Abstract
In this chapter the authors look ahead to provide a reasoned appreciation of the outlook for the Pacific Alliance. A systematic discussion is offered on the implications for globalization and free trade pacts in light of recent political shocks in 2016. Stock is taken of the changes implicit in belonging to the Pacific Alliance and what the pivot to Asia means for the principal economies of the region. The proposition and prospects of the Pacific Alliance are analyzed from an integrated Ordoliberal point of view, addressing such questions as whether the Pacific Alliance will produce different results than other Latin American trade blocs, whether or not the Pacific Alliance will contribute to the conquering of corruption and provide the path to real economic development in the region. An in-depth analysis of the factor of corruption and the role a free trade pact can play in overcoming this challenge concludes the chapter.
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Notes
- 1.
In fact, the terrorism has continued until 2016 in such countries as Colombia, where FARC guerrillas have effectively tried to hold the country’s development hostage to their demands for political representation, lest they continue with their violent campaigns of kidnappings, extortions, and drug trade.
- 2.
In the foregoing analysis, we skip the years of 2009 and 2010, on the premise that these years are characterized by an unusually strong recession and (initial) “recovery.” Including those figures would skew somewhat the data for basic comparison purposes.
- 3.
Unless otherwise specifically cited, all quoted figures and averages mentioned in this chapter are computed by the authors using International Monetary Fund data, from the World Economic Outlook online database. Last accessed January 3, 2017. http://www.imf.org/external/pubs/ft/weo/2016/02/weodata/index.aspx
- 4.
The terms of trade express a country’ export prices in relation to its import prices (Obstfeld and Rogoff, 1996).
- 5.
The massive inflows of new immigrants are coming from the Middle East due to the conflict in Syria and the barbarities committed by Islamic terrorists associated with ISIS, the Islamic State in Iraq and Syria. As a consequence of this conflict, Muslim immigrants have invaded Europe. Adding insult to injury, the ranks of the refugees have been infiltrated by terrorists who have already committed attacks in Europe. Sexual assaults and petty crimes by other refugees in Europe have contributed to anti-immigrant sentiment, which worked against the Remain (in the EU) camp.
- 6.
The tables of indicators for the countries and regions pertaining to the Pacific Alliance included the scores of the different countries and regions on the KOF Index of Globalization, and its subcomponents.
- 7.
- 8.
- 9.
- 10.
It includes such things as indicators for the number of Internet users, the share of households with a television set, and international newspapers traded. These are variables which proxy people’s potential for receiving news from other countries, thus contributing to the global spread of ideas. http://globalization.kof.ethz.ch/media/filer_public/2016/03/03/method_2016.pdf
- 11.
Lauks, Lydia; Ostry, Hardy; Schafer, Matthias; Schiomach, Gerrit. (2008). Freedom and Order for more Justice.
- 12.
These other factors are quite important, including mechanisms of social compensation (assistance to the needy), social security safety nets, public investment to ensure a modicum of basic education, and health services. Properly provided, these services would be complementary to a well-functioning market economy, not a tax on the same.
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Spillan, J.E., Virzi, N. (2017). Looking to the Future. In: Business Opportunities in the Pacific Alliance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-54768-8_9
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