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Brazil / Background 12/01/90 [OA 8320] [3]
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Brazil / Background 12/01/90 [OA 8320] [3]
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Speech Backup Chronological Files
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Originally Processed With FOIA(s):
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This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
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Speech File Backup Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13741
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13741-001
Folder Title:
Brazil/Background 12/01/90 [OA 8320] [3]
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26
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2
1
SHOTS
gamma glabulin
tetanus
polio (adult)
yellow fever
check passport
-Aug.6
08/02/90 17:28
202 647 8098
AID/LAC/DR/RD
001
FAX TRANSMITTAL
USDA/OICD - AID/LAC/DR/E
UNITED STATES BF AMERICA
FAX # (202) 647-8098
DATE:
August 2, 1990
TO: Carolyn Cawley
ORGANIZATION: White House - Speech writing Office
TELEPHONE NUMBER OF RECIPIENT: 456-7750
FAX NUMBER SENT TO: 456-6218
FROM:
LAC/DR/E, JAMES HESTER
TELEPHONE: (202)-647-8093
NUMBER OF PAGES SENT INCLUDING THIS COVER SHEET:
MESSAGE: Carolyn, As requested, here is an
unofficial summary of the new A.I.D. global
climate change program in in Brazil. Let me
know if you need more info, please call.
Jim Hester
Chief
Environment, Energy and Science Sta
Bureau for Latin America
and the Caribbean
08/02/90
17:29
202 647 8098
AID/LAC/DR/RD
002
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON, D.C. 20523
FY 1990 Global Climate Change Activities in Brazil
($000)
Latin America and Caribbean Bureau (LAC) Funded Activities:
Environment/Global Climate Change Program (598-0784) funds:
1) U. of Florida grant: Agroforestry/Sustainable Forest
promotion for Small Producers in the State of Acre
295
2) Energy Efficiency Institute development
200
3) Natural Resource Economics Workshop
100
4) Development of Program Monitoring & Evaluation Plan
25
5) World Wildlife Fund grant:
425
a. Environmental Impact Assessment process in Acre
b. Amapa Extractive Reserve
C. Fundacao Vitoria Amazonica: ecotourism/education
d. Local NGO strengthening for influencing policy
e. Federal Environment Secretariat planning and policy
6) Program Implementation Support for A.I.D./Brazil
a. Planning Specialist (2 year contract)
100
b. Secretarial Support (1 year contract)
25
Project Development and Support (598-0000) funds:
7) Program design
30
Environmental Support Project (598-0780) funds:
8) Global Climate Change Advisor (stationed in Brazil)
110
LAC Subtotal
$1,310
Science and Technology Bureau (S&T) Funded Activities:
9) Activities through World Wildlife Fund:
350
a. Policy analysis and action grants through the
Center for Sustainable Development of the Amazon.
b. Forestry Demonstration Projects with CPATU
10 Smithsonian/INPA: Biological Dynamics of Forest
Fragment Project -- enhanced outreach and training
107
11) Woods Hole Research Center: Restoring Agricul-
tural Productivity on Degraded Amazonian Lands
94
12) Energy Efficiency Institute development
250
S&T Subtotal*
801
A.I.D. Grand Total
$2,111
*S&T is considering an additional
$50-60 thousand worth of activities
Economic Summits, 1981-89
United States Department of State
Public
Bureau of Public Affairs
Information
Washington, D.C.
Series
May 1990
Leaders of seven industrial countries-
the United States, Japan, the Federal
Republic of Germany, France, the United
Kingdom, Italy, and Canada-plus the
President of the European Community
Commission have discussed and made
decisions on a wide range of international
economic and political issues at economic
summit meetings that have been held
annually since 1975. The following infor-
mation provides background on each of
the last nine summits.
Paris, July 14-16, 1989
Summary
The Paris summit marked the celebration
of the 200th anniversary of the French
Revolution and the Declaration of the
Rights of Man. It also was the first
economic summit meeting for President
Participants in the July 1989 Paris economic summit from left to right: Jacques Delors,
Bush, who had just returned from trips to
President of the European Community Commission; Prime Minister Ciriaco De Mita (Italy);
Poland and Hungary. These develop-
Chancellor Helmut Kohl (FRG); President Bush; President Francois Mitterrand (France);
ments reinforced for the summit leaders
Prime Minister Margaret Thatcher (UK); Prime Minister Brian Mulroney (Canada); and
the importance of supporting political and
Prime Minister Sosuke Uno (Japan). (White House photo by Susan Biddle)
economic reform in Eastern Europe. The
leaders also expressed strong concern
about environmental and narcotics issues;
debt strategy that will rely, on a case-by-
Commitment to limit the emissions
at least one-third of the economic declara-
case basis, on such actions as economic
of carbon dioxide and other greenhouse
tion dealt with the environment.
reforms by developing countries, more
gases as well as conclusion of an interna-
resources by a financially stronger World
tional framework convention on global
Economic Accomplishments
Bank and the International Monetary
climate change.
Fund (IMF), continued debt rescheduling
Support for the preservation of
Agreement on several multilateral
by creditor governments, and more
tropical forests and condemnation of the
trade issues, including a pledge to make
voluntary, market-based debt reductions
practice of dumping waste in the oceans.
effective use of the GATT (General
by commercial banks.
Agreement on Tariffs and Trade) dispute
Continued cooperation in foreign
settlement mechanism, to avoid new
Political Accomplishments
exchange markets.
restrictive trade measures inconsistent
Support for ending as soon as pos-
Call for a meeting of all interested
with the GATT, and to make further sub-
sible and not later than the end of the
parties to discuss concerted assistance to
stantial progress in the Uruguay Round
century the production and consumption
Poland and Hungary and a request that
in order to complete it by the end of 1990.
of chlorofluorocarbons covered by the
the European Community coordinate
Commitment to a strengthened
Montreal Protocol on Substances that
these efforts.
Deplete the Ozone Layer.
Support for effective programs to
indirect subsidies affecting agricultural
signals to influence the orientation of
stop illegal drug production and traffick-
trade.
production, and to work in concert to
ing, including assistance to the antidrug
Support for a $75 billion general
adjust agricultural policies, both domesti-
efforts of producing countries and the
capital increase for the World Bank to
cally and in the Uruguay Round.
United Nations, increased international
strengthen its capacity to promote
Call for newly industrialized coun-
cooperation to seize drug proceeds and
adjustment in middle-income developing
tries with rapid growth and large external
prevent money laundering, and support
countries.
surpluses to reduce trade barriers and al-
for a 1990 international conference on
Agreement to relieve the debt bur-
low their currencies more fully to reflect
cocaine and drug demand reduction.
dens of the poorest developing countries,
underlying economic conditions.
Continued strong condemnation of
particularly in sub-Saharan Africa, by
international terrorism by states, includ-
urging creditors to grant partial debt for-
Political Accomplishments
ing hostage taking and attacks against
giveness, reduced interest rates, and/or
international civil aviation.
lengthened debt maturities.
Agreement affirming the principle
Condemnation of political repres-
Support for the ratification of the
of freedom of navigation in the Persian
sion in China and agreement to suspend
Montreal agreement on the ozone layer
Gulf and the importance of the free flow of
the shipment of arms and the extension of
and the completion of other ongoing nego-
oil and other traffic through the water-
loans to China.
tiations on emissions and the transport of
way, and supporting the adoption of just
hazardous wastes.
and effective measures by the UN Secu-
rity Council to resolve the conflict.
Toronto, June 19-21, 1988
Political Accomplishments
Agreement on the need for more ef-
fective national efforts and international
Summary
Confirmation of the policy of con-
coordination to prevent the acquired im-
structive dialogue and cooperation be-
mune deficiency syndrome (AIDS) from
The summit, one of the most harmonious
tween East and West, particularly in the
spreading further.
of the 1980s, marked the end of the second
light of greater freedom and openness in
7-year cycle of economic meetings. The
the Soviet Union.
leaders expressed satisfaction at their ac-
Reaffirmation of previous summit
Tokyo, May 4-6, 1986
complishments in bringing down inflation
agreements to combat terrorism and sup-
in the 1980s and laying the basis for
port for the policy of no takeoffs for
Summary
sustained strong growth and improved
hijacked aircraft once they have landed.
productivity. Among still unresolved
The Tokyo meeting, by achieving signifi-
Support for US Government initia-
problems they noted the emergence of
cant economic and political declarations,
tives to improve cooperation against nar-
was hailed as one of the most successful
large payments imbalances among major
cotics trafficking.
countries, greater exchange rate volatil-
economic summits in recent memory.
ity, and continuing debt service difficulty
There was greater specificity about at-
in developing countries. In response to
Venice, June 8-10, 1987
tempts to increase policy coordination and
these developments, the leaders made
a decision to begin a new round of trade
further refinements in the multilateral
Summary
talks. On the political side, the joint
statement on terrorism was a landmark
surveillance system to improve the
coordination of their economic policies.
The Venice summit took place against a
achievement. One reason for the success
They also committed themselves to
backdrop of escalating tension in the Per-
was that leaders at the Tokyo meeting
further trade liberalization at the Uru-
sian Gulf. On the economic front, the
had considerable experience dealing with
guay Round and offered new initiatives to
summit leaders addressed the continuing
each other at previous summits.
issue of how to reconcile domestic eco-
relieve the debt burden of the poorest de-
nomic policies with the need for a more
veloping countries.
Economic Accomplishments
stable international monetary, financial,
Economic Accomplishments
and trading system.
Establishment of new arrange-
ments to assess the consistency and
Improvement of the multilateral
Economic Accomplishments
compatibility of their economic policies,
surveillance system by adding a commod-
based on economic indicators, and includ-
Reaffirmation that further shifts in
ity price indicator to the existing indica-
ing enhanced surveillance over exchange
tors monitored by the seven nations, and
exchange rates could be counterproduc-
rates.
tive.
by integrating national structural policies
Formation of a new Group of 7 (fi-
into the economic coordination process.
Agreement on the need for effec-
nance ministers of summit nations) to
tive structural adjustment policies, espe-
Support for efforts at the Uruguay
achieve greater economic policy coordina-
Round to achieve trade liberalization in all
cially for creating jobs.
tion.
+
Agreement to improve the multilat-
areas including trade in services, intellec-
Agreement to use the September
eral trading system under the GATT and
tual property rights (such as copyrights
1986 GATT ministerial meeting in Uru-
to bring about wider coverage of world
and trademarks); and trade-related in-
guay as a platform for launching the new
trade under agreed, effective, and
vestment measures, to strengthen the
round of multilateral trade negotiations
GATT's surveillance and enforcement
enforceable multilateral discipline.
and to support an extension of GATT
Agreement that the long-term ob-
mechanism, and to reduce all direct and
discipline to new areas such as services,
jective in agriculture is to allow market
2
intellectual property, and investment.
Agreement to give increased impe-
in which the human spirit could develop in
Recognition of the need to cooper-
tus to preparations for the launching of
freedom and diversity.
ate to redirect agricultural policies and
new multilateral trade negotiations under
Determination to pursue the search
adjust the structure of agricultural pro-
the auspices of the GATT.
for extended political dialogue and long-
duction in light of world demand.
term cooperation with the Soviet Union
Endorsement of measures to assist
Political Accomplishments
and its allies and endorsement of US will-
Third World development, including the
US initiative to alleviate debtor country
Support of the US negotiating posi-
ingness to resume nuclear arms control
tion in the arms control talks with the So-
talks with the Soviet Union.
problems, in order to encourage implem-
viet Union, which was urged to act posi-
Commitment to consult and cooper-
entation of effective structural adjust-
tively and constructively to reach agree-
ate in expelling or excluding known ter-
ment policies, and increased financial
ment.
rorists from their countries.
support to the International Development
Association and the IMF.
Commitment to fighting the com-
Hope for a peaceful and honorable
mon threat posed by growing interna-
settlement to the Iran-Iraq conflict.
Political Accomplishments
tional drug trafficking and abuse, includ-
ing the coordination of legislation to
Williamsburg, May 28-30,
Agreement on a tough statement
thwart international drug smuggling.
denouncing international terrorism, vow-
1983
ing to fight it relentlessly and singling out
Libya as a key target in the fight against
London, June 7-9, 1984
Summary
terrorism.
The United States hosted a very success-
Call for a new international conven-
Summary
ful summit as virtually all President
tion requiring information exchanges on
The meeting marked the passage from a
Reagan's economic and political objectives
nuclear accidents and emergencies, in the
period of constructing firm domestic bases
were fulfilled. As Western economies
wake of the accident at the Chernobyl nu-
for noninflationary growth to one of en-
were beginning to recover, the allied
clear power station.
hancing the openness of international
leaders accepted several US economic
Commitment to continued East-
trade and finance. As the previous Wil-
policies (e.g., lower taxes, more emphasis
West dialogue and negotiation, and sup-
liamsburg summit signaled the beginning
on private sector initiative). The allies
port for a balanced, substantial, and veri-
of recovery and offered an outline of
acknowledged the need for united action
fiable arms reduction agreement.
future strategies in the international
to bring about domestic and global
economy, the London summit gave a
economic growth. The joint statement on
Bonn, May 2-4, 1985
clearer focus to future tasks and actions.
intermediate-range nuclear forces (INF)
There was a strong endorsement of the
also was an important victory for the
Summary
basic anti-inflationary stance first
United States because it specifically en-
advocated by President Reagan at the
dorsed the diplomatic and military
The summit participants undertook to
Ottawa summit in 1981. The political dec-
strategy that the United States and its
pursue, individually and cooperatively,
larations were the cornerstone of the
NATO allies were pursuing in relation to
policies conducive to sustained growth
London summit.
the Soviet Union. The introduction of
and higher employment. Building on
more flexibility and informality into the
common, agreed principles for achieving
Economic Accomplishments
proceedings (e.g., less previously pre-
these goals, the leaders indicated specific
Agreement to continue and
pared texts) contributed to the successful
priorities for their own national policies.
strengthen policies to reduce inflation,
meeting.
The United States asked the Federal
Republic of Germany and Japan to stimu-
interest rates, and budget deficits and to
late their economies. The leaders under-
control monetary growth.
Economic Accomplishments
took to seek to make the functioning of
Commitment to work toward
Agreement on broad strategies to
the world monetary system more stable
making their economies more competitive
consolidate domestic and international
and more effective, and discussed ways to
and flexible to reduce unemployment and
economic recovery, including steps to
reach more realistic exchange rate rela-
develop new technologies.
reverse the trend toward protectionism,
tionships.
Agreement to take steps to ease
promote greater convergence of economic
the repayment terms of Third World
performance, and encourage the develop-
Economic Accomplishments
debtor countries working to improve their
ment of new technologies.
economic performance.
Commitment to reduce structural
Agreement to work to strengthen
budget deficits by limiting the growth of
their economies, halt protectionism, im-
Political Accomplishments
expenditures and to pursue appropriate
prove international monetary stability,
budgetary and monetary policies to lower
increase employment, and reduce social
In a 500-word Declaration on
interest rates, inflation, and unemploy-
inequities.
Democratic Values, affirmation of their
ment.
Promise to follow prudent economic
commitment to a rule of law which re-
Decision to convene a meeting of fi-
policies, including the exercise of firm con-
spects and protects the rights and liber-
nance ministers to review and improve
trol over public spending to reduce
ties of every citizen and provides a setting
the operation of the international mone-
budget deficits.
tary system.
3
Commitment to energy conserva-
primary vehicle for achieving stable ex-
Economic Accomplishments
tion and the development of alternative.
change rates.
energy sources.
Agreement that the goals of reduc-
Agreement to pursue prudent
Reaffirmation that East-West eco-
ing inflation and unemployment were
monetary policies and achieve greater
nomic relations should be compatible with
highest priority and that low and stable
control of budgetary deficits in order to
the security interests of the allies.
bring down high interest rates.
monetary growth was essential to bring
down inflation.
Prudent use of government export
Commitment to liberal interna-
Political Accomplishments
credits to the Soviet Union and its allies.
tional trade policies and continued opposi-
Agreement to achieve lower levels
Efforts to improve the multilateral
tion to protectionist pressures.
of arms through serious arms control ne-
system controlling the export of strategic
Commitment to accelerated devel-
gotiations with the Soviet Union, and a
goods to the Soviet Union and its allies.
opment and use of all energy sources and
commitment to procèed with INF deploy-
Approval of a preparatory process
encouragement of greater public accep-
ment if the negotiations failed to result in
of negotiations on assistance to develop-
tance of nuclear energy.
an accord.
ing countries and development of other
Agreement to consult and coordi-
forms of practical cooperation with them.
nate economic policies relating to East-
Versailles, June 4-6, 1982
West trade and to ensure that these poli-
Political Accomplishments
cies were compatible with political and
Call for an immediate halt to vio-
security objectives. Agreement on the
Summary
lence by all parties in Lebanon, in the
need to upgrade existing controls on
The summit was surrounded by contro-
wake of the Israeli invasion there.
exports of strategic goods to the Soviet
versy over the issue (settled 6 months
Union and its allies.
later) of oil pipeline equipment sanctions
Ottawa, July 19-21, 1981
against the Soviet Union, including the
Political Accomplishments
question of the applicability of US law to
European companies: The leaders agreed
Summary
Condemnation of the continuing
Soviet occupation of Afghanistan.
to pursue greater coordination of their
This summit was a "get-acquainted" ses-
Condemnation of international ter-
economic policies and to seek convergence
of economic performance, at a time of
sion between President Reagan and the
rorism.
other allied leaders. The President em-
Disapproval of the escalation of ten-
recession in the Western industrial
countries.
phasized his domestic economic policies to
sion and the continuing acts of violence in
promote sustainable, market-oriented,
the Middle East.
Economic Accomplishments
and noninflationary growth. He also
called attention to the potential for
Public Information Series
Published by
Establishment of a multilateral sur-
erosion of Western security resulting
the United States Department of State
veillance system to enable countries to
from excessive dependence on Soviet
Bureau of Public Affairs
Office of Public
consult on economic policies and seek con-
energy resources (notably natural gas)
Communication
Editorial Division
vergence of economic performance as the
and the export of strategic goods to the
Writers: Robert Coe/William Sanford
Soviet Union.
Editor: Juanita Adams
Washington, DC
May 1990
PA/PC, Mailing List
United States Department of State
BULK RATE
Washington, DC 20520-6810
POSTAGE & FEES PAID
US Department of State
Permit No. G-130
OFFICIAL BUSINESS
PENALTY FOR PRIVATE USE
Address Correction Requested
Secretary Baker
Current
Latin America and the
Policy
No. 1160
U.S. A New Partnership
United States Department of State
Bureau of Public Affairs
Washington, D.C.
defending human rights in the Helsinki
Soon we will enter the 21st centu-
Following is an address by Secretary
Baker before the Carter Presidential
Final Act. So I very much appreciate
ry, and we face a choice between two
Center's Consultation on a New
the hospitality of each of these Presi-
very different futures. Down one road
Hemispheric Agenda, Atlanta,
dents in inviting me to join you today.
lies a vision of freedom and oppor-
tunity and economic development. It's
Georgia, March 30, 1989.
a vision in which all our citizens can
Historic Changes
share as partners in a global economy
I am truly delighted to have the oppor-
I think we meet at a truly historic mo-
and a true community of democratic na-
tunity to be here today. It is a special
privilege for me to join two American
ment for Latin America and for the
tions. Down the other road lies a failed
leaders who together, I think, really
United States. Across the Americas to-
vision. A vision of dictatorship and
symbolize the promise of bipartisan
day, from Punta del Este to California,
state control and missed opportunities.
foreign policy, President Jimmy Carter
an old order is dying and a new world is
We know which road we must travel,
and President Gerald Ford. Let me
struggling to be born.
and we know that we have got to make
start, if I might, by saying a brief word
Brazil is manufacturing communi-
that journey together. To put it simply,
cation satellites. Mexico has joined the
we need each other now as we have
about each of these two former
GATT [General Agreement on Tariffs
never before.
Presidents.
I think it is noteworthy that just 5
and Trade]. A new vision of regional
days ago, we celebrated the 10th anni-
trade and int egration is taking shape
Common Challenges
versary of the Camp David accords. All
in the Caribbean Basin. And the winds
of the bright promises of that historic
of democracy are blowing across our
The agenda of issues before this impor-
hemisphere, from Chile to Paraguay to
tant conference confirms that new
treaty have, of course, not yet been re-
alized, but we should take note of the
Central America.
reality-democracy; development;
fact that for 10 years neither Israel's
The United States does not stand
drugs; debt; trade; migration; the envi-
aloof from the historic changes which
ronment; nuclear proliferation. These
sons nor Egypt's sons have died in bat-
tle with each other, and peace reigns
are transforming our hemisphere-in
are neither North American nor Latin
today on the Šinai. That historic treaty
fact, quite the opposite. We are proudly
American responsibilities. They are
rediscovering our shared heritage with
the common challenges that we are
will forever be a monument to the vi-
sion and leadership of three men of
Latin America.
going to have to confront together to
peace: Anwar Sadat, Menachem Begin,
Stand in Miami today, or go as I do
shape successfully our shared destiny.
and President Jimmy Carter,
occasionally to San Antonio. Close your
In recent weeks and months, Presi-
I was also struck on my recent tour
eyes and listen. You could easily imag-
dent Bush and I have heard that very
of Europe by the new, historic stirrings
ine yourself in Caracas or in San Jose.
message. We have heard it from Presi-
for greater freedom and democracy in
The fifth largest Spanish-speaking
dent Salinas [Mexico], President Al-
Eastern Europe from Poland to Hun-
community in the world now lives in the
fonsin [Argentina], President Perez
United States. Our culture and econ-
[Venezuela], President Azcona [Hon-
gary; indeed, to the Soviet Union it-
omy are vastly enriched by the contri-
duras], President Cerezo [Guatemala],
self. There are many causes, of course,
bution of these Americans.
and President Duarte [El Salvador],
for these profound changes, but surely
and we have heard it from Prime Minis-
history will record that one of those im-
ters Eugenia Charles [Dominica] and
portant reasons is the leadership that
Michael Manley [Jamaica]-all of whom
was shown by President Gerald Ford in
were recently welcomed visitors to
economy releases the energies of indi-
Instead, it must create a climate for
Washington. We have heard that mes-
viduals and entrepreneurs, that it re-
investment-a climate that will bring
sage as well from many of those of you
wards initiative, and that it offers
flight capital back to the region and
upward mobility. Economic liberty is
that will attract new capital flows.
in this room.
I think that Latin America's demo-
the surest way to fulfill the aspirations
Debt is a problem, but it is really also a
cratic leaders are reaching out to the
of all of our citizens. Those Latin na-
symptom of, sometimes, a greater
United States to offer a new partner-
tions which have turned to this model
problem. If there were a magic solution
ship. A partnership built on mutual re-
have already begun to see a tangible
that did not require structural econom-
spect and a partnership built on shared
reward.
ic reform, then those nations which
responsbility. I am here on behalf of a
During earlier phases of our his-
have declared a moratorium on debt
new President of the United States and
tory, we in the United States too often
would be growing well today, but that
a new Administration with our answer:
sought rapid growth at the expense of
simply is not the case. Instead, they
We are reaching back to you.
our nation's environment. We hope that
are in deeper economic crisis. Today,
The problems we face will not be
here our experience can help Latin na-
democratic governments must try to re-
resolved through quick promises or
tions learn from our mistakes, rather
form bloated state economies, service
through easy answers. Instead, we
then repeat those mistakes.
their debt and, at the same time, satis-
have got to confront them together. We
While we have much to learn from
fy the real needs of their citizens. We
have got to confront them with candor.
each other, we also have much to expect
understand that facing this challenge
We have got to confront them with
from each other. Together, we have got
alone is a nearly impossible juggling
courage. And we have got to confront
to set aside the easy politics of blame
act.
them with commitment. Let us begin
and the easy politics of mutual re-
by recognizing a simple truth that we,
crimination. Let us forge, instead, a
The Need for a Cooperative Approach
I think, have too often forgotten in the
new bond of cooperation and a new
past. We really do have a lot to learn
bond of mutual responsibility.
We do not expect Latin American na-
from each other.
Those mutual responsibilities are
tions to face this challenge alone. As
In recent years, the people of
the subject of this conference, and we
these nations move forward to take the
North America have learned a lesson
will discuss them also in our private
necessary, but difficult, steps to re-
from the people of Latin America. A
dialogue. Let me, if I might, mention
structure and reform their economies,
lesson about personal courage and the
a few of those subjects very briefly.
we must be prepared to hear their
passion of ordinary people to simply be
calls for help. And we accept that
free. Peasants and political leaders,
responsibility.
Democracy and Prosperity
Within the first 5 weeks of our Ad-
shopkeepers and market ladies have
defied death threats and guerrilla
The democratic wave sweeping Latin
ministration, we have announced a new
violence, colonels and comandantes,
America today has been propelled by
approach to help reduce Latin Ameri-
the aspirations of ordinary people for
ca's debt burden. In the weeks and
to fight for democracy. I think we
learned that lesson again 10 days ago in
freedom and a better life. Now one
months to come, we must negotiate
El Salvador.
question, above all others, confronts
case by case the details of that policy to
We have watched far-sighted demo-
this hemisphere: Can democracy really
ensure continued economic reform, to
cratic leaders take the first vital, and
deliver?
ensure a real reduction in existing debt
often politically difficult, steps to shed
Can democratic governments begin
burdens-and, very importantly, to en-
layers of state regulation and special
to satisfy their peoples' basic needs for
sure new capital flows into the future.
preference that for too long have held in
jobs, for health care, for homes, and for
If we ask Latin America to strip
check the creative, productive energies
schools? Can fragile new civilian re-
away the layers of protection that
of Latin America. And we have learned
gimes construct and strengthen demo-
shield their economies from the free
a lesson from Latin America about po-
cratic institutions, protect their
flow of trade in goods and services,
litical leadership.
citizens against organized violence
then we in the United States, too, must
We continue to be reminded of
from both the extreme right and left,
confront protectionism and steadily
the values that we hold dear by Latin
and normalize succession of power
reduce the barriers to products.
America's special sense of family,
through peaceful electoral processes?
If we ask that you confront the new
friendship, culture, and hospitality.
The answer, of course, has got to
menace of organized drug cartels, now
And we hope that our experience in the
be yes.
often in league with guerrilla move-
United States with democracy-our ex-
Yet, hanging over every decision
ments, then we must not only assist you
perience with a free economy-may of-
which the region's elected leaders con-
in that effort but also confront the ter-
fer useful lessons to our friends in
template is the specter of deep econom-
rible demand that exists in our country
Latin America.
ic and social crisis and the weight of
for these drugs. Only by tackling both
The United States enjoys political
Latin America's foreign debt. "The
supply and demand can we free our
stability, peaceful succession of power,
elected Presidents of the continent,"
hemisphere from this drug menace.
unquestioned civilian authority, and
The Economist wrote recently, "rule
If we are together engaged in a
the steady expansion of human rights.
from capital cities ringed by shanty
joint venture north and south to ad-
We enjoy these blessings because for
towns, swollen with refugees from the
vance and defend democracy, then we
200 years we have struggled to ensure
depressed countryside."
each must do our part-collectively
that every citizen can help shape our
That is not our shared vision of
where possible-to create new mecha-
political destiny. We are committed to
Latin America's future. Clearly, Latin
nisms and strengthen existing ones to
helping Latin America wage that suc-
America must begin to grow again, and
defend human rights, to guarantee the
cessful democratic struggle as well.
the fruits of that growth must be more
integrity of elections, and to establish
We have also learned that a free
widely shared.
sanctions against those who threaten
To grow, Latin America cannot
continue to be a net exporter of capital.
2
democratically elected governments
announcing the accord, to support a
have the courage and the will to seize
through violence or through coups.
process that guarantees democracy
the opportunities before us, this is a
If you ask the United States to for-
in Central America. But the United
time when we can dream great dreams
go unilateral initiatives and to work,
States will never support simply a pa-
for all the people of the Americas.
instead, in good faith with the demo-
per agreement that sells out the Nicar-
I believe the day will come when
cratic nations of Latin America in a
aguan people's right to be free, and
Carlos Andres Perez and Raul Alfon-
new cooperative diplomacy to support
neither should any other democracy
sin, Vinicio Cerezo, Jose Napoleon Du-
democracy, then we ask you to join with
in this hemisphere.
arte, Carlos Salinas, Julio Sanguinetti
us in good faith to turn the promise of
Together we must send a clear
[President of Uruguay], Jose Azcona,
that diplomacy into a reality through-
message to others outside this hemi-
Oscar Arias [President of Costa Rica]-
out this hemisphere.
sphere: This is simply not a dumping
and many others-will be seen as the
Our Administration has negotiated
ground for their arms or their failed
pioneers who blazed the trail that will
a new bipartisan accord with Congress
ideologies. We are looking for tangible
lead one day to the world's first com-
on Central America [see Selected
signs of the so-called new thinking. The
pletely democratic hemisphere. I be-
Documents No. 36, "U.S. Support for
Soviet Union now has an opportunity
lieve that our hemisphere can become
Democracy and Peace in Central
to demonstrate its new thinking in its
the model for the rest of the planet for
America"]. We are committed to work
relationship to Central America. That
a true partnership between the devel-
with Latin and Central American dem-
is what the Esquipulas agreement re-
oped and the developing nations. A
ocratic leaders to translate the bright
quires, and that is what the democratic
partnership where trade is free and
promise of the Esquipulas agreement
community demands.
prosperity is shared and the benefits of
into concrete realities on the ground.
And finally, if we support dialogue
technology are harnessed for all.
That is a challenge, but at the same
between the Government of El Salvador
And I believe that ideas generated
time it's an opportunity. All those who
and the Marxist guerrillas to end the
in meetings such as this can, in fact,
advocate diplomacy and political solu-
conflict there, then we should insist as
lead us to the day when in all nations of
tions to the region's conflicts, I think,
well on dialogue between the Govern-
the Americas the rule of law prevails,
have a responsibility to prove that this
ment of Nicaragua and the peasant
human rights are respected, the strong
is the best and the surest route to
army of the Nicaraguan Resistance
are just and the weak secure, and the
achieve our common goals. We invite
so the guns of war can stand silent
people live in peace.
Latin America's democratic leaders to
throughout Central America. For only
join us in this challenge.
when democracy and peace reign
Published by the United States Department
Together, we must insist that the
throughout Central America can we get
of State Bureau of Public Affairs
promises in that regional treaty for de-
on with the urgent work of economic in-
Office of Public Communication Editorial
mocracy, for peace, and for security are
tegration and development for which
Division Washington, D.C. April 1989
not only kept but verified. We are pre-
the people of that war-torn region
Editor: Colleen Lutz This material is
pared, as President Bush declared in
deeply yearn.
in the public domain and may be reprinted
Some look at the crises and prob-
without permission; citation of this source is
appreciated.
lems facing Latin America today, and
they despair. I want you to know that I
am not one of those. I believe that if we
3
- 1 -
INTRODUCTION
(SEARAPPC 8146, 5/16/90)
Council of the Americas
A time of great change in the world, symbolized by the fall of
the Berlin Wall.
-- "defeat of communism"
-- lessening of E-W tension
-- unification of the "two Germanies"
Economically,
-- Europe ' 92
-- the challenge of the Pacific Rim economies
-
-- the opening of markets, investment opportunities in E.
Europe.
Concerns about the Americas' place in the world, the U.S. stake
in the Americas.
One, Brazilian magazine speculated that while Brazil
strggled to compete with "Asian Tigers" in the 1980s, the
1990s will belong to the "East European Tigers" and Western
and Japanese investment will be diverted from 10w-growth
LDCs such as Brazil to East European countries.
Reflecting on the impact of Europe 92 on the Caribbean one
leader said: L"Is the single European market a threat or an
opportunity? It can be both for the Caribbean. It is an
opportunity if we are wise and imaginative - a threat if
we are not.
Change in Central Europe has seized world attention, but there
are signs of profound changes -- less visibly dramatic --
taking place in this hemisphere.
O
In Mexico, the Chamber of Deputies has passed by an
overwhelming vote (339-54) the Government's privatization
plan - privatize the banks - Sinte negatable a
Argentine exports of soybeans have grown 28 times in the
little over a decade to make the world's 3rd largest
exporter.
Tijuana's exports to California are roughly equal to total
two way trade between the United States and both Poland and
Hungary.
The island country of Trinidad and Tobago is the world's
second largest supplier of nitrogen fertiler -- after the
Soviet Union.
I. THE AMERICAS MATTER
- 2 -
We are re-thinking our relationships -- in this hemisphere and
elsewhere. We are not retrenching. Our stake in future of the
Americas is substantial and growing.
Economic
Our total merchandize trade with the region (1989) is just
under 100 billion dollars, about 13% of the world total.
The United States has major investments in the region,
amounting in 1987 to 42.3 billion, or 59% of all U.S.
direct investment in developing countries.
When our Latin partners have prospered, we have prospered;
when Latin American growth has lagged, so has our trade
with the region.
As the Mexican economy has opened up and turned around
our two-way trade has mushroomed. The total of $52
billion is a 20% increase over 1988's figure and 50%
above '87's level of $35 billion.
--
In 1981, at the onset of the economic crisis, the
region spent $42 billion on U.S. products, 18% of our
total exports. As the crisis deepened, the region's
purchases of U.S. goods fell sharply to $26 billion in
1983. Today, they are just above the earlier peak
($44 billion, with no adjustment for inflation); but
the share is much less (12%).
--
Venezuela is an example of both sides of the equation:
In 1988, Venezuela grew by 4.2%; our exports advanced
28%.
In 1989, Venezuela's econy receded by 8-10%; our
exports declined by 34%.
We share with our American partners as well a genuine
interest in dealing successfully with the debt problem.
Total Latin debt exceeds $400 billion of which a 1/3 is
held by U.S. commercial banks. It has been estimated that
the debt problem has cost the United States as much as $75
billion in lost exports over the past decade.
Drugs
All of the cocaine consumed in the United States originates
in South America. Coca, the raw product used to produce
cocaine is grown in the Andean countries of Peru, Bolivia,
and Colombia.
Gross illegal drug sales in the U.S. are estimated at $110
billion -- more than our gross agricultural income, more
- 3 -
than double the profits enjoyed by the Fortune 500
companies combined.
Traffickers in Latin America are estimated to net some $8
billion/year. Three of the region's 7 billionaires are
traffickers.
Environment
The Amazon represents nearly one-third of all the world's
tropical forest. Estimates of de-forestation, based on
LANDSAT satellite photography indicate that 5 - 12% of the
Amazon has been deforested.
Not just an Amazon issue: E.g. in Costa Rica in 1970 51%
of the country was in forest; in 1980 only 30% was
forest-covered. At present rate of deforestation,
exploitable timber will be exhausted by 2000. Costa Rica
will need to import.
Not just de-forestation: air pollution (2/3 of region's
inhabitants live in cities; 2 of world's largest cities,
Mexico City and Sao Paulo, are in region), fishing
practices, and Antarctic exploration.
Remaining Security Issues
Almost 1/2 of U.S. imports and exports and 55% of our crude
oil imports pass through the Caribbean Basin.
2 of every 3 ships transiting the Panama Canal carry goods
to or from the United States.
Insurgencies persist in Peru and Colombia, Guatemala and El
Salvador. Violence -- political, social, and criminal --
traditionally high, has escalated in recent years. Now
murder is the leading cause of death for male adults
(18-40) in Colombia (where the government estimates some
140 groups engage in extra-judicial killings).
II. THE PROSPECTS FOR PROGRESS ARE GOOD
The countries of the Americas have taken the right direction.
One important lesson of global changes: economic and
political freedom work hand-in-hand.
-- Democracy is an economic asset. As one former Latin
Latin finance Minister put it: Political centralism
works against competition. Excessive statism must
cease What is happening in Eastern Europe is an
example. We are learning that democatic solutions are
slow, that they often involve a difficult process of
- 4 -
negotiation. Democracy is less efficient in some ways
from other systems but still is better because among
other things, it is necessary to achieve a consensus
and wide participation of all segments of society to
implement change.
In the Americas, political transformation -- the democratic
revolution -- is well along; an economic revolution is
underway.
The Volta Rondada Steel plant in Brazil (once the
symbol of modernization through state-supported
industrialization) is slated for privatization.
In Uruguay, the state mononopoly on insurance will end
and private capital will be able to invest in the
national airline and telephone company.
In Mexico, the banks are being denationalized and the
state telecommunications monopoly is ending.
Tijuana, the second largest city on the West Coast of
North America, has become known as "the world capital
of television manufacturing." Unemployment is just 1%
and the average wage is double the minimum.
Chile has transferred twice the value of state assets
to the private sector than Britain, and in half the
time (according to an independent study and taking
into account the relative sizes of both countries).
The island states of the Eastern Caribbean are
planning to create a regional stock exchange.
ISSUE: But, will the Latin American and Caribbean nations
follow through on their programs of economic reform? What are
the prospects for full implementation?
Answer: There is good reason to believe that they will follow
through.
o Success in carrying through reforms depends on leaders who
are willing to stay the course, to make the hard decisions and
then follow through to the end. Latin leaders, it is clear,
know that they must follow through on their reforms. There is
a real sense of urgency on this, a sense of now-or-never.
Menem's Inaugural: "we are living a long, painful crisis
the worst, deepest, most decisive and most terrible crisis
we can imagine.
This crisis is a challenge
I
am here to call you to the birth of a new era, of a new
opportunity, perhaps the last one.
- 5 -
o
Leaders must also set goals that make sense to citizens.
Leaders are also accutely aware that economic growth is not an
end in itself and are committed to growth that reaches all
sectors of society.
-- Menem on the Anniversary of the B.A. Stock Exchange: "I
will lead the economic recovery of a prostrated nation,
with a new and wide-reaching market system. When I say
wide-reaching, I mean that the economic system should serve
the welfare of the population. But I also mean that each
and every citizen must become part of the economic system."
CAP's Inaugural: "The readjustment of the economy
cannot be separated from the obligation democracy has
twards workers, towards the poor people living in the urban
and rural areas, as well as towards the middle class."
Collor's Labor Day Speech: one can't talk of a market
economy in a society where the majority of workeers is not
integrated into the economy
in developed market
countries progress is a process of negotiation.
O
The failure of protectionist, statist, and closed economic
systems to produce genuine wealth is widely evident. It is
understood that a reduced state role in the economy is not just
compatible with but, is a pre-condition to realizing social
goals.
-- Menem on Anniverary of Stock Exchange: "Forty years ago,
just as in maby post-War European countries, companies were
nationalized while other State-owned companies were
created. Today, those same companies are bleeding the
country with their deficits and imbalances."
Salinas' State of the Nation speech: "a State that does
not attend to the demands of the people because it is too
busy administering its entrprises is neither just nor
revolutionary
An over-extended, overworked State ends
up as a weak State
"
Menem on the Anniversary of the B.A. Stock Exchange: "We
want a socially effective government, a government able to
take charge of strategic national policies rather than one
that manages hotels, blocks private initiative and
bureaucratizes pepole's lives."
o
Economic reform must have popular backing. The genuinely
open economy has inherent popular appeal. It offers
empowerment, mobility, and real participation in the economic
life of the nation to all levels and sectors of society.
In Lima the informal sector provides 43% of the housing,
83% of the markets, and 95% of urban transport. An
- 6 -
estimated 40% of the GDP is generated by the informal
sector.
Fernando De Soto's group estimates that the informal
economy of Peru produces nearly 40% of the GDP and
represents 60% of the man-hours worked in the country.
Informals own land and housing valued at some $16 billion.
There are similar estimates from other countries.
+
(Economists estimate that the Brazilian GDP would be
25% higher if the informal economy's contribution were
counted. One research group estimates that some 7.3
million workers are employed in the informal economy.)
+
(An Argentine think-tank estimates that the informal
economy there equals 60% of the official measured GNP
-- 1 out of 3 goods manufactured is not officially
counted.)
-- Today the informals operate at the margins of society and
in spite of state restriction and control. The closed
economy discourages wide particpation by the people in the
economic life of their country.
+
It took 4 researchers working full time 43 days and 15
times the minimum wage to open a small retail shop.
+
Less than 4% of the homes in Lima's informal sector
are titled.
+
Getting title to a home in Peru, requires up to 48
months of hard work and more than a year's minimum
wage in "fees."
The open economy legitimates private ownership, the effect
is to liberate productive economic activity.
+
Legal title to property makes it possible to leverage
de facto assets (through mortgages, loans, etc.) to
greatly expand activity.
+
When individuals acquire title to property the "own"
the value increases 9 times over 10 years.
+
In the words of Hernando DeSoto: "tangible
enfranchisement" creates an "enabling environment. "
O
Carried through, economic opening works.
-- One small example on the micro-level: Mexico has increased
its revenue from the sale of coffee by 40%, in spite of the
collapse in the international coffee agreement. The
- 7 -
reason, according to the Mexicans: virtual elimination of
the Mexican Coffee Institute as a regulator.
Country Examples
Mexico's GDP grew 3% in 1989 (exceeding population growth
for the first time in 10 years). Inflation brought down
from 51.7% in '88 to 20% in '89.
Bolivia continued with modest inflation, steady growth.
Costa Rica showed uninteruppted economic growth since 1983,
with expanding non-traditional exports (now more than half
of total exports).
Venezuela (which suffered a decline of 8-10% in GDP) still
expects nontraditional exports to increase 20% under last
year's maxi-develuation, has reduced its fiscal deficit
reduced to just 2% of GDP last year.
In Colombia, tight money policy held inflation down to 27%
last year. Growth at 3% remains high for the region.
III. WE WILL CONTRIBUTE TO THE WELL-BEING OF THE AMERICAS IN
WORKING PARTNERSHIP WITH OUR NEIGHBORS.
Definition of Partnership: The President described our
relationship this way: "a partnership built on mutual respect
and mutual responsibility
rooted in a common commitment
to democratic rule.
Our Contribution to the Partnership
What is the U.S. doing to encourage Latin economic growth?
What does it plan to do concretely?
o First, let us not minimize the importance of asserting
intellectual leadership. The way to solutions if often blocked
by thinking that was out of synch with the times and global
developments. The terms of reference needed to be clarified
and discussion of issues channeled along pragmatic lines.
-- E.g. Debt: while significant in its own right, needed to
be seen as the symptom of a greater problem.
