South Americas push for regional economic independence relies on trade blocs such as MERCOSUR and the Andean Community (CAN). With Bolivia joining and becoming a full member of MERCOSUR (Southern Common Market), it can be said that real and genuine efforts are being made in an effort to deepen regional resource sharing and trade expansion. However, internal disagreement such as differing economic policies between leaders like Brazil’s Luiz Inácio Lula da Silva and Argentina's Javier Milei, present problems. Lula’s focus on state-led industrial policies contrasts with Milei’s preference for open markets, prolonging or even in some cases, preventing collaborative efforts in sectors such as renewable energy and sustainable development.
The CAN, while less prominent, still remains an important forum for smaller economies like Ecuador and Peru to advocate for regional cooperation. Bolivia has attempted to bridge the CAN and MERCOSUR, proposing unity on trade policies and resource management, especially in lithium production.
Decoupling from Global Powers
For decades, South America has had a hard time with overdependence on external powers like the U.S. and China, which have a huge amount of influence over trade and investment. However, leaders like Bolivia’s Luis Arce and Chile’s Gabriel Boric are calling for localized control over natural resources, including lithium and copper, which are extremely important for green technologies. These initiatives hope to create value-added industries within the continent, shifting away from the export of raw materials alone
However, despite these efforts, economic pressures, such as increasing debt levels and slow growth, make it hard to move away from global financial systems. Bolivia’s idea for lithium industrialization reflects broader regional ambitions but faces logistical challenges and competition from China’s supply chains. Challenges to Regional Unity
Certain efforts to revive organizations such as UNASUR, which aims to promote South American political and economic integration, face huge problems. UNASUR collapsed partly because of its reliance on political consensus, which often led to deadlock, and a lack of institutional frameworks. Recent calls for reform include proposals for hybrid decision-making processes and technical expertise. This is called for so that there can be a sense of continuance despite Political shifts and changes
Furthermore, South America’s deep economic inequalities and diverse political landscapes make it harder for unified action. Nations with stronger economies, like Brazil, often dominate regional agendas, leaving smaller states feeling marginalized. Nonetheless, the growing consensus on reducing dependence on external powers keeps the dream of South American integration alive, despite its challenges.