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16 | FRANCISCO ROJAS ARAVENA ENERGY INTEGRATION IN LATIN AMERICA | 17 resolved based through investments that make the exploitation of resources more efficient. A large part of Peru’s reserves are already committed for both domestic use and export to Mexico and the United States. Ecuador, an oil-exporting country, is in the process of defining and establishing the rules of the game in a Constitutional Assembly that will set out the course that the country takes. Meanwhile, the war in Colombia continues turning oil pipelines into military targets. Trust is essential to these energy integration processes, as much to build markets (for both supply and demand) as to establish the necessary complementarities that make networks of energy interdependence possible. Such networks govern, for example, the relationship between electricity and gas, or electricity and biofuels, or electricity, biofuels, and oil. Trust makes it possible to imagine and design new forms of complementarities, generating certainty, reliability, and confidence in the integration process itself. Energy is also linked to questions of democratic governance in Latin America and the Caribbean. Energy issues contributed to the inability of two Bolivian pres- idents to complete their mandates and served as a major source of tension as Ecuador’s Constitutional Assembly was inaugurated. Oil has conferred on the Venezuelan government vast economic resources to carry out its domestic policies, as well as to undertake significant international initiatives such as Petrocaribe. Throughout the region, energy crises have immediate political repercussions. Two issues are particularly weighty for Latin America in the near future: biofu- els and nuclear energy. Biofuels derived from sugar cane constitute one of the pil- lars of Brazil’s energy program, in contrast to the United States, where biofuels are corn-based. There are major concerns over the impact of biofuels production on areas such as food production and deforestation. The increased production of corn, sugar cane, and sorghum displaces the production of other food crops, creating scarcity and pushing prices up. Other impacts are felt through changes in land use, including the clearing of forests for agricultural purposes. Some analysts believe that biofuels can have devastating effects on the price of basic foodstuffs. This is espe- cially true for “those countries that suffer food shortages and import oil”—precise- ly the situation for the world’s poorest countries.5 Nuclear energy stands out more and more as a possible alternative for address- ing energy deficits worldwide. Europe is in the process of evaluating the renovation and construction of new nuclear power plants. Experience accumulated in Latin America over the years might permit the expansion of nuclear energy. It is much “cleaner” than oil and has less of an impact on global warming. However, the specter of Chernobyl hovers over all those who make policy decisions, especially in countries with a major potential for seismic activity. The challenge for Latin America is to establish a shared strategic plan that would facilitate the region’s greater insertion into the international system for the benefit of the population as a whole. Building a strategic political project of integration is an ever more pressing need. Constructing a shared vision is the starting point for overcoming the obstacles that processes of integration currently face. Opening a path to greater integration requires putting forward a vision of coop- eration and coordination that would allow various governmental, private, and civil society actors to agree on joint courses of action. This task presupposes establishing a specific agenda that makes it possible to overcome conflict, reduce asymmetries, and establish opportunities for negotiation toward the realization of shared goals. The coordination of policies will make it possible to reduce uncertainties and advance along a shared path to mutual benefit. Energy has become a key issue on the Latin American agenda. It has inspired and spurred a variety of initiatives and proposals. If these initiatives and proposals can be structured into a coordinated project that brings together producers and consumers, then it will be possible to make a qualitative leap in the direction of greater cooperation and regional interdependence and, hence, strategic integration. NOTES 1. Rolf Linkohr, “La política energética latinoamericana: entre el Estado y el mercado,” in Nueva Sociedad, No. 204, July–August 2006, pp. 90–103. 2. “Energy rings” refer to a variety of initiatives to increase natural gas exports to consumer countries in the region, as well as explore opportunities for natural gas liquification. [Eds.] 3. Ricardo Sennes and Paula Pedroti, “Integración energética regional: viabilidad económica y desafíos políticos,” in Foreign Affairs en Español, Vol. VII, No. 3, July–September 2007, pp. 31–46. 4. One initiative advanced by Venezuelan President Hugo Chávez is the building of the Gran Gasoducto del Sur (Great South American Gas Pipeline) to transport gas from Venezuela to Argentina, passing through Brazil, Bolivia, and Uruguay. [Conceived of as a contribution to the integration of the countries of MERCOSUR with those of the Andean region, the project has widely been considered to be unworkable. Eds.] 5. C. Ford Runge and Benjamin Senauer. “Cómo los biocombustibles pueden matar de hambre a los pobres,” in Foreign Affairs en Español, Volume VII, No. 3, July–September 2007, pp. 75–90.PDF Image | Energy and Development in South America
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