Economic reform had to be recognized as an indispensable
condition for any progress.
Linkages needed to be strengthened between debt-packages
and internal reforms. The Brady Proposals as much a
vehicle for encouraging economic restructuring as simply a
means of debt and debt-service reduction.
- 8 -
O
Concretely on the issue of debt, 5 countries (4 in the
region: Chile, Costa Rica, Mexico, Venezuela; and the
Philippines) have concluded new debt arrangements under Brady
proposals; these countries account for 44% of commercial debt
owed by the 16 largest LDC debtors.
-- Mexico's recent debt deal will allow it to reduce its net
external transfers from 6% of GNP/yr. (1983-1988) to an
annual average of 2% per yr. (1990-1994). (According to
Jose Gurria, undersecretary for international finance,
Finance Ministry).
-- Costa Rica's debt buyback agreement with commercial banks
will result in repurchase of 60% of the country's debt,
leaving the debt at $3.9 billion for this year.
Venezuela's agreement with leading foreign creditory banks
allows them to slice 25% off debt value and accept bonds at
fixed, below-market interest rates or provide new money.
We are contributing to the strengthening of the
International Financial Institutions (IFIs) which play a
critical support role in debt arrangements.
O The future will very much depend on what happens in the
areas of trade, investment, and technology.
This is neither the time or place for a Marshal Plan for
the Americas. The U.S. cannot underwrite the costs of
economic growth out of its foreign assistance budget. Nor
should we.
+
Where U.S. assistance is critical and appropriate we
do provide: bilaterally and multilaterally.
+
Last year our economic bilateral aid to the region was
just under $1 billion. Adding in U.S. contributions
to multilateral lending institutions, our assistance
to the region roughly equals that during the Alliance
for Progress.
--- We are exploring ways of liberalizing trade with
neighbors. e.g. Mexico.
-- We have been working to enhance the CBI.
-- The Cartagena approach wisely requires that we cooperate to
liberalize trade with the Andean countries -- a step not
only advantageous in its own right but also supportive of
the effort to combat drugs.
--- On bilateral trade and technology issues we are working
hard at establishing a "positive agenda." We are not
- 9 -
looking to gain a short-sighted, unilateral advantage from
our 301 actions. The issue is reciprocity.
-- Consistent with our emphasis on a global approach to trade
liberalization we are working hard at increasing access to
markets around the world, principally at the GATT.
+
We have set a goal of eliminating agricultural
subsidies world-wide by the year 2000. And, to date
we have introduced over 100 proposals in the Uruguay
Round.
+
+
We encourage Latin participation in the GATT.
Currently 12 countries have formal accession
applications pending. Last year, work was completed
on 3 (Bolivia, Costa Rica, and Tunisia). Six others,
largely from Central and South America, are under
active consideration.
+
We have a common interest with Latin GATT members in
negotiating access for specific products (e.g.
soybeans) and, more generally, in resisting the
"protectionist temptation" in newly emerging trading
groups. We invite Latin cooperation at the GATT.
We welcome the opportunity to invest in Latin growth.
Bilateral Investment Treaties (BITs) are one way to clarify
the rules of the game and facilitate capital transfere. We
are exploring others. And, we would welcome signals from
capital-needy countries of receptivity to investment. The
issue is one of clear, transparent, and consistent rules of
the game.
-- We encourage countries outside the hemisphere to trade and
invest in the region: Japan, EC countries.
The Consequences of Partnership
-- If we support more open trade we need to confront
protectionism in the United States.
-- If we and our partners in the hemisphere support an outward
looking approach to trade then we need to work together for a
freer international trading system. And, if we admit to
differences with our neighbors on some GATT issues, we should
recognize our common interests in gaining access to markets
outside this hemisphere. We can and should work together to
advance those common interests.
-- If everyone recognizes that technology is a driving force
in the global economy, then we must encourage the commercial
transfere of technology by discouraging the piracy of
technology.
- 10 -
--- If our neighbors are looking for the capital to finance
growth, then they must signal to investors -- their own as well
as foreign investors -- that they welcome their participation,
and that the rules of the game are transparent and coherent.
--- And, if our neighbors are working hard to open up their
economies we should recognize that their need of capital for
growth can be our opportunity for investment.
Partnership is not a zero-sum game in which my gain is your
loss and vice-versa.
North and South we have an interest in dealing with the debt
problem.
North and South we have good reason to expand two-way trade
not just exports.
North and South we have every reason to engage more broadly
in global markets even as we deepen our own economic
relationship.
- 1 -
7883, 4/26/90
INTRODUCTION
Latin America matters, and in the next 5 to 10 years it
will require still greater attention.
Latin America owes us more money, sells us more cocaine,
and buys more of its imports from us than any other part of the
world.
As East-West tensions/competition around the world seems to
diminish, threats close to home move to the fore.
Drugs. All of the cocaine consumed in the United States
originates in South America. Coca, the raw product used to
produce cocaine is grown in the Andean countries of Peru,
Bolivia, and Colombia.
The largest foreign sources of marijuana are Colombia,
Mexico, and Jamaica.
Debt. Economic disarray in South America causes a decline
in the value of loan assets in U.S. banks. It also reduces
by tens of billions of dollars American exports to a once
thriving market.
Terrorism. U.S. interests remain the prime foreign target
of Latin American terrorists -- accounting for 3/4 of the
region's nearly 150 international terrorism incidents in
1988.
Strategic/Security Concerns. Almost 1/2 of U.S. imports
and exports and 55% of our crude oil imports pass through
the Caribbean Basin.
2 of every 3 ships transiting the Panama Canal carry goods
to or from the United States.
Support for democracy is our best bet for realizing our
interests and objectives in the region: from protection of
human rights to security.
Democratic states offer their citizens a say and a stake in
their future and thus tend to be more resistant to
subversion. (E.g. in El Salvador, in a period which has
seen 6 nationwide elections, guerrilla strength has
declined by 1/2; the November offensive was a last-ditch,
desparation effort by an insurgency without popular
support; it failed, as previous such offensives have,
without that support.)
- 2 -
Where economic freedom works hand-in-hand with political
freedom, the results are impressive: economic growth with
opportunities and benefits for all. (E.g. Mexico, Costa
Rica, Bolivia, Uruguay)
Finally, democratic states offer an environment protective
and supportive of human rights. The transition to
democracy has brought a marked improved in human rights
performance. (E.g. In Argentina and Uruguay, where
disappearances, torture, and political killings were once
commonplace they are virtually nonexistent.)
Partnership describes the approach we intend to take in our
dealings with the other countries of the hemisphere.
The President described it this way: "a partnership built
on mutual respect and mutual responsibility
rooted in a
common commitment to democratic rule." (Bush)
Partnership is a 2-way street. (Following is drawn from
Baker Atlanta speech.)
If we ask countries to undertake economic reform, we must
be ready to lend a helping hand (the U.S., the industrial
democracies, the IFIs, and the banks).
If we ask for trade liberalization, we must confront
protectionism in the United States.
If we ask Latins to confront drug cartels, we must confront
the demand that exists here.
If the Latin and Caribbean states ask us to forgo
unilateral initiatives and to support democracy in a
cooperative effort, they must show the resolve to turn
commitments into reality (E.g. Esquipulas).
CURRENT SITUATION AND TRENDS
The 1980s saw both progress and deterioration in Latin
America.
On the positive side, a decade-long move to democracy has
put all but 2 of the 33 countries of the region in the
democratic column; elections in Paraguay this May gave that
country a democratically-elected government after 35 years of
military rule under General Stroessner. Conclusion of
elections in Chile put all of South America under democratic
goverment. Panama now finally on the road to recovery.
On the down side, economic growth has barely kept up with
population increases -- where once growth rates were 2 - 3
times our own and second only to the East Asian NICs'.
- 3 -
This stagnation imposes
a human cost in underdevelopment,
an "opportunity cost" in markets lost to American exports,
and
a political cost to elected leaders who attempt needed but
difficult policy reforms.
Across a wide front, the region has experienced regression.
Drug traffickers net an estimated $8 billion annually.
Area cultivated grows by some 10% a year. Three of the
region's seven billionaires are drug traffickers.
Debt has risen to over $400 billion, up from $330 billion
in 1982.
Insurgencies persist in Peru and Colombia, Guatemala and El
Salvador. Violence -- political, social, and criminal --
traditionally high, has escalated in recent years. Now
murder is the leading cause of death for male adults
(18-40) in Colombia (where the government estimates some
140 groups engage in extra-judicial killings).
Democratic gains are not absolutely fixed. In Peru,
Guatemala and Argentina, coup rumors have surfaced from time to
time even as elected leaders work to consolidate democratic
government. In Argentina three barracks rebellions took place
since April 1987.
A perception that democratic leaders are unable to cope or
that democracy is unable to "deliver the goods" puts democracy
at risk and could produce an antidemocratic reaction.
To be sure, the problems are not insurmountable.
-- Mexico, Bolivia, Costa Rica, and Uruguay have done
considerably better than average economically.
Concerning drugs, debate over who's to blame is largely
over and cooperation has begun. The Cartegena Summit laid
out a comprehensive framework for cooperation. The Latins
are beginning to take political risks (herbicide use,
eradication campaigns) and deploy their best assets (the
military in Colombia).
Gaining momemtun in the late 80s, has been a trend to
greater pragmatism and eagerness to dialogue.
- 4 -
CURRENT POLICY, OBJECTIVES
Support for democracy is the keystone of our policy and
offers an enduring basis for bipartisan policymaking in the U.S.
To directly further democracy, the U.S. provides direct
support for free and fair elections (e.g. Nicaragua),
vigorously opposes coup attempts (Argentina, Guatemala,
Peru), and is quick to encourage openings when they occur
(Paraguay).
Material support for democracy aims at long-range
institution-building:
Technical/legal assistance to judicial systems in
Argentina, Bolivia, Chile, Colombia, Peru, and Uruguay
are being initiated; administration of justice
programs in Central America have shown the way (the
investigative capacity of the Special Investigative
Unit in El Salvador -- supported by U.S. assistance --
was critical to the progress on the Jesuits case.
A legislative management program will start up in
Chile.
Our aim is strengthen the building blocks of a healthy
pluralism -- courts, legislatures, a free press and
trade unions. With some exceptions, these
institutions tend to be weak thoughout the region.
Democracy/Nicaragua. The elections of February 25th which
ended 10 years of Sandinista rule mark the beginning of
Nicaragua's transition to democracy.
The democratically elected government of Violetta Chamorro
faces major challenges in consolidating democracy in
Nicaragua.
--
The opposing sides in Nicaragua's civil conflict must
work a reconciliation.
--
The Nicaraguan Resistance must be re-integrated in the
political, economic, and social of the country.
10 years of Sandinista economic mismanagement have
left the economy in a shambles; economic
reconstruction which lays the basis for long-term
economic growth is in order.
The United States supports the consolidation process and is
endeavoring to assist the Nicarguan democracy bilaterally
and multilaterally.
- 5 -
The United States is cooperating with the UN and the
OAS in the demobilization and reintegration of the
Nicaraguan Resistance.
--
We have lifted the economic sanctions intended to
pressure the Sandinistas to fulfill their promises to
democratize and are working to provide economic
assistance to Nicaragua.
---
We are encouraging other countries -- in the
hemisphere and outside -- to provide assistance to
Nicaragua.
Panama -- Years of mismanagement and corruption by the
Noriega regime wreaked havoc on the Panamanian economy,
shattered the public sector, and destroyed confidence in the
country's justice system.
Events finally led to a Panamanian declaration of a state
of war, attacks on US personnel, and the U.S. military
response in December, 1989.
For Panama to recover significant U.S. aid will be
required.
Economic Aid
By the start of FY 91 we expect to have assisted Panama in
responding to the most immediate short-term needs for
economic recovery and political stability -- including
solving the political/humanitariar problem of re-housing
residents made homeless by the fighting, repairing damage
to infrastructure, and providing technical assistance to
government ministries.
Significant, but one-shot economic assistance (a FY 90
supplemental of $500 million has been requested) will be
required to "jump-start" a fundemantally sound economy and
assure that it returns to a sustainable growth pattern.
The supplemental FY 90 assistance package will continue to
be used in FY 91 to promote sustained economic recovery and
to strengthen the administration of justice.
Military Aid
Panama had available some $6 million in prior-year military
assistance grant funds as well as $3.8m in FMS Credit.
Most of these funds have been spend to by nonmilitary
basics for the public forces (uniforms, trucks, small arms,
etc.)
|
There are no plans to implement military assistance
(other than a modest International Military Education
and Training (IMET) program to give a select group of
- 6 -
Coast Guard and public forces infrastructure-support
training).
--
Other kinds of military aid will be depend on GOP
decisions on the organization and mission of the
non-police components of the public forces --
including specialized units.
The Endara Government has made clear that the new public
forces will have primarily a police/public order mandate --
fully responsive to civilian authority, and with strictly
limited military functions and equipment.
It recognizes, however, need for the capability to combat
terrorism and insurgency --- and Panama will consider
formation of small "specialized units" to deal with these.
U.S. aid to the public forces is currently limited to the
development of a civilian law-enforcement assistance
program, to be implemented immediately upon the removal of
Congressional restrictions on aid to Panama.
The National Drug Control Strategy lays out -- among other
things -- our priorities in the international war against drugs.
Disruption and dismantlement of drug-trafficking
organizations.
Reduced cocaine supply.
--
Law enforcement, military, and economic assistance
will be provided to the three Andean cocaine-producing
countries to (a) isolate major growing areas, (b)
block delivery of chemicals for processing, (c)
destroy processing labs, (d) dismantle trafficking
organizations.
--
Efforts in transit areas will be improved
-- And, Joint Intelligence Collection Centers have
started to operate in the Caribbean Basin.
Reduced heroin supply through efforts to convince other
countries to exert influence on opium growers and reduce
heroin processing and distribution.
Reduced marijuana supply through strengthened foreign law
enforcement and eradication, and through efforts to
discourage minor producing nations from becoming major
producers.
- 7 -
U.S. assistance and encouragement for multilateral efforts
aimed at source country and transit country production and
distribution.
Other international objectives:
-- Elevation of drugs as a bilateral foreign policy issue.
-- U.S. ratification of the UN Convention Against the
Illicit Traffic in Narcotic Drgus and Pyschtropic
Sustances.
-- Support for the foreign aid certification process.
-- Bilateral and multilateral efforts against
money-laundering.
Some recent achievements
By far the most notable, the Cartegena Drug Summit.
Not just a photo-op or protocollary, the Summit ended
the fruitless debate over supply and demand, who is to
blame.
It laid out a comprehensive framework for dealing with
the problem -- to which the principal coca-producing
countries and key consuming country agreed.
In Colombia, the fifteenth extradition since August of last
year took place March 28.
CICAD (the OAS body on drugs) approved, due in part to the
leadership of Chile and the U.S., model legislation on
precursor and essential chemicals that is more restrictive
than the 1988 UN Convention. CICAD's model legislation
will be submitted to the hemisphere's drug ministers in
Ixtapa.
On March 24, Bolivian forces destroyed a large cocaine
production complex not far from the Brazilian border. This
is one of the largest labs destroyed to date in Bolivia and
the biggest success yet for the riverine program.
The Bahamas signed an Extradition Treaty Signed on March 9
which should remove some of the obstacles we have
previously faced when attempting to prosecute drug
traffickers arrested in the Bahamas.
As of March 28, Bolivia's eradication efforts have have
almost equalled last year's total. In 1988, Bolivia, which
has adopted sweeping anti-narcotics legislation, exceeded
its eradication targets.
- 8 -
Regarding debt and development, the Brady proposals
incorporate key elements of the Baker Plan
Economic growth through market-based economic reform;
Voluntary action by creditor banks -- no "taxpayer bailout"
for banks or debtors; and,
Case-by-case negotiation of debt agreements.
To this approach, the Brady proposals add
Voluntary debt and debt-service reduction. The precise
amount and terms of debt or debt-service reduction will
depend on negotiations between the banks and debtors.
The idea is that in return for a reduction of debt, banks
will be guaranteed repayment on remaining debts.
Here is where the international financial (i.e. lending)
institutions (IFIs) come in. They can serve as quarantors
in specific debt reduction arrangements.
For its part, the United States has helped to enhance the
resources of the IFIs to enable them to play a greater
role. (We contributed to an increase in capitalization of
the World Bank last year; this year we are working on an
increase in our IMF quota.)
Debt is a problem, but debt, quite frequently, is also the
symptom of a larger problem: restructuring economies to
support sustained growth, with benefits widely shared.
QUOTE. Carlos Andres Perez (addressing international labor
leaders in April) said, "If we say, for the sake of
argument that the debt disappears and if we continue
managing our economies as we have managed them in the past,
inevitably we would continue in the same situation of
unemployment and disaster."
If debt relief, all by itself, were a magical solution to
the problem then countries which have declared moratoriums
would be growing today. They are not. (E.g. Peru;
temporarily, Brazil)
Leaders know that market-based economic reform is
essential. In Argentina, the new government working to
sell off state-owned monopolies, lower barriers to foreign
investment, and end subsidies for sheltered private
industries. Argentines realize that while others can be
supportive, they must make the fundamental changes that
will make the most difference.
- 9 -
Where such measures have been pursued vigorously the
results have been impressive. E.g. Costa Rica.
---
It has slashed deficit from 13.7% of GDP ('81) to 0.3%
('87) ;
---
It has privatized state-owned companies, liberalized
banking system, maintained realistic exchange rate;
Inflation fell from 82% ('82) to 15% ('87)
Unemployment down from 9.5% ('82) to 5.6% ('87).
Nontraditional exports have increased 182% in 4 years
to 1987.
Similar efforts and results in Mexico prompt us to view
favorably efforts by Mexico, the banks, and the IFIs to
work out a debt reduction/payment scheme. When debt relief
goes hand-in-hand with economic reform, everyone benefits.
OPPORTUNITIES AND PROBLEMS
Three developments, if managed well, promise a more active
and successful relationship with South America.
The first is the growing realization that state-directed,
dependency-based theories of national economic management do
not work in a competitive, interdependent world.
o
While the movement to privitization is still halting,
Latins' own experience and news of change in the Soviet
bloc are creating doubts about statist models.
The second is a genuine and widely held commitment to
democracy: people believe that they can govern themselves.
O
Election turnout is exceptionally high.
And grassroots political activity is strong (Argentina,
Brazil, and Venezuela).
Lastly, Latins are eager for "dialogue" with Washington.
They are also receptive and ready to listen.
STRATEGY AND POLICY
The continent is wealthy in resources and human capital and
traditionally oriented to the U.S. As its major customer,
richest and most populous neighbor, the U.S. has a position of
influence. Careful use of this advantaged position is
important, since the U.S. cannot buy away Latin problems; in
the end solutions must be home-grown. U.S. strategy aimed at
supporting the evolution of politically and economically secure
partners will in the long run produce the best returns.
Look @ European spucher
Look @ Asian speecher
get collore inauguration spuch
ECONOMY
wonder stories
satellite?
success in health
sinnal/literacy
more univ. gram ?
return feight capital
Latin America at the Threshold of a New Century
Statement by Sally Grooms Cowal
Deputy Assistant Secretary of State for Inter-American Affairs
United States of America
Ministerial Session
Economic Commission for Latin America and the Caribbean
Caracas, May 9-11, 1990
Mr. President, heads of delegation, ladies and gentlemen:
It is a privilege and an honor to address the Ministerial
Session of the 23rd meeting of the Economic Commission for
Latin America and the Caribbean.
As ECLAC embarks on its fifth decade, profound change is
taking place in Latin America. At this very moment, the Latin
American and Caribbean countries are undertaking an historic
transition toward democracy and the establishment of economies
based on principles of the market place and competition.
Economic stagnation, unemployment, widening spreads in
income distribution at the expense of the poor, and staggering
inflation rates are the legacies of the discredited statist,
inward-looking policies followed in the past. Rather than
focus on the past, however, as we look to 1992, the next ECLAC
meeting and the beginning of the sixth century of the New
World, let us dare to look to the future. We stand at the
threshold of a new century; fresh promise and possibility
abound.
For the first time in history, the two continents of our
Hemisphere are developing a shared economic vision. For
centuries, the notion of the New World as the world of liberty
has been a common and unifying theme for the Hemisphere. Now,
more and more, we find a common understanding of the importance
of the individual being able to make economic choices, as well
as political ones. The authoritarian state has long been
discredited in political thought; its economic parallel, the
command economy, has likewise suffered a philosophical demise.
Leading theoreticians throughout Latin America, as well as
practical businesspeople and government officals, increasingly
recognize the market as the mechanism through which the
individual's economic choices are most effectively turned into
reality. This is a revolution as profound as that of the
ballot box.
Cawley
grant
Lange
BRAZIL
-2-
These internal changes in Latin America have profoundly
changed the U.S. relationship with the region. Leaders elected
to office have the legitimacy and self-confidence to deal with
their neighbors within the Hemisphere and elsewhere in the
world as political equals. And countries which have freely
committed themselves to a profound restructuring of their
economic and social systems experience a justifiable sense of
pride and self-reliance. We are therefore moving toward a
relationship which for the first time in history is a natural
and easy partnership. Theories of Latin America's economic
dependency and marginalization -- so fashionable in the 1970s
-- have been made irrelevant by the people of Latin America
themselves deciding to take control over their history and
responsibility for their future.
We have long talked of partnership in the Americas. I
believe we can give that term a new and concrete economic
meaning as we enter the new century. As our economies grow and
change, and as technology shrinks the distances between us, the
economic barriers which separate us become ever less relevant.
We are all more and more part of a world economy in which
goods, services, know-how, ideas from all parts of the globe
are combined to serve a universal market. To grow, and to
prosper, each of our nations will have to become increasingly
open to that world economy, and to accept the notion of the
globe as a single enterprise in which each nation plays a
significant and interdependent role.
The next decade -- and the century beyond that -- will
present us all with major challenges. Economic development
means change, profound change, fundamental change. And history
shows us that the rate of change is accelerating. To meet the
ever more rapid changes that will occur in the next ten years,
the economies of the region will need to be more flexible,
efficient, and outward-looking. We need to encourage and
cement in place the structures which have begun to emerge, for
the world of the 21st Century will bring the most rapid and
voracious change we have ever seen. Even more than in the
past, the winners in the global competition will be those who
have undertaken reform as a continuing process.
This is a formidable, perhaps even a forbidding challenge.
At the same time, I am convinced that the necessary assets to
meet the challenges of the 1990s already exist in Latin America
and the Caribbean. The continent has the means to effect its
own economic transformation.
-3-
The region has always been rich in natural resources.
A land that for so long only supported one-crop
cultures of sugar and coffee and not much else has
turned to new and varied crops such as winter
vegetables, cutflowers, soybeans, and citrus fruit,
and to new industries of satellites and supertankers.
It is generally accepted that Latin American financial
resources -- much of it flight capital in foreign
banks -- are sufficient to pay off the region's
external debt. This capital will return -- not in
response to rhetoric, but when investment climates are
healthy.
The labor force in Latin America and the Caribbean is
already urbanized, largely literate, mobile, and
increasingly organized.
And everywhere, there exist the energy and imagination
which are the seeds of a dynamic, risk-taking private
sector. Even in Nicaragua, which has suffered the
ravages of a decade of civil war, there remain
elements of an entrepreneurial private sector upon
which to build. Increasingly, studies of the informal
sector throughout Latin America show that the spirit
of enterprise is strong, even under extraordinarily
adverse conditions of poverty and stifling
over-regulation.
These are indeed impressive assets. And we must add to
that some impressive evidence of a growing will to undertake
fundamental economic reform.
We now know, both from experience as well as economic
theory, that growth and development flow from policies which
inspire the confidence of investors and lenders, domestic and
foreign. It is widely recognized that private initiative, and
private savings and investment, are absolutely necessary.
In fact, in recent years, many Latin American countries
have begun to move away from excessive government control,
market intervention, and import substitution strategies of the
1960s and 1970s. They have moved toward more market-determined
exchange rates, increased export orientation and better
macroeconomic management. Many of these policies have been
outlined by delegations present, who have provided vivid
examples of change.
-4-
These examples are heartening signs of major progress. But
the process is not complete. Governments in the region must
continue to move forward to complete the reform process. They
must commit themselves to the task of building a lasting
political consensus which supports the notion that a prosperous
future can only be built on a bedrock of sound economic polices
and open trade and investment regimes. Even with sound
policies in place, it takes time to build credibility, and to
restore the confidence of potential investors, whether large or
small.
We all know, of course, that implementation of economic
policy reforms, while long overdue and absolutely necessary, is
not painless. Change, even if ultimately beneficial, often
brings with it temporary disruption and insecurity. Perhaps
most importantly these policy reforms imply a fundamental
change in the way people perceive their relationship with the
state -- which has been an important point of discussion at
these meetings.
These reforms demand a change in basic attitudes whereby
individual enterprise is encouraged, and the state seeks to
promote a stable economic environment that rewards initiative
and provides proper incentives to work, save and invest. Under
this philosophy, government provides a stable fiscal, monetary,
and legal environment and then lets markets operate freely to
determine the most efficient allocation of resources. Equity
and social justice come not from the state assuring each
citizen an appropriate livelihood or stable employment, but
rather by providing basic investments in human capital
(education and health) and establishing a fair and open
framework within which citizens can exercise their economic
choices.
This is a profound change in human psychology. It places
the individual at the center of economic life, just as
democracy places him at the center of political life. And as
such it will release a new wave of entrepreneurial energy and
economic dynamism. If the right economic institutions and
incentives are in place and have proven their reliability, we
know that people -- even the poorest -- will work and save and
invest as a way of assuring themselves and their children a
better future.
Crucial to the success of this system is equality of
opportunity. This means a whole host of difficult but
indispensable structural changes -- changes which I
increasingly see in Latin America. It means, for example:
-5-
-Appropriate social investment, such as access of the
poor to basic education and health;
-Dismantling the maze of regulation which keeps the
informal sector out of the economic mainstream; and
-Realistic pricing of capital so as to encourage more
labor-intensive industry -- and more jobs.
This economic philosophy also implies a fundamental change
in how people look at external factors. No country is an
economic island. What happens in the world economy inevitably
changes what happens internally, even in large countries such
as the U.S. But neither are countries merely passive victims
of external circumstances. We have seen that wise economic
management can make a major difference, even in the face of
major international economic dislocations, and even for
relatively small and less developed countries. I see a very
healthy new sense of self-reliance in Latin America, a new
appreciation of each country's ability to make its own way.
There may be some who are still inclined to blame economic
problems on external factors like debt. Debt, of course,
remains a problem. It is, however, more a symptom of a greater
problem. As President Carlos Andres Perez has said: "If debt
disappears and we continue managing our economies as in the
past, inevitably we would continue in the same situation of
unemployment and disaster."
Let me turn now to two major issues in the external
economic environment faced by the region: debt and trade. In
both these areas, I believe, we have made some important
progress.
Notable progress has been made in the past ten months in
implementing the strengthened international debt strategy which
was reaffirmed at the World Bank/IMF spring meetings this week
in Washington. Just yesterday, a 50 percent increase in IMF
resources was approved by IMF officials and is likely to be
approved soon by IMF members.
My country has been at the forefront of advocating the need
to reduce debt and debt servicing for countries which are
themselves active participants in economic reform. Named for
Treasury Secretary Nicholas Brady, the so-called Brady
initiative is really a set of proposals which can be flexibly
applied. You are all aware of the key elements of this
important initiative.
-6-
Recently, Venezuela and its creditor banks reached an
agreement in principle on a comprehensive financing package
which included both a significant new money feature as well as
several debt and debt service reduction options. With this
package, four countries in the region -- Mexico, Costa Rica,
Chile, and Venezuela -- plus the Philippines have now taken
advantage of the Brady initiative.
In the trade area as well, there is considerable basis for
optimism. The United States and other industrial democracies
have achieved stable growth in their domestic economies and
have promoted the continued expansion of world trade. This has
contributed to enhanced export opportunities for Latin America
and the Caribbean.
In 1989, GDP in most of the G-7 grew in the range of 3 to 4
percent, which continues the strong trend of the past several
years. Inflation has been kept in check at around the
five-percent level in these countries. Further reductions have
been achieved in many of the largest trade and current account
imbalances.
The U.S. economy has continued its record peacetime
expansion for the seventh straight year. Real GNP increased by
almost three percent in 1989 and is forecast to rise by about
two and a half percent in 1990 and by more than three percent
in 1991. U.S. inflation in 1989 was 4.4 percent. Reduction of
the federal budget deficit continues, and we remain committed
to making substantial progress.
Despite many complaints and perceptions to the contrary,
the U.S. market is remarkably open. Our tariffs, for example,
average less than five percent. We take close to half of what
Latin America exports world-wide.
But our policy is to go further, and to seek even greater
openness; to create an ever-expanding global trading system
based on clear and enforceable rules. President Bush has
designed, and we are vigorously executing, a three-pronged
strategy to achieve these objectives:
--First, we are committed to conclude successfully the
Uruguay Round of trade talks by the December 1990
deadline.
--Second, in a manner that is entirely consistent with
our Uruguay Round aims, we will pursue bilateral and
regional market-opening intiatives.
-Finally, we will use the strength of our domestic
market to further our objectives in the Round.
-7-
With respect to agricultural trade, the United States
tabled the first comprehensive proposal on reform in this
area. The U.S. proposal would allow farmers to grow what they
want, when they want, and earn a decent income without
government interference. Latin American and Caribbean
countries would benefit considerably from our proposal.
On market access, the United States has challenged its
trading partners to envision a future "tariff-free" world. We
are ready now to work aggressively with others to achieve this
in key sectors of the Uruguay Round.
Our new proposal on textiles would bring this sector within
GATT discipline in a reasonable period of time. But we are not
prepared unilaterally to liberalize our market. Other
countries must participate.
In the new areas of services, investment, and intellectual
property, we all have a major stake in creating rules of
international fair play. Services are an increasingly
important sector in all our economies, whether construction
services, financial services, or computer software services.
And, while services are important in themselves, agriculture
and manufacturing would grind to a halt without them.
While seeking global trade liberalization, we are also
committed to programs which recognize the special needs of
developing countries. The Generalized System of Preferences
(GSP) provides duty-free access on a wide range of products
imported from developing countries. Further, the Caribbean
Basin Initiative gives the small and particularly vulnerable
countries of Central America and the Caribbean improved U.S.
trade opportunities, which have helped create many new jobs in
those countries that have adopted sound economic policies.
To sum up, we see tangible near-term opportunities for a
major liberalization of world trade. Latin America can play an
increasingly important role in this new trading system. More
Latin American countries are becoming members of GATT, more
governments are committed to full participation in world trade,
more countries are dedicated to an economic model which would
make them dynamic actors in this new system.
And yet, today some in Latin America and the Caribbean are
questioning the place of the Americas on the world scene.
There is concern about marginalization: being left out and left
behind by change. Will they measure up, for example, to the
challenge of Europe '92? There should be no reason to worry so
long as the pace of economic reform continues unabated.
European integration presents Latin America and the Caribbean
-8-
region with challenges and opportunities in terms of market
access. Indeed, the EC single market, the most visible aspect
of the integration process, may serve as a model for parts of
the Latin American region.
Similarly, there is concern that the attention of
governments as well as international business is shifting away
from traditional economic interests in Latin America toward the
new trading and investment opportunities opening up in Eastern
Europe. Here again, the issue is how Latin American
governments and entrepreneurs will respond to the new
challenge. If Latin America continues and deepens its
commitments to market-oriented policies and to international
competitiveness, then the new Eastern Europe will not be a
threat but an opportunity, providing a new market for Latin
goods and services.
This is a time of great promise, but also -- let's face
it -- of some confusion. There is a new consensus on the broad
principles of development strategy, but governments have to
translate these principles into specific, practical,
cost-effective programs.
As more countries in the region implement reforms aimed at
promoting greater private sector involvement in development; at
building strong, responsive capital markets; at legitimizing
the informal sector, and at stimulating more competition in
both the public and the private sector, ECLAC can serve as an
important advisor, helping to sort out what works best,
disseminating successful experiences, and extracting useful
lessons from not-so-successful ones. Working closely with
member states and drawing from their real-life experience,
ECLAC can recommend comprehensive domestic economic policies,
with the aim of generating domestic investment and attracting
foreign equity and voluntary lending.
Another important function for ECLAC is to tell the world
the exciting story of change in Latin America and the
Caribbean. The democratic revolution which the region has
experienced is well known and justly well appreciated. But the
parallel economic revolution, the seminal changes in economic
philosophy which now underlie most governments' policies, this
is less well known and less well understood.
There is also a certain amount of doubt on the part of many
business leaders -- understandable perhaps -- that this new
economic philosophy will take hold and prove durable enough to
to withstand political pressures. ECLAC thus has an important
role in disseminating the track record of Latin American
economic performance, in demonstrating the credibility of the
new economic model. We need to aggressively market the
attractiveness of Latin American and Caribbean countries as
trading partners and as offering investment possibilities.
-9-
If the domestic and external challenges and opportunities
are faced with perseverance, we can look forward to the 1990s
as a new beginning. With commitment to the exercise of both
economic and political freedoms, the new decade can be one of
renewed prosperity in our hemisphere and full participation of
Latin America and the Caribbean in the global economy.
In closing, I would like to repeat what World Bank
President Barber Conable recently said about economic progress
and prospects in Latin America and the Caribbean:
There are those who see only problems and crises in Latin
America. I see instead a region blessed with abundant
natural resources, and populated by peoples of energy,
imagination and courage. I see a region where, since World
War II, remarkable economic and social changes have taken
place; where average income has more than doubled, and
where average life expectancy has risen by one-quarter. I
see a region where, even in a time of severe economic
stress and painful but necessary reform, the transition to
democracy has been successful.
I share this vision. In the turmoil of great change, it is
easy to see only the strife and the confusion. But we need to
remember where we are going and what we have already achieved.
The United States and Latin America have a long history of
mutual endeavor and mutual support. Today, we have a renewed
partnership, based on a newly shared economic vision of open
societies and open economies. With our traditions of
friendship and mutual support, and with a new guiding vision,
we can move into the new decade with confidence and hope.
Thank you.
Luigi R. Einaudi
Current
Policy
The United States
No. 1279
and the OAS
United States Department of State
Bureau of Public Affairs
Washington, DC
Following is a statement by Luigi R.
on a basis of democracy and national
Finally, [Western Hemisphere
Einaudi, US Permanent Representa-
reconciliation. In the Caribbean,
Affairs Subcommittee] Chairman
tive to the Organization of American
Haiti has fresh hope for democracy;
[George W.] Crockett last July noted
States, before the Subcommittee on
only [Fidel] Castro's Cuba remains
one problem central to this hearing.
Western Hemisphere Affairs and the
stubbornly resistant to the winds of
The OAS is financially broke, its rele-
Subcommittee on Human Rights and
freedom. In South America, Brazil
vance undermined by a generation of
International Organizations of the
and Chile this year completed demo-
misuse and disuse by member
House Foreign Affairs Committee,
cratic transitions with new presidents
governments.
Washington, DC, May 1, 1990.
elected directly by the people. In
This year marks the centennial of
January, Canada joined the OAS as a
the first International Conference of
full member. This June, the annual
American States (1889-90) in Wash-
Potential and Uncertainty
OAS General Assembly will meet in
ington, presided over by US Secre-
Paraguay, whose government is a
tary of State James Blaine. The
Speaking last November to an Or-
symbol of political and generational
International Union of American
ganization of American States (OAS)
change.
Republics, staffed by the Commercial
General Assembly filled with repre-
Uncertainties abound, however.
Bureau of the American Republics,
sentatives of the elected govern-
The hemisphere has largely rid itself
became the Pan American Union in
ments of Latin America and the
of dictatorships, but even elected
1910. The modern Organization of
Caribbean, Secretary Baker said that
leaders still face ominous clouds of
American States is based on the 1947
he and President Bush believe that
poverty and frustrated development.
Inter-American Treaty of Reciprocal
we and they "have it in our power to
The momentous changes sweeping
Assistance (the "Rio Treaty") and the
create, here in the Americas, the
Eastern Europe are altering the
Organic Pact adopted in 1948 in
world's first completely democratic
structure of international politics as
Bogota and most recently updated at
hemisphere-a hemisphere, as the
we have known it since the end of
Cartagena in 1985.
charter of the OAS envisions, where
World War II, but the nature of the
Today, the OAS has 32 members.
human rights are respected and the
new order remains unclear. Where
Its activities are consistent with
rule of law prevails, where all nations
will the Americas fit? Many observ-
Article 52 of the United Nations
live in peace and none lives in fear of
ers are pessimistic, both about Latin
Charter, which recognizes "regional
aggression."
America after a decade of lost growth
arrangements or agencies for dealing
This is not a utopian vision. The
and about the outside world's con-
with such matters relating to the
bitter troubles of Central America
tinuing interest in the region's
maintenance of international peace
are not over, but there is clearly
development.
and security as are appropriate for
movement toward conflict resolution
regional action."
A Renewal Has Begun
The meeting was organized by the
gaged in a joint venture north and
OAS Drug Abuse Control Commis-
south to advance and defend democ-
Few observers thought a year ago
that the OAS would be deeply
sion (CICAD), which had earlier
racy, then we must each do our
negotiated the model legislation on
part-collectively where possible-to
involved in such weighty matters as
chemicals and will now develop the
create new mechanisms and
Nicaraguan elections, [Manuel]
Noriega, or effective peacekeeping
legislation on money laundering.
strengthen existing ones to defend
and antidrug activities. Take just
On November 9, 1989, just as
human rights, to guarantee the
public attention focused on the
integrity of elections, and to establish
four examples:
On April 18, 1990, the Sandinista
opening of the Berlin Wall, the Inter-
sanctions against those who threaten
American Commission on Human
democratically elected governments
government of Nicaragua and the
Rights (IACHR) issued a devastating
through violence or through coups."
Nicaraguan Resistance agreed to a
Report on the Situation of Human
"If you ask the United States,"
cease-fire with the full participation
Rights in Panama. The OAS report
the Secretary said to his fellow
and support of the incoming
systematically documented the
members of the OAS, "to forego
Chamorro government and witnessed
Noriega regime's abuses of human
unilateral initiatives and to work,
by Cardinal Miguel Obando y Bravo.
rights after it suspended rights
instead, in good faith with the demo-
The cease-fire was negotiated and
cratic nations of Latin America in a
established in the Panamanian
signed in the OAS offices in Managua.
constitution on June 10, 1987. The
new cooperative diplomacy to sup-
The cease-fire calls for UN forces
IACHR'S conclusion: The puppet
port democracy, then we ask you to
(the UN Observor Group in Central
government installed by Noriega on
join us in good faith to turn the
America-ONUCA-with Venezuela
September 1, 1989, was "devoid of
promise of that diplomacy into a
in a key role) to collect weapons.
constitutional legitimacy."
reality throughout this hemisphere."
Meanwhile, OAS teams are to pro-
On March 22, 1990, Assistant Sec-
vide humanitarian assistance to the
On October 6, 1989, a citizen of
retary of State Bernard Aronson told
demobilizing resistance forces.
Trinidad and Tobago died in a
the Committee on Appropriations of
Earlier, OAS election observers
shooting incident between a Trinidad
the House of Representatives that
were decisive in ensuring the free-
and Tobago fishing trawler and a
the United States perceived four
dom of the February 25 elections.
patrol boat of the Venezuelan na-
tasks in its relations with Latin
Two Members of the US House of
tional guard. At the request of the
America and the Caribbean: "Con-
Representatives Subcommittee on
two governments, OAS Secretary
solidating and building on democratic
Western Hemisphere Affairs, Repre-
General Joao Clemente Baena Soares
gains, advancing economic develop-
sentatives Porter Goss and Harry
appointed three experts, two from
ment, promoting peace, and ridding
Johnston, were among the 434
the OAS Secretariat and one from the
our region of the scourge of drugs."
international observers and experts
Royal Canadian Mounted Police, to
The OAS is contributing in all four
mobilized by the OAS to create the
undertake an impartial investigation.
areas. But the OAS also serves as a
climate of confidence that enabled the
By January, the recommendations of
critical "environmental" factor. A
will of the Nicaraguan people to be
the OAS team had led to the conflict's
climate of effective regional commu-
respected.
resolution to the satisfaction of all
nication can only start with a clear
concerned.
statement of national interests. The
Last February, the summit
Trinidad and Tobago's minister of
between President Bush and the
precedent was established at the
external affairs wrote that the OAS
United Nations by Senator Moynihan
Presidents of Colombia, Bolivia, and
had again demonstrated its value as
and Ambassador Kirkpatrick.
Peru marked a powerful new an-
"the ideal forum of the Americas for
[Daniel Patrick Moynihan and Jeane
tidrug consensus.
the peaceful resolution of conflicts."
Jordan Kirkpatrick, former US
On April 17-20, 1990, Attorneys
Permanent Representatives to the
General and Ministers of Justice from
throughout the hemisphere gave
US Policy and the OAS
United Nations.] Silence is often not
golden. There are cases to make,
concrete impetus to the war on drugs.
From the start of his Administration,
interests to defend. Words count.
They agreed to complete ratification
President Bush and his Secretary of
Resolutions matter.
of the 1988 UN antinarcotics treaty
State have articulated a new empha-
By making clear our interests, we
by year's end. They approved
sis on multilateral diplomacy.
make them understood and position
specific legislation controlling essen-
On March 30, 1989, having just
ourselves to seek as much common
tial and precursor chemicals and
concluded a bipartisan accord be-
machines used in the manufacture of
ground as possible with others to
tween the executive [branch] and the
advance them. The OAS is an
cocaine and urged individual coun-
leaders of the United States Con-
association of sovereign states. No
tries to adopt it as soon as possible.
gress, Secretary of State Baker told a
matter what extraordinary changes
And they established an experts
distinguished assemblage of demo-
are wrought in the world, this will
group to develop model common leg-
cratic leaders from Latin America
still be a hemisphere of nation states.
islation against money laundering and
and the Caribbean that "we need
The OAS makes possible consulta-
illegal assets.
each other now as we have never
tions and harmonization of interests
before
If we are together en-
2
and instruments among the countries
unwillingness of OAS member gov-
the trust extended it by the people of
of this hemisphere on a basis of
ernments to make the admittedly
Nicaragua, to the high standards of
respect for sovereignty.
tough decisions involved. The lowest-
the technical infrastructure the OAS
common-denominator approach that
put in place with support from the
The OAS Fumble on Panama
ensued made clear the hemisphere's
Pan American Health Organization
distaste for Noriega and his brand of
(PAHO) and the Inter-American
On December 20, 1989, US military
government, but failed to provide any
Institute for Cooperation on Agricul-
forces went into action to defend US
visible consequences for his defiance
ture (IICA), and to the support of
citizens in Panama. The action was a
of hemispheric opinion.
