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Department Seal Peter F. Romero, Acting Assistant Secretary
Bureau of Western Hemisphere Affairs
"U.S. Policy in the Western Hemisphere in the New Century,"
Fourth Annual Americas Conference, Miami, Florida, September 15, 2000

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As prepared

It is indeed a great pleasure to be back in Miami and to be in the company of friends and colleagues who share my belief that the opening of this new century is a moment of enormous opportunity for the Western Hemisphere. This is a good time to take stock and reflect on what we have accomplished in the region, and look ahead to the challenges remaining. Let me try to outline for you the U.S. perspective.

The United States Government has sought to focus on strengthening democracy - with a greater effort to collaborate with regional partners and the OAS, to foster economic development, and to help societies protect themselves from the onslaught of transnational crime especially the scourge of narcotics. Even as we prepare for the November elections in the United States and a new administration in January, our principal aims in the Western Hemisphere will remain unchanged. I believe that all of you have gotten a good sense of this through the statements of both candidates. Whatever the outcome, there is no question that the U.S. will remain actively engaged in the Hemisphere in support of strengthening democratic institutions and economic development.

An important force is at work, reshaping the landscape of the Americas: integration. Hemispheric integration forms the critical backdrop against which future U.S. relations with Latin America and the Caribbean will be played out. These increasing ties in the Hemisphere are obvious in the United States where we are seeing a steadily increasing portion of our population with Latin American or Caribbean roots. Hispanics are 9% of our population and it is estimated this will increase to 14% by 2010, making Hispanics our largest minority group. Elections, political violence, economic downturns, or natural disasters in the region are no longer distant events happening to remote strangers but immediate events with implications to our families, friends, and neighbors, as Miamians have known for a long time.

Strengthening Democracy

The integration of this region on a variety of fronts is increasingly possible because the shared vision of democracy has become the central feature of the political landscape in Latin America over the last 20 years. About 95% of the people in this Hemisphere continue to enjoy stable, constitutional democracy -- more about that other 5% later! We can all note with pride that the past year has seen historic elections in Mexico, and credible democratic elections in Venezuela, Chile, Argentina, Uruguay, Suriname, St. Kitts and Nevis, and the Dominican Republic. We all know that democratic elections are only the critical first step in democratic processes. In Paraguay and Ecuador, forces loyal to constitutional democracy -- including the vast majority of the military -- resisted the efforts of a disaffected few and preserved democratic, constitutional government. While democracy is widespread, recent events remind us that progress has been uneven and great challenges remain. Coup attempts in Paraguay and Ecuador, a flawed presidential election in Peru, suspect elections in Haiti, Colombia's continuing civil conflict, and Cuba's continuing refusal to embrace democracy -- all this has led to a growing preoccupation that democracy is threatened throughout Latin America.

In our effort to meet these challenges, we need to guard strongly against the notion that having democratic structures in place is by itself sufficient. Achieving free elections is only half the battle; the harder part is creating institutions that respond effectively to the basic needs of citizens. Judicial systems in the Hemisphere are often cumbersome, slow, and anachronistic. Some legal codes date back to the last century and have not been reformed to take into account modern crimes like narcotics, cyber crime, trafficking in persons, and money laundering. Unfortunately, soaring crime rates in Latin America have prompted some to short-circuit democratic norms or to support vigilante justice. In many countries, there is also no tradition of compromise or sharing power -- many political parties have a win-at-all cost mentality. Corruption continues to divert public funds into the pockets of corrupt officials. These are challenges democracies in the region continue to face in varying degrees everyday. It is not surprising therefore that there is "some slippage" on democratic principles. The key test is what we, the Americas, do about it.

Indeed, opinion polls in some Western Hemisphere countries reveal that while the public endorses democracy as a philosophical concept they are less satisfied with the performance of the system. According to a Hemisphere-wide survey conducted during the beginning of this year, while 60% of Latin Americans prefer democracy to any other type of government, a solid minority -- 17% -- continues to believe that in some circumstances an authoritarian regime may be preferable to a democratic one. Another 17% are indifferent to the type of government in place and these numbers are growing.

