Mercosur still has two types of imbalances: structural (territory, population, infrastructures…) inbalances and public policy (fiscal matters, investment promotion exports) ones. The author believes that responding to these imbalances means implementing a genuine strategy for regional solidarity, which is not derived from dispersing charity among the poor but instead from the pragmatic necessity of greater benefits.

• How to Overcome the Mercosur Crisis
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The limit to energy sources poses a threat to the sustainability of Chile’s economic growth, which is a reason why Michelle Bachelet’s government strongly supports the development of hydroelectric energy in Patagonia. The initiative is tempting for Chilean and Spanish investors and the authorities, but ecologists, farmers, livestock farmers, fishermen, professionals and local cultural associations are making their concerns about the project known. The government’s objective is to have by 2011 or 2012 an energy grid that is more assured than the current one.

More than a hundred familial clans control 25 million hectares in Bolivia, five times the territory in the hands of the peasants. This figure translates to a hegemonic standoff, in which the political forces of today (historically low status majority groups) and the economic forces (dominant ethnic minority) do not converge, preventing each group from leading the country as it would like to. In this article I lay out the responsibility of Evo Morales, who will have to ensure a consensus in order to achieve the drafting of a constitution that is accepted by all sectors and guarantees national unity and the principle of authority.

After years of colonial and dictatorial rule in the Philippines, the People Power Revolution of 1986 installed a new government and led to the initiation of the Comprehensive Agrarian Reform Program (CARP). Yet more than twenty years later, poverty remains high in rural areas and income inequality remains a serious problem. The author faults the program’s land to the tiller concept and goes on to argue that access to jobs, and not land ownership, is a better way to reduce rural poverty.

The progress that Peru has experienced since Alan García regained the presidency is obvious: to the latest economic results (production growth, low inflation rate and proper fiscal discipline) we must add the FTA with the United States and the election of Lima as the host of the Fifth European Union–Latin America and Caribbean (EU–LAC) Summit, as well as the APEC summit. Even with all of this, the recent cases of corruption indicate that there is still a lot left to do, beginning with reform of the public, education, and health sectors, which is a major pending task.

No one disputes the growing weight of the emerging Indian giant in the economic scene and global geopolitics. However, if India is to achieve a more influential position on the international level, it must strengthen its democratic system and be aware of the need to confront inequality and injustice with ambitious long-term policies. It is faced with an imbalance that cannot be resolved by its macroeconomic growth alone, regardless of how spectacular it may be.

• Southeast Asia reduces poverty, but increases inequality
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Isolated for so long, and lacking a political culture on which to force democratic values, Paraguay needs help and support from its neighbors in order to move forward. This is especially needed from Brazil, the obligatory country of reference for Paraguayans, and one of the few countries that are capable of positively influencing the management of what will be the new government after the presidential elections in April.

Brazil, just like other emerging countries, is experiencing an shortage of infrastructure, which is hindering its economic growth. For this reason, President Lula’s government launched the Growth Acceleration Plan (PAC in its Portuguese initials) exactly one year ago: a four year, 190 billion euro investment plan that hopes to achieve the goal of a GDP economic growth rate of 5 percent between 2007 and 2010.

The electoral battle between president José Luis Rodríguez Zapatero (PSOE) and opposition leader Mariano Rajoy (Partido Popular) is intensifying. The foreseeable economic slowdown in 2008, the rise in prices, the growth of the foreign deficit, and the slump in the real-estate sector signal the end of a cycle and show competitiveness problems. The second big topic is the antiterrorist fight: despite not going through a good period (thanks to political and judicial action), it would not be unlikely for ETA to carry out terrorist acts before the elections.