ABSTRACT
This chapter discusses the case of industrial co-operation in the context of the Andean Group. It describes the role assigned to sectoral planning in the Treaty of Cartagena and evaluates its outcome on the basis of the nature of the conflicts which have arisen between these countries. The problems of disequilibrium within the Andean Group are severe. The initiators of the Treaty were well aware of the need for special measures to induce balanced economic growth and to prevent and correct the action of concentration effects which might threaten the stability of the Group. The ambiguity of the Treaty in defining the priorities of efficiency and equity and the impossibility of agreeing a subregional strategy of industrial development which would take account of the various national stances, meant that conflicts arose between countries. The Junta interprets the basic objective of sectoral programming to be the equitable distribution of the benefits of integration and the balanced development of the countries.
