Shared governance as a pathway to regional cooperation and development through the ItaipuCorpus

Abstract

Motivation

Cross-border cooperation remains a critical challenge for sustainable development in regions marked by historical rivalries, geopolitical asymmetries, and socioenvironmental vulnerabilities. The Itaipu Binacional Hydroelectric Plant, jointly governed by Brazil and Paraguay, offers a unique case for examining how shared governance can transform potential conflict into coordinated development in South America.

Purpose

This study investigates how the institutional design and historical evolution of Itaipu Binacional enabled regional cooperation and development between Brazil, Paraguay and Argentina. The research addresses the following question: how did shared governance in the context of Itaipu Binacional contribute to facilitating regional cooperation and promoting development between Brazil, Paraguay and Argentina?

Approach and Methods

The analysis combines a historical descriptive approach with a critical institutional and legal review. The study draws on international treaties, national legislation, internal statutes, and empirical data published by Itaipu Binacional. The literature on hydrodiplomacy, regional integration, and consensual hydro-hegemony frames the theoretical discussion.

Findings

The findings suggest that Itaipu Binacional has served as a functional model of shared governance, facilitating energy integration, political rapprochement, and the creation of institutional mechanisms for cross-country cooperation. However, the project also exposed issues associated with unequal distribution of economic benefits, legal asymmetries, and the displacement of local communities—especially affecting the Guarani people. Although Brazil exercised hegemonic influence, it did so through a framework of negotiated parity, reinforcing the relevance of consensual hydro-hegemony as an analytical lens.

Policy Implications

The Itaipu experience underscores the potential of shared governance to promote development and prevent conflict in the Global South. Future infrastructure projects should incorporate inclusive governance models, equitable benefit-sharing mechanisms, and robust environmental safeguards. Institutional innovation, transparency, and participatory frameworks are essential to ensure that regional cooperation is effective and just.