Despite majority support for democracy as a concept, 60% of citizens in the Hemisphere continue to express doubts about the state of their own democracies, including 54% region-wide who are "not satisfied at all." Much of the dissatisfaction mirrored in these responses is a reflection of the disappointment with the limits of social and economic mobility, and in some countries, like Venezuela, the erosion of the traditional middle classes. There is a sense on the part of the common citizen that the system might be working for some, but certainly not for them. A critical element in the success of a democracy, therefore, must be its ability to deliver the "goods:" respect for human rights, efficient public services, equitable justice, physical security, a decent living standard, and hope for the future.

In an effort to address these issues, we now need to look more systematically at democracy in the region and to address the need for a "second generation" of democratic development. As part of this effort, we must continue to encourage the growing synergy between non-governmental organizations (NGOs) and the private sector. Many of their interests are similar, including the battle against corruption and for transparency. In working together, NGOs and the private sector can put their collective muscle behind reform.

Promote Economic Progress

The "connectedness" of the U.S. with its neighbors in the region is further confirmed by the second goal of U.S. policy in the Western Hemisphere, the effort to promote economic progress. Central to our growing regional integration is our trade relationship. When the economic health of those beyond U.S. borders deteriorates, the impact of that decline is felt in the U.S. with lightning speed. Foreign exports decline and jobs dry up. Legal and illegal immigration increases dramatically. Countries face a greater susceptibility to lawlessness. Conversely, when economic times are good then Canadians and Colombians buy more computers and more cars and McDonalds invests in Guayaquil and the Gap opens a store in Buenos Aires. More importantly, jobs are created and prosperity is expanded.

Latin American countries are stepping into the 21st century with more market-oriented economies, improved regulatory systems, and sounder financial systems. Half or more of the publics in seventeen countries continue to think a market economy is "most convenient," but this support needs to be stronger. Trade among nations of this Hemisphere is strong and growing.

The bad news is that economic development has failed to keep pace with the expectations democracy has generated. It is no coincidence that the most deeply troubled democracies are those with the most deeply strained economies and shallow democratic institutions and traditions. Central to the political problems that have afflicted a number of countries in the region has been the failure of governments to address a profound and deeply-rooted problem: the most skewed distribution of wealth in the world. By some calculations a mere 15% of Latin America and the Caribbean's population controls 85% of the region's wealth.

Abject poverty is still a way of life for over 150 million people in Latin America and the Caribbean. About one-third of the people in this Hemisphere live on 2 dollars a day or less. Even in places such as Mexico and the Dominican Republic, where there have been substantial gains in virtually every other economic measure, the benefits of those gains have not been widely shared.

The U. S. Government is working with its regional partners, the other developed countries, the private sector, international organizations, the international financial institutions, and the NGOs to assist in systematically addressing these issues such as poverty. Through the Summit of Americas process, we seek to promote not just freer trade, but improved education and long-term investment in the human capital required to help a democracy succeed and to assure that a strong and equitable economic system develops. This Administration is seeking debt relief for highly indebted poor countries, like Bolivia, that are committed to economic reform and poverty reduction.

Transnational Crime

The USG's third policy goal is to confront transnational crime more effectively, in large part by enhancing international law enforcement cooperation. This past year has produced both new concern and a renewed hope for real progress in our efforts to confront the plague of narcotics.

On the positive side, the recent passage by Congress of the $1.3 billion supplemental package in support of "Plan Colombia" offers hope of an integrated, more systematic offensive against producers and traffickers and against the institutions that support them. Currently, this support package seeks to deal with all dimensions of Colombia's narcotics crisis: growers, processors, transporters, the antiquated and often corrupt judicial systems that mete out ineffective justice, and the Latin American public which far too often sees drugs as only a "gringo" problem. At the same time, we must carefully monitor the narcotics situation in other countries in the region lest we merely move the problem from Colombia to elsewhere.

Achievements and Successes

As the 21st century begins, the Western Hemisphere remains a region in transition, but holding the greatest promise for the U.S. In the midst of this transition, the U.S. has had considerable successes. In the last four years we have arguably developed the best relationships with our hemispheric partners than at any other time in our history. Largely because we have afforded them the respect that they are due and have forged partnerships with them bilaterally and in multilateral fora like the OAS and UN.

