“The process of globalisation is sustained by, and produces, national and regional
interdependencies. But in contrast to the Cold War emphasis on regionalism in the
form of collective security arrangements, there has been a new emphasis on regional economic groupings. It is broadly acknowledged that in this process the development of economies (including those in Africa) cannot occur in isolation. Furthermore, this process has not assumed the nation-state to be the only possible engine of regional integration; it has also involved the development of new transnational organisations which operate across state boundaries. The move towards regional market integration in Latin America came largely from two sources: first, through domestic liberal macro-economic reforms which coincided with a period of increased international market interest in developing economies and provided a push for reduced state intervention and greater openness; and second, through the creation of the Mercosur in 1991.”
