Final answer:
The Andean Pact is a trade bloc including Colombia, Ecuador, Peru, and Bolivia, which has focused on establishing stronger trade measures since its enhancement in 1995. Despite cultural richness and traditional agriculture, political instability and poverty have hindered the establishment of a unified South American trade zone.
Step-by-step explanation:
The Andean Pact
The Andean Pact, more formally known as the Andean Community, includes South American countries such as Colombia, Ecuador, Peru, and Bolivia. Established in 1969, it focused on various economic and political objectives among which the main one has been to establish stronger trade measures. The aim was to create a free trade area which became more pronounced in 1995. However, the creation of a broader Free Trade Area of the Americas (FTAA) has faced opposition from countries that prefer a more localized economy and by trade blocs such as Mercosur.
Despite the rich cultural heritage of the rural Amerindian States in the Andean region and the significant role of traditional agriculture in the society, these countries have experienced political instability and poverty. This political turmoil has made it challenging to unify South American countries under a single trade zone, evident in the disparities of wealth and the struggles over control of local resources.
Various political issues like corruption, authoritarianism, and human rights violations have affected the political stability and economic growth of these countries. For instance, Ecuador's adoption of the US dollar in 2000 was a step towards economic stability despite not resolving underlying problems like national debt fluctuation in global commodity prices.