OAS member states who provided
sharp reminder that multilateralism
Our prolonged and patient effort
observers, technical experts, and ad-
does not always work. The OAS, to
to deal with the crisis in the OAS
visers.
which the United States and other
helped mitigate adverse reaction to
The United States contributed
countries had turned after the brutal
the use of military force when it was
key financing ($3.5 million) and
annulment of the May 7, 1989, elec-
finally required to defend the lives of
technical advice. (Danny McDonald
tions, failed. Its actions did not begin
US citizens. The OAS resolution of
of the Federal Elections Commission
to match the agony of the Panama-
December 23 criticized the US action
was among the Secretary General's
nian people, their initial faith in the
unequivocally, but "deeply regretted"
personal advisors, along with election
OAS, or the hopes of the interna-
rather than condemned. Conscious
tribunal members from Brazil, Costa
tional community.
that responsibilities were shared,
Rica, and Venezuela). Last but not
A mission of foreign ministers
Venezuela and five other Caribbean
least, as noted earlier, Members of
expended much effort but was unable
Basin nations abstained.
Congress joined legislators from
to negotiate Noriega's departure
other hemisphere countries as
from power. The result left the
people of Panama-and the US
The OAS Recovery on Nicaragua
observers.
In response to requests from both
citizens fulfilling treaty obligations to
OAS election monitoring in Nicara-
incoming President [Violeta]
operate and defend the Panama
gua contributed decisively to the fair
Chamorro and outgoing President
Canal-subject to abuse and, for
outcome of the February 25 elections.
[Daniel] Ortega, Secretary General
some, death at the hands of the
The presence of observers from the
Baena Soares kept OAS observers in
Noriega dictatorship. Disguised
UN and the OAS as well as those
Nicaragua after the election. Mean-
initially by appeals to the doctrine of
organized by [former] President
while, he and UN Secretary General
nonintervention, this failure of
[Jimmy] Carter, the Center for
[Javier] Perez de Cuellar negotiated
diplomacy became evident to all when
Democracy, and other activist
terms of reference for the joint Veri-
the United States was ultimately
groups, permitted the voters to
fication and Support Commission
forced to military action.
express their will without fear and
(CIAV) called for by the Central
The Noriega case did show that
made it impossible for the results to
American presidents to verify com-
the OAS could be used by member
be ignored.
pliance with the Tela and subsequent
governments to communicate their
The OAS observation system was
agreements. To assist with the vol-
concerns to a broader public. On
both the largest and the most perva-
untary demobilization, repatriation,
August 31, 1989, the eve of the
sive of the various international
and resettlement of the Nicaraguan
September 1 deadline established in
efforts. It was supervised personally
Resistance, OAS-CIAV assumed
the Panamanian constitution and
by Secretary General Baena Soares,
responsibility for Nicaragua, UN-
recognized by the OAS meeting of
who did not delegate his authority,
CIAV for Honduras and Costa Rica.
foreign ministers for the transfer of
but instead traveled repeatedly to
Participation in electoral observa-
power, the United States called for a
Nicaragua to keep in touch with the
tion and in the post-election transi-
special session of the Permanent
many leaders involved.
tion subjected OAS staff members to
Council. Acting Secretary [of State]
The OAS established offices in all
numerous hardships, particularly in
Lawrence Eagleburger delivered a
nine electoral Nicaraguan districts.
rural areas, but their common reac-
powerful, detailed statement, "The
This basic OAS infrastructure
tion was that in the wake of the
Case Against Panama's Noriega."
provided communications, housing,
demoralizing 30% reduction in force
The US Mission distributed facsimi-
transport, data handling capabilities,
of early 1989, no better way could
les of the Florida indictments and
and a parallel voting tabulation
have been found to remind them-
copies of Noriega bank records in
system nationwide. Beginning in
selves and others of the fundamental
Europe. Together with the damning
August, 1989, personnel from the
mission of the OAS.
OAS human rights report, these OAS
OAS Secretariat in Washington took
activities led to the isolation of
turns in staffing the offices in Nicara-
Noriega's Panama and the with-
Human Rights
gua.
drawal of ambassadors from Panama
Secretary General Baena Soares
The independent OAS IACHR is the
by many OAS members.
informed the Permanent Council that
conscience of the hemisphere. OAS
Even so, OAS inaction was deeply
the success of the program was due to
involvement in human rights is based
disappointing. Part of the problem
upon the 1948 American Declaration
was Noriega's obduracy, part of it the
of the Rights and Duties of Man and
3
the 1969 American Convention on
overcome the stereotypes associated
Program development. The
Human Rights. The IACHR and the
with labels such as "producing,
foregoing discussion illustrates the
Inter-American Court on Human
transit, and consuming" countries and
OAS's capacity to adjust priorities
Rights (CIDH) give the OAS an
galvanized measures such as those
and institutional structure to meet
active and at times forceful role in
agreed upon at Ixtapa, Mexico, last
changing demands and requirements.
promoting and protecting human
month.
What is new is the Secretary Gen-
rights. Through both persuasion and
CICAD's programs focus on
eral's success in mobilizing the other
published reports on human rights
regional approaches to legal develop-
inter-American specialized organiza-
infringements, the commission has
ment, public awareness, and preven-
tions-PAHO and IICA-in joint
been instrumental in improving
tion. One project seeks to mobilize
efforts such as election monitoring in
member government practices. On
private sector support for antinar-
Nicaragua. The OAS, PAHO, and
occasion it has directly helped resolve
cotics programs, another to enlist
IICA are continuing their close
conflict situations.
schools in preventing drug abuse, yet
cooperation with CIAV. OAS
Members of the IACHR are
another to strengthen national and
experts experienced in Nicaraguan
elected in their own right, not as
international law on seizure of
conditions have prepared detailed
representatives of governments. The
traffickers' assets and control of
projects for recovery in education,
autonomy of the commission is
precursor chemicals. In addition to
job training, health services, and
further enhanced by its prerogative
support via the OAS budget, the
agriculture.
to initiate human rights investiga-
United States has made several
Specialized organizations. The
tions without the approval of the
special grants. The Inter-American
OAS directly supports:
Secretary General or the Permanent
Development Bank (IDB), the
Council. A US citizen, John Steven-
European Community, and the
The Inter-American Defense
son, is currently one of seven commis-
Italian, Japanese, and Canadian
Board (IADB), created during World
sioners; another US citizen is acting
governments are currently consider-
War II to plan and coordinate collec-
executive secretary.
ing grants to CICAD.
tive hemispheric defense. It advises
The IACHR prepares an annual
the OAS on defense matters, and has
Technical assistance. Respond-
report with chapters on countries
coordinated peacekeeping operations.
ing to a major demand of less devel-
with human rights problems in
oped members, OAS programs train
The Inter-American Defense
general and on individual cases, às
over 2,000 specialists annually (91,000
College (IADC) is supervised by and
well as special reports. In its last 14
since its inception), primarily in the
funded by the IADB. It strengthens
years, the commission has effectively
US but also at 23 inter-American
military professionalism and aug-
challenged abuses in Panama, Nicara-
centers. The United States continues
ments US international military
gua, Cuba, Chile, El Salvador,
to be the major contributor, but
training programs. The college
Guatemala, Suriname, Haiti, and
Argentina, Brazil, Mexico, and
annually trains about 60 field grade
Paraguay, among others. The 1989
Venezuela have joined the United
officers, many of whom reach leader-
special report on Panama was an im-
States as net donors. OAS feasibility
ship positions in their respective
portant factor in galvanizing interna-
studies for large-scale projects in
services.
tional public opinion against the
regional development, environment,
Noriega regime. The IACHR also
The Inter-American Children's
and education are endorsed and
played a key role in the release of
Institute (IACI) is concerned with
funded by the IDB. Wider recogni-
thousands of political prisoners in
problems of mothers, adolescents and
tion of OAS effectiveness has at-
Nicaragua.
families, including the growing
tracted contributions from nonmem-
On February 23, 1990, the OAS
number of "street children."
bers, including Spain, Italy, Holland,
Permanent Council adopted a resolu-
Israel, and France, anxious to take
The Inter-American Commis-
tion mandating an in situ visit on the
advantage of the favorable cost-
sion of Women (CIM) is concerned
human rights situation in Haiti. The
benefit ratio achieved by the OAS.
with women's rights and their
IACHR visited Haiti April 16-20; its
The OAS manages a major program
integration into development and
report will be part of a broad OAS
of feasibility studies on modernizing
decision-making processes. CIM
and UN effort to support elections by
telecommunications throughout Latin
research and seminars have focused
the new Haitian government.
America and the Caribbean. The US
on women and politics (1988), women
private sector has also joined in. An
and employment (1989), and violence
Other Key Activities
International Business Machines
against women (1990).
(IBM) contribution of $1,500,000 (not
Drugs. The OAS Inter-American
including in kind contributions) has
Other organizations associated
Drug Abuse Control Commission
helped the OAS put together a highly
with the OAS are financed outside
(CICAD) was established in 1986,
first met in April 1987, and began its
sophisticated trade information
the OAS budget:
first activities in 1988. Under the
program now at work facilitating an
The PAHO, with resources of
leadership of Irving Tragen, an
expansion of north-south trade.
$67 million (1988), has contributed
American citizen, the CICAD has
significantly to protecting the United
4
States from communicable diseases
The Financial Crisis is Acute
stration's determination to use
and promoting improved sanitation
multilateral diplomacy, where
and health conditions throughout the
A remarkable aspect of the enhanced
feasible and appropriate, to resolve
hemisphere.
role of the OAS in the past several
months is that it took place despite
regional problems and to engage our
The IICA, with resources of $34
serious underfunding. The US paid
neighbors on topics of hemispheric
million (1989), has worked closely
concern.
only $18 million of its 1989 assessed
with the US Department of Agricul-
Other countries are showing their
quota payment of $40 million to the
ture in preventing threatening animal
OAS. (The US assessment for the
commitment to the OAS. Argentina,
and plant diseases from entering the
OAS is 66%; the United States
Ecuador, Mexico, Paraguay, and
United States and in helping mem-
accounts for 85% of the total GNP of
Venezuela are all hosting important
bers develop food production.
all OAS members.)
meetings this year. In September
The Pan American Institute for
This caused a severe cash flow
1989, Argentina paid most of its $12
million arrears. This year, Canada's
Geography and History (PAIGH) has
crisis which the OAS met by a 30%
accession to the OAS in January was
major geodetic and cartographic pro-
personnel cut in January 1989,
combined with one-time reductions in
testimony to the benefits of member-
grams of its own and facilitates coop-
erative relationships between US
program activities. From November
ship and will further enhance effec-
tiveness.
agencies (such as the Defense Map-
1988 to March 1989, 293 employees
ping Agency and the National Ocean
either resigned voluntarily (205),
Service of the National Oceanic and
were on fixed-termed contracts
The Second Century
Atmospheric Administration) and
allowed to lapse (76), or retired (12).
Imagine the number of vital issues,
other countries in such vital areas as
The cuts, worked out in close coop-
from drugs to economic development,
safety of flight.
eration with member states including
from mutual security to the environ-
the United States, fell roughly
The Inter-American Indian In-
ment, on which progress would be
proportionately on nationals of all
stitute (IAII) has been helpful in
more rapid if we succeed in building
member countries. Total OAS
providing the US Department of
on a democratic foundation where the
personnel in 1974 numbered 1,577; by
Interior's Bureau of Indian Affairs
rights of individuals and of govern-
the end of 1989, the number was
with a vehicle for cooperation with
ments are not in conflict.
654-a 55% reduction in 15 years. At
other Latin American countries with
As the OAS enters its second
present, the United States provides
major Indian populations.
century, one of its enormous
14% of the entire OAS staff and 20%
strengths is that its membership is
of its professionals-easily the
Finally, one organization created
overwhelmingly made up of states
largest national group among OAS
and supported by the OAS receives
that organize themselves in ways
personnel.
financial support largely from US
that are democratic. The test of
Despite these draconian cutbacks,
corporations and other private
membership is becoming democracy
arrearages and the consequent lack of
sources. The Pan American Develop-
as well as geography. This is a stark
reserves severely limit flexibility and
ment Foundation (PADF) is a Section
contrast to the situation just a
threaten to undermine the work of
201(c)(3) entity with a subsidy from
generation ago. Moreover, the
the OAS on almost every front. For
the OAS and some US Agency for
flexibility of democracy is a strength
example, the $1.5 million the OAS has
International Development (AID)
that is vital to today's rapidly chang-
received for its work facilitating the
funds; corporate donors provide over
ing world. This hemisphere has come
peaceful demobilization and reinte-
one-half of its resources. It has
a long way in the evolution toward
gration of the Nicaraguan Resistance
channeled over $100 million from the
democracy and in the suffering that
will run out later this month.
private sector into development
any evolution requires. Compare the
Just last week, Assistant Secre-
projects which mobilize private
odysseys of Argentina, Brazil, Chile,
tary of State John R. Bolton told the
sector support in recipient countries.
or Nicaragua in the past decade to
House Subcommittee on Interna-
The OAS and its specialized or-
those of the countries of Eastern
tional Organizations that "we must
ganizations frequently carry out
Europe now beginning to face the
reestablish America's image as a
programs for other organizations,
problems of attempting to construct a
credible, reliable participant in
such as the UN Development Pro-
democratic polity.
international organizations. To do S0
gram (UNDP), the UN Environment
Our challenge, a very difficult but
we must fully meet our financial
Program (UNEP), and the World
inspiring challenge, should be to
obligations when they are due."
Bank, on a contract basis. The OAS
make the second century of the OAS
The Administration is asking the
has received some $6 million annually
the century of democracy. Already
Congress for full funding of our FY
in recent years for these purposes.
others in the region see the need to
1991 quota assessment to the OAS as
External entities recognize the value
well as $38 million for arrears, which,
reconcile the principle of noninter-
of OAS management of technical
vention, one of the traditional corner-
if appropriated, would be paid in
assistance and its effectiveness.
stones of the inter-American system,
equal installments of 20% a year for 5
with the principles of self-determina-
years. This would fulfill the Admini-
5
tion and representative democracy,
Still Far to Go
education. The social, economic, and
both of which are contained in the
educational problems which cause S0
OAS charter and both of which have
For some years, important issues
have been considered outside the
many young people to drop out of
been given new urgency by today's
OAS-or not considered at all. Now
school waste human potential.
needs. Speaking at a special session
Curricula need to be redesigned and
of OAS Permanent Council on April
100 years old, the inter-American
teachers retrained. OAS multina-
27, 1990, President Carlos Andres
system is turning a corner, and there
tional programs in basic education
Perez of Venezuela declared himself a
is an exciting new focus for the 1990s
and education for work provide
convinced believer in "collective
and beyond:
mechanisms for all member countries
unarmed intervention for the positive
Promoting and assisting demo-
to share successes and to avoid
and peaceful resolution of conflicts."
cratic transitions and strengthening
repeating costly mistakes.
On March 28, 1990, Assistant Sec-
democratic institutions are now a
Integration. The Caribbean,
retary of State Aronson was explicit
prime concern of the OAS.
Central America, the Andes, the Rio
to the Senate Foreign Relations
The IACHR-the most re-
de la Plata area-the Americas have
Committee: "The conventional
wisdom holds that our historic
spected human rights organization of
long been differentiated into natural
mistake in Latin America has been
any multilateral body-must continue
subregions. So long as governments
to keep human rights at the center of
were despotic, SO long as frontiers
interventionism. I would argue the
the hemisphere's collective con-
meant boundary disputes, and so long
opposite is true. Our historic mis-
science.
as individual countries could attempt
take-when we have made mis-
In the drug wars, the OAS is
to cut themselves off from progress,
takes-has been to fail to rally early
strengthening multilateral coopera-
integration remained a dream. The
and boldly and effectively to support
tion and breaking new ground, most
spread of democracy gives the OAS
and extend democracy in its hour of
need."
recently in precursor chemicals and
new vigor as a forge of common
The Organization of American
money laundering. As President
consciousness and regional and
States already serves as the basic
Carlos Salinas de Gortari of Mexico
subregional cooperation.
sounding board of the western
told the OAS ministerial conference 2
hemisphere. As an association of
weeks ago, "We are encouraged by
The OAS is by definition not a
sovereign states, its structure makes
the spread of a generalized aware-
single-issue or single-country organi-
ness that we have a common enemy
zation. But all these areas-plus the
it an inherently democratic sounding
board. The OAS has no privileged
and by the emergence of a balanced
important work in trade promotion
members, no security council, no
and mature vision of how to attack it
and democratically focused military
vetoes. Every member has one vote,
internationally."
education and training-are of deep
national interest to the United
the same opportunity to be heard.
Similar cooperation is foreseeable
States. All require positive, practical,
Visitors to OAS Permanent Council
in other areas:
productive, and patient contributions
meetings sometimes comment that
if we are to deal with the issues of the
they can seem almost familial in spite
The environment. The June
next century in a manner befitting
of their formality. And that is
1990, OAS General Assembly will
the potential of the new world.
another strength. Even with the
consider a proposal to create an
entry to membership over the past
"Inter-American System for Nature
generation of a dozen countries of the
Published by the United States Department
Conservation." Because of the great
of State
Bureau of Public Affairs
Office
Commonwealth Caribbean, OAS
interest in environmental issues
of Public Communication
Washington, DC
membership is still small enough to
among member countries, the Gen-
May 1990
Editor: Marilyn J. Bremner
be manageable. No one need be
eral Assembly might decide to call a
This material is in the public domain and may
silenced in the name of efficiency.
be reprinted without permission; citation of this
specialized conference of experts to
The OAS is the natural forum to turn
source is appreciated.
develop a program of action.
democracy in individual countries
into democratic solidarity as a source
Education. Democracy, economic
of hemisphere-wide strength.
development, and cultural sensitivity
require substantial investments in
6
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President Bush
Current
Policy
Enterprise for the
No.1288
Americas Initiative
United States Department of State
Bureau of Public Affairs
Washington, DC
Following are remarks by President
are now looking to the power of the free
the Caribbean as a whole. I asked
Bush before administration officials and
market to help this hemisphere realize its
Treasury Secretary Brady to lead a
members of the business community,
untapped potential for progress. A new
review of US economic policy toward this
Washington, DC, June 27, 1990.
leadership has emerged backed by the
vital region, to make a fresh assessment
strength of the peoplès' mandate-
of the problems and opportunities we'll
Thank you all very much for coming to
leadership that understands that the
encounter in the decade ahead. That
the White House. It is my pleasure to
future of Latin America lies with free
review is now complete, and the results
welcome SO many distinguished guests
government and free markets. In the
are in. And the need for new economic
with such strong interests in the vital
words of Colombia's courageous leader,
initiatives is clear and compelling.
Latin American and Caribbean region.
Virgilio Barco-President Barco: "The
All signs point to the fact that we
In the past 12 months everyone of us,
long-running match between Karl Marx
must shift the focus of our economic inter-
from the men in the White House to the
and Adam Smith is finally coming to an
action toward a new economic partner-
man on the street has been fascinated by
end" with the "recognition that open
ship because prosperity in our hemi-
the tremendous changes, the positive
economies with access to markets can
sphere depends on trade, not aid. I've
changes taking place around the world.
lead to social progress."
asked you here today to share with you
Freedom has made great gains, not just in
For the United States, these are
some of the ideas, some of the ways we
Eastern Europe, but right here in the
welcome developments-developments
can build a broad-based partnership for
Americas. We've seen a resurgence of
that we're eager to support. But we
the 1990s-to announce the new Enter-
democratic rule, a rising tide of democ-
recognize that each nation in the region
prise for the Americas Initiative that
racy never before witnessed in the
must make its own choices. There is no
creates incentives to reinforce Latin
history of this beloved hemisphere. And
blueprint, no one size fits all approaches
America's growing recognition that free
with one exception, Cuba, the transition
to reform. The primary responsibility for
market reform is the key to sustained
to democracy is moving toward comple-
achieving economic growth lies with each
growth and political stability.
tion. We can all sense the excitement
individual country. Our challenge in this
The three pillars of our new initiative
that the day is not far off when Cuba joins
country is to respond in ways that sup-
are trade, investment, and debt. To
the ranks of world democracies and
port the positive changes now taking
expand trade, I própose that we begin the
makes the Americas fully free.
place in the hemisphere. We must forge a
process of creating a hemisphere-wide
With one exception, that's the case.
genuine partnership for free market
free trade zone; to increase investment
But the political transformation sweeping
reform.
that we adopt measures to create a new
the rest of Latin America and the Carib-
Back in February, I met in Cartagena
flow of capital into the region; and to
bean has its parallel in the economic
[Colombia] with heads of the three
further ease the debt-the burden of
sphere. Throughout the region, nations
Andean nations. And I came away from
debt-a new approach to debt in the
are turning away from the statist
that meeting convinced that the United
region with important benefits for our
economic policies that stifle growth and
States must review its approach not only
environment.
to that region but to Latin America and
Trade
free trade overnight; changes so far-
through, and the wait for a new telephone
In the 1980s, trade within our hemisphere
reaching may take years of preparation
line can be as long as 5 years-and that's
trailed the overall pace of growth in world
and tough negotiations. But the payoff in
got to change.
trade. One principal reason for that:
terms of prosperity is worth every effort.
Investment reform is essential to
over-restrictive trade barriers that wall
And now is the time to make a compre-
make it easier to start new business ven-
off the economies of our region from each
hensive free trade zone for the Americas
tures and make it possible for interna-
other, and from the United States, at
our long-term goal.
tional investors to participate and profit
great cost to us all. These barriers are
And third, I understand that some
in Latin American markets. In order to
the legacy of the misguided notion that a
countries aren't yet ready to take that
create incentives for investment reform,
nation's economy needs protection in
dramatic step to a full free trade agree-
the United States is prepared to take the
order to thrive. The great economic
ment. And that's why we're prepared to
following steps:
lesson of this century is that protection-
negotiate with any interested nation in
ism still stifles progress, and free markets
the region bilateral framework agree-
First, the United States will work
breed prosperity. To this end, we've
ments to open markets and develop closer
with the Inter-American Development
formulated a three-point trade plan to en-
trade ties. Such agreements already exist
Bank (IDB) to create a new lending
with Mexico and Bolivia. Framework
program for nations that take significant
courage the emerging trend toward free
market reform and that is now gathering
agreements will enable us to move
steps to remove impediments to interna-
tional investment. The World Bank could
forces in the Americas.
also contribute to this effort; and
First, as we enter the final months of
Second, we propose the creation of a
the current Uruguay Round of the world
new investment fund for the Americas.
trade talks, I pledge close cooperation
A new leadership has
This fund, administered by the IDB, could
with the nations of this hemisphere. The
emerged, backed by the
provide up to $300 million a year in grants
successful completion of the Uruguay
in response to market-oriented invest-
Round remains the most effective way of
strength of the peoples' man-
ment reforms in progress in privatization.
promoting long-term trade growth in
date-leadership that under-
The United States intends to contrib-
Latin America and the increased integra-
stands that the future of
ute $100 million to the fund, and we will
tion of Latin nations into the overall
seek matching contributions from Europe
global trading system. Our aim in the
Latin America lies with free
and Japan. But in order to create an
UruguayRound is free and fair trade.
government and free
attractive climate for new investment, we
Through these talks, we are seeking
must build on our successful efforts to
to strengthen existing trade rules and to
markets.
ease the debt burden. That's the third
expand them to areas that do not now
pillar of this new Enterprise for the
have agreed rules of fair play. To show
Americas initiative.
our commitment to our neighbors in Latin
America and the Caribbean, we will seek
deeper tariff reductions in this round on
forward on a step-by-step basis to
Easing the Debt Burden
eliminate counterproductive barriers to
products of special interest to them.
Second, we must build on the trend
trade and toward our ultimate goal of free
Many nations have already undertaken
trade. And that's a prescription for
painful economic reforms for the sake of
we see toward free markets and make our
greater growth and a higher standard of
future growth. But the investment
ultimate aim a free trade system that
links all of the Americas-North, Central,
living in Latin America and, right here at
climate remains clouded, weighted down
home, a new market for American
by the-heavy debt burden. Under the
and South. We look forward to the day
products and more jobs for American
Brady plan, we are making significant
when not only are the Americas the first
workers.
progress. The agreements reached with
fully free democratic hemisphere, but
Mexico and Costa Rica and Venezuela are
when all are equal partners in a free trade
Promoting free trade is just one of
already having a positive impact on
zone stretching from the port of Anchor-
three key elements in our new Enterprise
investment in those countries.
age to the Tierra del Fuego.
for the Americas Initiative. And our
Mexico, to take just one example, has
I'm announcing today that the United
second pillar is increased investment.
already seen a reversal of the destructive
States stands ready to enter into free
capital flight that drained so many Latin
trade agreements with other markets in
Investment Reform
American nations of precious investment
Latin America and the Caribbean,
resources. That's critical. If we restore
particularly with groups of countries that
The competition for capital today is fierce.
confidence, capital will follow.
have associated for purposes of trade lib-
And the key to increased investment is to
As one means of expanding our debt
eralization. The first step in this process
be competitive, to turn around the condi-
strategy we propose that the IDB add its
is the now-announced free trade agree-
tions that have discouraged both foreign
efforts and resources to those of the
ment with Mexico.¹ We must all recog-
and domestic investment, reduce the
International Monetary Fund (IMF) and
nize that we won't bring down barriers to
regulatory burden, clear away the thicket
the World Bank to support commercial
of bureaucratic barriers that choke off
bank debt reduction in Latin America and
'On June 11, 1990, Presidents Bush and
Latin America's aspiring entrepreneurs.
the Caribbean and, as in the case of World
Salinas endorsed the goal of a comprehensive
In one large Latin city, for instance, it
Bank and IMF, IDB funds should be
free trade agreement between the United
takes almost 300 days to cut through the
States and Mexico. The presidents have
directly linked to economic reform.
directed their trade ministers to undertake the
red tape to open a small garment shop. In
While the Brady plan has helped
consultations and preperatory work needed to
another country, the average overseas
nations reduce commercial bank debt for
initiate such negotiations and to report back to
caller has to make five phone calls to get
nations with high levels of official debt-
them before the two presidents' next meeting
in December 1990.
debt owed to governments rather than
2
private financial institution-the burden
Debt-for-nature swaps are one
indeed, as we talk with the leaders of the
remains heavy. And today, across Latin
example-patterned after the innovative
G-24 about the emerging democracies in
America, official debt owed to the US
agreements reached by some Latin
Europe-I've been talking to them also
Government amounts to nearly $12
American nations and their commercial
about their supporting democracy and
billion, with $7 billion of that amount in
creditors. We will also call for the
economic freedom in Central America.
concessional loans. In many cases, the
creation of environmental trusts, where
Our aim is a closer partnership between
heaviest official debt burdens fall on some
interest payments owed on restructured
the Americas and our friends in Europe
of the region's smallest nations-
US debt will be paid in local currency and
and in Asia.
countries like Honduras and El Salvador
set aside to fund environmental projects
Two years from now, our hemisphere
and Jamaica.
in the debtor countries.
will celebrate the 500th anniversary of an
That's a problem we must address
These innovative agreements offer a
epic event, Columbus' discovery of Amer-
today. As the key component in address-
powerful new tool for preserving the
ica, our New World. And we trace our
ing the region's debt problem, I am
natural wonders of this hemisphere that
origins, our shared history to the time of
proposing a major new initiative to
we share. From the vistas of the un-
Columbus' voyage and the courageous
reduce Latin America's and the Carib-
spoiled Arctic, to the beauties of the
quest for the advancement of man.
bean's official debt to the United States
barrier reef off Belize, to the rich rain for-
Today, the bonds of our common heritage
for countries that adopt strong economic
ests of the Amazons, we must protect this
are strengthened by the love of freedom
and investment reform programs with the
living legacy that we hold in trust. For an
and a common commitment to democracy.
support of international institutions.
increasing number of our neighbors, the
Our challenge, the challenge in this new
Our debt reduction program will deal
need for free market reform is clear.
era of the Americas is to secure this
separately with concessional and commer-
These nations need economic breathing
shared dream and all its fruits for all the
cial types of loans. On the concessional
room to enact bold reforms. And this
people of the Americas-North, Central,
debt, loans made from aid or food for
official debt initiative is one answer. A
and South.
peace accounts, we will propose substan-
way out from under the crushing burden
The comprehensive plan that I've just
tial debt reductions for the most heavily
of debt that slows the process of reform.
outlined is proof positive the United
burdened countries. And we will also sell
States is serious about forging a new
a portion of outstanding commercial loans
Conclusion
partnership with our Latin American and
to facilitate these debt-for-equity and
Caribbean neighbors. We're ready to
debt-for-nature swaps in countries that
I know there is some concern that the
play a constructive role at this critical
have set up such programs.
revolutionary changes we've witnessed
time to make ours the first fully free
this past year in Eastern Europe will
hemisphere in all of history.
Strengthening Environmental Policies
shift our attention away from Latin
America. But I want to assure all of you
These actions will be taken on a case-by-
here today, as I've assured many demo-
case basis. One measure of prosperity in
cratic leaders in Central and South
the most important long-term investment
America and the Caribbean, and Mexico,
Published by the United States Department
any nation can make is environmental
the United States will not lose sight of the
of State
Bureau of Public Affairs
Office
well-being: As part of our Enterprise for
tremendous challenges and opportunities
of Public Communication
Washington, DC
the Americas Initiative, we will take
June 1990
right here in our own hemisphere. And
Editor: Juanita Adams
This
action to strengthen environmental
material is in the public domain and may be
reprinted without permission; citation of this
policies in this hemisphere.
source is appreciated.
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Lawrence S. Eagleburger
Current
Policy
An Agenda to Promote
No. 1283
Inter-American Cooperation
United States Department of State
Bureau of Public Affairs
Washington, DC
Following is an address by Deputy
bursts that, as in 1830 and 1848, occa-
Western Hemisphere can justly take
Secretary Lawrence S. Eagleburger
sionally have punctuated the course
pride in having launched the epochal
before the General Assembly of the
of human events. But there is a dif-
worldwide transition from dictator-
Organization of American States in
ference: the revolution underway
ship to democracy, first in Argentina,
Asuncion, Paraguay, June 5, 1990.
today, for the first time in history, is
Brazil, Bolivia, and Ecuador, and
occurring on a truly global scale.
lately in Chile, Panama, and Nicara-
Let me begin by expressing my
This global revolution has one
gua. Think of the open wounds that
sincere appreciation and praise to you
universal and defining feature: the
still festered in our midst when this
[the assembly president, Paraguayan
democratic form of government has
assembly last met only 7 months ago,
Foreign Minister Luis Argaño] and
come to be recognized as the embodi-
and you will realize how far we have
your government. Appreciation for
ment of political legitimacy. It is not
traveled toward achieving an un-
your generous hospitality and for the
a revolution that has been imposed
precedented degree of mutual respect
highest standards that have charac-
from without; rather, the democratic
and common purpose among the
terized the organization of this
idea has become irresistible precisely
nations of this hemisphere.
assembly. Praise for your country's
because it is now an indigenous force
The attention of the world has
struggle to realize democracy's full
the world over, from Poland to
been drawn in the last year to a
promise. Please convey to President
Paraguay, and from China to Chile.
similar transformation in Eastern
[Andres] Rodriguez our deep respect
It has not triumphed everywhere, to
Europe. I know that many in Latin
and support.
be sure; not all men and women today
America wonder whether we have
This, the 100th anniversary of the
live under freedom and democracy.
become unduly preoccupied with the
Inter-American system, is a historic
But we have reached the point where
revolutionary saga now unfolding in
occasion that comes at a time of revo-
all are demanding to live under
the old world. Yet it should be
lutionary change throughout the
freedom and democracy as their
remembered that the United States
world. We find ourselves in the midst
God-given right. Democracy's
has been deeply involved in Euro-
of one of those revolutionary out-
ideological foes, on the left and the
right, have been discredited. The
political and economic systems they
fashioned stand today in ruins. The
pean affairs for the last 50 years. We
building blocks of economic integra-
triumphing, we face-all of us in this
have been SO engaged because it was
tion and interdependence-trade and
hemisphere face-the monumental
there that two systems and two mili-
investment.
challenge of making those ideals work
tary alliances stood poised on the
The facts speak for themselves.
in practice. For the first time,
brink of conflict and where the fate of
Any concern about where US inter-
working in partnership with one
humanity hung in the balance. I
ests and attention lie must be
another and through the Organization
know that our friends in this hemi-
weighed against the fact that our
of American States [OAS], we, the
sphere will understand and support
two-way annual trade with Latin
nations of the Americas, have a
our continued engagement in Europe
America today exceeds $100 billion,
unique opportunity to fashion a
to assure that the Cold War is
and that US investment in the region
diplomacy among democracies in
brought to a peaceful and successful
is in excess of $50 billion. In a
pursuit of the consolidation of democ-
conclusion. Surely this is a responsi-
hemisphere in which we have been
racy. The revolutionary changes
bility we must bear, not only on our
engaged, through this organization,
through which we are passing will
own behalf, but in the broader and
for 100 years, it is simply inconceiv-
require more, not less, of this organi-
common interest of all mankind.
able that we would turn our backs on
zation.
our fellow American states. It is
The framers of the OAS Charter
The Twin Revolutions
equally inconceivable that five
were forward-looking and visionary.
nations in the heart of Europe could
Our charter is not a timid document
The United States has another,
substitute, in our minds, in our com-
committed to the status quo. If we
equally compelling responsibility-
mercial, political, and security
are true to its purposes and to our
and that is a responsibility to what
relationships and, indeed, in our
vast potential as a regional commu-
[Bolivian] President [Jaime] Paz
sympathies, for our many friends in
nity, we will endeavor together:
Zamora SO movingly described
this hemisphere.
yesterday as our common home, "El
to forge our rightful and pro-
There is, however, another factor
Hogar de las Americas." We are,
gressive policy in a world liberated
at work today that, although imper-
first and foremost, citizens of the
from the authoritarian state and the
ceptible to most observers, already
Americas, and we fully recognize the
command economy, taking advantage
has begun to transform the nature of
significance of the fact that, as
of increasing global interdependence
the relationship between my country
President Paz noted, two revolutions
and competition for markets.
and the nations and peoples of the
have taken place in Latin America,
Americas. For what the United
to address the underlying
one political and one economic. The
States is seeking to accomplish in
causes of outstanding conflicts and
conversion of almost the entire
Europe today and what, I am confi-
defeat new threats to peace, such as
hemisphere to representative gov-
dent, we will accomplish, is really the
those created by the traffic in illicit
ernment and to the principles of
closing of an old chapter. It needs to
drugs; and
rational economic management opens
be recognized that if we are success-
to cooperate to preserve the
up the possibility of closer ties than
ful in this endeavor to end the Cold
natural resources of this hemisphere.
we have ever enjoyed between
War once and for all, we will have
ourselves and our Latin neighbors. It
opened a new chapter in foreign
is no accident that President Bush,
policy of the United States, one in
An Agenda for the Future
whose keen interest in Latin America
which our attention and our energies
One hundred and two years ago, US
is a secret to no one, asked Ambassa-
inevitably will be drawn toward
Secretary of State [James] Blaine
dor [Carla] Hills to represent him at
building, in partnership, a Western
issued a call for an inter-American
this historic gathering. The world
Hemisphere of freedom, peace, prog-
Congress and declared the willing-
into which we are moving is one in
ress, and prosperity.
ness of the United States to "enter
which national security will be
Ladies and gentlemen, the ties
into the deliberations of the Congress
defined less in terms of military
that bind my country to the nations of
with the loyal determination to
strength than in terms of economic
this hemisphere-ties of history, ge-
approach any proposed solution
as
well-being. Increasingly, the weap-
ography, and natural affinity-are
a single member among many co-
ons of war will give way to the
great indeed. For more than 200
ordinate and co-equal states." At
years, we have been the champions—
imperfect champions-of democracy.
Now that our democratic ideals are
2
that first Inter-American Conference,
toward this request will be signifi-
American Human Rights Commission
the United States made eight propos-
cantly affected by our success in
as a pioneering organization. It is a
als. To mark that historic occasion, I
developing a new quota system.
well-established, experienced, and
would like today to propose a new
Second, the consolidation of
unique body, rightfully called the
agenda of eight points with the hope
"conscience of the Americas." The
democracy must be at the top of our
that together we may open a new
agenda.
United States encourages the com-
century of inter-American progress.
The great democratic revolution
mission to expand its activities to
include technical assistance and
First, we should recommit our-
that is sweeping across the Americas
selves to the OAS as the natural
has created, fortuitously, the condi-
training.
forum for hemispheric dialogue.
tions under which we can begin to act
Fourth, we must unleash the
The hemisphere is stirring with
as a community that is both sovereign
hemisphere's economic potential.
new life. The OAS must harness its
and democratic and, thereby, tran-
The triumph of democracy has
energy, broaden its scope, and
scend over time an issue that long has
handed us a unique and historical
deepen its impact. Already, the OAS
driven this hemisphere and this or-
opportunity to reduce longstanding
is showing new strength and demon-
ganization. Building on the OAS
political and security challenges in
strating its great potential. Secre-
Charter's call for a "land of liberty,"
this hemisphere to manageable
tary General [João] Baena Soares is
we can create a "system of liberty."
challenges of an economic nature.
leading a critical OAS contribution to
We can, in short, now develop sys-
We must not squander this opportu-
the delicate equilibrium of peace,
tematic means of ensuring democ-
nity, and risk seeing the re-emer-
national reconciliation, and demobili-
racy's future in the fullest conformity
gence of old security challenges by
zation in Nicaragua. The CICAD
with the hallowed principles of this
allowing the economic problems that
(OAS Drug Abuse Control Commis-
organization.
brought down Marxists and dictators
sion) is in the vanguard of interna-
We are on the right track. The
to undermine the stability of their
tional efforts to combat the traffic in
OAS observation mission in Nicara-
democratic successors. Our new
illicit drugs. The Inter-American
gua made an invaluable contribution
democratic order will be blessed with
Commission on Human Rights is
to a peaceful, democratic transition.
peace and stability only if the fruits of
forging a new regional consciousness.
It demonstrated the organization's ef-
democracy-growth deriving from a
For a decade, however, the OAS
fectiveness, the dedication of its
free market economy-are available
has been hamstrung by lack of
personnel, and the competence and
to all.
resources. Many members, including
vision of its leadership.
In just six months, the Uruguay
the United States, have fallen behind
Today, we in the OAS cannot be
Round of the GATT [General Agree-
in their payments. Last year the
indifferent or settle for halfway
ment on Tariffs and Trade] will con-
Secretariat was forced to release
measures when our Haitian brothers
clude. We must continue to more
almost one-third of all personnel. The
and sisters are asking for our help.
toward more open and liberal trading
OAS has become dependent on
We must do everything we can to
practices. The cost of economic
special voluntary contributions even
heed Haiti's call for electoral assis-
autarky is isolation, stagnation, and
to support peace in Central America.
tance. To aid responses in such cases,
decline. Wide-ranging participation
This General Assembly has the
the United States supports the Can-
in the global economy does not
duty of developing a consensus on a
adian initiative urging the Secretary
exclude greater regional integration.
new quota system that will distribute
General to create a permanent
Our objective must be to increase
the organization's costs equitably.
institutional mechanism to coordinate
trade among ourselves even as we
For my part, I can inform you that
OAS support for democracy.
work together to open up trade op-
the United States shortly will pay
Third, human rights must remain
portunities throughout the world.
more than $20 million to the OAS.
at the core of our cooperative efforts.
We in the United States applaud
With other US payments this year,
this means that the Secretariat will
At its 30th anniversary last year,
the courageous efforts underway
Secretary Baker saluted the Inter-
throughout the region to increase
have the money it needs to work
Latin America's global competitive-
more effectively for us all. For Fiscal
ness. We believe the hemisphere
Year 1991, President Bush has
cannot afford to lag behind the free-
requested the money to begin paying
market revolution if it is to survive
US arrearages as well as the full US
and to flourish economically in a
assessment. Congressional attitudes
3
world where competition for capital is
Sixth, we must ensure that we
Eighth, we must find in ourselves
growing more intense. For our part,
bequeath to future generations a
the impartiality and constancy that
we pledge to redouble our efforts to
hemisphere that can sustain human
are essential to the peaceful resolu-
confront and defeat protectionist
life - our children's lives.
tion of conflicts.
pressures in our country. We will not
Exploiting nature is necessary to
From the earliest inter-American
counsel freer trade in the Americas
mankind's progress; preserving
plan for arbitration to today's OAS
while permitting new barriers to
nature is necessary to mankind's
efforts in support of national recon-
trade to arise in the United States.
survival. We have a common stake in
ciliation in Nicaragua, the need for
Fifth, we must commit ourselves
the prudent use of our environmental
active, collective involvement in the
firmly to the rule of law. I am
assets-air, water, plant, and animal
making of peace has been an essential
referring here not only to this organi-
life. As with the war on drugs, no one
and widely accepted purpose of our
nation can defend the earth in isola-
zation's traditional stance against the
cooperation.
tion.
governmental abuse of freedom but,
Recently, OAS support of the
The United States believes this
more particularly, to the emergence
Central American peace process has
of transnational threats to our
General Assembly should use the
deserved our full support. OAS work
democratic form of government and
Secretariat's proposal on an "Inter-
in Nicaragua, first on elections and
to our national sovereignty. Clearly,
American System for Nature Conser-
now on national reconciliation, is
the most immediate threat to the rule
vation" to develop an action program
making clear the links between peace,
of law today comes from the drug
by the next General Assembly. The
democracy, and development. We
cartels. When we contemplate the
OAS clearly has a vital role to play in
call upon other members of this body
great toll in human lives and the
the environmental arena. We recog-
to join us in making voluntary
frontal assault on the rule of law
nize that this issue is particularly
contributions to support the OAS in
carried out daily by the drug cartels,
sensitive. Therefore, we ought to be
Nicaragua, and we urge OAS mem-
we should rise as one in indignation.
examining ways in which we can
bers to contribute to the Donors'
address those sensitivities and do
And we should rise in homage to the
Conference on Nicaragua that starts
people of Colombia who last week
whatever is in our power to preserve
in Rome tomorrow [June 6, 1990].
again defied the cartels to elect a new
the patrimony of generations yet to
We express our gratitude to the
come.
president in free, multi-party elec-
Secretary General for his leadership
tions.
