Perfecting Democracy in the Hemisphere

The geography we share creates natural economic relationships in the Americas. The region represents 800 million market-oriented consumers and $14 trillion in GDP. Three of our top four foreign energy suppliers are in this hemisphere.

U.S. exports to Latin America have increased by almost 100% over the past decade, while our exports to the rest of the world have seen gains of less than 50%. Canada and Mexico are our first- and second-largest trading partners.

Our economic relationships in the Western Hemisphere are very significant, and if they were all that we had at stake here, the region would demand our careful attention. But our political and security interests in the Americas are vital, too. As we fight the global war on terror, it is imperative that we have strong, democratic neighbors working with us to secure our borders…and defend our common interests and shared values…both at home and abroad.

In short, the stakes are very high for us in this hemisphere.

Today, the region’s elected leaders face a new challenge: making democracy work for the general welfare of their people. It is in our interest to help them succeed.

Unless women and men from all walks of life have a stake in economic growth in Latin America and the Caribbean, the gap between rich and poor will widen, and genuine prosperity may prove illusive or unsustainable.

We have a time-tested solution to this conundrum: democracy and the rule of law are essential to global development and trade, because they empower individuals to share the costs and the blessings of prosperity.

As the people of the Americas are free to exercise their essential political freedoms, they naturally will be able to claim their fair share of economic opportunity. In the long run, broad-based economic growth produces greater stability and sustainability.

That is our strategy. That is our challenge.

This evening, I will discuss how far we have come in the Americas in institutionalizing our commitment to democracy and the rule of law. But I will also speak of unfinished business: strengthening our institutions and, quite simply, governing justly and well.

In the case of the Western Hemisphere, if one were to simply go by the headlines in our daily newspapers, I can understand how one would come by the impression that things are not going so well, that the region is rife with discontent and the future of democracy is in peril.

But in stepping back and looking at things from a broader perspective, I would argue that the challenges facing Latin America today are less threats to the idea of democracy than they are the growing pains of a region undergoing a quiet--and, at times, not so quiet--revolution of freedom and progress.

Indeed, I can remember when I first began my professional career in the 1980s. Scarcely twenty years ago, Latin America was a far different place. Economies and political systems were closed, leading to stagnation and alienation and fueling conditions for armed insurrection.

Illegal armies, heavily supplied by the former Soviet Union and Cuba, wreaked havoc. In response, you had military dictatorships fighting an elusive enemy, and in many cases making no distinction between innocents and combatants. It was an era in which the future of democracy clearly stood in the balance.

Today, however, the struggle for democracy that characterized the 1980s has become a mutual effort to deliver the benefits of freedom to every individual in every country. The vast majority of Latin Americans and their Caribbean neighbors live under leaders of their own choosing--the repressive dictatorship of Cuba the most notable, and tragic, exception.

Today, free elections and peaceful transfers of power are now the norm and former adversaries compete not on the battlefield but in the democratic arena of electoral politics.

Political progress in the region has gone hand in hand with the economic reforms. Although many countries face severe economic challenges, the old demons are gone: inflation is largely tamed; countries are increasingly open to foreign trade and investment; economic setbacks occur but no longer lead inevitably to economic crises affecting the whole hemisphere.

Indeed, the spread of democratic and economic freedom has opened unprecedented opportunities for millions to help lift themselves out of misery.

Now, despite all this being said, it must also be recognized that many people in the region are weary of waiting for their lives to get better and for their futures to get brighter. Clearly, there is lingering dissatisfaction with the quality of democracy and the results of economic reform.

Yet, ironically, I would suggest that such feelings are a measure of how far our hemisphere has come, politically and economically. Because the improvements the hemisphere have experienced have created increased expectations for good government and broader responsibility and prosperity.

In discussing the progress of democracy in the hemisphere, the former President of Bolivia, Jorge Quiroga, an outstanding example of a new generation of democratic Latin leaders--who also happens to be an avid mountain climber--said that Latin countries have reached the "snow line" in their journey up the democratic mountain. They have come far; but there is still hard slogging ahead.

And in thinking about that journey forward, we have to begin by recognizing that not all the elements necessary for fully effective democracy are present in all countries of the region. Current institutions and values are not always able to keep politicians from misbehaving, to keep the opposition behaving responsibly, and to keep the frustrations of voters from boiling over.

