NEW YORK, NY, UNITED STATES OF AMERICA, April 24, 2024 / — The historical claims on the Falkland Islands/Malvinas have principally two differing versions. The 1999 meeting in London between officials from Britain, Argentina, and the Falklands/Malvinas to discuss the resumption of Argentine links with the islands was a positive step forward in improving relations between London and Buenos Aires. Under discussion was establishing air links between Argentina and the Falklands/Malvinas, allowing Argentine nationals to visit the Islands, cooperating on oil exploration, and conserving fish stocks in disputed waters.

Unfortunately, progress was slow, and cooperation in the disputed waters became “stormy”, particularly under the Kirchner (family) Administration.

David Michaels, the British-born economic and political strategist, suggests that “a principal step towards a ‘diplomatic’ solution to the dilemma, which would simultaneously secure a peaceful ‘economic’ remedy and dispel any future thoughts of aggressive acts, is to invite the Islands to become an associate member of Mercosur, the South American common market.

Although Mercosur does not formally recognise the Falklands/Malvinas as a sovereign country, a solution could be created if the Mercosur members acknowledged the initiative’s regional economic benefits and merits.”

Central to this proposal is establishing a ‘Falkland Islands/Malvinas Development Fund’. This fund would be dedicated to further exploitation of the islands’ natural resources, providing a sustainable economic solution.

The Falklands/Malvinas would be the principal Managing Partner of the ‘Falklands/Malvinas Development Fund ‘. However, like any entity that requires investment capital, the fund could utilise the international capital markets to raise funding for the further development of its resources. This could involve inviting the Interamerican Development Bank, The U.S. International Development Finance Corporation (DFC), and other regional and international banking entities, including the central banks of the Mercosur members, to subscribe to a minority percentage of the fund. The majority percentage could be globally marketed by a consortium of Anglo-Argentine investment brokers, ensuring a diverse and robust financial backing.

In addition, this initiative could be a catalyst for attracting foreign investment capital in the entire Southern Cone region.

A much-respected former Uruguayan Foreign Minister suggested, “Exploring an agreement of cooperation between Mercosur and the Islanders may be a first step in the right direction. The initiative could be an excellent instrument to build a civilised dialogue between the Falkland Islanders and Argentina.”

A senior United States State Department source commented on the ‘out-of-the-box’ thinking needed to resolve such awkward conflicts. “Setting up an investment fund could provide all parties with a win-win situation, permit everyone to save face, and begin a long and fruitful collaboration.”

David Michaels continued, “In yesterday’s world, power was principally in the hands of the politicians of the nation-states. However, in today’s world, power is vested and balanced within not only the nation-states but also with the global markets and, more significantly, individuals. Globalisation has ‘wired’ the world into networks, giving individuals more power to influence markets and nation-states.”

David Michaels added, “Globalisation shapes practically every country’s domestic politics and foreign relations. The more market forces govern, and economies open to free trade and competition, the more efficient and prosperous economies will be. Globalisation is the prime mover in converting many politicians’ myopic mindsets and reactive nature into proactive leaders and solution seekers.”

The differences over the Falklands’/Malvina’s sovereignty can be mitigated by including the islands in a regional trading block. In time, the Falklands/Malvinas will be considered economically aligned with the Mercosur region while maintaining their traditional ties with Britain. Their rich natural resources will be an economic boon for the entire region, reducing the friction over their sovereignty.


David P. Michaels advises corporations and governmental entities on matters associated with conflict resolution, economic restructuring, and related political, financial, and economic negotiations. Notably, he is credited with anticipating the concepts behind the Brady Plan and the Enterprise for the Americas programs launched by the Bush (senior) Administration. During the 1980s sovereign debt crisis, he was the principal proposer of the “International Central Clearing House” for the registration of public and private sector debt instruments. David Michaels served as the President of the Foreign Press Association in the United States (founded in 1918) from 2014-2019.

David P. Michaels
David P. Michaels-StrategicSolutions
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