The rise and fall of the Bank of the South: challenges in Latin American post-neoliberal regionalism

Abstract

In the early 21st century, the rise of left-wing administrations in South America bolstered regional frameworks. The proposal to establish a new regional financial architecture materialized as the Bank of the South, formalizing its Constitutive Treaty in 2009. Despite this, the Bank remains uncapitalized. This study examines its rise and decline, addressing factors behind its establishment; the impact of divergent regional approaches by Brazil, Argentina, and Venezuela, and the reasons for its decline in the second decade of the 21st century. The research attributes the Bank’s demise not only to the crisis in post-neoliberal regionalism but also to internal disagreements among proponents. Drawing on a thorough literature review, primary source analysis from the Bank, and insights from policymakers’ memoirs, this research provides a nuanced understanding of the Bank of the South’s trajectory.

Keywords

• latin american regionalism
• brazilian foreign policy
• venezuelan foreign policy
• bank of the south
• new regional financial architecture