Seventh, we must make the
and urge him to intensify his efforts
In February, the summit attended
substantial investments in education
in El Salvador to promote peace on
by the presidents of Bolivia, Colom-
needed to support democracy and
the basis of constitutional democracy,
bia, Peru, and the United States gave
human development.
impartial justice, and full respect for
birth to a powerful new anti-drug
Education is clearly a matter that
human rights.
consensus. In April, the CICAD
is closely linked to the hemisphere's
It is important to note as well that
economic future and the viability of
ONUCA [United Nations Peacekeep-
brought together attorneys general
and ministers from throughout the
its democratic institutions. Last
ing Force in Central America] is pro-
hemisphere to press for ratification of
year, here in Asuncion, ministers of
viding a stabilizing external presence
the 1988 UN Anti-Narcotics Treaty
education discussed informatics
today without which the joint efforts
[information science] as an educa-
of the OAS and the UN in Nicaragua
and approve model legislation to
control chemicals and machines used
tional tool. We believe that the
would be jeopardized. We are
in the manufacture of cocaine. Last
Secretariat for Education, Science,
pleased that Venezuela, a member of
week, CICAD developed the first
and Culture should take advantage of
the OAS, is contributing a reinforced
battalion to ONUCA. At the same
international program of action for
its regional outlook and multilateral
education to prevent drug abuse.
experience to propose a strategy for
time, we note the absence of contri-
enhanced cooperation.
butions by member countries through
The United States supports
the OAS as such. My government
CICAD's vital work, including its
does not have a specific proposal but
new experts group to develop model
would welcome a review of how we
legislation to stop money laundering
might most effectively utilize existing
and to seize illegal assets.
OAS institutions, such as the Inter-
4
American Defense Board and the
to democracy, our governments are
democracy work. We in the United
Inter-American Defense College, in
developing a working partnership.
States believe that our national well-
ways supportive of peace and democ-
Partners approach each other freely
being is linked to the successful
racy in the hemisphere.
and as equals, with mutual respect.
consolidation of democracy and the
Partners look to fix problems, not to
emergence of genuine prosperity
A Call to Action
affix blame. Partners accept the
throughout Latin America. we
notion of co-responsibility. And when
believe that through our collective
The late president of Colombia and
they disagree, they air their dialogue
efforts we can defeat the threats to
secretary general of the OAS, Al-
openly.
democracy-drugs, debt and under-
berto Lleras Camargo, said of the
A heavy responsibility weighs
development. We can do so, above
OAS in 1954 that, "It is what the
upon this generation in the Americas.
all, by tapping fully the great poten-
member governments want it to be
The dreams and aspirations of our
tial of our unique hemispheric asset,
and nothing else
the weaknesses
forefathers for a hemisphere united
our privileged forum for dialogue,
of the organization, if it has them, are
in a universal commitment to democ-
cooperation, and collective action-
weaknesses of the governments;
racy are finally on the verge of being
the Organization of American
weakness in their capacity to act in
realized. But history is no friend of
States.
coordination and jointly with each
the status quo; our democratic
other. The strength of the organiza-
triumph will be short-lived if we do
Published by the United States Department
tion, when it is evident, lies precisely
not meet the challenge now of making
of State
Bureau of Public Affairs
Office
in the action of the governments."
of Public Communication
Editor: Jim
United by the practical commitment
Pinkelman
Washington, DC
June 1990
This material is in the public domain and may
be reprinted without permission; citation of
this source is appreciated.
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PENALTY FOR PRIVATE USE
Address Correction Requested
President Bush
Current
Policy
Latin America's
No. 1286
Year of Freedom
United States Department of State
Bureau of Public Affairs
Washington, DC
Following are remarks delivered by
I am here today to assure you,
than ever before to the day when all
President Bush to the Council of the
just as I have assured the many Latin
the people of the Americas, North
Americas, Washington, DC, May 22,
American leaders I have met with,
and South, will live in freedom.
1990.
that the events of the past year have
Even in Haiti, the scene of so
increased US interest in this region-
much human suffering and anguish
[Introductory remarks deleted.
]
strengthened our desire to forge a
and turmoil, the provisional govern-
new partnership with the growing
ment has now announced its intention
I am pleased once again to speak to
forces of freedom in Latin America.
to hold free elections. This Thursday
this most influential group-pioneers
Because the fact is, the great drama
[May 24], I will be meeting at the
in the private-sector effort to expand
trade and investment between the
of democracy is unfolding right here
White House with the new leader of
United States and Latin America.
in our own hemisphere.
Haiti [Ertha Trouillot], where we are
And I am delighted to address this
Think about the tremendous gains
sure to discuss ways we can support
democracy in Haiti. In all of Latin
gathering after what has been a
made for freedom this past year.
remarkable year of change.
When I spoke here last May, the
America, only Cuba-Castro's
Over the past 12 months, it has
people of Panama were preparing to
island-remains isolated, out of step
sometimes seemed that the eyes of
go to the polls-even as the dictator
with the democratic tide. But today
of Panama was preparing to steal the
we are celebrating the anniversary of
the world rest solely on Eastern
election. In Nicaragua, civil war
Cuban independence. Let me say
Europe-on the miraculous transfor-
mation that has taken place there.
raged, the Sandinistas ruled, and the
with certainty that even in Cuba, the
brave men and women of the Nicara-
dream of democracy can only be
Our friends in Latin America have
watched these historic events unfold
guan opposition were just beginning
pushed back a little, only be de-
the long campaign that led to this
ferred-it will never be destroyed.
with inspiration and awe. But also, I
know, with an unmistakable sense of
year's great victory for democracy.
As we in the United States
anxiety [and] concern that our active
In Central America: Nicaragua
welcome our Central and South
and Panama; in South America:
involvement in Europe will mean a
American neighbors into the ranks of
decline in US interest in Latin
Paraguay and Chile, all across the
democracy, we must offer them our
America.
Americas, today more people live
under freely elected governments
than ever before, and we are closer
help and something more; we must
Peruvian economist Hernando de
In Chile, with an overall growth rate
offer them our respect, the respect
Soto describes the maze of bureau-
of 10%, US exports increased by
due one free nation from another, and
cratic barriers that stood in the way
triple that rate-more than 30
the outstretched hand of partnership.
of the entrepreneur and stifled
percentage points.
I have been working to
economic growth in his country. De
The most effective way to ensure
strengthen our ties. Just this year
Soto also shows how much Lima,
expansion of trade between the
alone, I have met with Presidents
Peru's capital, owed its economic
United States and Latin America is
Barco [Colombia], Paz [Bolivia], and
vitality to what he calls the "informal
for all countries of the hemisphere to
Garcia [Peru], at the Andean drug
sector"-the thousands of independ-
support a successful Uruguay Round.
summit in Cartagena.
Here in
ent and enterprising individuals
The ambitious agenda in the Uruguay
Washington, I have hosted Presi-
doing business without the consent of
Round, including proposals for
dents Perez [Venezuela], Paz Zam-
the State.
significant multilateral tariff reduc-
ora, Cristiani [El Salvador] and
De Soto's prescription-and
tions, will benefit our Latin American
Endara [Panama], Collor de Mello
mine-is to free this economic force:
trading partners. We are committed
[Brazil], Calderon [Costa Rica], and
unleash the million sparks of energy
to the expansion of trade and invest-
Callejas [Honduras], and Prime
and enterprise; let the incentive of
ment liberalization, and we seek
Minister Manley [Jamaica]. In each
reward inspire men and women to
Latin American support for these
case, I have come away from our
work to better themselves and their
very important objectives. In addi-
talks with a strong sense of optimism.
families.
tion, the strengthened debt strategy
And I believe every one of those
Already, Latin America is discov-
launched last spring has reinvigor-
leaders left the White House knowing
ering this path. In Brazil and Bolivia,
ated market-oriented economies and
that the United States is engaged as
in Argentina, Venezuela, Mexico,
reinvigorated the reforms in Latin
never before in the future of this
Costa Rica, and Jamaica-free
America. These economies help
hemisphere.
market reforms are going forward,
provide the needed foundation for
creating space for private initiative to
democracy itself.
Democracy and Development
take hold and flourish. As they
That's why I am so pleased to
succeed and as they reap the rewards
report on the progress we've made
While from country to country
that will follow this—I would say
this past year under the Brady plan.
conditions differ, we know now that
what will certainly be a painful
Mexico, Venezuela, and Costa Rica
our challenge is to consolidate
transition-these nations will bring
have all reached agreements with
democracy and accelerate develop-
others in their wake.
their creditors on ways to reduce
ment. That means advancing the
We in the United States must do
their debt; ways to complement their
intellectual revolution now sweeping
all we can to ensure the future of free
efforts to restructure their economies
Latin America, a movement away
markets in the Americas because our
along free-market lines. Because in
from stale, statist doctrines; away
nation has a stake in the economic
the long term, the free market
from dictatorships of the right and
health of this hemisphere. We know
remains the only path to sustained
left; toward democracy, free govern-
that since the late 1970s, Latin
growth.
ment, free enterprise; toward the
America's share of all US trade
true political and economic empower-
dropped from 10% of all US exports,
Role of the Private Sector
ment of the people.
down to 7%. And yet last year, for
That means encouraging, for the
the first time ever, two-way trade
We all know the private sector plays
first time in many cases, genuine free
between the United States and Latin
a crucial role. Taking advantage of
market reform. Even in countries
America topped $100 billion. As that
new investment opportunities is good
that claimed no kinship with commu-
trade continues to grow, so will the
for business, but at this critical
nism, true free enterprise did not
link between our prosperity and the
moment there is something beyond
exist. In practice, economies were
prosperity of our Latin American
the bottom line; something that
often organized to ensure the pros-
partners.
cannot be measured simply in terms
perity of the people in power-not to
Let me provide a few statistics to
of GNP. The role the Council of the
open an avenue toward upward
drive home this point: Last year, the
Americas can play-expanding trade
mobility for anyone ready and willing
Colombian economy grew 3%; US
and strengthening the private
to work.
exports to Colombia rose 9%. Mex-
ico's economy grew 3%, and US
exports to that country climbed 21%.
2
sector-contributes not only just to
in your hands. Do the work of
way the Sandinistas had politicized
economic growth but to the growth of
democracy-and pass this emergency
the schools. Today, Mr. Cisneros is
democracy itself.
aid package now.
minister of education.
Now, there is an important role
for government to play as well-
And on July 10, 1988, opposition
Personal Stories of Freedom
especially during the difficult days of
leader Myriam Arguello was beaten,
transition from dictatorship to
Today, I began by speaking about the
taken from her home in the middle of
democracy. That's why I have called
changes that have riveted world
the night by Sandinista police, tried,
on Congress to provide $800 million
attention on Europe. Part of the
and sentenced to 6 months in prison.
in emergency economic aid to Pan-
power of the story is that it can be
Today, Myriam Arguello is president
ama and Nicaragua. We have a big
told in intensely personal terms, as
of Nicaragua's freely elected national
stake in this. This aid is critical. A
the story of the dissident playwright
assembly.
little over a week ago, I received a
who is now president or of the
These three stories underscore in
letter from President [Violeta]
electrician who came to symbolize his
personal terms the truly revolution-
Chamorro-just weeks into her term
people's hopes for freedom. Democ-
ary political change that has taken
in office-telling me that Nicaragua
racy's advance in Latin America has
place not just in Nicaragua but across
was bankrupt. And yet, for more
produced its share of heroes-and
the Americas, change that proves
than 2 months now, this emergency
today I will close with three from one
beyond doubt that the day of the
aid has been bogged down on Capitol
country alone, Latin America's
dictator is over and democracy's day
Hill. To give you an idea of the
newest democracy, Nicaragua.
has come.
magnitude of this problem, in March,
For 4 years, beginning in 1979,
For our part, we in the United
I requested $800 million for Panama
and Nicaragua, asking that this bill
the year the Sandinistas took power,
States must do all we can to help
Enrique Dreyfus was head of Nicara-
secure for all the Americas the free-
be finished April 5. It is now May 22,
gua's supreme council of private
dom, the peace, and prosperity we
and the funds for Panama and Nicara-
gua have been reduced by $80
enterprise-a private-sector group in
enjoy. Please keep up-more than
million-even though $1.4 billion in
many ways similar to this one. His
ever-your important work in
criticism of Sandinista rule put him
guaranteeing that democracy suc-
extra spending has been added.
on the Sandinista black list and
ceeds in this precious hemisphere of
Finally, it appears the Congress
landed him in prison. Today, with the
ours.
may act this week on this vital
measure. For the people of Nicara-
Sandinistas swept from power,
Published by the United States Department
gua and Panama democracy hangs in
Enrique Dreyfus is not just free from
of State
Bureau of Public Affairs
Office
persecution-he is Nicaragua's new
of Public Communication
Washington, DC
the balance. So let me say to the
foreign minister.
June 1990
Editor: Susan Holly
This
Congress: The fate of freedom rests
material is in the public domain and may be
In 1985, members of the Sandin-
reprinted without permission; citation of this
ista internal security force beat
source is appreciated.
Sofonias Cisneros for criticizing the
3
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OPENING ADDRESS BY
LAWRENCE S. EAGLEBURGER,
DEPUTY SECRETARY OF STATE
at the Washington Conference of
The Council of the Americas
May 21, 1990
Ladies and Gentlemen, I am delighted to be here with you
this morning. I must confess, however, that I am somewhat
baffled at David Rockefeller's and George Landau's invitation
to appear before the Council of the Americas. I am, of course,
flattered that they would want to hear about new and
invigorated U.S. policy directions in Latin America from a Cold
Warrior in a wheel chair. On the other hand, I do not believe
they expected me to give my usual stump speech -- no pun
intended -- on Eastern Europe. I suppose the Council felt they
needed to beef up, as it were, their lineup of speakers, since
you otherwise would be hearing only from Bob Mosbacher, Alan
Greenspan, and the President -- not to mention Assistant
Secretary Aronson, who will speak next, and whom I see has
modestly assigned himself the task of discussing "U.S.
Relations with the Western Hemisphere."
That may not leave much ground for me to cover, but in all
seriousness, while it is true that I have been busy with the
job of coordinating U.S. assistance to Eastern Europe, I have
also devoted a good deal of attention to hemispheric affairs.
I will, for example, hobble off to Paraguay in early June to
attend the annual session of the OAS General Assembly. I care
deeply about U.S. relations with Latin America, and very much
believe that those relations will grow ever more important to
us in the years ahead.
I have been asked to say a few words to you about how the
Administration views Latin America in a global context,
especially in light of the revolutionary changes that have been
occurring in Europe and elsewhere over the past year. It will
come as no surprise to you for me to say that American foreign
policy has been largely focused over the past year on events in
Eastern and Western Europe. The prospect of ending the Cold
War is, quite simply, of immediate and overriding strategic
importance to the United States. Europe is where we have
fought two great wars in this century, and where we have stood
face to face with the Soviet Union on the brink of
thermonuclear war for the past four decades and more.
It is, therefore, only natural that we should spend
considerable energy in the near term on creating a new and
stable security order in Europe -- a new order that will,
hopefully, keep the peace there for generations to come. And
part of that effort, quite obviously, entails doing all that we
can to make the transition to democracy and free markets in
Eastern Europe a successful one. We do not want to win the
Cold War only to lose out in the perennial struggle to prevent
Eastern Europe from becoming once again an unstable power
vacuum and object of geopolitical rivalries.
At the same time, however, what we are attempting to
achieve in Europe today is in essence the closing of an old
chapter. The new chapter in our foreign relations which we are
about to open, while certainly not ignoring Europe, will be
qualitatively different in several respects.
First, assuming we are successful in closing that old
chapter, our foreign policy will be much less oriented towards
the East-West divide, which we hope, like the Berlin Wall which
symbolized it, will be consigned eventually to the dust-bin of
history. Second, the end of the Cold War should bring with it,
to the maximum extent possible, a "de-militarization" of
international relations. Military rivalry and the arms race
which fuels it ought to be supplanted by peaceful economic
competition.
No one has ever accused me of being a dewy-eyed optimist.
I have been warning for some time now that we need to be aware
that the decline of the Soviet threat could, if we are not
careful, diminish the commitment of the major Western nations
to the collaborative trade and economic policies which have
been so responsible for our peace and prosperity in the
post-war era. Our great achievement over the past year -- and
it is the culmination of forty-five years of American and
Western foreign policy -- has been to reach the point where
profound and intractable security challenges are well on the
road to being reduced to challenges of a political or an
economic nature. But we need to remember what the history
books tell us, which is that economic problems themselves can
contain the seeds of instability and potential conflict.
Thus, we cannot afford to rest on our laurels -- not in our
relations with our Western partners, where we will have to
avoid the kind of autarky, protectionism and regionalism which
prevailed in the 1930s; not in Eastern Europe, where we must
contribute to the emergence of strong and prosperous states
that will form a bulwark of stability; and not in Latin
America, which, as a result of the revolutionary transformation
in East-West relations is going to occupy a place of first
importance in American foreign policy as we approach the 21st
century.
- 3 -
This will be the case first of all because of strictly
"selfish" economic reasons. The fact of the matter is that, in
the post-Cold War era, our national security will be
increasingly a function of our economic well-being, which in
turn will be dependent on our international competitive
position in a more highly integrated world economy. Our trade
with Latin America, in short, will increasingly be seen as a
vital national interest. It is an interest, however, which
will continue to be threatened so long as the region remains
mired in debt, unable to buy our products or redeem liabilities
to U.S. financial institutions.
Second, we are witnessing the emergence of a host of
"transnational" issues and problems which pose direct threats
to our national well-being and security, and whose solution is
dependent on cooperation with our Latin American partners. I
am thinking not only of drugs but also of threats to the
environment in this hemisphere, as well as to unregulated
immigration flows.
Third, there is the undeniable fact that the population of
the United States is becoming more Latin and more
Latin-oriented. For all of our stake in peace and stability in
Europe, we know that our West European friends will have
primary responsibility for integrating the newly democratic
regimes in the East, whereas our energies will be increasingly
and inevitably drawn towards our own hemisphere -- an area
which is a natural place for U.S. economic cooperation.
The point I made earlier about our success in an East-West
context of transforming security challenges into political and
economic ones, is no less true in this hemisphere, just as our
stake in preventing the re-emergence of old security challenges
here is no less great than it is in Europe. Certainly the
example of Panama and Nicaragua is a good one. When you think
of how much the United States has invested in treasure, lives,
and political capital over the past decade to obtain the
historic successes we have achieved in those two countries, it
boggles the mind that Congress continues to dilly dally as it
has in appropriating the modest but urgently needed funds to
consolidate the victory of democracy there.
My purpose today is not to bash the U.S. Congress --
although there are some in that body who deserve it. Nor is it
to focus on the ever-contentious Central American portfolio.
However, Panama and Nicaragua are, in an important sense,
metaphors for the kind of challenge we face throughout the
hemisphere, the challenge of making democracy work. A lot has
been made of the fact that the worldwide trend towards
democracy actually began in Latin America in the early 1980s,
4 -
and that, for perhaps the first time in history the entire
hemisphere -- with two notable exceptions -- is now in
democratic hands, and is united ideologically. We need to be
aware, however, that democracy will rest on fragile ground for
as long as the dire economic conditions which brought down
Marxism and dictators hang, like a sword of Damocles, over
their democratic successors.
In other words, our ideals have triumphed in Latin America
as in Eastern Europe, but those ideals will now be put to the
test. We believe that peace and stability will result from a
democratic world order, but only if the fruits of democracy --
growth deriving from a free market economy -- are available to
all. We are greatly encouraged that the political leadership
in Latin America -- in Mexico, Brazil, Argentina, Venezuela,
Chile, Bolivia, and elsewhere -- is now committed to
privatization and wholesale economic reform. To the extent
that these reforms are fully implemented, we in the United
States are going to have to exercise an equally courageous
leadership of our own.
I am not here to unveil any kind of initiative today. But
it is clear that we are going to have to move in the direction
of opening up trade further in this hemisphere, and that will
mean fighting protectionist sentiment at home and abroad. We
will also have to move in ways that boost the flow and transfer
of investment and technology in the region. Lastly, building
on our current strategy, we will have to examine new and
creative approaches toward solving the debt problem.
Our ability to assist in the economic recovery of Latin
America will be directly related to the continued process of
meaningful economic reform. In this respect as well, Latin
America and Eastern Europe are not different. In the 1970's we
made the mistake in Eastern Europe of throwing money at the
region's problems. We will not make that mistake again; to do
so would only serve to postpone the implementation of reforms
which are as painful as they are necessary. As Carlos Menem
put it in April, if the debt burden were to disappear suddenly
and yet the economic policies of the past were to continue, "we
would continue in the same situation of unemployment and
disaster." Statist and protectionist pelicies must be fully
rolled back, and the door must be opened wide to the reciprocal
flow of trade and to the flow of investment. This is not a
prescription made in Washington; it is a fact of life. If the
door is not opened wide enough, it is certain that in a world
where competition for scarce capital is growing more intense,
investment will go elsewhere.
- 5 -
In conclusion, let me emphasize that while we are very much
preoccupied with bringing the Cold War to a successful
conclusion, we also recognize that Latin America must be a
priority for us in coming years. And yes, we do have serious
budget difficulties and our first duty in the wake of the Cold
War will be to put our own economic house in order. As I have
explained to you this morning, however, we realize that our
economic health, and, ultimately, our national security, will
be tied to the successful consolidaticn of democracy and the
emergence of genuine prosperity throughout Latin America. And
if, as I have indicated, trade, investment, and technology will
be the weapons of choice in our struggle for our ideals in this
hemisphere, then American business will clearly be called upon
to play a principal, if not the leading, role on our behalf.
A quick reference aid on U.S. foreign policy
gist
Debt and Growth in Latin
America and the Caribbean
Background
income debtor countries. These measures support policy
Latin America underwent a profound recession in the
changes needed for sustained growth and improved
1980s. After vigorous expansion in the 1970s, when annual
living standards for the people of Latin America and
the Caribbean.
per capita growth rates averaged 3.6%, per capita gross
domestic product (GDP) fell 8.3% between 1981 and 1989
(all 1989 figures are preliminary). These statistics, com-
Economic Stabilization
piled by the UN Economic Commission for Latin America
and Structural Adjustment
and the Caribbean, mask wide variations from country to
Debt problems have forced governments to realize that
country. Per capita GDP of oil-exporting countries
they cannot sustain large fiscal deficits indefinitely
declined more than 14% during the period; oil-importing
through excessive borrowing or monetary expansion.
countries generally experienced a cumulative decline of
Recognition is growing in Latin America that private
4.8%. Only Colombia, Chile, Barbados, and the Dominican
initiative and private savings and investment must be
Republic had positive per capita growth.
stimulated if there is to be hope for sustained growth. As
a consequence, most countries in the region now are
Debt-Related Problems
undertaking economic adjustment efforts supported by
Revitalization of growth in Latin America is complicated
international financial institutions and creditor countries,
by severe, debt-related problems. In 1989, Latin Amer-
including the US.
ica's external debt totaled more than $416 billion, about
In the last few years, many Latin American govern-
40% of the total indebtedness of all developing countries.
ments have begun to move away from the excessive
Interest payments alone absorbed some 30% of export
government control, market intervention, and import
earnings (this ratio would be higher except for substantial
substitution strategies that they have relied upon for
arrears built up by some countries).
decades. Most have moved to adopt more realistic
While debt is a serious problem and debt service a
exchange rates, expand exports, and cut inflation. Aver-
heavy burden to Latin American developing countries,
age regional inflation fell from an initial peak of 275% in
inappropriate domestic economic policies have been the
1985 to 65% in 1986, but recent dramatic surges in infla-
principal cause of constraints on economic growth and
tion in such countries as Argentina, Peru, and Brazil
development. Lack of confidence resulting from such
pushed the regional inflation rate to almost 1,000% in
policies as overvalued exchange rates, price controls,
1989.
wasteful government spending, and overregulation has
Of even greater importance for the longer term, many
dried up domestic savings and investment, discouraged
governments are beginning to lower structural barriers to
foreign investment, and led to huge capital flight in many
growth. They have taken steps to reduce price controls
countries. Total capital flight for Latin America is esti-
and subsidies, liberalize trade, attack overregulation and
mated conservatively to be in excess of $240 billion since
excessive bureaucratic controls, and improve the invest-
1977. Adverse external economic developments, espe-
ment climate, including removing some restrictions on
cially higher interest rates in the early 1980s and commod-
foreign private investment. For example, Chile, Mexico,
ity price fluctuations, aggravated the resulting deficits in
Costa Rica, and Jamaica have made great strides toward
the borrowing countries' balance of payments.
more market-oriented economies and more open trading
In March 1989, the US announced several proposals to
regimes. Bolivia, Colombia, Guatemala, Uruguay, and
strengthen the international debt strategy by encouraging
Dominica have undertaken impressive reforms. Vene-
voluntary, negotiated debt and debt service reduction as a
zuela, Paraguay, Trinidad and Tobago, El Salvador, and
complement to commercial bank lending, domestic and
Argentina have initiated similar adjustment efforts.
foreign investment, and return of flight capital in middle-
Several countries have recognized the heavy burden of
U.S. Department of State
March 1990
Bureau of Public Affairs
Office of Public Communication
inefficient and highly subsidized public enterprises that
The US is encouraging more market-based reform
siphon off domestic savings and often increase external
through bilateral and multilateral economic assistance,
indebtedness. Chile and Mexico, among other countries,
the strengthened debt strategy, and continued efforts to
have made important progress in transferring govern-
achieve open world markets. The US is by far the largest
ment-owned industries to private ownership.
contributor of development assistance to the region-
averaging more than $1 billion annually over the past few
International Efforts To Encourage Growth
years. The Caribbean Basin Initiative (CBI) gives
The International Monetary Fund (IMF) and World Bank
Central American and Caribbean countries improved US
provide financing to encourage new commercial debt
trade opportunities which have helped create many new
reduction agreements and to assist debtors in pursuing
jobs in those countries that have sound economic policies.
fundamental economic reform. Since 1986, the IMF has
The US Government has supported increases in World
established a compensatory and contingency financing
Bank and Inter-American Development Bank resources
facility to help countries maintain reform efforts in the
to advance economic adjustment and growth in the region
face of external economic shocks and two special facilities
and is seeking more open world markets through the
to support structural economic adjustment in low-income
Uruguay Round of multilateral trade negotiations.
countries. The World Bank has assumed an increasingly
Further Information
important role in stimulating sustainable economic
growth in debtor countries through policy-based, fast-
For the origin of debt-related problems as well as US
disbursing loans.
policy regarding debt and growth, see the May 1989
Department of State Gist on "Third World Debt."
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Secretary Baker
Current
Policy
Narcotics: Threat
No. 1251
to Global Security
United States Department of State
Bureau of Public Affairs
Washington, D.C.
Following are remarks by Secretary
rights and international law, concern for
First, I will describe America's na-
Baker before the UN General Assembly
the well-being of all the world's peoples-
tional drug strategy, which centers on the
Special Session on Narcotics, New York
if we fail to do our utmost to accomplish
need to reduce the use of drugs at home.
City, February 20, 1990.
these aims, then we could end up living in
Second, I want to share with you the
a future that resembles our troubled past.
results of the summit in Cartagena,
These are promising times for the world
Even as we work together to elimi-
where President Bush and the leaders of
community. From South Africa to East-
nate war and conflict, there are other
Colombia, Bolivia, and Peru formed the
ern Europe, from the democratic move-
troubles that will not wait and that are
world's first antidrug cartel.
ments in Asia to the new generation of
bringing untold sorrow to mankind. Even
Finally, I will offer my government's
democratic leaders in Latin America, we
as we heed the cry of freedom and democ-
thoughts on how the United Nations can
hear the stirring cry of freedom. People
racy, we must not fail to hear another cry.
best assist in the global fight against
of faith, conviction, and courage are strug-
This cry is not the affirmation of freedom
narcotics.
gling and prevailing against difficult odds.
but its negation, not the uplifting of de-
The old world of dogmatic dictator-
mocracy but its degradation. It is the call
ships is on its way out. Tragic throw-
The U.S. Effort
of the drug addict.
backs to repression only serve to remind
That cry concerns all of us, and it is
First is our national drug strategy. The
us that the new world of secure, prosper-
urgent. We hear it close to home-to my
American people consider drugs the num-
ous, and just democracies has not yet
home, to your home, and to the homes of
ber one problem facing the United States.
arrived. And it will not come auto-
our neighbors in the world community.
And winning the war against drugs is a
matically. We all must work to bring it
None of us-not one nation-remains
top priority for President Bush and,
into being and ensure that it will last.
untouched. None of us-not one-is
therefore, a top foreign priority for me.
Global war brought this organization
safe from the danger of drugs.
The Bureau for International Narcotics
into existence in 1945. And it was with
Drugs pose a serious threat to global
Matters at the Department of State, ably
solemn determination that the UN found-
security. We are here at this special ses-
led by Assistant Secretary Levitsky, has
ers pledged, in the opening words of our
sion because we recognize this bitter
done a first-rate job of ensuring that nar-
Charter, "...to save succeeding genera-
truth. We fully recognize the growing
cotics control issues are fully integrated
tions from the scourge of war...."
importance of combatting drugs. I par-
into our diplomatic efforts.
Especially now, at this promising
ticularly wish to thank the governments
Our drug control strategy calls for an
time, it is critical for the nations of the
that have played leading roles in prepar-
attack on the drug problem in all its
world to recall the fundamental aims that
ing the agenda before us.
aspects-consumption, trafficking, illicit
unite us. For if we fail to support the
I would now like to review for you the
production, treatment, and rehabilitation.
goals of the UN Charter-peace, human
comprehensive approach my government
My government is placing greater empha-
dignity, justice, respect for sovereign
is taking to help rid my country and the
sis than ever before on preventive
world of illicit drugs.
education programs, treatment, and
Thus, consumption and supply, de-
In one short and brutal decade in Co-
rehabilitation. We aim to stop the traf-
pendency and exploitation, greed and vio-
lombia, the Medellin and Cali traffickers
ficking in all illicit drugs, not just cocaine.
lence become a vicious circle-in truth,
have killed over 1,000 public officials, 12
Heroin, marijuana, and the so-called
like a dragon chasing its own barbed tail.
Supreme Court justices, over two dozen
designer drugs are also major threats.
That circle of misery and death must be
journalists, and more than 200 judges and
And we are attacking the problems of
broken. America is helping to break it-
judicial personnel, not to mention the
domestic cultivation and trafficking.
both at home and with our partners
scores of men, women, and children who
This kind of comprehensive approach
abroad.
happened to be going about their daily
calls for increased resources. Since the
lives in the wrong place at the wrong
Bush Administration took office, the do-
mestic antidrug budget has increased 67%
The Cartagena Summit
time. And no amount of laundering can
wash the blood off money stained by
to $7.6 billion. And our international
This brings me to my second topic: last
drugs. The so-called kings of cocaine are
antidrug budget, including border and
Thursday's [February 15] summit in Co-
criminals-criminals of uncommon power
off-shore interdiction efforts, has in-
lombia. As you know, President Bush and
and uncommon brutality.
creased 73% to $3.1 billion.
I traveled to Cartagena where we met
Time and again, President Barco has
We fully realize that attacking the
with our counterparts from Colombia,
put his own life on the line to free his na-
problem of domestic consumption is our
Bolivia, and Peru. In Cartagena, the sum-
tion from the deadly grip of the drug
most critical challenge. As long as the
mit partners pledged to attack the mer-
cartels. Together with President Barco,
demand for drugs by Americans remains
chants of drugs and death from every
Presidents Bush, Garcia, and Paz all rec-
voracious, our nation faces an endless,
angle-production, distribution, finance,
ognize their responsibility to take the lead
uphill struggle to halt supply. We are
and use. President Bush was unequivocal
in combating cocaine, our common enemy.
making progress. Domestic drug use
in his commitment to reduce demand for
Together at Cartagena, we reaffirmed
dropped 37% from 1985 to 1988, and
drugs in the United States. We agreed
the need for development, trade, and in-
cocaine use was cut in half over the same
that it was pointless to apportion the
vestment to strengthen growth-oriented
period. But we have a long way to go.
blame between producer nations and con-
economic policies in order to offset the
We are determined that drug users in
sumer nations-narcotics are a deadly
economic costs of counternarcotics pro-
the United States face the hard facts:
threat to all nations that are exposed to
grams. We agreed to work in concert to
Their behavior is not just a personal in-
them. We and our summit colleagues are
heighten public awareness of the debili-
dulgence. American users act as paymas-
determined to break the back of crack and
tating effects that drug production, traf-
ters to organized murderers. Profits from
put the illicit cartels out of business.
ficking, and abuse have on our countries.
every kilo of cocaine bought in the streets
By going to Cartagena, the President
We agreed to provide economic assistance
of America buy the bullets which rob
demonstrated our country's absolute de-
to help strengthen the legitimate econo-
democracies of their dignity and freedom.
termination to fight the drug war for
mies of the Andean nations. And we
American users aid and abet the drug car-
however long it takes. We have assured
agreed to strengthen the law enforcement
tels which in turn foment and exploit re-
our partners that we will not fail to sup-
capabilities of our countries to bring traf-
gional and global instabilities. When
port them in the drug fight.
fickers to justice. President Bush told his
Americans feed their habits and enrich
As part of our support, from FY 1989
Andean colleagues that he would raise
the cartels, it's like they're giving succor
to FY 1991, the United States will in-
these issues with the G-7 at the Houston
to terrorists. American users are acces-
crease sevenfold our international drug
summit and with other developed coun-
sories to criminals who poison children.
budget for Colombia, Bolivia, and Peru.
tries as well. The United States seeks to
Their habits also contribute to the murder
Our total economic assistance will more
improve and strengthen narcotics consul-
of the land. Coca farmers have destroyed
than double to those Andean nations next
tation and cooperation with other devel-
acres of forest lands; traffickers have
year as they undertake tough counternar-
oped countries to bolster international
dumped millions of gallons of precursor
cotics programs and apply sound eco-
support of producer-country counternar-
chemicals into rivers.
nomic policies.
cotics efforts.
I regret to say that narcotics has be-
It is fitting that the summit was held
Finally, we and our Andean col-
come a big business, a very big business
in Colombia. We applaud Colombia's
leagues agreed to urge all countries to
in my country. Last fall in Los Angeles,
courageous decision to seize and destroy
ratify, as soon as possible, the UN Con-
agents seized 22 tons of warehoused
labs, arrest and prosecute narcotics
vention Against Illicit Traffic in Narcotic
cocaine. If all the kilo packages we seized
offenders, extradite traffickers and
Drugs and Psychotrophic Substances.
were stacked, one on top of the other, the
money launderers, and challenge the
When ratified, the 1988 convention will
pile would be a mile and a half high-
cocaine empire.
foster worldwide cooperation in such ar-
that's a mountain of misery half the
No nation has SO bravely confronted
eas as money laundering, asset seizure,
height of the tallest mountain in the conti-
the drug lords or made greater sacrifices.
precursor chemical control, extradition,
nental United States. It was estimated
No nation here can remain indifferent to
investigation, intelligence gathering, and
that the street value of the seized cocaine
Colombia's fate. The scale of drug-related
information sharing. I am pleased to re-
exceeds the individual gross national
violence in Colombia is horrific, even to
port that President Bush signed the
products of well over 100 of the nations
those among us who have experienced
instrument of ratification for the United
represented in this chamber today. And
firsthand the violence that has been SO
States on February 13. We deposited the
this was just one warehouse. Imagine the
sadly a part of our turbulent century.
signed instrument of ratification with the
veritable Mt. Everests of misery we
United Nations today.
haven't found!
2
Ratification by all countries will help
them out. We must order our priorities in
laundering of money, that turns a blind
us in regional efforts to combat cocaine
such a way as to accomplish our aims
and uncaring eye to drug abuse and drug
and also increase worldwide cooperation
within the framework of a unitary
trafficking. We will give no quarter.
against illicit drugs of all kinds.
approach to the entire UN system and
through zero real program growth in
Conclusion
A Strengthened Role
budgets.
for the UN System
The Global Program of Action will re-
I began these remarks by saying that we
inforce the solid foundation which we
are living in promising times. Freedom
By fostering worldwide cooperation, the
have built already; by this I mean the two
and democracy are in the ascendancy, yet
United Nations plays a crucial role. It is
established international drug control
they face formidable odds. Undoubtedly
imperative that we make maximum use of
treaties now in effect and the new con-
drugs are among their mortal enemies,
the UN instruments and the UN system
vention against illicit trafficking which I
for freedom and democracy are universal
as a whole to buttress our efforts at the
mentioned earlier. In addition, we have
ideals that speak to the dignity of every
national and regional levels.
other mandates such as those contained in
individual. And if these ideals are to be
There is no country here SO proud or
the comprehensive multidisciplinary out-
realized, every individual must make a
so great as to be able to rid itself of drugs
line from the 1987 International Drug
contribution to his or her own society and
without the help of other nations. Nor is
Conference and UN General Assembly
to the world community. An individual
there any country here so small that it
Resolution 44/141, adopted in December
caught in the grip of drugs becomes a
cannot support in some way this impor-
1989. All of these documents give us the
slave-no longer a free or a responsible
tant international effort. Together we
legal and program basis as well as the
person. And the same thing can happen
can work more effectively than in isola-
clear authority with which to proceed. So
to entire nations.
tion. We can accomplish more in concert
let us use these tools effectively before
But such tragedies do not have to
that at odds with one another. This
we endeavor to write new treaties. We
happen-not to our citizens, not to our
special session affords to us all, the com-
want to strengthen our systemwide
countries, not to the world community.
munity of nations, an opportunity to work
efforts and ensure maximum cooperation,
It's up to us-each of us, all of us to-
together decisively against drugs.
coordination, and efficiency in the conduct
gether. A great deal is at stake.
We must seize this opportunity now.
of all UN programs.
We know that we cannot cleanse the
For if we let it pass, our inaction will con-
To be sure, there is a good case for
world of drugs in one generation. Yet I
demn more children to suffering and
improving and reinforcing our multilat-
believe I am justified in ending on an opti-
want, more families to destruction, more
eral infrastructure. We agree that mem-
mistic note. More than ever before,
governments to the assaults of drug car-
ber countries should allocate more re-
nations all over the world are working
tels. And more of the threads that hold
sources to UN antidrug efforts in order to
together on the global drug problem. The
together the very fabric of civilized
complement domestic counternarcotics
United Nations has greatly helped to
society will unravel.
efforts. We are more committed than
bring this about.
That is why the President and I are
ever to working with other governments,
From the Soviet Union to Jamaica,
convinced of the timeliness and efficacy of
so that the UN system may be a stronger,
from Spain to Malaysia, nations are join-
this special session. We have the oppor-
more responsive partner in the drug
ing forces in the fight against narcotics.
tunity to set an action-oriented course for
fight. With the help of the Secretary
We, the peoples of the world, must keep
the UN system.
General and all member states, the Presi-
up the fight-in the deep jungles and
It is my government's hope that adop-
dent and I are hopeful that the Global
mountain valleys where coca and poppies
tion of the Global Program of Action, and
Program of Action will energize a
are grown, in the urban jungles ruled by
the related Political Declaration, will take
dynamic drug control effort of worldwide
corruption and cruelty, in shadowy back-
us considerably closer to ridding the
scope.
rooms where drug-stained money is
international community of the drug
In our global war against drugs, we
laundered, and in the dark recesses of the
scourge-provided, of course, that the
regard as natural allies all nations sharing
soul-there perhaps most of all.
program commits us to concrete activi-
the resolve to resist this scourge. Tradi-
Now-today-for the sake of our chil-
ties, that it is fully implemented by the
tional friends and traditional adversaries
dren and our grandchildren, we must do
UN agencies of the system, and that it is
alike must pool their efforts. Indeed,
all that is humanly possible to rid God's
backed by complementary efforts at the
many of us already have joined forces,
good earth of the evil scourge of drugs.
national and regional levels. Certainly we
despite political and economic differences.
the member governments cannot ask the
Together we will combat the multina-
United Nations to do things that we will
tional drug empires on every front.
Published by the United States Department
not do at home. Nor can we ask the
Together we will hold to account any
of State
Bureau of Public Affairs
United Nations to undertake ambitious
government that grants safe havens to
Office of Public Copmmunication
drug profiteers, that actively permits the
Washington, D.C.
February 1990
programs without financial backing and a
Editor: Phyllis A. Young
This material is
strong infrastructure with which to carry
in the public domain and may be reprinted
without permission; citation of this source is
appreciated.
3
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Address Correction Requested
Melvyn Levitsky
Current
Policy
No. 1287
The Andean Strategy
To Control Cocaine
United States Department of State
Bureau of Public Affairs
Washington, DC
Following is a statement by Melvyn
drugs, we must also work hard to reduce
Objectives
Levitsky, Assistant Secretary for Inter-
the international supply; otherwise, it will
national Narcotics Matters, before the
be more difficult to sustain effective
The Andean strategy has three major
Subcommittee on Western Hemisphere
domestic programs in law enforcement,
objectives.
Affairs of the House Foreign Affairs
education, prevention, and treatment.
First, through concerted action and
Committee, Washington, DC, June 20,
In 1989, the administration completed
bilateral assistance, it is our goal to
1990.
a comprehensive plan to work with the
strengthen the political will and institu-
three Andean governments to disrupt and
tional capability of the three Andean
I welcome the opportunity today to
destroy the growing, processing, and
governments to enable them to confront
discuss the President's Andean strategy
transportation of coca and coca products
the Andean cocaine trade. With new
and outline our policy goals and objectives
within the source countries in order to
governments in Colombia and Peru, it will
in this area. Cocaine control is our
reduce the supply of cocaine entering the
be essential for the US Government to
number one priority and our main focus
United States. In September 1989, the
help them address the full range of their
has been, and will continue to be, the
President's National Drug Control
drug-related problems.