Polls show that Latin Americans by and large don’t trust their governments and their institutions. In turn, political elites in the region often exhibit a deliberate aloofness from the people they are supposed to represent and serve. Too often the activities and concerns of government officials and the majority of citizens spin in separate orbits. That gulf is often reinforced by legal immunity afforded legislators and the de facto impunity afforded many other governmental and political actors.

The resulting mutual mistrust encourages corruption, which takes the form of outright bribery, sweetheart deals for political cronies, or public benefits reserved for a privileged class. And corruption spreads and continues as long as no one is ever held accountable for their actions.

Many formal democratic institutions in Latin America are weak and overly politicized. In some countries there is not one single body--not a Supreme Court, not an Electoral Commission, not a Regulatory Board--which can be relied upon to routinely make impartial, apolitical decisions in accordance with the law.

Many political parties in the region are not doing their job well--they are often bereft of new ideas, too focused on patronage and too dependent on the very particular skills of one charismatic leader. That "spoils" mentality is too often reinforced by electoral systems that favor legislative candidacy via party slate--whereby politicians owe too much allegiance to the party structure and not enough to constituents.

Poverty and the inequality of income and wealth that characterize much of the region make it difficult for democracy to thrive. Under-funded states lack the resources to apply the rules of the game fairly--even when government officials have the political will to try.

Moreover, the global telecommunications revolution has brought home to the masses the huge disparities in lifestyle between the rich and poor, causing many to question whether democracy really is working for them, whether their governments are truly representative and effective.

That perception of unfairness is sharpened by some governments’ tendency to pay scant attention to minority rights--the rights of indigenous peoples, ethnic minorities, women, children, or the disabled.

High crime levels in many nations of the hemisphere dampen voters’ enthusiasm for democratic rule. Providing for the basic safety of its citizens must be job number one for any government--so, if an administration has failed in this essential function can it ever earn the trust of its citizens?

I believe these challenges can be overcome by slowly putting in place some missing pieces of the hemisphere’s democratic puzzle.

Taken together--trust, transparency, effectiveness, inclusiveness, public safety, and political consensus on the need to have decision-making framed by the national welfare--are what enable vibrant democracies to withstand political and economic shocks to the system. They are the essence of "governing justly and well."

Now, I am certain that most of us recognize that democracy in the United States is still being perfected. We sometimes elect corrupt officials. We are still trying to find the correct balance between the freedom of the individual and the need to protect society. We are still debating minority rights issues. The list goes on.

But our system is increasingly effective at heading off confrontations, letting off steam, and riding out crises--from civil war and presidential assassinations to natural disasters and terrorist attacks. It is nothing if not resilient.

Likewise, I firmly believe that the hemisphere’s democracies are growing stronger every day. Indeed, second-generation political and institutional reforms are slowly making their way on to national political agendas in the region.

If I were advising a newly elected president who wants to build a more perfect democracy, what would I recommend? I have a good number of suggestions:

Reach out to the opposition, civil society, and minority groups. Dialogue builds trust, and trust is the key element in encouraging real political participation and keeping the political pot from boiling over.

Publicize your successes. Citizens need to know when their government is effective--when new schools are inaugurated or inoculation programs are undertaken.

A corollary--learn to work with and cultivate responsible media. You can’t publicize your successes or counter your critics without them.

Vigorously prosecute corruption. Peruvian novelist and one-time presidential hopeful Mario Vargas Llosa has observed that cynicism is one of Latin America’s most prominent cultural traits because most citizens consider politics to be the art of enriching oneself. The cycle of cynicism will only be broken when the facts on the ground change.

Institutionalize transparency in government. Sunlight and fresh air are natural disinfectants--consider using electronic procurement for government contracts, sponsoring freedom of information legislation, and establishing an ombudsman office to monitor allegations of corruption.

Deliver accountability of elected officials to their constituents. Politicians are more likely to behave responsibly if they can easily be held accountable by the voters from a defined district or are subject to judicial sanctions.

Empower local government. People do interact with local politicians--granting municipal governments real responsibility and revenue can tamp down corruption and give people a greater sense of direct participation in the political system.

