3 24 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation ofitsownbeginningsandlaterenlargementswhat “ asymmetry ” means , andit probablyknowsbetterthananyotherorganisationhowtodealwithit.Living standardsattheleveloftheregionsintheEUdifferbyaratioof1to30.EU solidarityfundscushionsomeoftheunwantedeffectsofeconomicintegration. The EULAC Summit 2008 in Lima established a special programme , EUrosociAL , withinitialfundingofEUR30million. Adequateandfunctioningphysical 犻狀犳狉犪狊狋狉狌犮狋狌狉犲 isthekeytodevelopment ; itreduces , amongotherthings , thecostoftransactionsandofthetransportof goodsandworkers.TherewasalwaysinsufficientLatinAmericaninvestmentin thisfield , incontrasttothesituationinAsia.Traditionally , LatinAmerican transportinfrastructurewasdesignedforextraregionaltrade , basically with Europe , butmeanwhilehasbeenextendedtoencompassresourcesneededby China.Studiesshow thattransportcosts , together withthebureaucratic burden , arefarhigherthanthecustomsdutiesappliedineachcasestudied.The InitiativefortheIntegrationofthe RegionalInfrastructureofSouth America ( IIRSA ) shouldnotablyimprovetheproductivityandcompetitivenessoftheSouth Americancountriesintheareasofenergy , transportandtelecommunications.Butso farithasgivenprioritytoroadprojects , whichaccountfor74percentofplanned investmentsupuntil2010.Butroadsarenotthebestwayeitherofmovinglowvalue nonperishablegoodsorofprotectingtheenvironment.Todate , IIRSAhasdonelittle bywayofimplementation ; ofthe348potentialprojectswhichhavebeenidentified , 31 havebeenselectedsofar , butlessthan10percentoftheslatedinvestmenthasbeen made.PartoftheproblemisLatinAmericastraditionallowsavingsrateandtax revenues , whichputsitatalongtermdisadvantageinrelationtoEastAsia.Projects alsosufferfromrapidlychangingpoliticalrelationsor , asinthecaseofenergy ( for example ,“ gasoductodelsur ”), fromnewdiscoverieswhichmakesuchprojectsless vitalnationally. InternationalexpertsandorganisationshavestronglyurgedLatinAmerican authorities to remedy the situation. As in the history of the EU , interconnectivityisagoodmotivebutnotasufficientconditionforintegration. Theenergysectorcouldbeastrongpullfactor , kickstartingintegrationbasedon “ functional ” logic , astheEuropeanCommunityforCoalandSteeldidfortheEU ( Heidrich2007 ) .Butsofar ,“ inSouthAmerica , energyisaninterconnection issuewhichdoesnotfosterintegration ”( Honty2006 ) . 5.3 Trade Bilateralagreementsbetween Latin American countriesand nonLatin Americanpartnersaregrowing , risingfrom20in1990to86in2000 , and159in
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