Jujuy in the Capricorn area
During Brasilia Summit in 2000, the Inter-american development bank and The Corporacion Andina de Fomento thought of a south american alliance to develop transport and communication facilities.
Initiative for Infrastructure Integration of South American Region (IISAR) is now made of twelve countries : Colombia, Ecuador, Peru, Bolivia, Brazil, Paraguay, Uruguay, Chili, Venezuela, Guyana and Surinam.
In order to achieve essential projects, IISAR identified ten development and integration areas of which Capricorn one (“Eje de Capricornio”).
Here, purpose is based on linking southern brazilian growing firms to an asian market gate : the northern chilean harbors.
However The Andes cordillera remains a main obstacle for road and railway constructions.
This route is getting more and more important for south american international trade giving that China is the first import of brazilian and chilean goods.
Moreover, Capricorn area is seen by IISAR as a good opportunity to open up and stimulate regional economies : north-east of Argentina, south of Bolivia and Paraguay.
Making their access easier and involving them in global trade, gains of competitiveness are possible. Thus, regional (South America) and international development prospects become more realistic.
Tourism industry is also taking advantage of those facility constructions (routes, railway) making more attractive touristic sites with strong potential in those regions of South America.
The province of Jujuy in Argentina is really concerned by the Capricorn area.
In 2005, Presidents of Chili and Argentina opened the National route 52. Leaving from San Salvador de Jujuy, it goes to the Jama pass (“Paso de Jama”) up to 13780 feet (4200 meters) and make a straight access to the pacific ocean going through Chili. Massive investments were made to make this route passable all year long. Construction works cost 54 million dollars.
In 2010, the governor of Jujuy province, Walter Barrionuevo, placed the border complex of the Jama pass and the railway linking to Chili on his agenda.
Many initiatives are in process nevertheless institutional locks still remain and make project decisions longer.
As an example, Argentina and Brazil (1991) are MERCOSUR members (Common Market of South America) whereas Chili (1996) is only an associated member and doesn’t ask for membership. This statute allows the country not to apply all custom legislation of the organisation. Bolivia, associated member (1996), asked for membership. Then Paraguay was suspended by the organisation because of its current president’s deposition.
Some institutional relationships take time to establish, forced to conclude that natural obstacles aren’t the harder to get over.