1. SOUTH
AMERICA

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, Suri
name, Uruguay, and Venezuela—and French Guiana, which is an overseas region
of France. The South American countries that border the Caribbean Sea—
Colombia, Venezuela, Guyana, Suriname, and French Guiana—are also known as
Caribbean 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
control
6

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 example
7

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

10. 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.

11. 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

12. 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

13. 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 process
Mercosur initially targeted free-trade zones, then customs
unification, and finally a common market.

14. 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.

15. 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

16. 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
(Community's working
language), Quechua, Aymara, 34

17. Andean Community of
Nations(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.

18. 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.

19. 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).

20. 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 Mercosur's and CAN's
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

21. 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

22. 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 traveler's 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

23. India-South America Trade
Relationship.
 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.