Mercosur: A Failing Development Project?*

Abstract

Latin America is a developing region. Although it is different from other such regions it shares with them ‘the challenge of change’, particularly as a result of globalization. Its response has been to embrace democracy, neoliberal restructuring and ‘new (open) regionalism’. The ‘Common Market of the South’—Mercosur—was an important regional initiative involving Argentina and Brazil, and included in its various aims was the acceleration of ‘economic development with social justice’. This article explores to what extent development aims have been achieved and whether Mercosur is little more than a loose confederation of states unable to build institutional structures that could help development. To what extent is this the result of traditions that have entrenched elites and prevented a more egalitarian approach? Has the law generally failed its citizens? Or does it have a place in development? The article begins by briefly considering the concept of ‘development’ and seeks to place Latin America within the ‘developmental framework’ and questions whether there is a distinct Latin American development tradition. Within that tradition, and in the context of the ‘inter-American system’ and globalization, the development of Mercosur is assessed both in terms of institution building and legal traditions. Finally, some preliminary conclusions are drawn about Mercosur's future and the extent to which institutional and other constraints have contributed to Mercosur falling short of its devleopmental potential.