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Project on South America

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  • 1. SOUTHAMERICA
  • 2. Introduction. Area -17,840,000 km2. Population -387,489,196 (2011, 5th). Pop. Density - 21.4 per km2 . Countries -12 (Independent Countries).
  • 3. South American Countries.12 independent countries—Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela—and French Guiana, which is an overseas regionof France. The South American countries that border the Caribbean Sea—Colombia, Venezuela, Guyana, Suriname, and French Guiana—are also known asCaribbean South America.
  • 4. Know The Region. Colonized by Spain & Portugal initially. Revolutionary movements and right-wing military dictatorships became common after World War II, but since the 1980s, a wave of democratization came through the continent, and democratic rule is widespread now. International indebtedness turned into a severe problem in late 1980s . The last twenty years have seen an increased push towards regional integration, with the creation of uniquely South American institutions such as the Andean Community, Mercosur and Unasur.
  • 5. Some More Facts…. During the first decade of the 21st century, South American governments have drifted to the political left, with socialist leaders being elected. Despite the move to the left, South America for the most part still embraces free market policies, and it is taking an active path toward greater continental integration. Recently, an intergovernmental entity has been formed which aims to merge the two existing customs unions: Mercosur and the Andean Community, thus forming the third-largest trade bloc in the world.[ This new political organization known as Union of South American Nations seeks to establish free movement of people, economic development, a common defense policy and the elimination of tariffs.
  • 6. Patterns of Cultural Coherence and Diversity.  The Decline of Native Populations  There were many complex civilizations in South America before Europeans arrived  1500: population of 47 million; 1650: 5 million  Causes: disease, warfare, forced labor, collapse of food production system  Indian Survival  Largest populations of Indians today: Guatemala, Ecuador, Peru, and Bolivia  Indians trying to secure recognized territory in their countries  Comarca: loosely defined territory similar to a province or homeland, where Indians have political and resource control6
  • 7. Patterns of Cultural Coherence and Diversity (cont.)  Patterns of Ethnicity and Culture  Racial caste system under Spanish: blanco (European), mestizo (mixed ancestry), indio (Indian), negro (African)  Languages  About 2/3 Spanish speakers, 1/3 Portuguese speakers  Indigenous languages in central Andes and Guatemala  Blended Religions  90% Roman Catholic  El Salvador, Uruguay have sizeable Protestant populations  Syncretic religions: blending of different beliefs  Allows animist practices to be included in Christian worship  Catholicism and African religions, with Brazil’s carnival as an example7
  • 8. Economy South America has a rapidly developing economy. With many industries and a flourishing trade and import-export market, it is fast becoming a economy with considerable size. The biggest individual economies in South America are those of Brazil, Argentina, Colombia and Chile. Major industries in South America are agriculture, which encompasses a vital part of the economy, and other important industries like fishing, natural resources, handicrafts etc. Trade is also an important part of the economy. South America relies heavily on the exporting of goods and natural resources. The economic gap between the rich and poor in
  • 9. Trade Blocks The biggest trade block in South America is Mercosur (or Mercosul in Portuguese), comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela. Associate states include Bolivia, Chile, Colombia, Ecuador and Peru. The second-biggest trade bloc is the Andean Community of Nations comprising Bolivia, Colombia, Ecuador, Peru, Venezuela and as of 2006 Chile. The Union of South American Nations is expected to merge both trade blocks.
  • 10. MERCOSUR COUNTRIES- Argentina, Brazil, Parag uay and Uruguay FOUNDED- 1991 by the Treaty of Asunción PURPOSE-promote free trade and the fluid movement of goods, people, and currency LANGUAGES- Portuguese, Guaraní, a nd Spanish CURRENCY-Gaucho
  • 11. MERCOSUR(Contd.) Mercosur origins trace back to 1985 when Presidents Raúl Alfonsín of Argentina and José Sarney of Brazil signed the Argentina-Brazil Integration and Economics Cooperation Program or PICE. Venezuela signed a membership agreement on 17 June 2006. The founding of the Mercosur Parliament was agreed at the December 2004 presidential summit. It should have 18 representatives from each country by 2010, regardless of population. Bolivia, Chile, Colombia, Ecuador and Peru currently have associate member status
  • 12. MERCOSUR(Contd.) OBJECTIVES- The free transit of produced goods, services and factors among the member states Fixing of a common external tariff (CET) and adopting of a common trade policy with regard to nonmember states Coordination of macroeconomic and sectorial policies of member states relating to foreign trade, agriculture, industry, taxes, monetary system, exchange and capital, services, customs, transport and communications The commitment by the member states to make the necessary adjustments to their laws in pertinent areas to allow for the strengthening of the integration processMercosur initially targeted free-trade zones, then customs unification, and finally a common market.
  • 13. MERCOSUR(Contd.) STRUCTURE OF THE ORGANIZATION - Common Market Council. The Council is the highest-level agency of Mercosur with authority to conduct its policy. The Council is composed of the Ministers of Foreign Affairs and the Economy (or the equivalent) of all five countries. Council members shall meet whenever necessary, but at least once a year. Council decisions shall be made by consensus, with representation of all member states. - Common Market Group The Group is the executive body of Mercosur, and is coordinated by the Ministries of Foreign Affairs of the member states. Composition: (i) the Ministry of Foreign Affairs; (ii) the Ministry of Economy, or the equivalent (from industry, foreign affairs and/or economic coordination); and (iii) the Central Bank.
