Andean Community, Iraq Conflict, Maquiladoras, OPEC

The Andean Community

The Andean Community, originating in 1969, comprises Bolivia, Peru, Ecuador, Colombia, and Venezuela. Its objectives are the expansion of transport infrastructure (roads and railways), power supply, and the formation of a customs union. In 1993, it was constituted as a free-trade zone, establishing a Common External Tariff (CET) in 1995. The presidents of the member countries decided to establish the Common Market in 2005. To that end, it requires eliminating all forms of barriers to trade in goods and completing the formation of the customs union by adopting a common external tariff that will benefit all member countries.

The Armed Conflict in Iraq

The invasion of Iraq began on March 19, 2003. After the Cold War, with the dissolution of the Soviet Union in 1991 and the end of the totalitarian regimes of Eastern Europe, the East-West confrontation ended, as did the balance of power in the world. The attack on the Twin Towers and the Pentagon in Washington on September 11, 2001, generated a crisis in the U.S. From this attack, the U.S. government undertook a review of its national security strategy and concepts, including how to address the “axis of evil.” It started with a preventive war. According to the U.S., countries had to choose between allying with them in their struggle to find and immediately attack terrorist cells (which are scattered throughout 60 or more countries) or side with terrorism. President Bush stated that this is a conflict between good and evil. The U.S. requested a meeting at the UN to address the situation in Iraq. Bush stated that if Saddam Hussein did not fully disarm, for the safety of the American people and for peace in the world, he would lead a coalition to disarm him. He added that if they were forced to go to war, they would fight with the full might of their Armed Forces.

Maquiladoras

Maquiladoras are assembly plants located on the border of Mexico, established by U.S. companies. There, foreign companies manufacture automobiles and electronics, and produce clothing. The majority of these companies are of American and Japanese origin. They use Mexican workers, whose wages are quite low, to assemble the products. To carry out the process, companies import almost all inputs and technology, and the final product is exported.

Inequalities Between States

  • Core Countries

    Also called developed countries, they are the most powerful due to their dominance in the world system. They have great influence over other nations and are the richest countries. They typically set the rules of the game in trade due to their great ability to generate more technology, as they have capital and possess the most powerful and efficient enterprises. Examples include the European Union, Canada, the USA, Japan, and China.

  • Peripheral Countries

    These are underdeveloped and the poorest countries. Their exports generate revenues that are not enough to develop their economies.

  • Semi-peripheral Countries

    These are countries under development, typically characterized by being very strong in certain sectors, which are their main exports and source of income.

OPEC

OPEC is the Organization of the Petroleum Exporting Countries, responsible for administering petroleum resources. Its members include:

  • Saudi Arabia (Riyadh)
  • Algeria (Algiers)
  • Iraq (Baghdad)
  • Iran (Tehran)
  • Kuwait (Kuwait City)
  • Libya (Tripoli)
  • Nigeria (Niamey)
  • Qatar (Ad Dawhah)
  • Venezuela (Caracas)

Its headquarters is in Vienna, Austria.