The Mercosur Council has agreed to the creation of the Banco del Sur, a regional development bank proposed by Venezuelan President Hugo Chavez, to be headquartered in Caracas. Long in discussion, the foundation of the bank is designed in part to curb US influence and foster regional integration. But will it deliver on either of these goals?

Graham Hutchings, editor of the Oxford Analytica Daily Brief, discusses the issue with Professor Laurence Whitehead, fellow of Nuffield College Oxford and region head with Oxford Analytica, and Dr Jill Hedges, Oxford Analytica's senior editor for Latin America.