Build an impartial, professional, and apolitical judiciary. Nothing mocks democracy more than a creaky, corrupt justice system. Some countries in the region have enjoyed great success in judicial reform by, for example, streamlining civil code procedures, introducing computerized case tracking systems, staggering the appointment of Supreme Court justices, and naming judicial councils that oversee hiring, firing, and disciplining judicial employees.

Extend economic opportunity to people from all walks of life. It’s impossible to wipe out poverty and inequality overnight. But the path to prosperity is built upon affording individuals the opportunity to pull their own weight and create personal wealth. Focus on such areas as reducing red tape in business registration, broadening access to bank credit, harnessing remittances for productive purposes, and providing wider access to education and property titling.

Professionalize the police force. Not only is public safety a crucial function of government, but police officers are often the most visible personification for most citizens of the power of any administration--so they must act with efficiency and respect.

Work with your partners in the world. We have provided democracy building assistance in the hemisphere ranging from legal code reform and judicial training to anti-corruption projects and conflict resolution.

President Bush has put a premium on good governance and social investment, which he recognizes as critical to the future of the Americas when he announced the Millennium Challenge Account (MCA) initiative. If fully funded by Congress, MCA will increase our core development assistance by 50%, resulting in a $5 billion annual increase over current levels by fiscal year 2006 and beyond. Those monies will be directed to those countries that govern justly and honestly, uphold the rule of law, fight corruption, invest in their people, and promote economic freedom.

Unlike traditional assistance programs, MCA will provide an incentive for countries to invest in their people so that they have the resources and opportunities, such as education, adequate healthcare and nutrition, and equality before the law, to improve their own quality of life and contribute to the greater good.

This is a sound and solid message to our partners in the region. We are ready to help those who help themselves.

Before I concluded my speech this evening, I wanted to touch on an issue that has been in the headlines lately and likely will return. It is clear that in looking over the democratic experience in Latin America over the past 25 years, simply put: elections alone do not a strong democracy make.

Certainly, broad-based, fair, transparent and constitutionally guided elections are essential in conferring a democratic mantle upon an elected leader.

But democratic elections do not bestow a divine right to govern. Which is why we have separation of powers, checks and balances, impeachment clauses, revocatory referenda, etc. to rein in those who abuse their authority.

A genuinely democratic leader is expected to govern within a democratic framework that upholds the rule of law, guarantees basic freedoms, protects minority rights, ensures the integrity of democratic institutions, and perhaps, above all, puts the nation’s interests above personal or political fortunes.

Sometimes elected presidents forget those simple truths. Former President Fujimori of Peru comes to mind, as does former President Jean-Bertrand Aristide of Haiti.

I would argue that Mr. Aristide, through his own actions, squandered his democratic mandate as an elected president over the course of the past eight years by corrupting and undermining the fundamental institutions of his own government. He systematically violated each of the precepts of good governance that I outlined earlier, alienated sectors of civil society, and undermined his moral authority by abusing the rights of others.

In a final act, he chose to resign, avoiding a bloodbath and giving Haitians an opportunity to build a better future.

Today, Haiti is slowly putting itself back together. We, together with the international community, are working to reinforce the new government’s legitimacy and increase its effectiveness.

The creation of a stable democracy in Haiti, unfortunately, is a long-term proposition.

But, I dare say that the timeline for the rest of the countries in the hemisphere is much shorter.

And hopefully other leaders in the region are listening.

Toward the end of their professional lives, historians Will and Ariel Durant penned a short book entitled "The Lessons of History" which attempted to distill the essence from their eleven-volume, "The Story of Civilization."

The Durants observed that, "If we were to judge forms of government from their prevalence and duration in history we should have to give the palm to monarchy; democracies by contrast, have been hectic interludes."

But the pair goes on to conclude that democracy has done "more good…than any other form of government" and to suggest that "democracy will be real and justified" if we understand that "though men cannot be equal, their access to education and opportunity can be made more nearly equal."

Democracies can only fully succeed if all citizens believe that they have been granted the right and opportunity to succeed as individuals. Any leader in a democracy who ignores that imperative--who doesn’t equally apply the law, broaden educational opportunity, and reward individual economic enterprise--may indeed learn the hard way that democracy can be nothing more than a "hectic interlude."

Thank you.