  • The U. S. Government has been a stalwart guarantor of democratic processes and preserved democracy in places like Ecuador and Haiti.
  • We secured broad support in the Hemisphere for passage of the Cuba human rights resolutions at the UN Commission on Human Rights the past two years; on Cuba there is great resonance and support for our people-to-people measures that are breaking through the isolation of the Cuban people.
  • The USG, and the other guarantors, succeeded in assisting Peru and Ecuador conclude an agreement ending their 170-year border dispute.
  • Working with OAS partners the U.S. created an hemispheric drug strategy to include the Multilateral Evaluation Mechanism (MEM).
  • We have institutionalized the Summit of the Americas process and preparations for the Third Summit of the Americas in Quebec in April 2001 are underway.
  • At the OAS, the USG established a fund to spur preventive diplomacy to support democracies under stress. We are working even more closely with such hemispheric partners as Argentina, Brazil, Chile, Canada, and CARICOM.

The U.S. has also promoted free trade and economic integration:

  • Passage of the Caribbean Basin Trade Promotion Act (CBTPA) caps a six-year effort to extend NAFTA-like benefits to Caribbean and Central American countries.
  • The Free Trade Area of the Americas (FTAA) will lead to greater, Hemisphere-wide benefits. FTAA negotiations are on schedule.
  • NAFTA works: U.S. trade with Canada is $1.2 billion per day, making Canada our leading trade partner, with Mexico not far behind.
  • The U.S. stood firmly by Brazil in 1999 to mitigate the effects of the Asian financial flu and to arrest currency pressures there.

Acting bilaterally

  • The U.S.Government successfully turned over the Panama Canal in a seamless transition to the Panamanians.
  • With considerable direct U.S. assistance Bolivia and Peru cut over 50% of coca production and the Colombia Supplemental will give us the wherewithal to make further progress in Colombia.
  • With the loss of Howard Air Force base in Panama, the U.S. has concluded negotiations for 3 Forward Operating Locations (FOLs): Aruba/Curacao, Ecuador, and El Salvador to monitor and intercept drug flights.
  • The U.S. helped rescue Central America and the Caribbean from devastating hurricanes by passage of a mega $600 million package of relief.

The Road Ahead

The next administration, whether led by a Democrat or Republican, must build on these successes and continue to support efforts to expand the reach of democracy; to develop modern, productive, equitable economies; to excise the cancer of narcotics; and to deepen and make more effective law enforcement cooperation. In our pursuit of these goals we must build on "preventive diplomacy" efforts in support of democracy. This will require even deeper collaboration with our hemispheric partners. A key will be to enhance OAS mechanisms and capacities to allow this organization to act before democracy is under direct threat. We must also move forward on free trade and the FTAA. In the counternarcotics arena, we must continue to support Colombia both in the implementation of and follow-up to the supplemental aid package and Plan Colombia. Finally, we must remain vigilant in order to address any possible spill over effects on Colombia's neighbors emanating from the success of Plan Colombia.

Addressing these challenges is essential for U.S. national interests in the 21st century. Yet, some in America fear we will attempt too much in foreign affairs. No one can deny however that stable, economically developed democracies are the best neighbors and the best trading partners. To support U.S. efforts in this Hemisphere and elsewhere, therefore, we need the resources to do our job. During the next few weeks, Congress will complete work on FY 2001 appropriations bills for international affairs. Thus far, the House and Senate bills fail to provide adequate funding for critical national security programs -- cutting the President's overall request by 8% to 12%.

If allowed to stand, the proposed cuts in international affairs funding would seriously undermine America's capacity to exercise leadership, protect the interests of our citizens, and shape the course of world events. On the other hand full funding of the President's request would finance vital international affairs programs and activities without detracting from our defense and domestic needs. The Administration's request represents a mere 1% of the federal budget. Yet, as Secretary Albright says this "1% may determine 50% of the history that is written about our era. And it will affect the lives of 100% of the American people." Nowhere is this statement truer than in this Hemisphere. It is not an exaggeration, therefore, to say that every person in the United States has a stake in the future of this Hemisphere. Just as this Administration has, the next must -- and I believe will -- also give the Hemisphere the highest priority.

[end of document]

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