Andes.
Strategy directed that a 5-year, $2.2
Second, we will work with the
The President's historic meeting in
billion counter-narcotics effort begin in
Andean governments to increase the ef-
Cartagena, Colombia, in February
FY 1990 to augment law enforcement,
fectiveness of the intelligence, military,
signaled a new era in narcotics coopera-
military, and economic resources in Co-
and law enforcement activities against
tion with our Andean partners. No longer
lombia, Bolivia, and Peru. After careful
the cocaine trade in the three source
is the drug issue simply a law enforce-
negotiations between the United States
countries, particularly by providing air
ment problem. We are working with Co-
and each of the individual cooperating
mobility for both military and police
lombia, Bolivia, and Peru to explore ways
governments, implementation plans have
forces and making sure they are well
to strengthen law enforcement, military,
been prepared to ensure effective use of
equipped and trained and that they
intelligence, and economic cooperation,
the assistance.
cooperate in an integrated strategy. It
including opportunities for expanded
The administration's $2.2 billion plan
has become clear that the Andean
trade and investment in order to attack
provides a cooperative approach for
countries cannot conduct effective anti-
the drug trade in a comprehensive way.
working with the three major Andean
narcotics operations without the involve-
The President's Andean strategy seeks to
governments to disrupt and destroy the
ment of their armed forces; this is
bolster these countries' capabilities on all
growing, processing, and transportation
especially true where the traffickers and
fronts. The programs we have are coop-
of coca and coca products within the
insurgents have joined forces, as in Peru.
erative programs. We cannot do the job
source countries in order to reduce the
Specific objectives include efforts to
without a strong effort from the Andean
supply of cocaine from these countries to
isolate key coca growing areas, block the
countries, the countries that surround the
the United States. Congress has author-
shipment of precursor chemicals, identify
Andean region, and the transit countries
ized and appropriated funds for the first
and destroy existing labs and processing
through which cocaine passes.
year of this plan. For FY 1990, approxi-
centers, control key air corridors, and
The Andean strategy is a multi-
mately $230 million in economic, military,
reduce net production of coca through
faceted approach to the complex problem
and law enforcement assistance is being
aerial application of herbicides when it is
of cocaine production and trafficking. Of
offered to the three Andean countries for
effective to do so.
course, the main front in this war is here
counter-narcotics-related initiatives. In
Our third goal is to inflict significant
at home. But as we work to diminish our
1991, we are asking for $423 million,
damage on the trafficking organizations
own demand for and consumption of
including narcotics-related economic
which operate within the three source
assistance.
countries by working with host govern-
Misconceptions About Militarles' Roles
and their involvement is a sign of greater
ments to dismantle operations and
overall national commitment in dealing
elements of greatest value to the traffick-
Let me deal directly with concerns which
with the problem.
ing organizations. By strengthening ties
have been raised regarding the role of the
Third, while we believe the militaries
between police and military units and
Andean militaries in the drug war and
of the Andean states need to play a more
creating major violator task forces to
potential human rights abuses. There is
constructive role, we never have nor will
identify key organizations, the bilateral
no reason to expect that US military aid
force military assistance on these
assistance will enable host government
will undermine democracy or civilian rule
countries. Nor is the assistance we are
forces to target the leaders of the major
in the Andes. On the contrary, I believe
providing of a nature to create large, new
cocaine trafficking organizations; impede
it will help to strengthen both democracy
forces in the region. We are developing
the transfer of drug-generated funds, and
and the international struggle against
the specialized skills and units required to
seize their assets within the United
illegal narcotics for the following reasons:
conduct or support meaningful counter-
States and in those foreign nations in
US security assistance will be
narcotics operations, not creating major
which they operate. Intelligence is a
negotiated with and delivered through
combat units. We should remember the
critical component of this strategy. We
the civilian governments;
immense size of the countries we are
have worked closely with the intelligence
dealing with and that the narcotics
community and law enforcement agencies
An impoverished, poorly trained and
processing facilities and growing areas
to focus intelligence collection on these
equipped military, unable to feed its
are spread over large areas, often in
targets. In short, we have developed a
troops, is far more susceptible to corrup-
remote locations. Narcotics law enforce-
strategy that is coherent, focused, and
tion and human rights abuses; and
ment units are neither equipped nor
determined.
The military is far more likely to
trained to address the increasingly
A major tenet of this strategy is the
take a constructive approach if actively
paramilitary nature of the problem.
incorporation of expanded economic
engaged in the drug waras opposed to
Further, as the case of Bolivian military
assistance beginning in FY 1991 and
being left to criticize civilian efforts from
support for counter-narcotics operations
the sidelines. The involvement of the
demonstrates, military support in some
directed toward offsetting the negative
military, as in our own country, can bring
cases can be an effective way to avoid
economic dislocations we know will occur.
a significant resource in the war against
duplicating a parallel military capability
This assistance will, in turn, strengthen
the political commitment of the three
drugs if properly coordinated and
within police narcotics enforcement
Andean nations to carry out an effective
directed by civilian authorities.
agencies.
The financial resources of the
counter-narcotics program. US-economic
I would also like to set out a number
narcotics traffickers, such as those in
assistance is, in general terms, linked to
counter-narcotics performance and to
of points that address misconceptions that
Colombia, enable them to hire private
have grown up in recent months about
armies and terrorists on a national and
follow-through with economic policy
the so-called militarization of the US
international scale. Their ability to buy
reform. In harmony with the views of the
counter-narcotics effort. Like many
manpower and equipment surpasses the
three Andean governments, our direct
economic assistance and other initiatives
slogans, the use of emotionally charged
police capability and, in some cases, calls
and sometimes politically motivated
into question even the military's ability to
support economic alternatives for those
words like "militarization" is a gross
respond effectively. These capabilities
directly involved in the cultivation of and
trade in coca. Examples of such assis-
oversimplification that does not do justice
permit the narco-traffickers to challenge
to the effort either to understand or deal
or defy the sovereignty of local govern-
tance include crop substitution and other
with the complex problems of interna-
ments in a way unprecedented in our
economic alternative activities, drug
tional narcotics.
experience.
awareness, administration of justice,
US counter-narcotics policy, there-
balance of payments, and export promo-
In the first place, the level of our
fore, should not be characterized as a
tion. The assistance reflects our conclu-
security assistance is only a part of our
"militarized" effort, but rather one that
sion, incorporated in the Declaration of
total effort. Of some $129 million in
seeks to provide legitimate governments
Cartagena, that a comprehensive,
counter-narcotics funds requested for
with the tools and assistance to help
intensified counter-narcotics strategy
Peru in FY 1991, for example, only about
defend their political sovereignty.
must include understandings regarding
$40 million is for military assistance, and
economic cooperation, alternative
much of that is for maintenance support
But the problem does not end there.
development, and encouragement of trade
and infrastructure improvement. Nor do
There is now a further complicating
and investment. As vigorous host
we contemplate large levels of US
factor, and that is the degree to which so-
government programs against the drug
military presence in the Andes. We have
called guerrilla organizations are becom-
trade and economic policy reform
never maintained such a presence, and
ing involved in narcotics trafficking,
initiatives become more effective, our
our strategy includes as one of our tenets
either in providing protection in return
economic assistance will increase in the
the determination not to Americanize the
for profit or in engaging in the production
outyears (1991-94) of the Andean
effort to work with local governments.
and sale of coca.
strategy. We are not seeking to impose
Second, our decision to encourage
The effort of the United States to help
law enforcement, security, or economic
greater participation of the local militar-
these countries deal with "narco-insur-
assistance on these countries. These are
ies in the counter-narcotics efforts
gents" has raised the specter of counter-
programs that require cooperation and
parallels the evolution of our own policy
insurgency-specifically, whether the
mutual agreement. Our intensive
that projects a greater role for the
United States should engage in support-
dialogue with the Andeans is refining a
Department of Defense in the war on
ing Andean militaries, some with past
common understanding of what is needed
drugs in the United States. Indeed, the
records of human rights abuses, in waging
and what is possible on both sides.
militaries in the Andean states are an
a struggle against insurgent groups which
important component of the governments
2
are clearly involved in many aspects of
The involvement of the Colombian
In March, the Office of the US
narcotics trafficking. We cannot gloss
military in supporting counter-narcotics
Trade Representative (USTR) announced
over past abuses in some countries. We
law enforcement operations over the past
that 129 products were accepted for
do not support these and never will. But
2 years proves the effectiveness of this
review under the US generalized system
neither should we succumb to the
approach. Recently, the Colombian
of preferences (GSP) special Andean
romantic notion of downtrodden peasant
military, using equipment supplied by the
review. Final results of the review will
masses protesting in arms against social
United States, with the police seized over
be announced in July.
injustice, nor depict organizations like the
18 tons of cocaine in one transportation
We have also conducted successful
Sendero Luminoso (Shining Path) of Peru
complex deep in the Colombian jungle.
or the FARC (Fuerzas Armadas Revolu-
It is basic to our policy that human
technical seminars on the GSP program in
cionarias de Colombia-Armed Revolu-
rights remain under continuous review to
Colombia, Bolivia, Peru, Ecuador, and
tionary Forces of Colombia) in Colombia
determine whether government policies
Venezuela to help the Andean countries
as champions of human rights. Moreover,
justify, reinforce, or call into doubt our
take full advantage of the GSP. A US
team is in the Andes the week of June 18
these groups are now becoming narcotics
continued assistance relationship. State
to conduct seminars on the US textile
traffickers themselves, profiting from the
Department human rights reports on
environment of drugs and using drug
Colombia and Peru have been candid in
program.
monies to finance further violence.
their criticisms and, in fact, received
We have scheduled a workshop in
In such groups, we are dealing with
praise from human rights groups. We will
Washington for the Andean countries the
professional organizations of tight-knit
work with the Andean militaries to
week of July 9 on ways to expand US-
cadres whose human rights abuses,
eliminate human rights abuses as they
Andean trade and investment opportuni-
indiscriminate bombings of civilian
increase their involvement in anti-
ties.
targets, use of torture, terrorism on a
narcotics operations. Our training, in
national scale, and barbaric brutality are
fact, will emphasize human rights and
We are exploring areas of potential
plainly part of the public record in
civic action.
cooperation with the multilateral develop-
Colombia and Peru. While the US
Involvement of US military personnel
ment banks and have emphasized US
attitude toward these problems is well
and organizations is clearly defined,
support for World Bank efforts in the
known, the United States has not
limited, and subject to continuing review.
area of trade policy reform.
provided significant financial assistance to
The US military role is to provide support
On May 8, the United States and
any of the Andean nations to deal with
and development of host country capabili-
Bolivia signed an agreement to establish
these specific problems. We are focusing
ties. It will provide training and opera-
the US-Bolivia Trade and Investment
our effort on counter-narcotics, not on
tional support, materiel, advice, and
Council, whose objectives are to monitor
counter-insurgency, but we cannot lose
technological and maintenance support to
trade and investment relations, identify
sight of the fact that it is the insurgents
cooperating nations' counter-narcotics
opportunities for expanding trade and
who have become involved in narcotics
organizations. Defense personnel will not
investment, and negotiate agreements
and, along with the traffickers, created a
participate in actual field operations.
where appropriate.
militarized situation.
Contrary to some media reports, the
Let me also point out the following.
levels of counter-narcotics based eco-
We also renewed our commitment to
At this point, we have not concluded a
nomic assistance planned for in the
seek a new International Coffee Agree-
security assistance agreement with the
President's Andean strategy outweigh
ment (ICA).
government of Peru. We have done some
the levels of military assistance being
We have offered to accelerate
advance planning and held discussions
offered. Over the 5 years that the
negotiations on tariff and nontariff
with officials of the government, but no
strategy covers, from FY 1990 to 1994,
measures in the international trade
programs of assistance can go forward
economic assistance will total over $1.1
negotiations now going on in Geneva.
without such an agreement. While it is
billion, versus approximately $676 million
Andean participants have not yet
our belief that the narcotics situation in
in security assistance. Moreover, this
responded to our offer.
the upper Huallaga Valley cannot be dealt
does not include other economic assis-
with effectively without the involvement
tance such as food aid and trade prefer-
In addition to the bilateral aspects of
of the Peruvian military, this is a Peru-
ences for the Andean region.
the Andean strategy, we are also working
vian government decision. And, of
with the international community to gain
course, it will be a decision as to whether
Further Initiatives
support for Andean initiatives. The
the counter-narcotics performance of the
strategy suggests that a consultative
Peruvian institutions involved in the
We are, of course, living up to the
mechanism with other developed coun-
struggle will justify the provision of
economic commitments made at the
tries be established to encourage closer
economic assistance. Our request for
Cartagena summit. We are implementing
coordination of international counter-
economic assistance for Peru in 1991 is
the initiatives contained in the Presi-
narcotics efforts. I will be travelling to
based on the assumption of effective
dent's November 1 Andean trade
Europe at the end of this month to
counter-narcotics performance.
package, including working with the
further this goal.
Our counter-narcotics work in Bolivia
countries in the region to develop further
We are pleased with the work of the
does not create a significant military
initiatives:
G-7 Financial Action Task Force on
capability; it, too, focuses on improving
money laundering; the United States
the military's ability to support counter-
In February, administration officials
hopes to expand the number of countries
narcotics efforts. This includes improve-
met with representatives from the
that embrace the action recommendations
ments in riverine programs by the
European Community, Canada, and Japan
of the task force to ensure that all
Andean navies to interdict the flow of
to discuss ways we can help the Andean
countries have comprehensive domestic
precursor chemicals and drugs on
countries improve their trade perform-
programs against money laundering and
Bolivia's waterways.
ance.
cooperate to the maximum extent
3
possible in international money launder-
In closing, I would like to take this
Success will not happen overnight,
ing investigations and prosecutions.
opportunity to say that I believe that
but we are beginning to see that our
Narcotics is also on the agenda of the
during the coming year, we and the
efforts are having an impact in the Andes,
Houston economic summit next month,
Andean governments will have many
and on the streets of the United States.
and there we hope to gain greater G-7
opportunities for progress as we work
Provided we are prepared to sustain our
support for precursor chemical control.
together to attack all aspects of the
activities and not allow our thinking to be
As our own controls become more
cocaine trade. We are optimistic. The
clouded by false analogies and oversimpli-
effective, the drug traffickers look to
price of coca leaf is down in Peru and
fications, I believe we will continue to
Europe and the surrounding countries for
Bolivia. As a result, in Bolivia voluntary
make progress toward a goal the Ameri-
supply of these chemicals, and so we must
eradication of coca is up-this year has
can people have made clear that they
bolster international efforts to limit their
already surpassed last year's total-and
support.
use to legitimate industry. Without
increasing numbers of growers are
essential chemicals, cocaine cannot be
moving out of the illegal industry. DEA
Published by the United States Department
produced. We have just completed a
laboratory analysis indicates that purity
of State
Bureau of Public Affairs
Office
State Department-Drug Enforcement
levels of cocaine at both the wholesale and
of Public Communication
Washington, DC
Administration (DEA) mission to Europe
retail levels are down and prices have
July 1990
Editor: Marilyn J. Bremner
to promote the control of essential and
increased at the wholesale level in many
This material is in the public domain and may
precursor chemicals. We will be conduct-
areas throughout the nation. Cartagena
be reprinted without permission; citation of this
ing similar missions to Latin American
ended the argument over who is to blame
source is appreciated.
countries.
for the drug crisis; we now have a
consensus on the nature of the problems
we face and a solidifying common front
against the drug trade.
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A quick reference aid on US foreign policy
gist
International Narcotics Control
Background
National Drug Control Strategy
International cooperation to stop narcotics production and
trafficking is a central element of US foreign policy. Few
foreign policy concerns have as direct a domestic impact as
The President's National Drug Control Strategy calls for:
international narcotics. Ninety-five percent of the illicit
Increased economic, military, and law enforcement
narcotics consumed in the United States comes from other
assistance to Colombia, Peru, and Bolivia;
countries. It is essential, therefore, to gain international
Expanded US-Mexican cooperation in drug
cooperation to reduce drug supplies while the United States
enforcement, "money laundering" disruption, and demand
works to reduce demand at home. As Secretary Baker
reduction programs;
stated in November 1989: "[T]here is no foreign policy issue
short of war or peace which has a more direct bearing on the
Continued US support for law enforcement programs
well-being of the American people."
in South American producer and transit countries,
including Ecuador, Venezuela, Paraguay, Argentina, and
US Policy
Chile;
Continued law enforcement and intelligence programs
In January 1990, President Bush issued a National Drug
with Central American and Caribbean nations;
Control Strategy that calls for increased international
cooperation against drug production, trafficking, and abuse.
Development of an international strategy focused on
A critical part of the strategy is increased emphasis on
opium and heroin;
cooperative efforts with three Andean nations (Colombia,
Broadened domestic and foreign efforts to counter
Peru, and Bolivia) to dismantle cocaine trafficking organiza-
international money laundering activities;
tions and disrupt cocaine processing and trafficking as close
to the source as possible. In FY 1990, $423 million in
Expanded efforts to reduce the illegal manufacture
economic, military, and law enforcement assistance is being
and shipment of chemicals essential to illicit drug
provided to the three nations to strengthen their ability to
production; and
meet these objectives. Additional economic aid will be
Promotion of international law enforcement
available to these countries in FY 1991 if they use current
cooperation through mutual legal assistance treaties and
resources effectively and establish sound economic policies.
the pursuit of anti-drug initiatives at international forums.
The State Department's Bureau of International Narcotics
Matters, which has a budget of $150 million, provides $58
million to the Andean strategy funding. It has counter-
and the Soviet Union. There is a growing consensus that the
narcotics programs in South and Central America, Mexico,
solution to the world's drug problem must be global in scope,
the Caribbean, and Southeast and Southwest Asia.
addressing all elements of the grower-to-user chain.
In February 1990, President Bush met with the presi-
dents of Colombia, Peru, and Bolivia at the Andean summit
Role of Developed Nations
in Cartagena, Colombia. The four presidents agreed to work
closely in a number of critical counternarcotics areas,
Developed nations play a key role in global efforts to fight
including the control of precursor chemicals, drug education,
narcotics production and trafficking. The President's drug
exchange of tax information, and a broadened role for each
control strategy calls on European nations, Canada, Japan,
country's military in fighting narcotics.
and Australia to take greater steps to help Andean, Carib-
In addition, the United States is undertaking cooperative
bean, and Asian countries reduce drug supply and demand.
efforts with concerned governments in Asia, Africa, Europe,
An informal consultative mechanism is being established for
US Department of State
June 1990
Bureau of Public Affairs
Office of Public Communication
this purpose. Trafficking organizations are seeking new
have dropped because of increased anti-drug pressure in
markets for cocaine and heroin. Developed nations, recog-
Colombia and Bolivia, encouraging many coca farmers to
nizing the threat, are beginning to respond.
switch to legitimate crops. Working with the United
States, the government of Peru constructed a secure police
Progress in International Narcotics Control
base in the upper Huallaga Valley to house Peruvian and
US enforcement personnel.
Government leaders are focusing on the international
Progress has occurred in other countries as well.
narcotics threat and on positive solutions. A recent UN
Mexico seized 34 MT of cocaine in 1989 and drug trafficking
special session was devoted entirely to the narcotics issue.
has diminished in and around The Bahamas. Last year,
British Prime Minister Margaret Thatcher sponsored a joint
Jamaica further reduced its marijuana crop. Ecuador has
UN-UK ministerial conference on cocaine and demand
been successful in eliminating coca production, and Pakistan
reduction this spring.
reduced its opium crop.
Recent Colombian counternarcotics operations have
Nevertheless, much remains to be done. The estimated
resulted in the extradition of 15 narcotics traffickers and
production of illicit narcotics supplies increased in 1989.
money launderers to face justice in the United States, the
Most dramatically, Burma's opium crop doubled as the
seizure of about 19 metric tons (MT) of cocaine at a major
Burmese turned their attention away from narcotics
drug trafficking transportation complex in southern Colom-
control. Worldwide, coca production grew by about 10%
bia, and the confiscation of numerous properties and other
last year.
assets belonging to drug "kingpins." Coca prices in Bolivia
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Secretary Baker
Current
Policy
Democracy, Diplomacy,
No. 1228
and the War Against Drugs
United States Department of State
Bureau of Public Affairs
Washington, D.C.
Following is the prepared address by
through you to the American people our
spair. It is the tragedy of our daily
Secretary Baker for the Forum Club,
gratitude for what America has done for
headlines-of careers ruined, of families
Houston, Texas, November 22, 1989.
Germany and particularly for what
disrupted, of children gone astray, of
America has done for Berlin."
lives endangered, and of lives lost.
I am especially pleased to be here in
He said as well, "This is a moving
Our most fundamental values, in-
Houston to join you in celebrating the
moment for our nation, but I'm calling
deed our humanity, are at stake. To
Forum Club's 10th anniversary.
to express our gratitude to the people of
prevail in this twilight struggle against
As we gather with our families and
America." It almost brings tears to your
drugs will require courage and con-
friends this Thanksgiving, we Ameri-
eyes. It's a very moving event.
stancy of purpose, because there are no
cans have much to be thankful for, In
Thus, we see the postwar era near-
easy victories in this twilight war.
so many ways, we are reaping the har-
ing its end. Yet, we still live with its
International drug trafficking is a
vest of our long-held values. We have
legacy. We will do so for many years to
threat to our national security. That is
planted and nurtured them at home.
come. How we overcome that legacy
no exaggeration.
Through our efforts and by our ex-
will be a central question when Presi-
According to a survey taken in late
ample, they have taken root around the
dent Bush meets with President Gor-
September, over half of the American
world. They are ripening even in what
bachev in the Mediterranean next
people named illicit drug use as the
seemed to be the most forbidding and
month. In the meantime, the peoples of
most important problem facing the
barren ground.
the East are coming in from the cold,
country today. Illegal drug use in this
We Americans rejoiced when just
drawn closer to the warmth of democ-
country crosses the entire spectrum of
2 weeks ago the Berlin Wall was
racy.
our society. It affects people from all
breached. We shared the excitement of
Faith, conviction, and personal cour-
walks of life, all age groups, all back-
the moment with the German people,
age are prevailing against all odds. The
grounds, and all levels of income. And
just as in darker times we shared their
long, twilight struggle between East
while some regard narcotics as an ur-
grim determination to overcome the
and West that President Kennedy de-
ban phenomenon, this big-city problem
1948 blockade, the 1953 crackdown,
scribed may be coming to an end at last.
is also a major problem for rural
and, for 28 years, the stark presence of
It is ending with neither a bang nor a
America.
the wall itself.
whimper, but with the triumphant cry
I am sad to say that this native city
I had an extraordinary telephone
of the human spirit.
of mine, where we meet today, and our
conversation with the Foreign Minister
But there is another cry of the hu-
state of Texas are no exceptions. Hous-
of the Federal Republic of Germany,
man spirit that must be heard. It is not
ton is one of the four major narcotics
Mr. Genscher. He called. I came on the
the affirmation of freedom but its nega-
distribution centers in the country. It
line. His secretary said, "Just a mo-
tion; not the uplifting of democracy but
has a significant cocaine problem. In
ment, sir, and thank you for everything.
its degradation. It is the call of the
east Texas, the Sheriff's Office of Gregg
God bless America. Here's the minis-
drug addict, of the human souls and
County reports that between 1987 and
ter." This was his secretary. Then the
bodies afflicted with the scourge of de-
1988, there was an 80% increase in the
minister came on the line, and he said,
number of crack cases. Also during that
"I'm calling to simply express to you and
period, robberies rose by 70%. Four
extradite traffickers and money laun-
First, to isolate and disrupt coca
years ago, crack cocaine was pretty
derers to this country. Time and again,
production by interdicting air, road, and
much nonexistent in the town of Tyler,
President Virgilio Barco has put his
- river traffic in drugs and chemicals es-
Texas. Today, Tyler has crack houses
own life on the line for his nation and
sential to drug production;
and "shooting galleries." Indeed, well
for the cause of democracy everywhere.
Second, to eradicate COCA when and
over 80% of the crime in Tyler is crack
In Colombia, the Medellin and Cali
where possible and effective; and
related.
traffickers consider themselves a coun-
Third, to develop income alterna-
Drugs hit close to home-my home
try and a law unto themselves. They
tives to the illicit drug industry by
and that of another Houstonian, George
operate just like the pariah states that
strengthening the legitimate economies
Bush; your home and the homes of our
export terrorism. They have bought
of Andean countries.
neighbors. That is why the President
banking systems to store their wealth
and I are personally committed to the
and mercenaries to attack their adver-
This is not a strategy for massive
and unilateral U.S. intervention in the
struggle against drugs. That is why I
saries. And who are their enemies:
Andes. The Andean countries want and
have made the narcotics issue a top for-
public figures, judges, journalists, and
need our assistance. But we know we
eign policy priority. I have instructed
innocent bystanders, whom they mur-
won't be effective unless we attack the
our ambassadors worldwide and the
der in broad daylight.
demand for drugs as well as the supply.
Department of State's assistant secre-
It is hard for Americans to compre-
To that end, we have accepted the An-
taries to ensure that narcotics control
hend the scale of such violence and in-
dean leaders' invitation to sit down and
issues are fully integrated into our dip-
timidation. Let me try to put it into
discuss our mutual struggle at an An-
lomatic efforts. To my mind, there is no
perspective. Imagine one day that a hit
dean summit in February next year.
foreign policy issue short of war or
squad attacks the U.S. Supreme Court
We realize that as long as American
peace which has a more direct bearing
and murders half of the justices. Imag-
demand for drugs continues, we face an
on the well-being of the American
ine our Attorney General being assassi-
endless, uphill battle to halt supply.
people.
nated by organized crime figures. And
That is why the President decided that
As I see it, the survival of democracy
imagine a criminal organization declar-
reducing the demand for drugs must be
at home and abroad is perhaps our most
ing "absolute and total war" on our gov-
at the center of our antidrug policy.
fundamental national interest. And
ernment after assassinating a leading
America's demand drives the spiraling
drugs are mortal enemies of democracy.
presidential candidate.
Let me tell you why.
This is what has happened in Co-
cycles of production and trafficking, con-
Democracy speaks to the dignity of
lombia in one short and brutal decade:
sumption, and addiction. Profits from
every kilo of cocaine buy the bullets
every individual. Every person is con-
the traffickers have killed over 1,000
which rob Colombia of its dignity and
sidered a free and responsible citizen
public officials, 12 Supreme Court jus-
freedom and threaten Bolivia and Peru.
whose vote and say in public affairs is
tices, over two dozen journalists, and
I want every user of drugs in the
essential. An individual caught in the
more than 200 judges and judicial per-
United States to face a fact: Their ac-
drug habit soon becomes a slave of that
sonnel.
habit-no longer a free person or a re-
President Bush has come to Colom-
tions are not just a personal indulgence.
They act as paymasters to organized
sponsible citizen. And in a similar way,
bia's aid by authorizing $65 million in
murderers whose victims are defenders
what can happen to the individual can
emergency military assistance. Can-
of democracy and the rule of law. They
happen to a nation. The drug pirates
ada, Norway, United Kingdom, Italy,
are accessories to criminals who poison
and profiteers attack the central nerv-
Spain, and Portugal have also pledged
children and babies. And users by their
ous system and vital organs of democ-
their help to Colombia's effort.
habits also contribute to the murder of
racy: the administration of justice; the
Moreover, this Administration has
the land. Coca farmers have destroyed
integrity of government; the right of
proposed a bold, comprehensive strat-
countless acres of forest; cocaine traf-
free speech.
egy to address the cocaine problem in
fickers have dumped millions of gallons
Ultimately, the illegal narcotics
the hemisphere. We call it "the Andean
of chemicals into water supplies.
trade robs dignity and freedom not only
strategy." This strategy is nothing less
Above all, we must be honest with
from the individual but from entire na-
than a multiyear, $2-billion American
ourselves. There is nothing glorious or
tions. Malaysia was one of the first na-
plan to provide military, economic, and
admirable or honorable in the so-called
tions to declare that drug traffickers
law enforcement assistance to help the
drug lords and kingpins. They are just
threatened its sovereignty. Pakistan,
Andean governments as they fight co-
criminals-criminals of uncommon
Thailand, Jamaica, and Mexico-all
caine. Our primary goal is to attack
power and uncommon brutality. No
have come to the alarming conclusion
and dismantle the drug trafficking or-
amount of laundering can wash the
that drug abuse is eroding their hopes
ganizations themselves. In short, to put
them out of business. We are going di-
blood off money stained by drugs.
for the future, and they are taking ac-
Narcotics has become a big business,
tion to combat this insidious enemy.
rectly to the source. And that is the
a very big business. Recently in Los
Look at Colombia. No other nation
Andes, where we will support the gov-
Angeles, agents seized 20 tons of ware-
has so bravely confronted the drug
ernments of the region in a three-part
housed cocaine. If all these kilos were
lords. No other nation can afford to be
plan:
stacked, one on top of the other, the pile
indifferent to Colombia's fate. We ap-
would be a mile and a half high-half
plaud Colombia's courageous decision to
the height of Mount Whitney, the tallest
mountain in the continental United
2
States. It was estimated that this co-
an initiative to encourage our European
ruption and cruelty. It is being fought
caine had a street value of $6.7 billion.
allies to play a larger role in this and in
in shadowy backrooms where drug-
That exceeds the individual gross na-
other areas, such as approaching major
stained money is laundered. And,
tional products of well over 100 nations.
drug countries such as Burma, Laos,
- above all, it is a struggle of will and of
And this was just one warehouse.
and Iran-where U.S. influence is
conscience-one that is fought by each
Imagine the mountain of misery that
limited.
of us, often in the dark recesses of the
represents.
And three, we signed an agreement
soul.
I want to say a few more words now
in Paris with the Soviets last January
But I want to end on a brighter note.
about the international dimension of
which permits us to share information
For light is being shed on this pervasive
the drug problem and what we are
on narcotics issues. Since then, Foreign
problem both ct home and abroad.
doing about it. Narcotics use, produc-
Minister Shevardnadze and I agreed in
Now, more than ever before, we see na-
tion, and trafficking are urgent prob-
Wyoming to expand our cooperation
tions all over the world working to-
lems not only for our hemisphere but
and, to follow through, the Attorney
gether on this global problem. From the
worldwide. So we are going to be taking
General has traveled to the U.S.S.R.
Soviet Union to Jamaica, from Spain to
some important actions that will give
Next week, our Assistant Secretary of
Malaysia, governments, leaders, and
teeth to our campaign against the ille-
State for International Narcotics Mat-
the private sector are joining in the
gal drug trade. The central idea behind
ters also will travel to the Soviet Union.
struggle against drugs.
our efforts is to attack these merchants
These are only a few instances of
Tomorrow, all across America, we
of death from every angle-production,
how, working together with traditional
will be sitting down to Thanksgiving
distribution, finance, and use. Let me
allies, friends and adversaries alike, we
dinner and blessing the Lord for the
give you just a few examples.
are beginning to attack the multina-
bounty before us. We should give
tional drug empires on every front.
thanks as well for the harvest of new
One, we are working with the Sen-
These actions, of course, are all part of
ate to promote ratification of the UN
freedom that has sprung up around the
Convention Against Illicit Traffic in
the larger strategy announced by the
world. And we pray that, with hard
Narcotic Drugs and Psychotropic Sub-
President and which is being coordi-
work, our communities here at home as
nated by Bill Bennett [Director of the
stances, and we will encourage other
well as the community of all nations can
Office of National Drug Control Policy].
governments to ratify as well.
rid God's good earth of the scourge of
Two, over the next few years you
As Secretary of State, I pledge that we
drugs.
will see an intensified effort to enlist
will hold to account nations that grant
our allies and friends in a common ef-
safehavens to drug profiteers, who
fort to fight drugs. We and our Summit
actively permit the laundering of
Published by the United States Department
Seven partners have established a fi-
money, and who turn a blind eye to
of State
Bureau of Public Affairs
Office
drug shipments.
of Public Communication
Editorial Division
nancial action task force against money
When I began this speech, I called
Washington, D.C.
November 1989
laundering. We have already launched
our war on drugs a twilight struggle.
Editor: Sharon R. Haynes
This material is
Our struggle against narcotics is being
in the public domain and may be reprinted
fought abroad in the deep jungles and
without permission; citation of this source is
appreciated.
mountain valleys where coca and pop-
pies are grown. It is being fought at
home in the urban jungles ruled by cor-
3
Fact Sheet
Presidential Drug Summit
Cartagena, Colombia
February 15, 1990
Presidents Virgilio Barco of Colombia, Jaime Paz Zamora
of Bolivia, Alan Garcia of Peru, and George Bush of the
Bilateral Agreements
United States met on February 15 in Cartagena, Colombia,
to strengthen cooperation attacking the production, traf-
The U.S. and Bolivia signed the:
ficking, and consumption of illicit drugs. Colombia, Bolivia,
and Peru are sources of most of the world's supply of
Essential Chemicals Control Agreement to provide a
cocaine; the United States is the world's largest consumer.
basis for monitoring and controlling drug precursor-
chemical movement;
The Declaration of Cartagena, signed by the four
presidents, provides the framework for a comprehensive
Weapons Export Control Memorandum of
antinarcotics strategy. The declaration acknowledges that
Understanding to ensure greater cooperation toward
a successful program will necessarily involve economic and
preventing U.S. weapons exports from being acquired by
narco-traffickers; and
"We've committed ourselves to the first
Public Awareness Memorandum of Understanding
to build public support for programs against production,
common, comprehensive international drug
trafficking, and consumption.
control strategy."
- President Bush
The U.S. and Peru signed the:
Tax Information Exchange Agreement to provide for
development cooperation and support as well as intensified
bilateral exchanges of tax-related financial information in
actions aimed at narco-trafficking and reducing demand.
order to track and prosecute financial gains from trafficking;
The leaders also stressed the need to increase public
awareness of the dangers of trafficking and use, and to
Exchange of Notes on Extradition to confirm explic-
undertake diplomatic initiatives aimed at building interna-
itly that narcotics trafficking and related drug offenses are
tional support for drug control and economic development.
covered by the 1899 U.S. -Peru Extradition Treaty; and
The declaration calls for strengthened bilateral coop-
Public Awareness Memorandum of Understanding
eration. The U.S. and Bolivia signed agreements on the
to build public support for antinarcotics programs.
control of essential chemicals, weapons exports, and on
public awareness. The U.S. and Peru signed accords on the
The U.S. and Colombia pledged to:
exchange of tax information and public awareness and
Continue efforts to reduce the flow of illicit drugs;
exchanged notes on extradition. Other agreements are
Seek ways to maintain economic growth and stability;
under negotiation.
Work toward expanding U.S.-Colombian trade.
The summit nations agreed to hold a high-level follow-
up meeting within the next 6 months and called for a world
Participating Andean Countries
antinarcotics meeting in 1990.
Declaration of Cartagena-Key Points
Colombia
The four nations pledged to seek a cooperative, compre-
hensive strategy to the drug problem by:
Attacking the production, transport, and consumption
of illegal drugs;
Stimulating trade, investment, economic cooperation,
Peru
and alternative development in the Andean countries; and
Increasing public awareness of the drug problem and
Bolivia
strengthening international support for efforts aimed at
curbing illicit drug traffic.
U.S. Department of State
Bureau of Public Affairs
February 1990
Office of Public Communication
FACT SHEET
U.S. ASSISTANCE PROGRAMS RELATED TO DRUG CONTROL
Narcotics assistance to the Andean countries addresses various
economic and political issues which are intertwined with the
problem of narcotics trafficking. The majority of funding
support focuses on narcotics enforcement activities. It is
widely recognized, however, that a significant reduction in
narcotics flow cannot be achieved without an effective demand
reduction program in the U.S.
Andean narcotics enforcement agencies are ill-equipped to deal
with the magnitude of the narcotics problem in their
countries. U.S. bilateral narcotics enforcement assistance
programs with Colombia, Bolivia, and Peru provide for
specialized enforcement training, the loan of helicopters and
aircraft for use in reconnaissance and interdiction operations,
expanding the physical plant of host country narcotics bases
and assistance in developing communications and intelligence
capabilities.
The increased assistance for Andean narcotics enforcement
programs is coupled with an additional emphasis on economic
assistance, in order to offset the political and economic costs
of success in dismantling the cocaine trade. The U.S. also
supports Andean efforts to expand public and private sector
demand reduction programs.
U.S. narcotics assistance to the Andean countries in FY 90
places a particular emphasis on bringing the Andean military
into the anti-narcotics battle. Military support for
anti-narcotics operations in Peru and Colombia has become a
vital element of enforcement operations, due to the involvement
of some insurgent groups in narcotics trafficking activities.
The principal program objectives and measures are as follows:
Disrupt narcotics trafficking as close to the drug source as
possible
o
Provide the necessary equipment to host government
narcotics enforcement agencies to identify and
destroy coca paste, base, and cocaine laboratories
and clandestine airstrips in coca-producing
countries.
Aid host governments in the development of
effective domestic law enforcement capabilities in
cocaine source and transit countries through
training, professional exchanges, and intelligence
sharing.
-2-
Prevent drugs destined for the U.S. from entering international
trafficking channels
Support interdiction operations which attempt to
cut air, land and water transportation links used
by traffickers to move narcotics and precursor
chemicals.
Reduce illicit crop production where feasible
o
Support host country efforts to eradicate
narcotics crops through reconnaissance,
agricultural research, and provision of equipment.
Provide economic support to offset the social and economic
costs of successful anti-narcotics programs
o
Supply economic assistance which covers
agricultural, infrastructure, education, and
transportation projects for improving the standard
of living for farmers engaged in illicit narcotics
cultivation and processing.
K
o
All four countries have agreed that economic
assistance can best be utilized in the context of
sound economic policies.
in specify
Support the efforts of foreign governments to reduce the
internal consumption of narcotics produced in their countries
O
Provide the necessary resources to allow
governments to sensitize opinion leaders and the
general public to the health and national security
dangers of drug production, trafficking and abuse.
Attachment: Funding Chart - U.S. Counternarcotics Assistance
to the Andes
-
U.S. COUNTERNARCOTICS ASSISTANCE TO THE ANDES
(in millions of dollars)
FY 1990 ESTIMATE
FY 1991 ESTIMATE
Bilater-
Bilater-
al Law
al Law
Econ-
Enforce-
Econ-
Enforce-
Military
omic
ment
TOTAL
Military
omic
ment
TOTAL
Colombia
40.3
0.0
20.0
60.3
60.5
50.0
20.0
130.5
Peru
36.4
3.1
19.0
58.5
39.9
63.1
19.0
122.0
Bolivia
33.7
30.8
15.7
80.2
40.9
95.8
15.7
152.4
Total Andean Strategy
110.4
33.9
54.7
199.0
141.3
208.9
54.7
404.9
Human Rights Problems in a
Democratic Western Hemisphere
United States Department of State
Bureau of Public Affairs
Public Information Series
Washington, DC
Remarks of Ambassador Luigi R.
time, a sober reading of the annual report
The commission is unsparing in its
Einaudi, US Permanent Representative
of the IACHR dispels superficial opti-
judgments on incidents in these countries,
to the Organization of American States
mism. Human rights are the cornerstone
demonstrating that good intentions are
(OAS), during the June 7, 1990 debate on
of the modern state. This hemisphere is
not a guarantee of satisfactory perform-
the Annual Report of the Inter-American
making major strides, but we have few
ance on human rights matters. Unlike
Commission on Human Rights at the
grounds for complacency.
dictatorships, however, democracies do
20th OAS General Assembly in Asuncion,
not stand alone in working to improve
Paraguay.
Human Rights and Democracy
human rights conditions. The commission
works with them to address problems.
In this last semester, as throughout its 30-
Since our last meeting, Panama, Nicara-
And, to their credit, member states
year history, the Inter-American Com-
gua, and Chile have joined the ranks of
have-as the commission confirms-a
mission on Human Rights (IACHR) has
countries with democratically elected
solid record of cooperation with the com-
distinguished itself in its professionalism
governments. In noting the milestones
mission. This record of active cooperation
and its productivity. It is today the
along the way to the return of elected
attests that, for human rights and
conscience of the Americas. The standard
civilian government in Chile, in detailing
international cooperation, democracy
it sets for performance in the advance-
the steps taken in Panama to consolidate
works-not as a panacea, but as the best
ment of human rights is a global standard.
democratic rule, and in highlighting the
environment for getting the job done.
That is a good thing, indeed, for the
importance of the February elections in
dynamic of global development requires
Nicaragua, the commission is exemplify-
that we accelerate efforts to secure the
ing the link between democracy and
The Country Reports
human rights of all citizens. Countries to-
human rights. Its timely reports of
Cuba. My government perceives Cuba,
day must be open and outward-oriented,
electoral campaign irregularities in Nica-
the first country reported on, as having a
ready to engage effectively with the rest
ragua last year prompted corrective
government that sets it apart from the re-
of the world-in trade and commerce and,
actions, thus contributing to the peaceful
maining countries covered in the annual
more generally, in affairs across the
and representative vote in February. Its
report for two reasons. Cuba is the only
board.
visit to Haiti in April and the special
country in the group-or in this hemi-
Countries turned inward by the
report presented to this assembly on the
sphere-that has not committed itself to
fratricidal internal conflicts so often asso-
situation there can make a similar
elections, and Cuba is the only country in
ciated with human rights abuses are
contribution.
the hemisphere whose government can be
greatly disadvantaged. Moreover, com-
To its credit, the commission makes
said to repress human rights as a matter
petitiveness in today's world requires
clear that human rights problems do not
of official policy.
efforts to maximize human potential-an
suddenly or automatically disappear with
Cuba's human rights situation has
imperative that is irreconcilable with
the return of democratically elected
deteriorated over the past year. The com-
disrespect for human rights.
leaders. El Salvador, Guatemala,
mission documents government harass-
In short, a modern state cannot afford
Paraguay, and Suriname have all opted
ment, judicial sentencing without due
to minimize human rights concerns, and
for democracy. But the painstaking, long-
process, deprivation of work, and impris-
we of the Americas have made great
term effort of building democratic
onment under extremely negative
progress in our generation. At the same
institutions and ensuring respect for
conditions. The report lists 34 members
human rights continues.
of 10 different human rights and dissident
incorporate all elements of society in the
ated with the commission's visit and
organizations who have been detained
political process. But the violence is
refused to impose a state of siege when
since September 1988.
retarding these efforts. The commission
violence peaked last summer.
