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The member nations of the Bolivarian Alliance for the Americas (ALBA) are working to create an integrated trade and monetary zone with a new currency. This paper explores the significance of their effort, highlighting potential challenges and benefits. First, it discusses the rationale for a cooperative development strategy. Next, it analyzes the history and workings of the European Payments Union (EPU), one of the most successful attempts at collective regional development. Finally, it draws upon the EPU experience to suggest a process of zone construction capable of achieving ALBA’s goal of cooperative development.
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