Chapter 159: That Time I Created an Economic Bloc in South America (3)

TL: Skye

San Salvador, El Salvador.

The presidential palace, Casa Presidencial.

“I'm exhausted.”

Having returned from his summit in San Marcos, Nayib Bukele sat in a chair in his presidential office, listening to his aide's report.

“Your approval rating for this week's poll is sixty-two percent.”

Bukele narrowed his eyes.

Just a year ago, it had been over eighty percent.

The public frenzy when he won reelection was still fresh in his mind, yet it had already fallen to sixty-two percent.

He knew why.

The economy.

The people had unquestionably become safer since he took office.

But being safe and living well were two separate matters.

Food prices continued to rise amid global inflation and uncertainty, while jobs remained scarce.

The people's patience had its limits.

No matter how much public safety improved, approval ratings fell when people went hungry.

Sixty-two percent was still acceptable, but at this rate, it could drop below fifty percent within a year.

Bukele could not allow that.

He had never intended to relinquish power in the first place.

After all, he had circumvented the constitution to win reelection not merely to remain in office a little longer, but to rule for life.

To do that, he could not let his approval rating fall.

He desperately needed a way to turn it around.

And quickly.

That was why he had gone to San Marcos.

Taking a sip of coffee, Bukele thought of Yu-jin, whom he had met in San Marcos.

‘He certainly was an impressive man.’

Turning gang members into farmers and raising one of the world's poorest countries to middle-income status were astonishing achievements, to be sure.

But Bukele had not sought Yu-jin out because he admired him.

Tortilla Farm and the investment that would keep the national economy on life support.

That was all he needed.

Bringing Tortilla Farm into El Salvador would solve two problems at once.

First, food prices would fall.

If the people had more food on their tables, his approval rating was bound to rebound.

Second, putting seventy thousand prisoners to work on the Farm would not only eliminate the cost of maintaining the prisons but actually generate a profit.

He would restore his approval rating and secure funding at the same time.

‘And without spending a cent of our own money.’

The corners of Bukele's mouth rose as he recalled the outcome of the summit.

His talk of allowing them to earn a fair profit had merely sounded good. In truth, he had told them to build everything themselves.

All El Salvador had to provide were criminals who did nothing but consume its budget.

He had wrapped what was effectively a free deal in the packaging of fair compensation.

Tortilla Farm might have succeeded in San Marcos, but what guarantee was there that it would succeed in El Salvador as well?

‘I'll test the waters for a while, and if it looks promising, we can build an identical operation and run it ourselves.’

The same went for the Caribbean Belt.

Bukele himself had proposed creating an economic bloc, but he had not been sincere about that either.

It had merely been a carrot intended to induce Yu-jin to invest.

When had an economic bloc ever worked properly in South America?

Grand declarations followed by no action were practically a tradition in this part of the world.

He had brought up an economic bloc anyway because cooperation between equal partners looked better than begging for help.

‘If we string them along while accepting their investment, they'll eventually give up on their own.’

San Marcos was a tree whose fruit he need only pluck, and the packaging called the Caribbean Belt was merely a tool for gaining access to that tree.

Of course, Bukele did not underestimate Yu-jin. He could not have done so in the first place.

After all, he had seen perfectly well how Venezuela had come to depend on San Marcos for everything from energy and infrastructure to food and finance.

‘Telsy foolishly gave them everything, but I'm different.’

His confidence was well-founded.

He was none other than Nayib Bukele, the political genius of El Salvador.

However.

“Heh heh heh heh.”

At the time, Bukele did not know.

He did not know that Yu-jin's investments were far bolder than he imagined.

Or that when it came to sheer drive, Yu-jin stood above every leader throughout history, East or West.

***

The morning after Bukele's departure, Yu-jin quickly convened a cabinet meeting.

“Yesterday, I held a summit with President Bukele of El Salvador.”

“......”

“I'll start with the outcome: Venezuela, El Salvador, and San Marcos have agreed to form an economic bloc.”

The conference room erupted in murmurs.

Every senior secretary understood the weight carried by the words economic bloc.

“The economic bloc will be called the Caribbean Belt. In the short term, I intend for the Caribbean Belt to pursue economic cooperation, and in the long term, a form of integration like the EU, including the abolition of tariffs, joint investment, and the free movement of workers. Ah, of course, that can't happen overnight, so I plan to proceed in stages.”

After hearing Yu-jin's proposal, Ricardo, the senior secretary for finance, raised his hand.

“Your Excellency, I believe you should exercise greater caution before deciding to form an economic bloc.”

Every eye turned to Ricardo.

“For example, when Brazil, Argentina, Uruguay, and Paraguay established the Mercosur customs union in 1991, it was expected to become an economic bloc comparable to the EU. Ultimately, however, it accomplished nothing.”

“Why did that happen?”

“Because of Brazil's and Argentina's national self-interest. Despite entering a customs union, both countries frequently imposed tariffs at will to protect their own interests. Brazil and Argentina levied tariffs against each other over automobiles, while making so many product-specific exceptions to their common external tariff that it became effectively meaningless. More than thirty years later, they have yet to achieve even a complete customs union.”