  • 14. MERCOSUR(Contd.) Work Subgroups the Work Subgroups are the following: Commercial Matters; Customs Matters; Technical Standards; Tax and Monetary Policies Relating to Trade; Land Transport; Sea Transport; Industrial and Technology Policies; Agricultural Policy; Energy Policy; Coordination of Macroeconomic Policies; and Labor, Employment and Social Security Matters Joint Parliamentary Committee The Committee will have both an advisory and decision-making nature, with powers to submit proposals as well. The Committee will be composed of a maximum of 64 acting parliamentary members, 16 per member state, and an equal number of alternates, appointed by the Congress to which they pertain, and with a term of office of at least two years. Trade Commission: The Trade Commission will assist the Mercosur executive body, always striving to apply the instruments of common trade policy agreed to by the member states for operation of the customs unification. Looks after the Trade agreements with other countries or international entities Elimination and harmonization of tariff
  • 15. Andean Community of Nations COUNTRIES- Bolivia, Colombia, Ecuador and Peru The original Andean Pact was founded in 1969 by Bolivia, Chile, Colombia, Ecuador and Peru. In 1973, the pact gained its sixth member, Venezuela. In 1976, however, its membership was again reduced to five when Chile withdrew. Venezuela announced its withdrawal in 2006, reducing the Andean Community to four member states. FOUNDED- Andean Pact until 1996 and came into existence with the signing of the Cartagena Agreement in 1969 LANGUAGES- Spanish (Communitys working language), Quechua, Aymara, 34
  • 16. Andean Community ofNations(Contd.)OBJECTIVES Promote the Member Countries’ balanced and harmonious development under equitable conditions through integration and economic and social cooperation; Step-up their growth and job creation; Facilitate their participation in the regional integration process, with a view to the gradual formation of a Latin American common market Reduce the Member Countries’ external vulnerability and improve their position in the international economy; Reinforce subregional solidarity and reduce differences in development among the Member Countries; and Seek the continuing improvement of the living standards of the subregion’s inhabitants.
  • 17. ANDEAN INTEGRATION SYSTEM(SAI) The Andean Integration System (SAI) is a set of bodies and institutions forming part of the Andean Community, designed to allow for an effective coordination between them in order to maximize subregional Andean integration, promote their external projection and strengthen the actions related to the integration process. The SAI comprises the following bodies and institutions: 1.Andean Presidential Council;2. Andean Council of Foreign Affairs Ministers;3. the Andean Community Commission;4. Andean Community General Secretariat; 5.Andean Community Court of Justice; 6.Andean Parliament; Business Consultative Council; 7.Labor Consultative Council; Andean Development Corporation; 8.Latin American Reserve Fund.
  • 18. Union of South American Nations An intergovernmental union integrating two existing customs unions: Mercosul and the Andean Community of Nations (CAN), as part of a continuing process of South American integration. It is modeled on the European Union. Membership: 12 members and 2 observers(Mexico and Panama).
  • 19. Structure of the UNASUR At the moment, the provisional structure of the UNASUR is as follows: -A permanent Secretariat is to be established in Quito, Ecuador. -The presidents of the member nations will have an annual meeting, which will have the superior political mandate. -The Presidency Pro Tempore, is exercised for a one-year period on a pro tempore basis by one of the heads of state of each UNASUR Member State, the succession following alphabetical order. -The ministers of foreign affairs of each country will meet once every six months. They will formulate concrete proposals of action and of executive decision. -Sectorial Ministers meeting will be called upon by the presidents. The meetings will be developed according to Mercosurs and CANs mechanisms. -On 9 December 2005, a special commission was established in charge of advancing the process of South American Integration. It consists of 12 members, whose function is to elaborate proposals that will help the process of integration between the South American nations. -An Executive Commission, which was created by the II CSN
  • 20. UNASUR-Current work in progress. Single market One of the initiatives of UNASUR is the creation of a single market, beginning with the elimination of tariffs for non-sensitive products by 2014, and for sensitive products by 2019. Economic development The Bank of the South will finance economic development projects to improve local competitiveness and to promote the scientific and technological development of the member states.The founding chart affirms that the Bank will promote projects in "stable and equal" manner and priorities will be pointed to reinforce South American integration, to reduce
  • 21. UNASUR-Current work in progress(Contd..) Defence policy The South American Defence Council (CDS) was proposed by Venezuela and Brazil to serve as a mechanism for regional security, promoting military co-operation and regional defence. It is a cooperative security arrangement, enhancing multilateral military cooperation, promoting confidence and security building measures and fostering defense industry exchange. Infrastructure cooperation There is an Initiative for Infrastructure Integration of South America (IIRSA) underway, which has received the support of the Inter-American Development Bank and the Andean Development Corporation. Free movement of peoples Visits by South American citizens to any South American independent country of up to 90 days only require an identification document issued by the travelers country. Mercosur, Bolivia and Chile established that their territories together form an "area of free residence with the right to work" to all its citizens, with no additional requirements other than nationality
  • 22. India-South America TradeRelationship. A framework agreement was signed between India and MERCOSUR on June 17, 2003. The plan of this framework agreement is to generate circumstances and mechanisms for discussions in the first stage, by granting mutual tariff preferences and in the second stage, to bargain a free trade area between the two parties in conventionality with the rules of the World Trade Organization. As a follow up to the framework agreement, a preferential trade agreement was signed in New Delhi on January 25, 2004. The plan of this Preferential Trade Agreement is to increase and reinforce the accessible relations between MERCOSUR and India and endorse the growth of trade by yielding mutual fixed tariff preferences with the ultimate objective of creating a free trade area between the parties. Brazil-India trade increased from $1 billion in 2003 to $4.7 billion in 2008. The Agreement on Fixed Tariff Preferences between India and Mercosur, which came into force in 2009 and covers import-export of 452 products, will gradually be expanded to include new products with special taxation. It is expected that the trade volume between Mercosur and India should reach around $17 billion in 2012 and $30 billion in 2030.