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The South American Union (SAU) is an economic and political union of 12 member states that are located primarily in South America. The SAU operates through a system of supranational independent institutions and intergovernmental negotiated decisions by the member states. Institutions of the SAU include the Economic Commission, the Council of the Union, the Military Council, the Court of Justice, the Union Central Bank, the Court of Auditors, and the South American Parliament. The South American Parliament is elected every five years by SAU citizens. The SAU's de facto capital is Caracas.
Created in 1987 following the Great South American War the SAU was developed in response to the great ability of South American nations to wage war and kill each other and not work towards the progress of Humanity. Based on the principle of "All life is Scared" the SAU has made great strides in helping all member nations and their rising, or powerful economies maintain a powerful set of economies, large scale improvement in human rights, as well as many other things.
The SAU traces its origins in the end of the Great South American War, with Argentina surrendering to Brazil and her allies, they were unsure with what to do with their defeated enemies. By this point however Argentinas government had been replaced with a less intrusive, and overbearing one. Brazil decided (with great disdain from her battered allies) that they would forgive all the nations and would help them all create a peaceful more unified South America.
All of the nations formerly allied against Brazil joined in the attempt immediately each giving their own public apologies for the war and even some paying reparations to nations such as Colombia, and Ecuador, who had suffered some of the most damage. By the middle of 1987 most nations while still maintaining a lingering animosity signed the Union Charter. One of the initiatives of the SAU is the creation of a single market, beginning with the elimination of tariffs for non-sensitive products by 1990, and for sensitive products by 1998. The process was developed upon the progressive convergence of the procedures of pre-existing Argentinian and Brazilian subregional economic blocks all of which essentially helped integrate each blocs economy heavily allowing for an easy creation of such a united market.
The classification of the South American Union in terms of international or constitutional law has been much debated, often in the light of the degree of integration that is perceived, desired, or expected. Historically, at least, the SAU is an international organisation, and by some criteria, it could be classified as a confederation; but it also has many attributes of a federation, so some would classify it as a (de facto) federation of states.
However disregarding the fact that the SAU is in fact not a full political union, the SAU maintains a Chairman, a Vice-Chairmen, a Parliament, a Judiciary, and an extremely effective Military council. The SAU in itself has in fact passed laws in which most if not all members are expected to ratify, while considered extremely unfair in some cases, there has yet to be a situation in which nations have disagreed. One such of these laws was the destruction of Rebels in Peru, and Revolutionaries in Colombia, which deferred military action be taken by the whole of the Continents forces in a unified operation to take out dissidents.
The SAU government while considered to have too much power in some cases has been extremely effective in erasing much of the animosity between the former Brazilian, and Argentinian blocs and following the various rebel cleansing operations and the creation of the South American Common Market, has essentially ceased being a supremely active and interventionary force in South American politics.
the South American Union was almost expressly created to help make a common South American economic market. Spread out over more than 10 years the Common market has come to fruition and with the large expansion of various rising South American economies, and the stability of Brazil, Argentina, and Venezuela has led to the SAU becoming unified, the worlds largest economy.
Being a highly diversified economy the SAU does have its tendrils extended into nearly every facet of industry. Oil being a prime export of the continent, High tech industry, particularly from Venezuela, and Colombia, have become some of the SAU economies most major high tech exporters. The SAU is also phasing in its on form of Monetary union known as the Sauro (SAU- RO) which was put in place around 2000. This full situation has come into friction with various local currencies however an exchange system has been put into place for the Sauro and is expected to fully phase all national currencies by 2015. The slowness of the process is attributed for more nations joining the Monetary union such as Panama which has yet to fully convert.