Diplomatist Magazine Diplomatist September 2019 | Page 17

SPECIAL REPORT
ALBA
and India
BY Abdul Nafey*
A
lliance for the Peoples of our America – Trade
Treaty of the Peoples (ALBA-TCP) is an inter-
governmental organization. A ‘third generation’
regional integration scheme, ALBA-TCP goes beyond the
goals of industrialisation or trade liberalisation; instead, it
is a political project of social transformation, political unity,
economic development, physical and digital connectivity, and
a common defence – all in defence of the unity, freedom and
identity of Latin America and its peoples.
ALBA-TCP has waxed and waned over the past 15 years
in consequence of domestic developments and regional/
international events. It is disintegrating and is a pale reflection
of what it was for a decade, 2004-2014. Presidents Hugo
Chavez of Venezuela and Fidel Castro of Cuba had signed
ALBA into law on 14 December 2004 to facilitate initially
the ‘doctors-for-oil’ exchange programme between their two
countries. In 2006, Evo Morales brought in Bolivia with
the concept of Trade Treaty of the Peoples (TCP) – thus
completing the acronym ALBA-TCP.
The acronym was also understood as the ‘Bolivarian
Alternative for the Americas’ until 2009. In 2005, the Bolivarian
‘alternative’ rose in direct ideological confrontation to defeat
the US-sponsored Free Trade Agreement of the Americas
(FTAA). Riding the region-wide rejection of neoliberalism,
ALBA-TCP transformed into a flexible political grouping
committed to the elusive ‘Twenty-first Century Socialism’
and a multipolar world. ALBA’s ideological underpinnings
are insightful: it emphasises on the role of the public sector in
the context of economic liberalization and globalization. The
primary objective of ALBA is to defend the freedom of Latin
America and eliminate the social exclusion of its people. The
TCP does not suggest a state-centric model of development.
Trade and investment barriers can be lifted, for example, in
return for technology transfer and, interestingly, compliance
with international human rights obligations. TCP guarantees
intellectual property rights.
ALBA-TCP has several initiatives and mechanisms to
realize its goals. The idea of financial autonomy is central to
the philosophy of 21st Century socialism. ALBA’s monetary
union, SUCRE showcases the autonomy of South-South
Cooperation (SSC). “Enough with the dictatorship of the
dollar, long live SUCRE”, said Chavez. The acronym stands
after General Antonio Sucre – a military genius during the
wars of independence whom the Libertador treated as his son.
Sistema Unico de Compensacion Regional (SUCRE) is a unit
of account that facilitates regional trade without dependence
on the US dollar. In 2015, one SUCRE was pegged to
US$1.25. The 14th ALBA summit, held in Caracas in March
2017, reported the increase in the use of SUCRE at $1 billion.
The monetary union did help small economies stabilize their
current account transactions and save themselves from foreign
currency manipulation. SUCRE continues to facilitate some
limited trade exchanges between Venezuela and rest of the
ALBA countries. However, SUCRE is very small to help
Venezuela balance its current trade deficit or check the fall
of ‘Bolivar’.
The Bolivarian vision of creating a ‘grand homeland’ is
at the heart of ALBA-TCP. A political initiative, PetroCaribe
was launched to resolve the asymmetries in access to
energy resources through new favourable, equitable and fair
exchange schemes between the Caribbean-Central American
countries. The scheme has met the energy needs of the
energy-scarce small states at a fair and reasonable rate. The
state oil monopoly PDVSA provides 100 percent of energy
Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 9 • September 2019, Noida • 17