This is the commission's most detailed
observes that "the relative advances (in
Finally, the report also mentions
coverage of the Cuban government's
human rights) made have been seriously
reforms being attempted in the judicial
human right practices since its special
compromised by recent events." It cites
branch under the tutelage of the presi-
report on Cuba in 1983. The account of
claims by nongovernmental organizations
dent of the Supreme Court. The active
the crackdown on dissidents complements
of an increase in torture of political
role of the new human rights ombudsman
other recent reports by Americas Watch,
prisoners and by journalists of harass-
and the new possibility of ending the
Amnesty International, and the US
ment, threats, and arrest by security
guerrilla war through the peace talks
Department of State.
forces. The commission also observes that
initiated in Oslo in March 1990 are
Chile. The chapter on Chile gives the
the government has not as yet replied to
additional positive signs.
its request for information on the killings
The friends of democracy should draw
annual report an upbeat turn. The
of the Jesuits.
a sober but not defeatist conclusion from
commission "underscores its satisfaction
Those who follow the situation in El
these facts. The will to improve human
on the re-establishment of representative
Salvador differ over particular cases and
rights must be joined with the power to
democracy," a note of welcome to the new
general characterizations. But what
secure those rights.
government of Chile that my government
fully shares. The chapter marks the key
emerges is a series of fundamental truths.
Nicaragua. The commission gives
events in the transition: the October 1988
It is time to stop the killing in El Salva-
special attention to Nicaragua's electoral
dor. It is time to move forward with
plebiscite, the July 1989 constitutional
campaign and vote, events the commis-
reform, the December 14, 1989 elections,
dialogue. The war must yield to genuine
sion describes as "in themselves an
national reconciliation.
and the March 11, 1990 transfer of power
important contribution to peace and
to the civilian government.
Guatemala. The report on Guatemala
respect for human rights." Somewhat
The report highlights the new
is disturbing. But if the commission is
modestly, the commission also notes that
government's plan to establish a commis-
frank in exposing problems, the govern-
the release of the 39 persons excluded
sion to investigate human rights abuses
ment and the military of Guatemala are
from the March 17, 1989 pardon "complied
during the military regime. It comments
equally frank in acknowledging the
with the recommendation made repeat-
briefly, but concretely, on the persistence
problems. The commission reports the
edly" by the commission.
of terrorist actions throughout the period.
"most serious" increase in violence and
The commission looks briefly at the
El Salvador. The El Salvador
human rights violations since the present
post-electoral environment with a sense
government began its term. It finds the
of the enormity of the task that lies ahead
chapter notes two "conflicting tenden-
cies"-an escalation of violence and
government ineffective in preventing,
and makes two judgments we share in
controlling, and investigating the violence
full. It trusts that the transfer of power
human rights violations and progress
and prosecuting those involved. It also
and "positive experience with the
toward a resumption of peace talks
perceives a lack of control over those in
exercise of political rights" will be applied
between the government and the Fara-
bundo Marti National Liberation Front
the security forces who, in the commis-
to the political, economic, social, and
sion's view, appear to have had direct
cultural challenges ahead. And the report
(FMLN).
involvement in a number of the violations.
concludes with a reminder of the "respon-
The report makes a thorough-and
The report deals with defects of the
sibility of the international community" to
frankly disheartening-record of events
judicial system as well as inconclusive
support Nicaragua's new government.
since its last report on El Salvador. Many
police investigations. While detailing acts
It is perhaps proof of the commission's
of us in this room recall that this commit-
tee last met in the midst of horrifying
of terrorism by the guerrillas, the
independent state of mind that it does not
commission also cites Minister of Defense
even mention one of the most striking
news: the launching on November 11 of
[Hector] Gramajo, who accuses army dis-
contributions of the international commu-
the largest guerrilla offensive of the civil
sidents of serving the extreme right.
nity to national reconciliation in Nicara-
war. Then, 5 days later, the murder,
President [Vinicio] Cerezo, during his
gua: the work of the OAS electoral ob-
apparently by government forces, of six
visit to the UN General Assembly in Sep-
servers and the OAS Verification and
Jesuit educators, their cook, and her
tember 1989, said that extreme right wing
Support Commission (CIAV) under the
daughter.
The commission describes these
groups were responsible for kidnapings,
leadership of Secretary General [Joao
torture, and murder of trade unionists,
Clemente] Baena Soares. I congratulate
events as part of a "vicious cycle of
journalists, and students and that former
Commission President [Leo] Valladares
violence" in which the right and left,
officers of the security forces might also
for including such a reference this
security forces and guerrillas, share
have been involved.
morning. I would add that my govern-
blame. The violence and the abuses have
The situation is grave, but the
ment fully supports the demobilization of
affected noncombatants, journalists,
government's willingness to acknowledge
the Nicaraguan Resistance in accordance
government officials, churchmen and
problems is positive, and the institution-
with existing agreements and accepts the
-women, and labor unionists-every
alization of democracy has made substan-
leadership of the secretary general in
sector of Salvadoran society.
tial gains. There is a high degree of press
supporting them.
My government is convinced that the
freedom in which even the guerrillas can
democratically elected government of El
Panama. The Panama chapter
publish at will. The government cooper-
Salvador is making serious efforts to
documents major improvements in the
2
human rights situation and in official
Paraguay. The report on Paraguay
transition to democracy possible. We
responsiveness. The government has
praises many positive actions taken by
hope to see continued progress on
restored basic civil liberties and has
the [Andres] Rodriguez administration.
remaining problem areas such as lengthy
devoted special attention to restructuring
At the same time, it notes legal and socio-
pre-trial detention.
the security forces. The commission
economic difficulties that "hamper the full
Suriname. The report on Suriname is
notes:
observance of human rights." This
hard-hitting. There are accounts of arson,
The reestablishment of freedom of
detailed report was enriched by a visit of
shootouts, attacks on government officials
expression and right of association and
the commission to Paraguay in response
and property, attempted assassinations,
restoration of news media that had been
to an invitation extended by the Ro-
and ongoing civil strife. The report draws
shut down or confiscated;
driguez administration shortly after
two general conclusions about the
assuming office.
The freeing of former military men
situation in Suriname: "First, that the
The report notes many specific steps
and civilians who had been detained on
duly elected civilian authorities have no
taken by the Rodriguez administration
charges of coup plotting or otherwise
real control over the military situation in
including:
endangering public safety and who had, in
Suriname. Second, the army is the de
most cases, been tortured;
Repeal of laws used to jail dissi-
facto power in the country."
dents;
My own government has observed
The launching or reopening of
Judicial action against former
that the Surinamese military, whose
investigations into killings under the
previous regime, including the Spadafora
officials accused of abuse and corruption;
influence had diminished following the
Elimination of official obstacles to
return to elected government, has
case;
"reestablished itself as the dominant
The decentralization of the security
the freedom of expression, thought, and
forces to ensure their compliance with the
association; and
political force in the country."
Clearly, conflict among different
constitution; and
New guarantees of personal
ethnic groups has been the source of much
The initiation of judicial and penal
freedom, judicial protection, due process,
violence and deteriorating respect for
reforms.
political rights, and access to public office.
internationally recognized norms of
The commission also summarizes
humanitarian conduct. Efforts to bring
The commission reports that it has
recently received many fewer complaints
complaints made to the commission
genuine peace to conflictive areas would
and that the new government has
members who interviewed landless
greatly benefit the human rights situ-
responded to them promptly and satisfac-
peasants, union leaders, and representa-
ation.
torily. At the same time, the commission
tives of the approximately 50,000-member
The commission reports on the
recommends government action in six
indigenous population. The commission
passage by the national assembly of a bill
areas, from the status of individuals
praises the new government for ratifying
removing civil arrest powers from the
detained after the US military action last
the Inter-American Convention on
military police. "Promulgation as law of
December to measures to prevent
Human Rights as well the UN and inter-
this bill would constitute a first step
American conventions against torture.
toward the establishment of a true
recurrence of abuses like those described
in the special report of September 1989.
The new electoral law, the new human
democracy in the sense that the military
We are encouraged that human rights
rights committee in the Chamber of
must be subservient to the elected civilian
concerns are being addressed by the new
Deputies and the new National Commis-
authorities." President [Ramsewak]
government. Several-such as protection
sion to Coordinate Rural Development
Shankar has now signed this bill into law.
against any renewal of military abuses
are also cited.
and institutionalization of democracy-
The commission sees the most serious
An Agenda for the 1990s
are the subjects of a series of govern-
failings in the area of judicial protection.
I would like to close with a few additional
ment-proposed constitutional amend-
It notes that 90% of the detainees in the
comments. I would like to express my
ments currently before the Legislative
country's major prison are still awaiting
congratulations to Leo Valladares
Assembly, which has also been asked to
sentencing. In most cases, their trials had
(Honduras) and Edith Marquez (Vene-
revise the nation's judicial statutes.
not been completed.
zuela) for their new positions as president
The status of detainees remains a
The report discusses legislative
and executive secretary of the commis-
problem. Panamanian courts are over-
amendments to correct this problem, as
sion and my government's genuine
loaded with criminal cases, and there is a
well as government requests to the OAS
gratitude to their predecessors, Oliver
backlog of persons awaiting sentencing.
and United Nations for human rights
Jackman (Barbados) and Edmundo
Similarly, improvement of economic and
training to police and armed forces and
Vargas (Chile). They have given us high
social conditions for low-income Panama-
the government's proposal to amend the
expectations; we pledge to cooperate to
nians depends on overall economic
constitution in 1992 to create a stable
make them reality. As the Permanent
recovery, especially reduction of high
career system for judges.
Representative of the United States, it is
unemployment. The economic assistance
My government endorses the findings
with great pride that I thank David
recently approved by the US Congress—
of the commission, and welcomes the
Padilla, a US citizen, for his exemplary
after considerable urging by President
positive developments in Paraguay since
performance as acting executive secre-
Bush-is designed to help alleviate both
the Rodriguez government took office.
tary during the past 4 months.
problems.
We congratulate the government of
Finally, a word about future direc-
Paraguay for restoring respect for the
tions. First, the commission's high
fundamental freedoms that make a
3
standards of professionalism, impartiality,
general and senior secretariat officials
themselves, I would hope that the
and integrity must be maintained.
charged with responding to requests from
members of the commission would make
Independence and non-partisanship are
governments to support democracy.
the situation of those activists in the
vital to the commission's effectiveness.
In conclusion, let me note that the
hemisphere who are threatened and
My delegation concurs fully with the
progress in democracy and human rights
abused a special concern-either within
appeal by the distinguished delegate of
that we are witnessing is not the product
upcoming country reports or perhaps as
Chile that the work of the commission not
of impersonal forces. If the prospects of
the theme of a separate chapter.
be politicized.
freedom seem better than ever, it is
The activist human rights observer
Second, the commission should, as
largely because men and women every-
plays a role that is not always welcome.
[Deputy] Secretary Eagleburger indi-
where-tradespeople, laborers, lawyers
But it is a role that is indispensable to
cated in his speech before the assembly,
and journalists, churchmen and -women,
effective modern-day democracies-to
consider offering technical assistance and
and many others-have worked long and
governments which derive their strength
human rights training to interested
hard. One of the most moving moments in
from the steady popular support that can
member states and, with their consent, to
this morning's debate was the statement
only be earned through strict accountabil-
their citizens. Our common democratic
by the distinguished representative of
ity and continuing openness. Any abuse
orientation provides an opportunity,
Paraguay, describing the human dimen-
against any individual's human rights
indeed creates an obligation, to move
sions of cooperation in the face of oppres-
merits attention. This must hold for
from consensus to action, from high
sion and joy at the great progress that has
human rights activists and monitors as
aspirations to practical measures.
taken place in this most beautiful land.
well. Their work is critical to the process
IACHR assistance might include, for
Human rights activists are prominent
of democratic consolidation now under-
example, training of governmental and
in freedom's forward movement. I salute
way.
nongovernmental human rights workers
them. And I add, with a sense of personal
or organizations, training to strengthen
concern, that these very persons who are
Published by the United States Department
judicial systems, advice on national
in the vanguard of the struggle for human
of State
Bureau of Public Affairs
Office
of Public Communication
legislation to protect human rights, and
rights are themselves, in all too many
Washington, DC
July 1990
Editor: Marilyn J. Bremner
building safeguards to protect political
instances, the victims of human rights
This material is in the public domain and may
rights. Such assistance might well be
abuse. As human rights monitors
be reprinted without permission; citation of this
offered in coordination with the secretary
source is appreciated.
PA/PC, Mailing List
United States Department of State
BULK RATE
Washington, DC 20520-6810
POSTAGE & FEES PAID
US Department of State
Permit No. G-130
OFFICIAL BUSINESS
PENALTY FOR PRIVATE USE
Address Correction Requested
John R. Bolton
Current
Policy
Human Rights Challenges in
No. 1244
Central America for the UN
United States Department of State
Bureau of Public Affairs
Washington, D.C.
Following is an address by John R.
we are witnessing a process in which
ring now in Nicaragua sends a re-
Bolton, Assistant Secretary for Inter-
the linkage between human rights,
sounding message that an electoral
national Organization Affairs, at the
genuine self-determination, and peace
process without the guarantees of
Department of State Human Rights
and stability has been made explicit.
human rights provided-for example,
Day ceremonies, Washington, D.C.,
The Tela accords signed by the Gov-
in our own Constitution-cannot be
December 7, 1989.
ernments of Costa Rica, Guatemala,
taken for granted.
El Salvador, Honduras, and Nicara-
Since coming to power, the
I am pleased to join with Dick
gua expressly connect cessation of
Sandinistas have made it quite clear
Schifter [see Current Policy No.
external support for insurrectionist
that the one thing they fear most is
1242] today in commemorating the
groups; voluntary demobilization, re-
the possibility that the Nicaraguan
human rights values which have nur-
patriation, or regional relocation of
people could vote their conscience in
tured us as a nation and which have
the Nicaraguan Resistance; and the
an unfetterred election. They have
served as a standard and as a goal for
creation of an environment in Nicara-
done their utmost over the years to
the international community. Forty-
gua, whereby the Resistance can re-
avoid such a possibility. However,
one years after the United Nations
turn without fear of further abuses of
thanks to the diplomacy of the other
adopted the Universal Declaration of
human rights, and whereby all groups
Central American governments, and
Human Rights, we meet here today
can participate in free and fair
to the Sandinistas' own abundant
amazed at the real impact the hopes
elections.
cynicism and duplicity which have led
embodied in the Universal Declara-
to many blunders on their part, the
tion have had upon the people of the
Open, Free, and Fair Elections
Nicaraguan Government has signed
Soviet Union and Eastern Europe.
for Nicaragua
on to an agreement which requires it
We have also watched with sadness,
to permit the holding of an open, free,
while people in other parts of the
We in this country, with a 200-year
and fair election next February.
world struggle against great odds to
history of peaceful change of govern-
realize their rights to freedom of ex-
ment through the electoral process,
Sandinista Violence
pression and assembly. We meet
do not have to think about what free
Against the Opposition
here today knowing that while much
and fair elections require. We are
has been accomplished, the chal-
fortunate that the institutions pro-
It is not surprising that the Sandinis-
lenges remain formidable.
vided for in our Constitution or which
tas are violating the spirit of the proc-
How can we in the United Nations
have evolved over the years provide
ess which they have formally under-
change the ugly face of human rights
a framework for genuine elections..
taken to support. Polls indicate that
abuses? Today in Central America
The people of Nicaragua, sadly, are
the Nicaraguan opposition, at first
not SO fortunate. And what is occur-
fragmented and disorganized, has
electoral process that the Sandinistas
Cuba's Human Rights Abuses
now evolved into a political force
are pledged to uphold. Meanwhile,
enjoying widespread support among
they have stepped up international
Cuba is in many respects the source
the people of Nicaragua. As the op-
pressure to force the contras to ac-
of Central America's problems. It is
cept their vague assurances that
Fidel Castro's Cuba, of course, that
position has coalesced, the Sandinis-
the Sandinistas have modeled them-
tas have stepped up tactics designed
there will be no recriminations, no
to discredit, confuse, and intimidate
further human rights abuses of the
selves upon politically and militarily.
the opposition and its supporters.
contras and their families should the
As communist regimes throughout
Resistance lay down their arms and
the world are being repudiated by
Press reports detail incidents of open
harassment, beating, threats, fire-
return to Nicaragua as refugees.
their own citizenry, it is highly ironic
that Castro remains dinosaur-like-
bombings, smears, and even at-
able to resist in his own domain the
tempted murder directed against the
UN Election Monitors
changes sweeping the rest of the
opposition.
For instance, in the town of Pan-
The UN Security Council has given a
world.
tasma on November 26, the opposi-
clear mandate to the UN election
Three years ago the United
monitors for Nicaragua. This man-
States launched a campaign to call
tion's vice presidential candidate
Virgilio Godoy along with a group of
date includes the obligation to raise
the world's attention to the nature of
all incidents that violate or interfere
the gross and systematic human
supporters were stopped by soldiers.
with the principle of free and fair
rights violations that form the under-
Godoy took the opportunity to com-
plain to the soldiers that two of his
elections. We are working closely
pinnings of Castro's power over the
supporters had been beaten and de-
with Ambassador Elliot Richardson,
Cuban people. We still believe that
who heads the UN monitors, to en-
the spotlight afforded by a UN hu-
tained by the army. The soldiers re-
sure that the types of violations I
man rights investigation affords one
sponded that the opposition had been
have described are noted and raised
of the best ways to affect Castro's
throwing rocks and their commander
then threatened to open fire on
with the Sandinistas. Ambassador
behavior. The UN Secretary General
Godoy and his party.
Richardson will be required in Febru-
has received a mandate from the UN
An opposition activist, Encarnacio
ary to certify that the elections and
Commission for Human Rights to
Porras, was beaten by a Sandinista
electoral process conform to the let-
raise cases of human rights violations
ter and spirit of the Tela agreement.
with the Cuban Government. We are
soldier following a rally in San Dioni-
sio. The mobs of young toughs known
Given the current situation, he will
working closely with the UN Center
need to work very hard in the next
for Human Rights to ensure that the
as turbas that have been employed by
few weeks to be in a position to do
Secretary General has the details of
the Sandinistas to cow the Nicara-
guan populace throughout their rule
this.
human rights abuses in Cuba, and we
are now actively involved in the elec-
The relationship among the enjoy-
look to the Secretary General to
ment of those human rights described
forcefully pursue his mandate.
tion campaign. Our Embassy reports
that at virtually every opposition
in the Universal Declaration of Hu-
rally turba gangs roam about throw-
man Rights, democratic process, and
The Unitary UN Approach
ing rocks, shouting down speakers
regional peace and stability in Cen-
and roughing up supporters. Several
tral America is inescapable, for us, for
Our approach to human rights in the
opposition activists have been at-
the United Nations, and for the gov-
United Nations is a major facet of
ernments of Central America. The
what I call the unitary UN. As I
tacked by turbas who have inflicted
severe injuries. Sandinista officials
Central American peace process de-
have described, we need to be mind-
pends on the ability of the people of
ful of the interrelationships among
have not even attempted to veil
threats intended to prevent the oppo-
the region to express their wills
human rights, democracy, and inter-
through free and fair elections which
national peace and stability. In the
sition from campaigning. For in-
stance, the Sandinista mayor of Nan-
in turn require such fundamental
United Nations, we are constantly on
daime warned prior to a rally sched-
human rights as a free press, freedom
the lookout for ways to hammer home
uled for November 19 that if the
of speech, of assembly, of worship.
these interrelationships. We make
The United Nations has the opportu-
human rights concerns an aspect of
event occurred "there will be blood,
nity to make a lasting contribution to
what we seek to do throughout the
there will be death."
the welfare of all the people of Cen-
UN system whether it is in economic
These and other incidents too nu-
or social forums.
merous to mention now present a
tral America. It will require forth-
clear pattern of abuses designed to
rightness and toughness to ensure
interfere with the open, free, and fair
that this opportunity does not fall by
the wayside.
U.S. DEPARTMENT OF STATE
Office of the Assistant Secretary/Spokesman
For Immediate Release
June 18, 1990
PRESS CONFERENCE BY
SECRETARY OF STATE JAMES A. BAKER, III
FOLLOWING MEETINGS WITH CENTRAL AMERICAN PRESIDENTS
Ramada Inn, Antigua, Guatemala
Monday, June 18, 1990
SECRETARY BAKER: Ladies and Gentlemen, I have a statement and
then I'll be delighted to respond to your questions.
As I said to the six Presidents this morning, they have
completed I think, an historic summit meeting, and it is a
symbol of the changes that are transforming this region. For
the first time in history, all of the Presidents attending their
summit have been democratically elected. Also, for the first
time, the principle subject for discussion is regional economic
development, not the resolution of conflicts. And, of course,
Panama is attending for the first time.
Here in Antigua, the Presidents have adopted a far-reaching
agenda for regional economic integration and development and we
congratulate them on this achievement. When President Bush took
office this was a region in crisis and many argued that the
United States faced only two choices -- accommodation to
dictatorship or disengagement.
President Bush instead has pursued a new regional policy with
four elements. First, support for the regional peace process
begun in Esquipulas. Secondly, enlisting the cooperation of the
Soviet Union to end the conflicts in this region. Third,
engaging our European allies and Japan in support of regional
democratization and development. And fourth, building a
bipartisan base in the United States for our policy toward
Central America.
We believe that this region has an historic opportunity today to
realize three goals: democracy, disarmament and development.
We also recognize that there are fears in Central America that
the United States and the industrial democracies will be
diverted by the changes in Eastern Europe and ignore this region
at this moment of historic opportunity.
I'm here today at the request of President Bush to make it very
clear that the United States will continue to be fully engaged
and fully supportive of this regional peace process. That's why
we are exploring with Japan, with the European community, Canada
and other industrial democracies, possible ways to achieve more
support for democracy and development in Central America. I
have discussed these proposals with the six Presidents and they
tell me that they welcome this effort. We will continue to
consult closely about the best way to proceed.
-2-
The bottom line, I think, is this -- Central America is poised
as never before to consolidate democracy, achieve lasting peace
and disarmament, and create the conditions for growth and
opportunity in which all of the peoples of this region,
particularly the poor, can share.
The United States wants to do everything that it can to help
this region's leaders seize this historic opportunity.
Any questions?
Q: An American official today said that he felt that the arms
levels in Central America were excessive and pointed to Costa
Rica as an example to be emulated in the future. I would like
to ask you Mr. Secretary, if you agree with that and if you
think that the help to be offered by the G-24 will have to be
preceded by cuts in both levels in armaments and troops in the
region?
SECRETARY BAKER: I would not anticipate that the G-24 would
expressly condition their willingness to support democracy,
disarmament and development, by requiring total disarmament in
advance. So I would not see that as an absolute pre-condition.
Costa Rica, of course, has a rich tradition of pursuing
democracy and freedom and disarmament and it is a tradition that
the United States has supported for many, many years in the past
and continues to support.
Remember, there are three goals: democracy, disarmament and
development. And in trying to encourage additional support from
the G-24, we would be trying to encourage support for all three
goals.
Q: I understand that the G-24 is not going to operate on the
basis of pre-conditioning, but there will be some kind of
ordering of assistance on the basis of pre-defined projects.
Isn't that right?
SECRETARY BAKER: Yes, and there will be as it appropriately
should be, conditionality with respect to G-24 efforts, just as
there is conditionality with respect to the efforts the G-24 has
made to support democracy and freedom in Eastern Europe. For
example, there were certain events in Romania here during the
course of the last several days which did not move in the
direction of respect for human rights, freedom and democracy.
And the G-24, at least for the time being, put on hold or
temporarily suspended its efforts with respect to Romania.
Q: In the past when the United States participated in efforts
of this kind it imposed a number of conditions, one of which was
the establishment of democratic regimes. I would like to ask in
this case, what requirements the United States intends to impose
in order for countries to get assistance and get it on a timely
basis, because the pressure of poverty and misery in the
countries at this time does not allow them to continue under the
present circumstances.
-3-
SECRETARY BAKER: First of all, if it was a cooperative effort
through the G-24, whatever conditions were imposed would be
imposed through the cooperative efforts of the G-24 countries
and not just the United States. But, secondly, the United
States conditions its assistance now on respect for human
rights, freedom, democratic traditions and we make no bones
about that. We're quite proud of that, because these are
principles that we believe very strongly in. Furthermore, we
believe these principles more and more are being adopted by
countries around the world, not just in Eastern Europe, not just
in Central America, but indeed in Africa and Asia as well.
Q: In order to cooperate in this disarmament effort is the
United States willing to reduce its military aid to El Salvador,
for instance, and the presence of its military advisors?
SECRETARY BAKER: Well, the United States only has 55 advisors
there and that's the same number we had, if I'm not mistaken,
when I first came to Washington with President Reagan in 1981.
But further to the point of your question -- the United States
is for the first time willing to condition its military
assistance to El Salvador and we are in the process of having
discussions with our Congress to that effect now. We should be
careful not to interpret that in the wrong way. There is a
major insurgency going on in El Salvador in which some are
seeking to reverse the results of the ballot box with bullets
and bayonets. That's not our idea of democracy and that's not
our idea of an approach to freedom.
Q: Mr. Secretary, you mentioned the Soviet Union and I would
like to ask you what might be the political and economic
contribution of the Soviet Union to the development of Central
America to which the United States and the other countries in
the G-24 are going to be contributing?
SECRETARY BAKER: Well, hopefully, the Soviet Union will stop
supporting regimes in this hemisphere that support attempts to
reverse decisions at the ballot box with bullets and bayonets,
as I said a moment ago. The Soviet Union has indicated to us
that they are prepared to do this, and so we hope that's one
contribution. We think it was a contribution with respect to
what happened in Nicaragua. We've had discussions with the
Soviet Union about the prospects of their continuing the
assistance to Nicaragua that they furnished during the period of
time of the Sandinista government. We make the point that it
would be nice to see them support a freely, democratically
elected government in this hemisphere since they themselves now
profess to support the idea of democratization. We'll see
whether or not they're able to do that although they've
indicated to us some prospect that they will be able to continue
some assistance to this freely elected democratic government in
NIcaragua.
Q: Thank you.
Democracy in Latin America
Special
Report
and the Caribbean:
No. 158
The Promise and the Challenge
United States Department of State
March 1987
Bureau of Public Affairs
Washington, D.C.
"Latin America's
extraordinary
effort to create a
democratic order
is the most stun-
ning and moving
political fact of
recent years."
Jose Sarney, President of Brazil,
Address to the UN General Assembly,
September 23, 1985
Contents
Latin America and the Caribbean
Recent Achievements
1
Roots of Change
4
Facing the Challenges
8
The United States
A New Consensus?
13
Support for Democracy
Proven Tools
14
Recent Initiatives
20
The Need for Mutual Support
22
Country Summaries
24
Cover photo: © UPI/Bettmann Newsphotos
Recent moves toward more democratic
Latin America
In marked contrast, today 91% of
systems of government in Latin America
and the Caribbean
the people of Latin America and the
are now a decade-long trend that has led
Caribbean live in nations committed to a
to the replacement of numerous military
future based on democratic principles. In
regimes or dictatorships (see map at
10 years, 10 countries have moved, often
centerfold). In the United States during
RECENT ACHIEVEMENTS
dramatically, toward democracy. In nine
the same period, considerations of
of the ten, military presidents have been
human rights, the dignity of the indi-
Since the early 19th century when most
replaced by elected civilians: Argentina
vidual, and the defense of freedom have
of the nations in the hemisphere
(1983), Bolivia (1982), Brazil (1985),
led to a widening bipartisan consensus
achieved independence, most people liv-
Ecuador (1979), El Salvador (1984),
in support of democracy as a key prin-
ing in the region found that national
Guatemala (1986), Honduras (1982),
ciple of U.S. foreign policy.
independence did not necessarily bring
Peru (1980), and Uruguay (1985). In the
These converging trends create a rare
individual freedom. Today's democratic
10th country, Grenada, an elected
opportunity. If sustained, they could
advances, however, could mark a water-
civilian succeeded two consecutive
have profound implications for the future
shed between-a past of instability and
autocrats who were themselves civilians
of the Western Hemisphere. At a
authoritarianism and a future of greater
but who had relied on armed thugs to
minimum, their continued convergence
freedom.
rule. (In an 11th country, Panama, direct
can make possible a new era of greater
Just a decade ago, such a possibility
military rule ended in 1978, but in a
cooperation in hemispheric relations.
seemed remote indeed. In 1976, only
clear setback for democracy in 1985, a
The instability of past Latin
34% of the people in the Western
civilian president was pressured to
American development and the discon-
Hemisphere outside the United States
resign by the military.) In the Caribbean
tinuity of U.S. policy toward its
and Canada enjoyed democratic rule.
Basin, the six former British dependen-
neighbors make clear that this long-term
True, Costa Rica had a strong tradition
cies-Antigua and Barbuda, Belize,
promise is still just a possibility.
of civilian authority, competitive politics,
Dominica, St. Christopher and Nevis, St.
Today's converging trends are real, but
and model constitutional arrangements
Lucia, and St. Vincent and the Grena-
they are also fragile. Latin Americans
for elections. But Costa Rica's neighbors
dines-that became independent nations
continue to struggle with numerous and
in Central America were presided over
during the past decade did SO as
urgent obstacles to full democratization,
democracies.
including appalling differences in the liv-
The following examples of electoral
ing standards of rich and poor, inade-
politics where there were none just a
quate economic opportunities, and
"Man's capacity for justice
few years ago highlight the progress
political extremism. To help turn today's
makes democracy possible,
that has been made from the Caribbean
promise into tomorrow's reality, the
but man's inclination to
to Tierra del Fuego and from Central
United States also must overcome many
America to the Andes.
domestic problems and conflicting
injustice makes democracy
priorities that hinder sustained U.S.
necessary.
Argentina. The 1983 presidential
support for democracy in Latin America
and legislative elections ended a decade
and the Caribbean.
Reinhold Niebuhr
of internal conflict and military rule.
Both the democratic promise and the
Voter participation exceeded 85% of
challenges to it have become more sharply
those registered in an open contest
defined since the Department of State
by generals who had become presidents
among eight political parties repre-
first reported on the democratic transi-
either by open use of force or by stage-
senting the full political spectrum. The
tion nearly 3 years ago (see "Democracy
managed elections. In South America,
presidential race offered a choice
in Latin America and the Caribbean,"
democratic Venezuela and Colombia
between candidates from Argentina's
Current Policy No. 605, August 1984).
were almost as isolated. Led by generals
two major historic movements, Peronism
This report was prepared in the Bureau
as different as Chile's Augusto Pinochet
and Radicalism. In winning, Radical
of Inter-American Affairs.
on the right and Peru's Juan Velasco on
Civic Union leader Raúl Alfonsín
the left, the continent was almost
received the most votes in Argentine
defiantly militarized. The promise of
history. In the two ensuing years, voter
Bolivia's national revolution of the 1950s
registration increased by an additional
had given way to military dominance, as
4%, and the 1985 legislative elections
had Uruguay's social democratic utopia.
again attracted massive participation.
Even decentralized and moderate Brazil
was under military rule. Individual Latin
Brazil. Congressional and municipal
Americans bearing witness to torture
elections in 1982 heralded the transition
and official violence were in exile
to civilian government and the resur-
throughout the Americas and Europe.
gence of competitive electoral politics in
When internal war and repression in
Latin America's largest country and the
Argentina were followed by surprise
world's third most populous democracy
military action in the Falklands/Malviñas
(after India and the United States). The
Islands, many saw a pattern that sym-
percentage of adults who voted rose
bolized a region condemned to military
abuse and antidemocratic practice.
transfer of power was a reaffirmation of
Dominican democracy. The absence of
either interference by the military or
outside intervention also contrasted
markedly with past Dominican history,
which includes the 31-year Trujillo dic-
tatorship, a military operation by the
United States and the Organization of
American States in 1965, and overt
pressure from the United States for all
sectors to support the results of the
democratic elections in 1978.
El Salvador. Four times in 5 years,
massive numbers of voters braved
violence and threats of violence to cast
their ballots in hotly contested nation-
wide races conducted under intense
international scrutiny. In 1984, an
absolute majority of all adult
Salvadorans twice defied guerrilla
appeals for a boycott to vote in the first
truly competitive presidential elections
in 12 years. The result: civil engineer
and Christian Democratic leader Jose
Napoleon Duarte-the very man who
had been denied the presidency by the
military in 1972-was elected over
retired Army Maj. Roberto D'Aubuisson
and six other candidates.
Grenada. After the Marxist New
JEWEL Movement seized power in a
1979 coup, it reneged on its promise to
hold elections. In October 1983,
however, the New JEWEL's "People's
Revolutionary Government"
disintegrated in bitter factional fighting.
Prime Minister Maurice Bishop and
three other ministers were assassinated
by their own comrades. At the invitation
The richness and variety of democratic life in Latin America and the Caribbean are symbolized by four
of Governor General Sir Paul Scoon, a
elected political leaders. Eugenia Charles (top left), head of the center-right Dominica Freedom Party
joint U.S.-Caribbean military expedition
and Prime Minister of Dominica; José Napoleón Duarte (top right), Christian Democratic reformer and
President of El Salvador; Victor Paz Estenssoro (bottom left), founder of the Nationalist Revolutionary
restored order, then withdrew, leaving a
Movement and three-time President of Bolivia; and Raúl Alfonsín (bottom right), leader of the Radical
provisional government named by
Civic Union Party and President of Argentina. (Photos of Duarte, Paz, and Alfonsin courtesy of the Organization of
Grenada's Governor General to organize
American States)
free elections. On December 3, 1984,
85% of Grenada's registered voters went
to the polls to elect a parliament. Six
political parties were on the ballot,
from 45% in 1962 to 81% in 1982. A
Dominican Republic. The ruling
including one formed by supporters of
civilian president was elected by indirect
party expected to retain the presidency
Maurice Bishop and one backed by
vote on January 15, 1985, but died
and to control the legislature in the May
former Prime Minister Eric Gairy
before his inauguration. In accordance
1986 national elections. But after 70% of
(whose violent overthrow had initially
with legal procedures, the civilian Vice
the registered voters cast their ballots,
enabled Bishop to seize power). Neither
President-elect, José Sarney, was sworn
the opposition candidate had the most
of these groups was successful: the New
in, ending two decades of military rule.
votes. When the leader of the opposition,
National Party garnered roughly 58% of
The democratic transition is being com-
Joaquín Balaguer, became president in
the vote, and Herbert Blaize formed a
pleted with the writing of a new con-
August 1986, the entirely peaceful
new government in accordance with the
stitution by the Congress elected in
1974 constitution.
November 1986 by more than 47 million
voters.
Guatemala. Seeking a political path
out of Guatemala's internal violence and
international isolation, military leaders
in 1983 decided to transfer power
gradually to civilians. On July 1, 1984,
2
72% of Guatemala's eligible voters cast
ballots that sent representatives from
Growth of Voter Participation in Selected Countries¹
nine political parties and one regional
civic committee to a constituent
Estimate of percent of total
adult population voting
assembly. On November 3, 1985, free
elections were held for president, vice
0
10
20
30
40
50
60
70
80
90
100
president, congressional deputies, and
mayors. When no candidate for the
presidency received a majority, a runoff
1963
Argentina
was held on December 8, 1985, between
1985
the two leading contenders, both
civilians. In that contest, Christian
Democrat Vinicio Cerezo won more than
1962
68% of the vote. On January 14, 1986,
Brazil
the new constitution came into force,
1986
Cerezo was inaugurated, and military
control over daily life in Guatemala was
sharply reduced.
1962
Colombia
Peru. After 12 years of military
1986
rule, the 1979 constitution and 1980
presidential elections put Peru back on a
democratic course under civilian leader-
1962
ship. Since then, municipal (1983 and
Costa Rica
1986) and presidential (1985) elections
1986
have followed prescribed constitutional
and legal procedures. In 1985, more than
91% of Peru's registered voters divided
1962
their ballots among candidates
Ecuador
representing 12 political parties. Alán
1984
Garcia became the first member of
Peru's historic American Popular
Revolutionary Alliance (APRA) party to
1962
El Salvador
be elected president. He also became the
first elected civilian since 1945 to receive
1985
Peru's presidential sash from another
elected civilian.
1964
Guatemala
Uruguay. Uruguay returned to
1985
democratic government in March 1985
following 12 years of military rule that
had tarnished a record of freely elected
1965
civilian government dating back to the
Honduras
19th century. More than 87% of the
1985
nation's eligible registered voters cast
their ballots in national elections in
which two major political parties and a
1964
leftist coalition competed.
Mexico
1982
The swell of democracy is not super-
ficial. It has been welcomed by elec-
torates which have organized, cam-
1962
paigned, and voted in record numbers
Peru
throughout the region. Since 1980,
1985
voters in 24 independent countries of
Latin America and the Caribbean have
cast more than 280 million votes in more
1963
than 50 nationwide elections to select
Venezuela
presidents, national legislatures, and
1983
constituent assemblies. In virtually every
case, the number of people going to the
1964
polls reached record highs.
United States
1984
Estimates based on votes cast as a percentage of total population age 20 or over as reported
in the United Nations Demographic Yearbook for the year in question.
3
Compared to the 1950s and 1960s,
1,300
the proportion of eligible voters actually
going to the polls has been up sharply, in
some cases by as much as 50%. Nor have
the increases resulted from forced
1980
Per Capita Energy Consumption
900
voting. Turnouts were as high or higher
in some countries where voting is not
mandatory (85% in Grenada in 1984 and
(Kilogram coal equivalent)
600
89% in The Bahamas in 1982) as in some
countries where voting is traditionally
compulsory. Where voting is required,
1960
300
the historic form of voter protest, the
incidence of blank or defaced ballots,
tended to diminish substantially as
voters gained the opportunity to vote for
0
genuine alternatives.
180
Democracy, of course, is more than
free elections. But its essence is the
right of citizens to decide regularly
140
whether to keep or replace those who
(Infant deaths per 1,000 live births)
100
Infant Mortality³
3 Expressed as the number of deaths
in the first year of life per 1,000 live
claim to represent them. The absence of
genuinely free elections in Chile and
Paraguay, patently unfair elections in
Nicaragua, and allegations of vote fraud
in Mexico and Panama are major
continuing difficulties. Cuba has not held
60
a single direct popular election for
births.
national office since Castro came to
power in 1959.
0
Though Latin America's recent elec-
toral record is still far from perfect, the
120
changes that have already taken place
have made an enormous difference for
millions of Latin Americans. Most of the
100
2 Computed from the energy equivalent
of daily per capita net food supplies
available in country and expressed as
a percentage of the estimated require-
ment as determined by the Food and
brutal dictatorships are gone. Latin
America's longstanding democracies-
Costa Rica, Venezuela, and Colombia-
Calorie Supply2
Agriculture Organization.
no longer are isolated. On the contrary,
90
it is the authoritarian regimes that are
becoming isolated. Cuba and Nicaragua
on the totalitarian left, and Chile and
80
Regional Comparison: Indicators of Living Standards, 1960 and 1980
(Percent)
Paraguay on the authoritarian right, are
the only major exceptions to the trend.
Even Haiti, perhaps the most compelling
0
case of a country plagued by brutal dic-
tatorship and the degrading economic
80
deprivation that it generated, has taken
the first steps toward democratic
60
Adult Literacy
The number of adults with the ability to
read and write expressed as a percen-
tage of the adult population age 15 and
government following the ouster of the
Duvalier dynasty on February 7, 1986.
40
20
(Percent)
Region
Latin America
and Caribbean
Sub-Saharan
Africa
Middle East and
North Africa
East Asia
and Pacific
Source: World Bank, World Tables, 1983 (3d ed.).
ROOTS OF CHANGE
The shift away from authoritarian
regimes (typically dominated by military
above.
leaders) to freely elected governments
(typically led by civilians) reflects many
1
forces, some of them quite transient. But
0
more lasting underlying forces have
South Asia
been at work as well.
Social change and economic develop-
ment, the growth of institutions, and
political and cultural shifts have com-
4
Life Expectancy, 1950-55 and 1980-85
1950-55
1980-85
Years
(est.)
80
70
60
50
40
30
20
10
0
Argentina
Brazil
Dominican
El Salvador
Guatemala
Haiti
Mexico
Peru
Uruguay
Republic
Source: CEPAL, Informe de la Reunión Regional Latinoamericana Preparatoria de la Asamblea Mundial
sobre el Envejecimiento, San José, March 31, 1982.
bined to weaken the old power centers
literacy, nutrition, and energy consump-
section) that pose serious challenges to
and add new ones. Influences from out-
tion) have improved more dramatically
the democratic transition. But the
side the region also have been impor-
in Latin America and the Caribbean than
development that has taken place is
tant. This section describes the many
in any other region in the developing
undeniably improving the base necessary
factors increasing Latin America's
world (see charts, p. 4).
for democracy to prosper.
capacity to sustain democracy; the next
Between 1960 and 1980, per capita
section discusses the many problems
income doubled despite rapid population
Education. Improvements in educa-
with which democrats must still contend.
growth. Throughout Latin America,
tion have outstripped increases in
urbanization, industrialization, and
population. The percentage of primary
Improved Socioeconomic Conditions
institutional development broke down
school-age children attending school
old class structures and spurred the
increased from 57% in 1960 to 82% in
Latin American societies are scarred by
growth of middle classes. Values and
1980. In 1960, only 35% of the region's
poverty and sharply unequal distribution
attitudes developed that foster political
children aged 12-17 were enrolled in
of opportunities and services. Yet, over
participation and make dictatorships
school; a mere 6% of the university-age
the last two generations, standards of
harder to sustain.
population attended universities and
living (as measured by infant mortality,
This increased potential for
technical schools. By 1980, these figures
democracy cannot by itself guarantee
were 63% and 26% respectively. These
that democracy will be achieved or main-
gains account for the 79% adult literacy
tained. Moreover, recent declines in
gross domestic product have created a
host of problems (discussed in the next
5
rate for the region in 1980. Such suc-
cesses have increased political
awareness, increased expectations about
Regional Comparison: Urban Population, 1960 and 1980¹
1960
the role of government, and expanded
Percent of
economic opportunities for workers and
total population
1980
entrepreneurs.
