The Latin American experience clearly establishes that economic development involves profound social and political change. Despite modernization efforts, economuc benefits eluded Latin American leaders. This fact led to the widespread perception that a new international legal strucure had to be forged if the region's myriad social concerns were to be addressed. Regional economic integration was a necessary first step.
Integration enabled Latin American statesmen to address insurmountable national problems on a regional level. In the Latin American context, however, economic integration efforts became intertwined with the new nationalism. Despite this beginning, the structures that eventually arose formed a relationship which assured investors that adherence to definitive rules would preclude uncertainity. Indeed, these new relationships promised creation of a safe harbor.
Robert Carcano, Investment and the Andean Pact: From Political Response to Legal Structures to Safe Harbors, 2 Penn St. Int'l L. Rev. 96 (1983).