where
UN offices, Member States and a delegation of SICA were present: http://www.unmultimedia.org/tv/
webcast/2012/05/part-1-security-in-central-america-as-a-regional-and-global-challenge-how-to-promoteand-implement-the-central-american-security-strategy-general-assembly-thematic-debate.html
Appendix III
UN agenda of the meeting mentioned in Appendix II: http://www.unmultimedia.org/tv/webcast/2012/05/
part-1-security-in-central-america-as-a-regional-and-global-challenge-how-to-promote-and-implement-thecentral-american-security-strategy-general-assembly-thematic-debate.html
Appendix IV
Draft agreement between SICA and UNESCO: http://unesdoc.unesco.org/images/0010/001042/104256e.pdf
Appendix V
Report by the Secretary General on UN relationship with regional organizations worldwide, including
CARICOM: http://www.securitycouncilreport.org/atf/cf/%7B65BFCF9B-6D27-4E9C-8CD3CF6E4FF96FF9%7D/S_2012_614.pdf
Appendix VI
UN official document of the August 2013 Security Council open debate on regional organizations, where
statements by delegations are included: http://www.securitycouncilreport.org/atf/cf/%7B65BFCF9B-6D274E9C-8CD3-CF6E4FF96FF9%7D/s_pv_7015.pdf
Appendix VII
Letter by the Permanent Representative of Argentina to the Secretary General referring to the
SC debate: http://www.securitycouncilreport.org/atf/cf/%7B65BFCF9B-6D27-4E9C-8CD3CF6E4FF96FF9%7D/s_2013_446.pdf
Appendix VIII
Speech by the Secretary General in the mentioned debate: http://www.un.org/News/Press/docs/2013/
sgsm15202.doc.htm
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