Sub-regional multilateral organizations are playing a rapidly increasing role in the suppliance of development finance to the countries of the Latin American (lac) region. However, though surprising, the wide and fast-growing role of sub-regional multilateral institutions in the international financial system has as yet received very little attention from an international legal perspective. The overall goal of this article is to fill this gap, and therefore to critically review the experience of lac countries with international sub-regional development and financial cooperation. In doing so, the article will stress in particular that the two most successful sub-regional financial institutions, namely the Andean Development Corporation (caf) and the Central American Bank for Economic Integration (cabei) have shown the capacity to supply services to member countries in a timely way, with counter-cyclical effects and on a wider scale relative to other types of multilateral financing.
In1991, the five Central American republics and Panama signed the Protocol of Tegucigalpa to the 1962 Charter of the odeca establishing the current institutional framework, the Central American Integration System (sica). On the subject, see R. A. Sánchez Sánchez, The Politics of Central American Integration, 138 ff. (Routledge, Abingdon, 2009).