70
Health. Lowered infant mortality
rates and increases in life expectancy
have combined with the virtual eradica-
tion of once-common debilitating
diseases such as poliomyelitis to improve
60
general health conditions. Healthier
individuals have more opportunity to
develop political interests, as well as
greater energy to devote to political
involvement.
50
Urbanization. Once overwhelmingly
rural, Latin America has urbanized
faster than the rest of the developing
world. In 1950, only seven cities in the
40
region had populations larger than 1
million; by 1980, the number had climbed
to 25, and this figure could double by the
end of the century. About 37% of Latin
America's population resided in urban
30
areas in 1950. Today, more than two-
thirds of the region's people are city
dwellers. Urbanization has eroded the
rural power base of the traditional
landed elite, while simultaneously
20
facilitating communication and political
participation.
Institutional Development
10
The spread of education and indus-
trialization have transformed old institu-
tions and created new ones. Both public
institutions (military forces, government
bureaucracies, and national universities)
0
and private institutions (the church,
Latin
Sub-Saharan
Middle East &
East Asia
South Asia
America &
Africa
political parties, private universities,
North Africa
& Pacific
Caribbean
trade unions, and major corporations)
have been affected.
1 As defined by individual countries.
The evolution of religious and
Source: World Bank, World Tables, 1983 (3d ed.).
military institutions- "the cross and the
sword" of the Spanish conquest and key
pillars of traditional order ever since
then-illustrates the new values,
organizational diversity, and reduced
more professional. Despite ever-present
Political and Cultural Changes
power of individual caudillos that have
rewards for strong individual leadership,
military leaders must deal with their
Mass Communications. Radio has given
increased space for democratic politics.
fellow officers within an institutional
virtually every household in Latin
In the quarter century since Vatican
America and the Caribbean access to
Council II, Latin America's Roman
framework. The road to command is now
Catholic bishops have tended to act as
usually as much a function of technical
information previously reserved to the
social critics, leading the church to posi-
competence, bureaucratic skill, and coali-
traditional elites. More people are
tions open to change and independent of
tion building as it is of personal
reading an ever-growing variety of
secular authorities. Together with the
magnetism or direct troop command.
newspapers, magazines, and books. And
except for the few people isolated in
spread of Protestantism, this has
remote regions such as the Amazon
encouraged political as well as religious
Basin or Patagonia, almost everyone has
diversity.
at least occasional access to television.
The armed forces, meanwhile, have
become less tied to economic elites and
6
Improved access to information and
ideas has raised expectations and
Conciencia and the
São Paulo, Brazil. Requests from groups
increased pressures for participation and
Future of Democracy
in Bolivia, Chile, and Peru have prompted
political change.
Conciencia to organize the First South
In August 1982, on the eve of Argentina's
American Meeting on Civic Education and
return to civilian government after 8 years
Democratic Activism. Aspirations
Participation, scheduled for September
of military rule, 22 women organized a
1987 in Buenos Aires. Participants from 10
for greater political participation have
grassroots movement to help the nation
countries are expected to attend.
tended to combine in recent years with
prepare for the general elections. Today,
Conciencia receives financial support
rejection of the violence and abuse of
Conciencia (Awareness) has more than
from corporations, local foundations, and
political extremists and dictatorships of
8,000 members engaged in countless proj-
the U.S. National Endowment for
both left and right. Volunteer civic
ects to educate Argentines about their
Democracy (NED), established by Con-
education programs, such as the Argen-
rights and responsibilities as citizens of a
gress in 1983 to support the development
tine organization Conciencia (see box,
democracy.
of democratic institutions around the
Conciencia's goal is to train the
right), have proliferated. By informing
world. NED support for Conciencia has
nation's citizens, particularly its women, to
people of their rights and responsibilities
been managed by OEF International,
participate actively and effectively in
originally established as the overseas arm
as citizens of a democracy, civic
political and community life. In addition to
of the U.S. League of Women Voters. The
movements draw more people into the
courses in basic civics, civic leadership,
NED also is assisting other civic education
political process.
and political participation that emphasize
organizations in Dominica and the
consensus building, Conciencia sponsors
Dominican Republic and is a major source
Momentum. With each election, the
lectures and exhibits on various domestic
of funding for the Buenos Aires
right to choose becomes more institu-
and international topics, publishes a series
conference.
tionalized, establishing habits of
of educational pamphlets, and produces
The impact of Conciencia on civic
"public service" announcements for
pluralistic political practice that widen
education at the grassroots level is a
radio and television. All activities are
voter participation and broaden support
measure of the powerful attraction of
nonpartisan.
democracy as both a political system and
for democratic government. Each elec-
Conciencia's success has motivated
a way of life. It has inspired thousands in
tion increases political activism, as more
similar women's groups in several Latin
Latin America, drawn primarily from the
citizens take part in civic education pro-
American countries. At the request of a
middle class, to make a personal invest-
grams, serve as poll workers, campaign
group in Montevideo, Uruguay, Conciencia
ment in democratic government. Concien-
for candidates, or run for office. With
helped establish the Uruguayan organiza-
cia's success demonstrates that
each peaceful transition from one civilian
tion Encuentro (Encounter) in 1985. Con-
democratic solidarity across borders can
government to its successor, the
ciencia has also provided assistance to a
be eminently workable.
sister organization of the same name in
democratic machinery is further refined
and improved.
External Influences
U.S. Policy. Under two very different
administrations since the mid-1970s, the
United States has sought to encourage
democratic transitions in Latin America.
Under the Administration of President
Jimmy Carter, support for human rights
was the guiding principle. During the
Administration of President Ronald
Reagan, the emphasis shifted toward a
policy championing the broader values of
democracy. The practical effect was one
of substantial bipartisan continuity.
Bolivia and El Salvador, for example,
were both very controversial at the time
of the 1980-81 transition between the
Carter and Reagan Administrations. In
The Board of Directors of Conciencia meets in Buenos Aires. (© The New York Times/Daniel Merle)
both cases, the United States consistent-
ly supported democratization to suc-
cessful outcomes. By 1986-when the
U.S. offer to transport Jean Claude
Duvalier out of Haiti helped prevent fur-
ther bloodshed and proved a key factor
in Duvalier's decision to step down-few
doubted that democracy was one area
where the U.S. Executive and Congress
had found common ground.
7
Iberian Examples. Despite frequent
popularly elected Corazon Aquino, also
is superficial and transient, the product
political disagreements, most Latin
have bolstered the belief that democracy
of "time-for-a-change" swings induced
American countries have cultural and
is the tide of history.
by the failure of authoritarian regimes to
emotional affinities to Spain and Portu-
cope with economic and social problems,
gal rooted in the colonial experience.
their abuses of human rights, and plain
The demise of authoritarian military
political exhaustion. Similar swings took
regimes in the two Iberian "mother"
FACING THE CHALLENGES
place after World War II and again in
nations during the mid-1970s added
the late 1950s and early 1960s. Each
impetus to democratic forces in Latin
Though recent progress is undeniable,
time, the pendulum swung back again.
America. The subsequent consolidation
democracy's future is far from secure.
Is recent progress just the latest
of democracy in both countries provided
Such factors as literacy and organiza-
swing in an endless cycle? Or do the na-
democratic models to complement that
tional potential are necessary ingredi-
tions of the region finally face a real op-
of the United States and those of Latin
ents of democratic politics, but they are
portunity to maintain their democratic
America itself.
not sufficient. Like Europe's experience
momentum? This section attempts to
with nazism and fascism, Latin
contribute to an answer by analyzing
Failed Alternatives. Democracy
America's history demonstrates that
five key problems that impede
also has profited by negative examples.
wealth and a widely educated citizenry
democratic consolidation.
The military development model
are not necessarily incompatible with
(generally dubbed "Nasserist" for its
dictatorship-consider the records of
Argentina, Chile, and Uruguay.
Militarism
Egyptian variant despite its prevalence
in Latin American history) has taken a
Socioeconomic development is not
Military leaders and institutions played
severe drubbing along with military dic-
enough by itself to avoid dictatorship or
key positive roles in the democratic tran-
tatorships in general. And the evident
turn authoritarianism into democracy.
sition in several countries, notably
misery inflicted on the people of Cuba by
Many observers of the Latin
Brazil, El Salvador, Guatemala, Hon-
the rigid political and economic controls
American scene see the region caught up
duras, and Uruguay. In several coun-
imposed by Castro's regime inspires
in a perpetual cycle of instability in
tries, moreover, military leaders have
little willing emulation.
which elected civilian governments lose
sought changes in their relations to
the authority to govern and give way to
civilian institutions that would reduce
Outside the hemisphere, calls for
authoritarian military regimes, which, in
pressure on the military and provide a
political and economic freedom in
turn, lose legitimacy and give way to a
more stable political balance. For their
Poland, student demonstrations in
repetition of the cycle. In this view, the
part, while recognizing their debt to par-
China, and the replacement in the Philip-
democratization described in this report
ticular military leaders, the new
pines of President Marcos by the
democratic governments have generally
sought to strengthen civilian authority
over the military institutions.
The results have included a historic
low in the frequency of military coups.
Legal provisions prohibiting or limiting
military participation in politics are more
common, as are-arrangements increasing
civilian participation in matters previ-
ously reserved to the military. In
Guatemala, new military statutes require
an officer to be off active duty for 5
years before running for public office. In
Argentina, civilians now occupy key
positions in the Ministry of Defense,
including those responsible for the
defense budget. In Peru, the 1933 con-
stitution gave the military what could be
interpreted as independent authority to
decide the meaning of the constitution
itself; the 1979 constitution eliminated
this provision and states explicitly that
the armed forces are subordinate to con-
stitutional authority.
Two incidents make clear, however,
that military pressures remain a threat
to democracy.
President Vinicio Cerezo of Guatemala and his wife are greeted by Army Chief of Staff Gen. Hector Gramajo
on their return from Europe in October 1986. (Photo courtesy of Depto. Información y Divulgación del Ejército, Sección de
Relaciones Públicas, Guatemala)
8
Two Democrats Betrayed
extensively from Martí and even imitating
the thesis that there could be no political
his landing by sea in eastern Cuba. Today,
opposition in Nicaragua. He played a
Castro includes Martí in the pantheon of
leading role in two armed attempts to oust
heroes-Marx, Lenin, Engels, and Che
the Somozas and fought frequent censor-
Guevara-that Cubans are taught to
ship to use La Prensa as a platform to
admire.
urge democratic reform.
Castro's use of Martí has to be selec-
His deep convictions and fearless
tive, however. As in the days of Martí,
determination made him a natural leader
Cuba's political opposition is in exile or in
of the opposition. In 1966-67, Chamorro
jail, its economy is tied to a foreign
coordinated the National Union of the
empire, and it is governed by a dictator
Opposition (UNO) against Somoza's
whose powers exceed those of a Spanish
presidential candidacy. In 1974, he led the
viceroy.
Union of Democratic Liberation (UDEL), a
Martí opposed personal rule as much
coalition of opposition political groups that
as he opposed colonialism, abandoning an
included people of the left and the right, in
1884 plan to liberate Cuba because he
boycotting Somoza's staged elections.
feared some of its leaders were seeking
When Somoza accused Chamorro of
personal gain. His political writings cham-
instigating Sandinista violence by criticiz-
pioned democracy as the path to national
ing him in La Prensa, Chamorro replied,
self-determination and a just social order.
"The regrettable deaths and
Martí advocated both political freedom
injuries
are not the fruits of my harvest,
from Spain and economic independence
but of the violence your regime has institu-
from the United States, and he believed
tionalized for many years."
that democracy-ensured by a free press,
On January 10, 1978, Chamorro was
José Marti
an active legislature, and general freedom
shot to death while riding to work. Spon-
The poet-essayist José Martí is revered in
of expression-would prove Cuba's best
taneous riots erupted in Managua as news
much of Latin America as Cuba's national
guarantee.
of his murder spread. The killers were
hero and the inspirational hero of Cuba's
The sad truth is that Martí's vision of
never found, but Chamorro's death
independence from Spain.
democracy and national sovereignty is as
became the catalyst that united all
Born in Cuba in 1853, Martí was just
distant today for most Cubans as it was in
elements of Nicaraguan society against
16 when he was arrested for treason for
1895.
Somoza. When Somoza fell 18 months
writing a letter critical of Spanish colonial
later, in July 1979, Chamorro's widow,
rule. He was expelled from Cuba after
Violeta Barrios de Chamorro, became a
serving 8 months of a 6-year prison
member of the five-person junta at the
sentence. Martí studied in Spain and
head of the new government.
worked as an educator, political writer,
The tragedy of Pedro Joaquín
and journalist in New York, Guatemala,
Chamorro has not ended. In April 1980,
Mexico, Venezuela, and elsewhere in the
Violeta de Chamorro resigned from the
hemisphere. The cause of Cuban freedom
junta. "I realized that the course promised
was always his foremost concern.
did not correspond to what was being
In 1892, Martí led several exile groups
done," she wrote later to the Secretary
in founding the Partido Revolucionario
General of the Organization of American
Cubano, a Cuban liberation movement. In
States. "The principles for which we all
1895, the revolutionaries landed their
fought have been betrayed by the party
ships in Cuba to wage a war of inde-
in power, that is, the Sandinist Front of
pendence. Barely 1 month later, Martí was
National Liberation."
shot and killed in a skirmish with Spanish
In June 1986, the Sandinistas closed
forces. His life and prolific writings made
La Prensa indefinitely. In an open letter to
him a natural choice as Cuba's preemi-
Daniel Ortega, Violeta de Chamorro wrote
nent national hero. By 1953, the centen-
that the "Sandinista party has already
nial of Martí's birth, more than 200 full-
created a great concentration camp in
length biographies of his life had been
Nicaragua
by means of repression and
written.
the banning of all contradictory opinion."
Fidel Castro has gone to great lengths
Nine years after his death, the
Pedro Joaquín Chamorro
0 associate himself with the memory of
freedom for which Pedro Joaquín
Martí. He began his revolution by quoting
Jailed five times and exiled twice by the
Chamorro fought continues to be denied
Somozas, Pedro Joaquín Chamorro, editor
to his countrymen.
of the independent daily La Prensa and a
member of a leading Nicaraguan conser-
vative family, never wavered in his belief
in democracy and a free press. From early
adulthood on, Chamorro never accepted
9
In September 1985, Panama's
civilian President Nicolàs Ardito Bar-
letta resigned under pressure from the
Defense Forces less than halfway into
the term for which he had been elected.
The presidency was assumed, according
to constitutional procedures, by Vice
President Eric Arturo Delvalle. This
preservation of democratic forms and
the continuing openness of Panamanian
society kept the event from being an
outright reversal of Panama's move
toward democracy, but it was a serious
setback nonetheless.
In January 1987, the elected civilian
President of Ecuador, León Febres
Cordero, was kidnaped and held several
hours by a group of dissident air force
officers. He was released only after free-
ing a jailed general who had challenged
the government and after governments
throughout the region had urged both
the military and the civilian opposition to
put the preservation of democratic insti-
tutions above domestic political rivalries.
Preserving democracy requires close
civil-military cooperation and good
Five former members of the Salvadoran National Guard at their trial for the murders of four American church-
government. As memories of past
women near Zacatecoluca, El Salvador, in December 1980. On May 24, 1984, a jury convicted all five and
military abuses and failures fade, the
gave them the maximum sentence of 30 years imprisonment. (© UPI/Bettmann Newsphotos)
risk of renewed military interventions
will increase again in direct proportion
to the difficulties democratic govern-
Increased concern for human rights
have been indicted before the statute of
ments will have in coping with economic
is apparent in several key countries
limitations for indictments for these
and social problems and in fighting
where military and public security forces
crimes expired on February 22, 1987, a
insurgency, terrorism, and the illegal
had previously been involved in gross
date established in an effort to ensure
narcotics traffic. Mutual respect is
violations of human rights. In El
continued civil-military cooperation.
critical. Civilians must recognize military
Salvador, military personnel now receive
Looked at in historic perspective, the
contributions to the national defense
human rights training, and the National
current shift to democratic rule appears
and, in many cases, to public administra-
Police recently inaugurated a com-
to offer a genuine opportunity to break
tion and development in remote areas.
prehensive, professional course in human
the cycle of alternation between civilian
For their part, military leaders must
rights that is mandatory for all person-
governments that lack the authority to
honor the constitutional order and
nel. In the past 2 years, human rights
govern and military governments that
administer their own institutions in a
violations have been reduced to a frac-
lack the legitimacy to last. Setbacks are
manner that contributes to public con-
tion of their previous levels. Similar
inevitable, but the general prognosis is
fidence in the fairness and effectiveness
improvements in human rights per-
improving.
of civilian democratic government.
formance have been registered in Argen-
Civil-military cooperation becomes
tina, Brazil, and Guatemala, where the
absolutely critical when a society faces
military and civilian leadership is com-
Economic Difficulties
terrorism, illegal drug trafficking, or
mitted to respect human rights.
The phenomenal economic gains of the
guerrilla warfare. An active and in some
In Argentina, high-ranking military
1960s and 1970s have been partially
instances even expanding military role
officers accused of committing severe
eroded in the 1980s by macroeconomic
may be required to counter such threats.
human rights abuses during the military
policies that fail to cope with falling com-
But defining the nature of the threat and
regime from 1976 to 1983 have been
modity prices, global recession, and
choosing the appropriate response
tried in civilian courts. Nine members of
foreign debt that approaches $400 billion
require close cooperation between
the ruling juntas were tried together for
for the region. Only Brazil has been able
civilian and military authorities. And
rights violations; five of the nine were
to maintain consistently high growth
then the actual defense of democracy
convicted, with two receiving life
rates since 1983. Although oil prices and
must be carried out without unnecessary
sentences. In 1986, Ramón Camps, an
interest rates have fallen since their
or indiscriminate force. Abusers of
army general in charge of the civilian
human rights cannot claim to be acting
police during military rule, was sen-
in the name of democracy.
tenced to 25 years in prison for human
rights violations. In all, several hundred
military personnel were expected to
10
peaks in 1981, the prices of most of the
(OECD) realize the importance of coordi-
become more market-oriented and
hemisphere's commodities have
nating their economic policies to pro-
generate higher levels of savings, invest-
remained depressed. The oil-producing
mote free trade and economic stabiliza-
ment, and production and lower levels of
countries in the region-Ecuador, Mex-
tion SO as to facilitate continued
inflation, living standards will improve
ico, Peru, Trinidad and Tobago, and
democratic progress. The OECD coun-
provided population growth is
Venezuela-were hit especially hard by
tries also recognize that nations commit-
restrained. Such positive developments
the collapse of petroleum prices in 1986.
ted to democratic government and
would lead to greater confidence in the
In many countries, the old statist, pro-
policies fostering economic growth
political system that inspired them.
tectionist policies that inhibit invest-
should receive priority for foreign
Democracy, however, also provides an
ment, reduce business initiative, and
assistance. The International Monetary
environment in which unpopular
stimulate capital flight are changing only
Fund (IMF), the World Bank, and the
measures can be challenged and even
slowly.
Inter-American Development Bank are
disrupted. Should growth not resume,
A rising tide of protectionism in the
all creating incentives for policy reforms
and should the critics of current
developed countries-essential export
that promote economic freedom, less
economic policies prevail in coming elec-
markets for Latin America and the
state interference, and higher economic
tions, governmental intervention in the
Caribbean-also threatens growth. In
growth.
economy and confrontation with
recent years, the United States has
Greater participation by Western
creditors could increase.
substantially outperformed all other
Hemisphere nations in the General
industrialized countries in expanding the
Agreement on Tariffs and Trade (GATT)
purchase of Latin American and Carib-
should help stave off protectionist
Illegal Narcotics Trade
bean goods. At the same time, however,
demands by broadening the opportuni-
The growing illegal narcotics trade,
U.S. exports to the region contracted
ties for redress of trade grievances. In
spurred by the tremendous demand for
sharply, creating a more favorable trade
1986, Mexico joined the GATT, and
drugs in the United States, has become a
balance for Latin America but also add-
Costa Rica applied for membership.
major regional problem. In some situa-
ing fresh pressures to open the
Twenty Latin American and Caribbean
tions, narcotics traffickers have aligned
hemisphere's markets to U.S. products.
countries are now members of GATT
themselves with guerrillas and ter-
Most of the Latin American and
and are participating in the new multi-
rorists, buying protection that under-
Caribbean countries that have achieved
national trade round agreed to at the
mines elected civilian government.
modest growth during the 1980s still
Uruguay talks in September 1986.
Addiction among youth and government
find that the economic gains do not off-
The consolidation of democratic
corruption are major problems. No
set higher population growth. The
governments throughout Latin America
nation in the Western Hemisphere is
pressures of immediate human needs
and the Caribbean offers the promise of
untouched by the production, use, or
increase the difficulties of allocating
a stable political environment for
trafficking of illegal drugs.
scarce resources to important longer
restored economic health. Many Latin
The increase in narcotics-related
term institutional development.
American governments are encouraging
activities-from crop production to
The United States and the other
private entrepreneurship and reducing
processing to transshipment to bank
members of the Organization for
restrictions on foreign investment in
laundering of profits-is caused in part
Economic Cooperation and Development
order to stimulate growth. As economies
by severe economic problems. Faced
with limited opportunities at home and a
Western Hemisphere: Population, 1950 and 1985
Millions of persons
0
50
100
150
200
250
300
350
400
South America
Central
America
Caribbean
Latin America
and Caribbean
South America
Central America
Caribbean
1950
United States
and Canada
1985
(est.)
Source: United Nations Statistical Yearbook, 1983/4.
11
large market for narcotics in the United
throughout the hemisphere. Parliamen-
ships, totalitarian governments are
States, many people have turned to the
tary exchanges between legislators in
highly authoritarian. A key difference is
drug trade out of economic necessity. In
the hemisphere and their counterparts in
that they also are systematically hostile
Bolivia, for example, it is estimated that
other countries are a growing source of
to all activities independent of state con-
approximately 350,000 people, or 5% of
solidarity, as are similar programs
trol. By stifling individual enterprise and
the population, depend directly on coca
involving democratic trade unions.
driving professionals and entrepreneurs
production for their livelihood. The 61%
into exile, these new "revolutionary
growth rate in Bolivia's agricultural sec-
Political Extremism and
vanguards" have aggravated their coun-
tor between 1980 and 1986 was due
Totalitarianism
tries' social and economic underdevelop-
almost entirely to increases in coca
ment as well as denied the political and
production.
Latin America's authoritarian tradition
cultural rights of their citizens.
and the lack of a democratic consensus
A second threat is subversion. Act-
Institutional Weaknesses
have promoted factionalism, intran-
ing both directly and through Cuba and,
sigence, and fear of instability. On-both
more recently, Nicaragua, the Soviet
The civilian institutions critical to
the far left and the far right, political
Union has provided support-ranging
democracy's proper functioning are
movements have relied on force to attain
from propaganda to training and
often fragile, inefficient, or unevenly
objectives.
weaponry-to guerrilla forces and other
developed. Judicial systems generally
Dictatorships of the right-typically
terrorist groups in Latin America and
suffer from inadequate financial, institu-
closely linked to the military-have
the Caribbean. In El Salvador, such
tional, managerial, and human
historically been the nemesis of Latin
assistance helped turn what had, in the
resources. For decades, the press and
1970s, been poorly armed and mutually
media have been strongly influenced by
antagonistic bands of kidnapers and
authoritarian regimes or traditional
bank robbers into what by the early
elites; journalists typically suffered from
"There can be no peace, even
1980s had become a centrally com-
low pay and poor training. The resulting
if [the Sandinistas] throw all
manded and well-armed guerrilla army
mixture of servility and resentment
with secure communications.
hampers objectivity and professionalism.
their artillery and their
A third threat is that the totalitarian
The difficulties faced by political parties
helicopter gunships into Lake
offensive will stimulate a new reaction
in developing national organizational
Managua, if there is no
from the far right. Guerrilla warfare and
structures and effective leadership are
democratic opening in
other forms of subversion have anti-
compounded by the disruptions and
Nicaragua.
democratic consequences even when
losses suffered in past repressions. Elec-
their perpetrators do not succeed in seiz-
toral laws and procedures have been sub-
Honduran President
ing power. In Central America, the guer-
ject to frequent changes, and there is a
José Azcona,
rillas have been stopped by improved
lack of trained electoral administrators.
May 21, 1986
government performance, the outstand-
Finally, but far from least in importance,
ing leadership of democrats like
the pervasiveness of hierarchical struc-
American democrats. While in most
Presidents José Napoleón Duarte of El
tures with deep historic and cultural
Salvador and Vinicio Cerezo of
roots have created ingrained
cases not establishing totalitarian con-
Guatemala, and U.S. support for
authoritarian habits even among
trols over all aspects of life, dictator-
democracy, but persistent subversion
individuals and parties with democratic
ships like those of Gen. Fulgencio
from Nicaragua could still endanger this
Batista in Cuba and Gen. Anastasio
intentions.
progress by stimulating an ugly
Many of these weaknesses can be
Somoza in Nicaragua have carried out
some of the cruelest abuses of human
resurgence of right-wing extremism. In
overcome if the current democratic
Chile, the authorities succeeded in
momentum continues and if those Latin
rights in the postwar period. Moreover,
discovering-before they could be used-
Americans interested in overcoming
by cloaking abuse in democratic forms
large caches of arms secretly smuggled
them are able to obtain cooperation from
such as plebiscites, artificial opposition
in by the Soviet bloc, but the evident
groups with similar interests. Fortun-
parties, and rigged elections, such dic-
threat of armed insurrection that the
ately, linkages between political parties
tatorships debase democratic ideas and
arms represented created new problems
in Latin America and the Caribbean and
procedures and discredit genuine
democrats.
for moderates working for a democratic
international political movements are
transition to replace the military regime
stronger than ever before. So are direct
Authoritarianism of the far right has
of General Pinochet.
party-to-party ties. Many European
thus been a major factor contributing to
political party foundations are active
a new and growing threat to democracy
in Latin America: the threat of com-
munist totalitarianism.
The totalitarian threat takes several
forms. The most obvious is the actual
consolidation of totalitarianism in power
as occurred in Cuba and is happening in
Nicaragua. Like traditional dictator-
12
The United States
conflict between a democratic United
economic freedoms provide a predictable
States and a totalitarian Soviet Union.
and equitable basis for economic
Support for democracy, the very essence
development.
A NEW CONSENSUS?
of American society, is becoming the
Democracy helps the United States
new organizing principle for American
organize itself to cooperate and get
For more than three decades, it was an
foreign policy.
things done internationally. As a people,
axiom of American foreign policy that
Support for democracy advances
Americans are more comfortable dealing
politics stopped at the water's edge. The
U.S. interests in several important ways.
with democratic governments than with
axiom reached its height during World
Democracy helps to guarantee U.S.
authoritarian regimes. Our common
War II when the Democratic and
security. Democratic governments,
interests are better understood. A
Republican Parties united to defeat
because they must be responsive to their
foreign policy that supports democracy
fascism and militarism. Following the
people, tend to be good neighbors. Open
is capable of garnering broad, enduring
war, both parties supported containment
and regular political competition lessens
public and congressional support. It is
of the new threat: Soviet expansionism.
political polarization and extreme swings
much easier for the United States, as a
Unfortunately, that bipartisan consen-
of the pendulum (as happened in Chile,
democratic society, to work with
sus, which had been the hallmark of the
Cuba, and Nicaragua) and makes nations
civilians like Presidents Alfonsin and
more resistant to subversion. Demo-
postwar period, began to break down
Duarte than with the generals who
over the war in Southeast Asia.
cratic governments are more reliable as
preceded them.
For awhile, it appeared that a new
signatories to agreements and treaties
Support for democracy not only
consensus might coalesce around con-
because their actions are subject to
embodies American values; it reconciles
sideration for human rights. But the con-
public scrutiny.
the conflict that often arises between
cept of "human rights" suffered the fate
Democracy also advances important
U.S. strategic interests and the need to
of many fresh ideas and was viewed with
U.S. political and economic interests.
give moral substance to whatever policy
a suspicion that produced heated con-
Democratic countries are more likely to
serves those interests. As a commitment
troversy. There were contradictions
protect human rights and create environ-
with bipartisan support, it provides the
between the policy's stated goals and its
ments in which people can work to
basis for a consistency and continuity in
actual implementation. It proved to be
achieve their full potential. Democratic
American foreign policy that have long
an incomplete moral basis for policy
processes are good for business and
been seen as lacking. Finally, support for
because, strictly applied, it treated the
labor. Once established, political and
problem of political repression without
regard to the structure of government
that permits or prevents abuses. In addi-
The Case of Bolivia
tion, the soundness of the human rights
nonhumanitarian aid and military
policy in national security terms was
Bolivia in 1967 became the end of the line
assistance, and closed the U.S. military
mission in Bolivia. Despite pressure to nor-
called into question as it became
for Che Guevara and his band of Cuban
malize ties with Bolivia, the Reagan
identified-rightly or wrongly-with two
guerrillas. But with 175 or more changes
Administration continued to deny U.S.
traumatic foreign policy events: the fall
in government in 162 years of inde-
support to García-Meza. On October 10,
of the Shah of Iran and of the Somoza
pendence, Bolivia has long been Latin
1982, new military leaders allowed Siles to
dynasty in Nicaragua. Both had been
America's most unstable country. Already
assume the presidency. The Siles govern-
among the poorest countries in the world,
viewed as staunch U.S. allies in areas of
ment received considerable economic
with an annual per capital income of less
geostrategic importance and both were
assistance and moral support from the
than $600, Bolivia must now overcome the
replaced by governments inimical to
United States. Because his government
decline of the tin mining industry that has
U.S. interests, to democratic ideals, and
was weakened by a lack of cooperation
been its most important source of
among coalition members, a faltering
to fundamental human rights.
nonagricultural employment. Finally,
economy, and increasingly violent labor
The idea that U.S. foreign policy
Bolivia has recently become a major pro-
disruptions, Siles cut his term short by 1
should embody America's values was
duction and staging center for global traf-
fundamentally sound. The basis for a
ficking in cocaine.
year and called a presidential election in
1985.
Despite these extraordinary obstacles,
consensus did exist. It ultimately found
Thirty parties and eighteen presiden-
Bolivia has in recent years made signifi-
expression in a value that the American
tial candidates participated in the 1985
cant progress toward democracy. Calls for
people-that, indeed, all people-could
political liberalization led to Gen. Hugo
election. The final electoral count gave
rally around; a value more constructive
Bánzer's resignation in 1978 and ushered
28.5% of the vote to retired army general
and former dictator (1971-78) Hugo
than the concept of containment, on
in a series of short-lived military and
civilian regimes. In presidential elections
Bánzer. Ex-president (1952-56, 1960-64)
which the original postwar consensus
Victor Paz Estenssoro, patriarch of the
had been built, and more comprehensive
in 1980, former President Hernán Siles
1952 revolution, had the second highest
than that of human rights, on which the
(1956-60) won a popular plurality, but
tally, 26.4%. Because neither candidate
new consensus had initially foundered; a
General Luís García-Meza, using Siles'
value, moreover, that clearly defined the
failure to win a majority of the popular vote
won a majority, selection of the president
fell to the legislature, which voted 94 to 51
as a pretext, seized power in August 1980
with the support of Bolivian narcotics traf-
for Paz despite his having placed second
fickers.
to Bánzer in the popular vote. Bánzer
accepted the legality of the outcome, and
Secretary of State Edmund Muskie
he and his party have actively cooperated
denounced the García-Meza coup, and the
Carter Administration downgraded
with the Paz government on vital policy
issues such as economic reform and nar-
diplomatic relations, suspended
cotics control.
13
democracy enables U.S. foreign policy to
major foreign policy speeches, in
ministers of several independent
match (and exceed) what has been identi-
bilateral meetings with their counter-
English-speaking Caribbean nations in
fied as perhaps the strongest element of
parts in the region, and in consultations
Grenada in a demonstration of
Soviet foreign policy: an enduring sense
with our allies. Their visits to the region,
democratic solidarity.
of direction.
and invitations extended to the
Visits by the Vice President, the
These new perceptions have par-
democratic leaders of Latin America and
Secretary of State, and other senior
ticular significance for U.S. policy in
the Caribbean to come to the United
officials are employed to reinforce our
Latin America and the Caribbean, where
States, are consciously used to
commitment to democratic civilian rule.
many believe that the United States has
demonstrate U.S. support for democratic
The inaugurations of democratically
sacrificed democratic principles and even
rule and repudiation of both civilian and
elected leaders (among them the
encouraged repressive military regimes
military authoritarian regimes.
Presidents of Argentina, Brazil, Colom-
in the pursuit of containment and stabil-
The President himself announced the
bia, the Dominican Republic, El
ity at any price. This critical view
Caribbean Basin Initiative (CBI) in
Salvador, Guatemala, Honduras,
ignores the role that U.S. assistance pro-
February 1982 in a speech before the
Uruguay, and Venezuela) have become
grams and support for free trade, to
Organization of American States. His
key occasions for mutual support and
take just two examples, have played in
message linked the future of democracy
consultations among democratic forces.
the fundamental socioeconomic transfor-
in that part of the hemisphere to
The inauguration of President Raúl
mations that have contributed to the
economic development and pledged
Alfonsín in December 1983 (at which
democratic transition. Nevertheless,
major U.S. support for those dual goals.
Vice President George Bush represented
cynicism about U.S. purposes has broad
On this and other occasions, President
the United States) became a powerful
acceptance and contributes to the
Reagan has stressed that the United
and emotional celebration in which
ambivalence that many people in Latin
States will not remain indifferent "when
representatives of Spain, Portugal,
America and the Caribbean express
democratic values are at risk."
Peru, and Ecuador-all countries that
about relations with the United States.
Support for democracy also has been
had moved into the democratic ranks
Now that U.S. policy embodies
the recurrent and consistent theme in
during the previous decade-demon-
democratic values in an explicit, con-
speeches by the Secretary of State and
strated their solidarity with the newest
crete, and continuing manner, the
the Assistant Secretary for Inter-
member of the international democratic
impact on public opinion will, over time,
American Affairs. At the OAS General
community.
prove quite substantial.
Assembly, in testimony before commit-
The state visit to Washington of
tees of Congress, and in statements in
President Alfonsín in 1985 was the first
numerous public fora during the past 5
by an Argentine head of state since
years, U.S. leaders have reaffirmed Jef-
1958. The official visit by President
SUPPORT FOR DEMOCRACY:
PROVEN TOOLS
The United States cannot support
"The objective I propose is quite simple to state: to foster the
democratization in Latin America unless
it supports the efforts of Latin
infrastructure of democracy-the system of a free press,
Americans. Democracy depends on com-
unions, political parties, universities-which allows a people to
plex interactions that come in many
choose their own way, to develop their own culture, to recon-
forms; it is not an export commodity.
cile their own differences through peaceful means.
This section considers U.S. efforts to
make more effective use of the proven
President Ronald Reagan,
tools of statecraft to support the move-
Address before the British Parliament,
ment toward democracy in the
London, England, June 8, 1982
hemisphere; the following section
describes efforts to create new tools to
bolster democratic institutions and
development.
ferson's maxim that "the will of the peo-
Vinicio Cerezo in May 1987 will be the
ple is the only legitimate foundation of
first ever by a Guatemalan president.
Diplomacy
any government."
During 1986 alone, the civilian
Support for democratic institutions
Presidents of Brazil, Uruguay, Costa
Two principal goals of U.S. diplomacy in
was a main theme of President Reagan's
Rica, Honduras, and Mexico made state
Latin America and the Caribbean are to
visit to Central and South America in
or official working visits to the United
strengthen democratic government and
December 1982. Accompanied by
States. President Reagan also met at the
to promote peaceful resolution of the
Secretary of State George Shultz, the
White House with Gen. Henri Namphy,
conflicts and tensions that threaten its
President visited two traditional
head of Haiti's National Governing
consolidation. Diplomatic activity to
democratic allies (Costa Rica and Colom-
Council, as a signal of support for the
advance these goals takes a variety of
bia) and Brazil, where congressional
democratic transition there and for the
forms in many different arenas.
elections had just marked a major step in
The President and the Secretary of
the democratic transition. In February
State, along with other key foreign
1986, the President met with the prime
policy leaders, enunciate U.S. goals in
14
electoral timetable drawn up by his pro-
recover the promise of democracy stolen
visional government. In addition, the
The Power of Public Opinion
from the Nicaraguan people by the
President has met with several of his
Sandinistas.
Latin American and Caribbean counter-
Of the 33 independent nations of Latin
America and the Caribbean, only three—
parts while they were in the United
Cuba, Nicaragua, and Paraguay-prohibit
Economic Assistance
States on private visits.
independent public opinion polls. In the
Progress toward democracy is a
rest of the region, political parties,
U.S. bilateral economic assistance
major topic of discussion with our Euro-
individual scholars, and dozens of polling
totaled slightly more than $1.5 billion in
pean allies. In consultations such as the
firms are continually using internationally
FY 1986. It is administered by the Agen-
semiannual NATO experts' meetings on
recognized survey methods to measure
cy for International Development (AID)
Latin America and the Caribbean, U.S.
citizen concerns.
and consists of developmental
officials regularly exchange views with
Political polling, from in-depth ques-
allied officials on the status of
tions about citizen concerns to polls on
assistance, Economic Support Fund
candidate popularity and opinions on
(ESF) assistance, and PL 480 food aid to
democratic government and the
foreign affairs, is the speciality of several
Latin America and the Caribbean.
measures being taken to support its con-
dozen respected public opinion firms,
Developmental assistance accounted
tinuance. Consultations within the
including Gallup affiliates, from Mexico to
for almost 30% of total U.S. bilateral
framework of the OECD provide an
Argentina. UNIVISION-Spanish Interna-
economic assistance to the region. Those
opportunity to win support for policies
tional Network, the largest Spanish-
funds are used primarily to improve
that promote growth and development
language television system in the United
educational and health systems, to sup-
for our neighbors in the Western
States, has conducted extensive voter exit
port improvements in infrastructure, to
Hemisphere, thereby strengthening the
polls in several countries, including El
economic underpinnings of democracy.
Salvador, developing a record of predict-
build democratic institutions, and to
ing election returns with enviable
bolster the private sector as the principal
In fora such as these, as well as in
accuracy.
engine of growth.
bilateral consultations with our allies,
The Economic Support Fund, which is
the United States has urged sending
used almost entirely for budget support,
international observers to encourage
comprised about 42% of U.S. bilateral
electoral freedom and to recognize it
Foreign Military Sales (FMS) program.
economic assistance to Latin America
publicly when it takes place.
FMS credits to the region have been
and the Caribbean in FY 1986. Almost
Through the efforts of the Presi-
discontinued in favor of MAP grants.)
30% of U.S. bilateral economic
dent's Special Envoy for Central
America, who is charged with promoting
Approximately 82% of U.S. military
assistance for the region in FY 1986 con-
assistance for the region in FY 1986
sisted of ESF for the countries of Cen-
negotiations to resolve the conflict there,
went to El Salvador, Honduras,
tral America.
the United States supports regional
Guatemala, and Colombia-four regional
In FY 1987, reduced global foreign
negotiations, giving special emphasis to
democracies battling insurgencies.
assistance appropriations required that
the need for comprehensive, simul-
Nowhere is this assistance more impor-
U.S. bilateral assistance to Latin
taneous, and verifiable implementation
tant than in Central America, where the
America and the Caribbean be cut by
of the security and democratic goals set
forth in the 1983 Contadora Document
Sandinista regime in Nicaragua supports
nearly 20% to approximately $1.2 billion.
guerrilla movements in El Salvador,
These cuts come at a critical time when
of Objectives. Three distinguished
Guatemala, and Honduras and provides
many of the countries are instituting dif-
Americans have served as Special
military training to a nascent insurgent
ficult economic reforms, attempting to
Envoy: Richard Stone, former U.S.
movement in Costa Rica. Another 9%
consolidate democratic civilian govern-
Senator (D-Florida); Harry W.
Shlaudeman, former Assistant Secretary
went to support the development of
ment, and battling leftist insurgents.
of State and now U.S. Ambassador to
basic surveillance, search and rescue,
The United States provides addi-
and self-defense capabilities in the Carib-
tional economic assistance to the nations
Brazil; and Philip C. Habib, former
bean democracies. Our military
of Latin America and the Caribbean
Under Secretary of State and Special
Middle East Envoy, the current Special
assistance also supports hemisphere-
through contributions to multilateral
wide efforts to halt the production and
institutions such as the the World Bank,
Envoy.
trafficking of narcotics.
the Inter-American Development Bank,
Under the initial FY 1987 alloca-
the Central American Bank for
Military Assistance
tions, military assistance to the region
Economic Integration, and the Carib-
has been cut by about 7%, thus limiting
bean Development Bank. In 1985, U.S.
Military assistance for Latin America
our ability to support our neighbors in
contributions to multilateral develop-
and the Caribbean consists of funds pro-
combating both guerrilla insurgencies
ment banks for Latin American pro-
vided under the Military Assistance Pro-
and illegal narcotics trafficking.
grams were approximately $2 billion.
gram (MAP) and the International
In October 1986, Congress approved
Programs administered by these institu-
Military Education and Training (IMET)
$100 million to support the Nicaraguan
tions provide additional sources of fund-
program. In fiscal year (FY) 1986,
military assistance for the region totaled
democratic resistance in its struggle to
ing, generally on concessionary terms,
for development projects in the region.
approximately $234 million, or about 4%
U.S. contributions to these institutions
of all U.S. military assistance worldwide.
also face cuts in FY 1987.