Yu-jin's eyes lit with interest as Ricardo displayed such expertise despite receiving no advance notice of the agenda.

“Likewise, the Pacific Alliance, formed by Chile, Colombia, Mexico, and Peru in 2012, agreed to eliminate ninety-two percent of tariffs, but that was as far as it went. They merely opened their markets to one another and failed to create any synergy. This, too, is said to have been because each nation prioritized its own interests.”

“......”

“The economic blocs I just mentioned shared a common cause for their failure: they had no substance. They drafted impressive agreements but never acted on them, and although they promised joint investment, they never contributed the funds. In the end, they remained blocs on paper.”

“You seem opposed to economic blocs, Senior Secretary Ricardo.”

“If you're asking for my opinion... yes. I believe it will be difficult.”

The other senior secretaries held their breath at Ricardo's answer.

Opposing Yu-jin's opinion during a cabinet meeting was unthinkable.

All the more so because the one voicing that opposition was Ricardo, the senior secretary for finance, whom Yu-jin favored.

“May I hear your reasoning?”

“For an economic bloc to succeed, particularly one with as few participating nations as this, it must be led by a single powerful nation. From that perspective, I believe the Caribbean Belt is premature.”

“Are you saying that San Marcos cannot dominate Venezuela and El Salvador?”

“...That is correct. San Marcos is developing by the day under Your Excellency's great leadership, but it would be difficult for us to dominate them in terms of resources and population.”

At that moment, a murderous glint appeared in the eyes of the members of UJF, San Marcos's most secretive and powerful clandestine organization.

‘How dare he...!’

Isabella, the chairwoman of UJF, was especially furious.

How dare he challenge Yu-jin's opinion in his very presence!

Just as she was about to lash out, Yu-jin spoke first.

“Then what must we do for the Caribbean Belt to succeed?”

“...I believe we should take the same approach we used with Venezuela.”

“The same as Venezuela?”

“Yes. Tortilla Construction is laying highways in Venezuela. It is building ports and power plants. Tortilla Farm has begun producing food across the country, Tortilla Foods has opened a store in Caracas, and Tortilla Bank has begun issuing dollar-denominated loans. That is to say nothing of Black Oil and Tortilla Energy. All of this is sending tremendously positive signals throughout the Venezuelan economy. From our perspective, we have gained a market.”

“Isn't that the result of San Marcos investing in Venezuela?”

Ricardo nodded at Yu-jin's question.

“It is. For the Caribbean Belt you envision to succeed, the three nations must effectively become a single economic sphere. And San Marcos must be the one truly in control of it.”

“So we must invest first to create a single economic sphere... Are you saying we need to make them dependent on us?”

“That is correct.”

“What should we prioritize to produce results as quickly as possible?”

“Finance.”

“Finance?”

“Yes. At present, approximately seventy percent of El Salvador's citizens are said to have no bank account. That is evidence that its financial system has collapsed, and as you know, a country whose financial system has collapsed struggles to recover.”

“Hmm.”

As Yu-jin considered this, Aman, the senior secretary for industry, raised his hand.

“May I add something?”

“Of course.”

“I agree with Senior Secretary Ricardo as well. Accordingly, I believe our next investment after finance should be in manufacturing.”

“Is that so?”

“El Salvador's industrial base consists solely of light industry. Even that produces little added value and creates only low-wage jobs. This means El Salvador has little disposable income and, consequently, no value as a market.”

“Are you saying we must invest in its industrial base if we want to create a market?”

“Yes. Our domestic manufacturing sector is already suffering a severe labor shortage. Expanding into El Salvador could be a good solution.”

Resa, the senior secretary for natural resources and tourism, spoke next.

“We cannot leave out energy, either. El Salvador currently relies on thermal power for a substantial share of its electricity, yet it imports all of its fuel. As a result, rising international oil prices drive up electricity rates and reduce industrial competitiveness.”

“Then what should we do?”

“It needs an environmentally friendly and inexpensive source of energy like the Libertad Solar Energy Complex.”

“It's not a bad idea as a way to make up for what they lack.”

After each of them had offered an opinion, Sophia, the senior secretary for foreign affairs, raised her hand.

“I would like to make one point from a diplomatic perspective.”

“Go ahead.”

“Unlike Venezuela, El Salvador has a very close relationship with the United States.”

Sophia spoke with a serious expression.

“For that reason, I believe it would be best to leave room for cooperation with the United States.”

Yu-jin nodded. San Marcos's relationship with the United States was nothing short of a lifeline.

Every opinion had merit.

Yu-jin rose from his seat.

“Good. I'll set our course.”

The senior secretaries focused their attention on him.

“Our long-term goal will be integration like the EU, but as we did with Venezuela, we'll begin with what could be called private-sector economic investment. And as Senior Secretary Ricardo suggested, we'll start with finance. Also, while remaining mindful of our relationship with the United States, devise the most effective plan for establishing the economic bloc as quickly as possible.”

Yu-jin was utterly serious about this project.

*****

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