The Pacific Alliance is an IGO founded by Chile, Colombia, Mexico, and Peru, that aims to promote free trade and strengthen its economic ties with Pacific Asian Nations. The Pacific Alliance has recently faced challenges due to Peru’s ongoing issues with political instability and corruption, as well as Peru’s economic isolation. The political crisis and COVID-19 pandemic have caused economic instability and hindered Peru’s ability to engage in economic cooperation with other nations, and therefore its ability to participate in the alliance. This has led to concerns about the future of the Pacific Alliance, which has in the past been successful in its goals of trade and economic ties. Despite Peru’s challenges, the Pacific Alliance has continued to pursue its goals, The alliance has also welcomed new observer states, including Singapore and Australia.
As mentioned, the political crisis in Peru has caused economic instability and hindered its participation in the alliance. This might undermine Peru’s credibility as a reliable partner for trade and investment which, in turn, could affect the perception of the alliance as a whole, potentially reducing the attractiveness of the Pacific Alliance to foreign investors and trade partners. On the other hand, the Pacific Alliance’s efforts to deepen its economic and political ties with Asia-Pacific countries, including new observer states such as Singapore and Australia, could enhance its foreign relations and strengthen its position as a regional player in the global economy.
As we discussed in class, IGOs and other such treaties only work if everyone plays their part. If one nation is not contributing, not only can it bring stress to the other nations in the IGO as they have to contribute more than expected to pick up the slack, but it also can create a negative image for the other nations in the IGO, for relating to a nation with such issues. We also discussed how in realism theory nations will only do things that further their own interests, and will not just do them out of the kindness of their hearts. In this case, under realism theory, Chile, Colombia, Mexico may invest in stabilizing the economy and political situation in Peru, as it would advance their goals of growing their economic and political interests in the pacific.