(The 1986 figures included a small
amount of credit assistance under the
15
Economic Stabilization
structural adjustment loans by the
reduce price controls and subsidies, to
The United States has a fundamental
World Bank to support these reforms;
liberalize trade, to attack overregulation
and
interest in the prosperity of the coun-
and excessive bureaucratic controls, and
Third, when the first and second
tries of the Western Hemisphere. Our
to improve the investment climate,
strategy for dealing with economic prob-
elements are in place, new lending by
including reducing restrictions on
lems, including the debt crisis, has been
the commercial banks to provide addi-
private foreign investment. Until these
coordinated with other industrial coun-
tional support for the reforms and for
reforms produce practical results for a
tries. Applied on a case-by-case basis,
long-term growth.
majority of citizens, however, the
democratic leaders of Latin America and
the strategy emphasizes the need for
The heart of the new strategy is
economic adjustment in the debtor coun-
increased emphasis on growth to reduce
the Caribbean would benefit greatly
tries with the support of the interna-
debt and raise living standards. This
from a demonstration that the developed
tional financial institutions, especially
approach has received strong support
countries (and especially the United
the International Monetary Fund and
internationally and was recently
States) are prepared to ease the burdens
the World Bank.
affirmed by the IMF Interim Committee
imposed by existing debts.
U.S. efforts to reduce domestic infla-
At the 1985 annual meeting of the
and the IMF/World Bank Development
tion have lowered international interest
IMF and World Bank in Seoul, Korea,
Committee at their meetings in
U.S. Treasury Secretary James Baker
September 1986.
rates, thus reducing the debt-servicing
burden on all the Latin American debt-
proposed an initiative that builds on and
The renewed emphasis on growth
strengthens the previous strategy. The
requires reduced reliance on statism,
ors. Similarly, our battle against protec-
plan he put forth contains three essential
market intervention, and import
tionism and our own continuing
and mutually reinforcing elements:
substitution. The response thus far has
economic growth in the last 4 years have
First, adoption of economic policy
been encouraging. Most Latin American
helped countries in the region by ena-
and Caribbean countries have estab-
bling them to increase their exports. U.S.
reforms to promote growth in the debtor
lished more realistic exchange rates,
imports from Latin America and the
countries;
Second, a continuing central role
expanded exports, and cut inflation.
Caribbean-mostly manufactured
for the IMF coupled with an increase in
Several countries have begun to reduce
products-rose by nearly 7% per year
entrenched structural barriers to
during the 1980s, a rate well in excess of
annual growth in gross domestic prod-
growth; specifically, to take steps to
uct. At the same time, the region
reduced imports from the United States.
Thus, a $3-billion U.S. trade surplus with
Latin America and the Caribbean in
U.S. Bilateral Assistance to
1981 had become a $17-billion deficit by
Latin America and the Caribbean, FY 1986¹
1985.
The Caribbean Basin Initiative is an
attempt by the United States to engage
Other
the nations of the Caribbean and Central
Economic 2
America in the development of new
4%
opportunities for trade, investment,
employment, and broad-based growth in
PL 480
the region. The program was designed
21%
Military
with a 12-year lifespan representing a
Assistance
long-term U.S. political commitment
13%
with incentives beyond immediate trade
objectives. Countries with the policy
framework to promote private invest-
ment and innovation will be most able to
Economic
seize trade opportunities. The CBI has
Support Fund
not yet generated the substantial
37%
Development
economic growth that was originally
Assistance
envisioned. Thus the United States has
25%
added several other benefits and con-
tinues to seek additional measures for
promoting economic growth.
1 Bilateral assistance amounted to $1.8 billion. This does not include U.S. contributions to the World
Bank, the International Monetary Fund, the Interamerican Development Bank, and the Caribbean
Development Bank expended in Latin America and the Caribbean.
2 "Other Economic" includes funds for programs of USIA, Peace Corps, and the State Department
(e.g., refugees, narcotics).
16
Peace Corps
The Peace Corps has been one of the
Bipartisan Commission Stimulates
Stop declines in income, employ-
most successful U.S. foreign policy
Support for Democracy
ment, and economic activity by providing
initiatives of the postwar period. Almost
in Central America
major balance-of-payments support;
Build the foundation for long-term
1,700 Peace Corps volunteers are cur-
In July 1983, President Reagan appointed
economic growth by supporting improve-
rently serving in 18 countries in Latin
a National Bipartisan Commission on Cen-
ments in economic policy and the infra-
America and the Caribbean. Throughout
tral America to advise on a long-term U.S.
structure needed for efficient production
the region, Peace Corps volunteers con-
policy that would best respond to the
and diversified exports;
tinue traditional programs such as
challenges of social, economic, and
Assure the widest possible distribu-
teacher training, nutrition, and health
democratic development in the region and
tion of the opportunities and benefits of
care. In recent years, however, pro-
to internal and external threats to its
growth by helping to create jobs and
grams have focused increasingly on sup-
security and stability. The Commission,
improve health, education, and housing
headed by former Secretary of State
for the poor; and
port for the private sector with training
Henry A. Kissinger, reported to the Presi-
Help secure peaceful evolution in
and technical assistance in management
dent on January 10, 1984, that the fun-
support of these objectives by providing
and marketing to small businesses and
damental strategic and moral interests of
military assistance to create a shield to
entrepreneurs. New projects include
the United States require a long-term
protect democratization and growth from
activities that range from the develop-
national commitment to economic oppor-
Soviet-backed subversion.
ment of income-generating student
tunity, human development, democracy,
cooperatives modeled on the "Junior
and security in Central America.
Complementing these development
Achievement" program to technical
The President and Congress
and security policies, U.S. diplomacy sup-
assistance in crop diversification to small
approved the recommendations of the
ports negotiations both within and among
Commission virtually unchanged, setting
the countries of Central America to bring
farmers.
about the reconciliation needed to achieve
in motion a comprehensive strategy of
economic and military assistance to
socioeconomic progress, national security,
Educational Exchange
address the root causes of poverty and
and lasting peace.
social unrest, to foster equitable develop-
This bipartisan approach, whose founda-
In the past 5 years, the United States
ment, and to support democratization to
tions are the promotion and defense of
Information Agency (USIA) has
help the region move beyond its history of
democracy, has proved critical to the prog-
expanded various international visitor
dictatorships and instability. The strategy
ress achieved since 1984 in every country of
is to:
Central America except Nicaragua. And the
programs. Exchange visitor grants fund
Commission noted that "the development of
travel to the United States for outstand-
Support democratic processes and
an open political system in Nicaragua, with a
ing regional leaders in fields as diverse
institutions by backing free and com-
free press and an active opposition" would be
as journalism, arts and sciences, politics,
petitive elections, the administration of
a key to progress there as well.
government administration, and educa-
justice, technical training, and the
tion. Through the Fulbright Program,
development of leadership skills;
American scholars have the opportunity
to teach, study, and conduct research
abroad while their foreign counterparts
are given similar opportunities in this
Support for Private
solidarity as a means of sustaining, pro-
country. In addition, USIA administers
Sector Organizations
moting, and defending democratic prac-
the new pilot Central American Program
The U.S. Government lends its help to
tices in more than 50 democratic coun-
for Undergraduate Scholarships
appropriate private initiatives that sup-
tries around the globe.
(CAMPUS). The new Central American
port democratic development. Long-
Peace Scholarship (CAPS) program,
term AID support for the programs of
Liaison With Trade Unions
using AID resources, will eventually
the "Partners of the Americas" helps
bring a total of 7,000 students from
develop linkages between U.S. civic and
U.S. diplomatic missions in Latin
lower and middle class backgrounds to
community organizations, youth groups,
America and the Caribbean traditionally
the United States. Other USIA pro-
service organizations such as the Lions
have maintained active liaison with trade
grams support student exchanges at the
and Rotary Clubs, and business groups
unions and labor leaders because of
secondary school level, help set up
and their counterparts in the
their central role in national politics
special programs for voluntary visitors
hemisphere. These people-to-people pro-
throughout the region. U.S. Government
to the United States, and arrange for
grams promote mutual understanding
funds also support various activities of
U.S. travelers to the region to meet with
and cooperation and contribute to
the AFL-CIO, including a major train-
counterparts in their respective fields.
institutional development.
ing program for union organizers at the
In 1986, AID funded and the Depart-
George Meany Center in suburban
ment of State assisted with the organiza-
Washington, D.C.
tion of a regional conference for Latin
America and the Caribbean sponsored by
the International Committee for a Com-
munity of Democracies (ICCD). The
ICCD promotes worldwide democratic
17
1976
Mexico
The Bahamas
Cuba
Dominican Republic
Haiti
Jamaica
Honduras
Guatemala
El
Salvador
Barbados
Nicaragua
Grenada
Panama
Trinidad and Tobago
Costa Rica
Venezuela
Guyana
Colombia
Suriname
Ecuador
Peru
Brazil
Types of Government,
LATIN AMERICA and
Bolivia
The CARIBBEAN:
1976 and 1986
Paraguay
Largely or entirely democratic
and open societies
Dictatorships or military regimes
Not catagorized
Uruguay
Note: Haiti was a dictatorship
Chile
until February 7, 1986.
Argentina
Names and boundaries are
not necessarily authoritative.
18
1986
The Bahamas
Mexico
D
Cuba
Dominican Republic
St. Christopher
Haiti
and Nevis
Antigua and Barbuda
Jamaica
Dominica
Belize
Saint Lucia
St. Vincent and
Barbados
the Grenadines
Honduras
Grenada
Trinidad and Tobago
Guatemala
El Salvador
Nicaragua
Panama
Venezuela
Costa Rica
Guyana
Suriname
Colombia
Ecuador
Brazil
Peru
Bolivia
Paraguay
Uruguay
Chile
Argentina
and boundaries are
not Names necessarily authoritative.
SUPPORT FOR DEMOCRACY:
Electoral Institutions
RECENT INITIATIVES
The consolidation of democratic govern-
ment in Latin America and the Carib-
The National Endowment
bean depends in large measure on
for Democracy
increased public confidence in the elec-
The National Endowment for Democ-
toral process and the institutional capac-
ity to administer it. U.S. assistance
racy was established by Congress in
seeks to build this capacity in national
1983 in the belief that private institu-
institutions through technical assistance,
tions in free societies can contribute to
training, and material resources to help
the development of democracy through
establish sound laws and procedures,
assistance to counterparts abroad. Four
constituent institutes-the AFL-CIO's
administer elections, carry out measures
Free Trade Union Institute, the Center
to prevent fraud, and educate citizens
about the voting process. In El Salvador
for International Private Enterprise of
in 1982, 1984, and 1985, and in
the U.S. Chamber of Commerce, and the
Guatemala and Honduras in 1985, U.S.
National Democratic Institute for Inter-
assistance for the electoral process-
national Affairs and National Republican
including provision of special ballot
Institute for International Affairs
paper and ink and aid to computerize
representing the two major American
voter registration rolls-supported the
political parties-administer a broad
Víctor Raúl Haya de la Torre (1895-1979)
democratic transition. AID funds have
range of projects in the region that
addresses Peru's Constituent Assembly, of
also been used to finance training of poll
emphasize leadership training, civic
which he was president, on July 23, 1978.
monitors in Guatemala and to support
education, expanding and strengthening
Haya founded one of the hemisphere's first
teams of international electoral
the linkages among U.S. and regional
mass movements, the American Popular Revo-
political parties, development of elec-
lutionary Alliance (APRA), while in exile in Mex-
observers for elections in Honduras and
ico in 1924. (© UPI/Bettmann Newsphotos)
El Salvador.
toral machinery, support for democratic
In addition to assistance to individ-
workers' federations, and promotion of
ual countries, AID provides support to
private enterprise. Although most of the
technical assistance, training, and
Endowment's funds are provided by con-
including training for judges,
research programs of the Inter-
gressional appropriation, it is an
prosecutors, and other legal personnel;
American Center for Electoral
independent, nonpartisan organization.
improving court administration;
Assistance and Promotion (CAPEL), a
In fact, the National Endowment for
reproducing and disseminating basic
division of the Inter-American Institute
Democracy is probably the most con-
legal materials; training for criminal
of Human Rights, located in San Jose,
crete example of the growing bipartisan
investigators; modernization of law
Costa Rica. The creation of CAPEL was
consensus in foreign policy based on sup-
codes; strengthening of case reporting
a Latin American initiative, stemming
port for democracy as its guiding
systems; and support for local bar
from a meeting of foreign ministers in
principle.
associations. In addition, U.S. officials
October 1982. Its services and resources
are facilitating the establishment of
are available to public and private
Administration of Justice
cooperative links between relevant
institutions and individuals throughout
private U.S. organizations-such as law
the region.
The development of independent, acces-
schools, bar associations, and law
Since 1984, increased funding has
sible, and fair justice systems is a crucial
institutes-and their counterparts in
allowed CAPEL to expand its programs
part of the consolidation of democracy in
Latin America and the Caribbean.
rapidly. The center has developed a
Latin America and the Caribbean. The
Grants to support these activities have
roster of electoral experts from the
U.S. Government recognizes this impor-
been made to the UN-affiliated Latin
Americas and Europe who can provide
tant fact and, in the past several years,
American Institute for the Prevention of
technical advice and participate in train-
has developed an innovative program to
Crime and Treatment of Offenders
ing courses, research projects, and
assist democratic Latin American and
(ILANUD), the University of the West
observer missions. CAPEL has
Caribbean governments in their efforts
Indies, the Inter-American Bar Associa-
responded to requests for technical
to carry out fundamental judicial
tion and Foundation, and private and
advice from Bolivia and Honduras on
reforms. Collaborative efforts involve
governmental agencies in individual
improving and computerizing voter
the Departments of State and Justice,
countries.
registries; from Guatemala on drafting a
USIA, and AID. The U.S. program first
new electoral law; and from Ecuador on
focused on Central America and is now
improving the vote counting system. The
expanding to the Caribbean and South
center has conducted training courses on
America. Under the program, the United
electoral legislation in Guatemala, Costa
States has given support for a variety of
practical judicial reform measures
20
Rica, and Honduras, cosponsored by
with technical assistance from partici-
new resources provided by the omnibus
each country's electoral court, the bar
pants in the Dominican program, the
drug bill passed in 1986. Of course, a
association, and local universities. A
legislatures of El Salvador, Guatemala,
central part of any strategy must deal
private organization in Haiti invited
and Honduras are undertaking similar
with the massive consumption of drugs
CAPEL to collaborate in a seminar on
programs funded by AID to strengthen
in the United States.
the electoral process and in a proposed
information management and analysis
nationwide voter education project to
and administrative support.
promote full participation in the elec-
Civil-Military Relations
tions scheduled for 1987.
Antinarcotics Assistance
In 1987, U.S. authorities in California
CAPEL's growing data center col-
arrested retired Argentine General
lects and disseminates materials on elec-
The United States is cooperating with
Suarez Mason whose extradition Argen-
toral legislation, rights, and processes,
governments throughout the hemisphere
tina had requested after his indictment
and maintains permanent records of
to end production of and trafficking in
for human rights abuses. Through tangi-
election results for all the countries in
narcotics. In Mexico, Jamaica, and
ble actions, private consultations, and
the region. The Department of State is
Colombia, we are working together to
public statements, the U.S. Government
aiding development of an electoral data
eradicate drug crops. Our most dramatic
is attempting to make clear that it
base through a project with the Institute
efforts to date have been in Bolivia,
expects cooperation between U.S. and
of Interamerican Studies at the Univer-
where U.S. military forces provided
Latin American military services to take
sity of Miami that is being coordinated
transportation for local law enforcement
place within a framework of civilian con-
with CAPEL. The data base will be
teams to destroy drug processing
trol and support for democracy. This
available to students, journalists, and
laboratories.
was the theme of a major address
scholars from throughout the
In the Caribbean and The Bahamas,
entitled "A Democratic Vision of Secu-
hemisphere as well as government
we have supported extensive programs
rity" by Assistant Secretary of State for
analysts.
to interdict drug shipments. Other pro-
Inter-American Affairs Elliott Abrams
By collaborating with national
grams throughout the region support
at the 25th commencement ceremony of
organizations, CAPEL is building a
training for law enforcement officers
the Inter-American Defense College on
valuable network of individuals and
and public education. The war on drugs
June 13, 1986 (see Current Policy No.
institutions committed to promoting
at all levels also is being expanded with
844).
well-administered, free, and competitive
elections. In 1985, CAPEL helped
stimulate creation of the Association of
Electoral Organisms of Central America
and the Caribbean, an organization
designed to foster international coopera-
tion to promote representative
democracy. As its interim secretariat,
CAPEL helped organize and fund the
association's first annual meeting in San
Salvador in December 1986 to which
both Haiti and the Philippines sent
official observers.
Strengthening Legislative Capacity
AID funds are used to support activities
designed to promote and facilitate
continuing interchange among
parliamentarians in Latin America and
the Caribbean, North America, and
Western Europe, as well as to build the
institutional capacity of regional
legislative bodies.
In 1982, AID funded a training
seminar for newly elected legislators
initiated by the Congress of the
Dominican Republic and a local univer-
sity. Interest generated by the seminar
led to the design of a long-range pro-
gram of support services to enhance the
policymaking and administrative skills of
Poll workers in San Salvador open a ballot box and begin to count the votes in the presidential runoff election
of May 6, 1984. Ballot counting had to be done by candlelight after guerrillas disrupted the city's power
legislators. Drawing on this model and
supply. (© UPI/Bettmann Newsphotos)
21
For Latin America, the preliminary
motion in favor of officers with better con-
indications suggest that, this time, the
nections. Because of his dental skills,
cycle of instability is being broken in
Tiradentes eventually met some mer-
enough countries to make a difference.
chants in Rio de Janeiro and, with them,
developed his plans for an independent
The strengthening of constitutional
republic.
government has increased protection of
The scheme called for Tiradentes to
human rights and provided channels for
provoke a riot, then lead an assault on the
the redress of grievances. Freedom of
Governor's residence at the head of a
the press has been restored in as large a
group converted to the republican cause.
country as Brazil, in some ways the
After declaring an independent republic in
freest of societies, and as small a coun-
Minas Gerais, the conspirators hoped to
try as Haiti, where for decades govern-
carry their war of independence to the
ment censorship limited all forms of
other provinces. The constitution they
planned called for economic reforms;
political expression.
freedom for native-born slaves; and
Many of the same forces that
establishment of a university, schools, and
sparked the decline of authoritarianism
hospitals. Citizens would have the right to
seem likely to favor continued
bear arms and would be required when
democracy. Urbanization, industrializa-
necessary to serve in a national militia, but
tion, and the growth of the middle
there would be no standing army. Each
classes are continually expanding the
Tiradentes: A Vision Vindicated
town would have a council subordinate to
potential democratic power base. Higher
a parliament in the capital. After 3 years of
In late 1788, in the Province of Minas
rates of education and literacy are
provisional rule to consolidate the
Gerais in the Brazilian interior, a group of
republic, elections were to be held
increasing the number of people capable
men launched the first major conspiracy
annually.
of seeking an active role in government
against Portuguese colonial rule. Their
Before they could carry out the plan,
and of communicating and obtaining
motives were mixed: freedom from debt
one of the conspirators divulged the plot.
mutual support from like-minded groups
and taxes owed to the Crown, a more
Tiradentes confessed but, to spare the
to protect democracy once achieved.
open commercial system, and abolition of
others, claimed that he had conceived the
In 1985, two amendments to the
a social structure that denied them upward
plot alone. Among the charges leveled
mobility. Some were inspired by the dream
Charter of the Organization of American
against him was attempting to translate
of a free republic, patterned after the
States were proposed to recognize that
the U.S. Constitution into Portuguese. The
newly independent American colonies. As
"representative democracy is an indis-
conspirators were tried, convicted, and
students in France, several had discussed
sentenced to death; all save Tiradentes
pensable condition for the stability,
their plans with Thomas Jefferson.
had their sentences commuted. On
peace, and development of the region"
The central figure in the Inconfidência
April 21, 1792, he was led to the gallows
and that the promotion and consolidation
Mineira (or Minas Conspiracy) was
on the outskirts of Rio and hanged.
of democracy are among its essential
Joaquin José da Silva Xavier, a low-
After Brazil became an independent
purposes. These provisions foster and
ranking officer known by his nickname
republic almost 100 years later, Tiradentes
reflect the potential for hemispheric
"Tiradentes" (toothpuller), who embodied
was hailed as a hero. His vision had
the complex motivations behind the con-
solidarity and cooperation among coun-
helped thrust Brazil into the nationalist,
spiracy. After several business failures
tries united by democratic principles and
anticolonialist, republican mainstream of
and the loss of his property, he entered
practices. The inaugurations of newly
the Enlightenment and set Brazil on the
the military but was passed over for pro-
road to the democracy it enjoys today.
elected civilian governments have
become regular occasions for the
democratic nations of the hemisphere
to show their commitment to these
With funding from AID and other
The Need for Mutual Support
principles.
donors and the assistance of the Bureau
The international implications of
of Inter-American Affairs of the Depart-
Latin America's democratic revolution
ment of State, the School of Interna-
The promise created by the convergence
are enormous. The democratic Govern-
tional Service of the American Univer-
between Latin American democratiza-
ment of Argentina has stressed its
sity in Washington, D.C., is undertaking
tion and increased U.S. support for
desire for a negotiated settlement with
a study of civilian-military relations
democracy can only be fulfilled if head-
the United Kingdom over control of the
designed to promote dialogue among
way is made in overcoming two separate
Falklands/Malviñas Islands. This
scholars and military and civilian leaders
problems, one for each potential partner
approach sharply contrasts with that of
from the United States and Latin
in the quest for inter-American coopera-
the predecessor military regime, which
America. Civil-military relations is now a
tion. They are Latin American instability
tried to resolve the issue through
standard topic in the Washington brief-
and U.S. inconsistency.
military action. In July 1986, Argentina
ings given to participants in USIA's
and Brazil signed a dozen accords
International Visitor Program.
designed to promote trade, cooperation
22
in key industries, and otherwise
strengthen mutual support and
Nicaragua: Appearance V. Reality
tion votes. And as in 1974, other parties
cooperation.
opposed the ruling party's manipulation.
Finally, the absence of democracy
Elections were held throughout the
Major opposition forces united in the Coor-
Somoza era. Real power, however, was
has been recognized as a major source of
dinadora Democratica to run Arturo Cruz
never put to a vote. The major change
conflict within countries as well as
for president but boycotted the election
under the Sandinistas is that elections are
when it became clear that their candidates
among them. In Central America,
not even regular.
were denied the right to campaign freely.
democratization has been the key to
General Somoza offered the
The Independent Liberal Party tried to
progress in El Salvador, while in
Conservative opposition 40% of the seats
withdraw later in the campaign, but was
Nicaragua the absence of democracy
in a constituent assembly in 1971. The
prohibited from doing so on a technicality.
hampers national reconciliation.
"pact" between the Conservatives and
On April 22, 1984, Nicaragua's
Democratization in both El Salvador and
Somoza's Liberal Party was rejected by
Roman Catholic bishops responded to the
Honduras contributed to reducing
other opposition parties, including the
growing polarization of Nicaraguan society
Independent Liberal Party and the Social
historic border tensions and to their
by issuing a pastoral letter which declared
Christian Party. But Somoza's manipula-
ability to implement the dispute resolu-
that "it is dishonest to constantly blame
tions made possible legal and constitu-
internal aggression and violence on
tion mechanisms contained in the 1980
tional changes that allowed him to run for
foreign aggression" and called for national
peace treaty ending the 1969 war
president in 1974 in an election in which 9
reconciliation through dialogue. "All
between them.
out of 10 opposition groups had been
Nicaraguans inside and outside the coun-
In the United States during the past
excluded.
try," asserted the bishops, "must par-
decade, the U.S. Government-with both
On August 17, 1974, Nicaragua's
ticipate in this dialogue, regardless of
the Congress and the executive branch
Roman Catholic bishops responded to the
ideology, class, or partisan belief. Further-
participating and, at times, even seem-
exclusion of the opposition by issuing a
more, we think that Nicaraguans who have
pastoral letter that declared that "a domi-
ing to compete-has taken an increasing-
taken up arms against the government
nant majority party does not have the right
ly active role in support of democratic
must also participate in this dialogue."
to exclude and deny recognition to the
On February 7, 1987, seven opposi-
processes and institutions throughout
minorities." The bishops denounced
tion parties-the Independent Liberal
the hemisphere.
"legal weapons," asserting: "When the
Party, the Social Christian Party, the Con-
Considerable uncertainty nonethe-
law becomes an instrument of force used
stitutional Liberal Party, the Popular Social
less remains about the consistency of
to deprive citizens of their rights, to
Christian Party, the Conservative Party,
vigorous U.S. support for the democratic
sterilize and destroy civic action, to im-
the Social Democratic Party, and the Com-
revolution in the region. Lack of suffi-
prison for the sole offense of not accepting
munist Party called for the creation of a
cient funding for U.S. foreign assistance
the only system or the existing regime, it is
National Peace Commission to work for a
legal war: it is the absurd destruction of
could, over time, cripple U.S. foreign
ceasefire; full political, social, and
man by the law."
policy. New protectionist trade barriers
economic rights in accordance with the
Ten years later, in 1984, the San-
would aggravate the debt crisis. Halting
new constitution; general amnesty; and an
dinistas put Nicaragua through the
election calendar. The 1983 Contadora
support for democratic forces in Nic-
motions of another election. As in 1974,
objectives and more recent Central
aragua would further endanger the
the Sandinistas never intended that the
American negotiating initiatives, including
security of the Central American
elections would determine who would
proposals put forth by President Oscar
democracies.
exercise power. As in 1974, the San-
Arias of Costa Rica on February 15, 1987,
Increased U.S. continuity in foreign
dinistas permitted a faction of the Conser-
also make clear that democracy can no
policy and political and financial commit-
vatives to win the largest share of opposi-
longer be left to appearances.
ment to democracy would mitigate many
of these threats. Continued support for
democracy requires a consistency-the
combination of political will and suffi-
among democratic societies throughout
important to our own security is
cient resources-that has often been
the Americas have more reason to be
strengthening support for a new bipar-
absent from U.S. foreign policy in recent
optimistic today than at any time since
tisan consensus.
years. The emergence of bipartisan coali-
the early days of the Alliance for Prog-
If the United States and the coun-
tions in the Congress on matters from
ress. In Latin America, democratic
tries of Latin America and the Carib-
the Caribbean Basin Initiative to support
achievements are all the more impres-
bean continue to provide each other
for the Nicaraguan democratic resist-
sive because they have come piecemeal,
support and encouragement, as they have
ance suggests this may be possible.
one country at a time, usually without
in the past decade, it will be possible to
In short, though the dangers are
grand illusions about the outside world.
say that democracy will have fulfilled its
great and growing, those who envision
In the United States, the realization that
promise as both a cause and a result of
an enduring cooperative relationship
our neighbors in Latin America and the
good relations between Latin America
Caribbean are increasingly committed to
and the United States.
democracy and that their success is
23
Type of
Date of most
Date of
Country Summaries
election(s)
recent election(s)
next election(s)
Antigua and Barbuda
siege, which in no way interfered with
Barbados
the campaign or the polling. The nearly
84% turnout, which approached that of
Parliament
Apr.
By
the 1983 presidential election, was seen
Parliament
May
By
1984
1989
as a massive repudiation of violence and
1986
1991
a popular affirmation of democracy.
Distribution of the vote probably also
Antigua and Barbuda, which achieved its
helped to consolidate democracy: while
One of the most stable and prosperous
independence from Great Britain in
the governing Radical Civic Union Party
countries in the Caribbean, Barbados is a
1981, has a parliamentary system of
of President Raúl Alfonsin maintained
flourishing parliamentary democracy
government with an elected House of
its majority in the lower house, the
with an elected lower chamber (House of
Assembly and an appointed Senate. The
Justicialist (Peronist) Party, despite
Assembly) and a nominated upper
British monarch, who continues to be
serious internal divisions, polled suffi-
chamber (Senate). The chief of state is
recognized as chief of state, is
cient support to maintain its plurality in
the British monarch, who is represented
represented by an appointed Governor
the Senate and its credibility as a poten-
by an appointed Governor General. Elec-
General. The governing Antigua Labor
tial democratic alternative. In late 1986,
tions constitutionally are due every 5
Party (ALP), led by Prime Minister
parties began active campaigning for the
years. There is a well-established two-
V.C. Bird, Sr., won decisively in the
1987 round of congressional and provin-
party system; both parties are moderate,
April 1984 elections, defeating an
cial elections.
centrist, and pro-Western. Major dif-
opposition coalition composed of the
ferences center on personalities rather
United People's Movement, the People's
than philosophy. The ruling Democratic
Labor Movement, and the Antigua
Labor Party (DLP) of Prime Minister
Caribbean Liberation Movement.
The Bahamas
Errol Barrow is closely allied to the
Although the centrist ALP swept 16 of
island's major labor union and won 24 of
17 parliamentary seats, the election was
27 seats in the May 1986 elections. The
considered free and fair by all accounts.
Parliament
June
By
opposition Barbados Labor Party won
A new opposition party, the United New
1982
1987
three seats and is led by Henry Forde.
Democratic Party (UNDP), was formed
Although there are several radical, left-
in March 1986 from the remnants of
wing parties active in Barbados, they do
several old opposition parties. The
The Commonwealth of The Bahamas
not pose a challenge to the dominance of
UNDP, which has attracted several
became an independent member of the
the two major parties. Elections have
newcomers to politics, has a moderate,
British Commonwealth on July 10, 1973.
been scrupulously free and keenly
pro-Western philosophy.
As in most other Commonwealth
contested.
nations, the chief of state is the British
monarch, who is represented by an
appointed Governor General. The
Argentina
government is a Westminster-style
Belize
parliamentary democracy. The executive
Nov.
Nov.
Congress
and the legislative branches are inter-
1985
1987
dependent, but the judiciary is independ-
Parliament
Dec.
By
1984
1989
ent. Parliament, which has a maximum
President
Oct.
Nov.
term of 5 years, consists of two houses:
1983
1989
an appointed, 16-member Senate and an
Belize achieved independence from
elected 43-member House of Assembly.
Great Britain in 1981 after an extended
Argentina's most recent return to
The Senate's members are appointed by
period of internal self-government. The
democracy began with a record-breaking
the Governor General on the advice of
pattern exemplifies the successful local
turnout of more than 15 million voters in
both the Prime Minister and the leader
adaptation of the British parliamentary
presidential and congressional elections
of the opposition. Members of the House
tradition that flourishes in the Carib-
on October 30, 1983. Argentines also
of Assembly are elected from individual
bean. In December 1984, in the first
went to the polls in large numbers in
constituencies. Prime Minister Sir
general elections since independence, the
October 1984 in a nonbinding plebiscite
Lynden O. Pindling's Progressive
United Democratic Party (UDP) led by
on the Beagle Channel Treaty prior to
Liberal Party (PLP) has won five con-
Manuel Esquivel won 21 of 28 seats in
the treaty debate in the Congress.
secutive national elections dating back to
the House of Assembly. Voter turnout
Subsequent legislative elections in 1985
1967. The next election must take place
was moderate, and the election was free
were widely considered an important
by August 1987.
of any charges of fraud. The UDP, a
step in consolidating democracy in
moderate-to-conservative party, favors
Argentina. A wave of terror bombings
private enterprise to diversify Belize's
designed to disrupt the campaign failed
sugar-based economy. The major opposi-
when the government invoked a state of
tion party is the moderate-to-leftist
People's United Party.
24
One Inspiration, Many Models
In 1813, Thomas Jefferson imagined the
day when the people of Latin America
would be liberated from colonial rule and
military despotism. In a letter to his old
friend Lafayette, he predicted that the
inevitable conflicts of the old autocratic
order would "bring the people into motion,
into action, and into the exertion of their
understandings." The example of the
United States, Jefferson hoped, would be
"an excitement as well as a model for
their direction."
In their struggle for independence, the
peoples of Latin America and the Carib-
bean did find inspiration in many of the
same Enlightenment principles that
formed the basis of Jefferson's constitu-
tional thought. The philosophers of the
Enlightenment believed that, just as there
were laws of Nature, there were laws that
governed human activity. They had
limitless confidence in the ability of reason
to discern those laws and apply them to
Top: The Barbados House of Assembly is one of the oldest representative bodies in the world. The
human affairs. They also believed that
House, the lower chamber of the modern Parliament pictured here, has met continuously since 1639.
man could be persuaded by Reason to
(Photo courtesy of the Barbados Board of Tourism, New York)
conform to those laws without resort to the
tyrannical and barbarous practices of
Bottom: Brazilian President José Sarney tells a joint session of the U.S. Congress on September 11,
earlier governments.
1986: "The true name of peace is democracy, because democracy is understanding, the capacity to
find solutions other than the solutions of might." (Photo courtesy of the U.S. House of Representatives)
It was in the New World that men first
attempted to apply these principles and to
systematize not only the laws that govern
the citizens of the state but also the rights
of those citizens. These principles, spelled
out in constitutions throughout the
Americas, are familiar to all of us: govern-
ment derives its authority from the consent
of the governed; all men are equal under
the law and entitled to due process;
government has an obligation to
guarantee individual liberties such as
freedom of speech, of assembly, and of
religion; and the constitution itself forms a
body of supreme law.
The people of Latin America and the
Caribbean sought additional inspiration in
the French "Declaration of the Rights of
Man and of the Citizen" and the Spanish
Constitution of 1812. A number of the
original Latin American constitutions went
beyond the U.S. model by outlawing
slavery. Constitutional revisions in this
century have emphasized economic and
social rights conforming to contemporary
conceptions of social justice.
As Jefferson had envisioned, the
United States did serve as an inspiration
neither possible nor desirable. The
democratic neighbors, we have a role to
for the independence movement
region's constitutions establish many dif-
play in support of a democratic transition
throughout the Western Hemisphere.
ferent forms of government-federal and
based on the values that all people of the
Today, however, U.S. policy does not envi-
unitary, parliamentary and presidential,
Americas share-liberty, equality, justice,
sion a single model of government for our
republic and commonwealth. But Jeffer-
and peace.
neighbors. We know now that that is
son's essential vision remains: as
25
Type of
Date of most
Date of
election(s)
recent election(s)
next election(s)
Bolivia
of military rule, a civilian was elected
scheduled to vote on a single candidate
president by an electoral college on
nominated by the junta of commanders
Congress,
July
July
January 15, 1985. The President-elect,
of the army, navy, air force, and police
President
1985
1989
Tancredo Neves, fell ill on the eve of his
to serve until 1997. If the junta's
inauguration and died without taking
nominee receives a majority of the votes
Municipal
July
Dec.
office. Vice President-elect José Sarney
cast, he would assume his duties on
1985
1987
became president. President Sarney has
March 11, 1989. If the nominee is not
established himself as a major political
confirmed in the plebiscite, the constitu-
Bolivia returned to democratically
figure in his own right. The Sarney
tion provides for open presidential and
elected government in October 1982
administration is backed in Congress by
congressional elections to be held 90
following 18 years of military regimes.
the Democratic Alliance, comprised of
days before the completion of Pinochet's
In 1984, faced with an increasingly
two centrist parties: the PMDB (Party
current term extended by 1 year; that is,
chaotic economic situation, inflation of
of the Brazilian Democratic Movement)
the new election would be held 90 days
more than 20,000%, severe social unrest,
and the PFL (Liberal Front Party).
prior to March 11, 1990. On that date,
the specter of a military coup, and the
Together, they have instituted signifi-
the newly elected president and Con-
incapacitation of his government, Presi-
cant changes in the social and economic
gress would accede to power.
dent Hernán Siles Zuazo called for
spheres.
President Pinochet has publicly
national elections in July 1985, a year
A second major election was held on
opposed any changes to the 1980 con-
ahead of schedule. The first round of the
November 15, 1985, when Brazilians
stitution, although opposition represent-
1985 balloting gave no candidate an
voted for mayors of the capital cities of
atives and some government supporters
absolute majority. In accordance with
the country's 23 states. The Democratic
have advocated replacing the plebiscite
Alliance won most of the races. A third
with free elections. A constitutional
the Bolivian Constitution, the Congress
election on November 16, 1986, selected
then chose between the principal vote
amendment allowing free elections in
winners and elected Victor Paz
governors, federal deputies, two-thirds
1989 is theoretically possible, if proposed
Estenssoro president.
of the Senate, and state legislatures.
by President Pinochet and ratified by
Once installed, the Paz government
Again, the Democratic Alliance scored a
plebiscite.
moved swiftly and successfully, with the
major victory, with the PMDB winning
While the 1973 military takeover
support of losing presidential candidate
22 of 23 gubernatorial races and major-
enjoyed considerable popular backing,
Hugo Banzer and his Nationalist
ities in the Chamber of Deputies and the
opposition to continued military rule has
Democratic Action Party, to impose
Senate. The election was especially
grown over the 13 years of the Pinochet
stringent economic reforms and deal
significant because the Congress will
government. It responded to mounting
write a new constitution for Brazil.
with disruptive social elements. In 1986,
public opposition and demonstrations
the Paz administration requested U.S.
with a tentative political opening in
1983, which ended with the imposition of
military assistance to mount a very
effective drug interdiction campaign
Chile
a state of siege. Another period of
liberalization followed the removal of the
despite severe domestic political
criticism.
state of siege in mid-1985, but the
Constitutional
Sept.
1989
Pinochet government firmly rejected
plebiscite
1980
dialogue with the democratic opposition,
which had by then come together in a
Brazil
broad coalition of political parties known
The military took power in Chile in
as the National Accord. The Chilean far
Jan.
Jan.
September 1973, replacing an elected
left, meanwhile, has actively supported
President
1985
1991*
government led by Marxist Salvador
terrorist violence in hopes of blocking
(indirect)
(direct)
Allende, whose alliance with both
development of conditions that might
Marxist-Leninist radicals and Moscow-
lead to a peaceful transition to full
line communists was creating mounting
democracy. The government, in turn,
Nov.
Nov.
Mayoral
opposition and disorders in what had
has used this communist-sponsored ter-
1985
1989
previously been considered one of Latin
rorism to justify broad crackdowns
America's most democratic countries.
against the opposition. An assassination
The military ruled by decree until 1981,
attempt against President Pinochet by
Congress,
Nov.
Nov.
when a constitution ratified by a
communist terrorists in September 1986
Governors
1986
1990
September 1980 plebiscite took effect.
led to reimposition of a state of siege,
The constitution's provisions and the
which was lifted in January 1987.
conditions under which it was adopted
The Pinochet government has taken
Brazil has held three major elections in
were criticized by opposition groups.
some steps to establish the juridical
the last 2 years. Following two decades
The constitution confirmed Gen.
framework for the presidential plebiscite
Augusto Pinochet as president until
expected in 1989: adopting an electoral
*
The new constitution may change the
1989, at which time another plebiscite is
registration law in 1986 and announcing
presidential term; thus, it is possible that the
that a law to legalize democratic political
next presidential elections will be held before
January 1991.
parties would be promulgated early in
1987. But severe restrictions on political
activity and other human rights prob-
26
Type of
Date of most
Date of
election(s)
recent election(s)
next election(s)
lems persist. Efforts to improve the
reelection (or the election of anyone in
Behind the ideological smokescreen,
political atmosphere and restore fund-
the president's cabinet or immediate
Castro's government is that of an aging,
amental freedoms such as freedom of
family). National elections, held every 4
traditional caudillo, within the modern
assembly and speech are necessary for
years, select the president, two vice
control mechanism of the 20th century
meaningful progress on a transition to
presidents, the entire Legislative
party-state. There is no concept of a
full democracy. The United States has
Assembly, and local municipal councils.
legal organized opposition, and this is
strongly supported a return to elected,
In 1982 and 1986-and for many
summed up in Fidel Castro's aphorism:
democratic civilian government in Chile,
years before-the elections were actively
"Within the revolution, everything;
welcoming the National Accord and urg-
contested, free of fraud, and featured
against the revolution, nothing." Under
ing dialogue between the government
voter turnouts of approximately 85%.
these circumstances, those elections that
and the democratic opposition.
Two major parties-both moderate-
have been held in Cuba since the revolu-
dominated both elections: the Christian
tion have been recognized as
democratic Social Christian Unity Party
meaningless.
and the social democratic National
Colombia
Liberation Party. The latter captured
both the presidency and the legislature
Dominica
Congress
Mar.
Mar.
in the last two elections. Other parties
1986
1990
active in the 1982 election included the
center-right National Movement, the
President
May
May
communist Pueblo Unido coalition, and
Parliament
July
By
1985
1990
1986
1990
the fringe Independent and Democratic
Parties. The 1986 election, which gave
Colombia has been governed by
the presidency to Oscar Arias, also
Dominica is a parliamentary democracy
democratically elected governments for
included the communist Popular Alli-
in the British tradition with an elected
most of this century. The only exception
ance, the communist Pueblo Unido coali-
House of Assembly and nominated
was the dictatorship of Gen. Gustavo
tion, the personalist National Christian
Senate. Unlike the other states of the
Rojas Pinilla (1953-58). Since then, the
Alliance, and the fringe Independent
Organization of Eastern Caribbean
Liberal and Conservative Parties have
Parties. An earlier split within the Costa
States (OECS), where the chief of state
dominated the political system, generally
Rican Communist Party (PVP) was suc-
(the British monarch) is represented by
alternating the presidency between
cessfully arbitrated by the Supreme
an appointed Governor General, the
them. Congressional and presidential
Electoral Tribunal.
head of state in the Commonwealth of
elections in 1982 and 1986 were con-
Dominica is the president. Dominica,
sidered free of fraud. The 1986 presiden-
however, remains a member of the Com-
tial election, which saw heavier than
Cuba
monwealth and continues to recognize
usual voter turnout, produced a landslide
Queen Elizabeth II as sovereign. Elec-
victory for Liberal Virgilio Barco Vargas
Although Fidel Castro's ascension to
tions are constitutionally due every 5
over Conservative Alvaro Gomez
power in 1959 was based in part on his
years and have been free and fair. In the
Hurtado. President Barco continued
promises to bring democratic freedoms,
1985 national election, the Dominica
efforts to entice guerrillas to join the
Cuba is a communist one-party state,
Freedom Party (DFP) of conservative,
political system.
and-with the fall of Trujillo in the
pro-Western Prime Minister Eugenia
Dominican Republic and Duvalier in
Charles defeated the leftwing opposition
Haiti-the most important exception to
Labor Party of Dominica and the affili-
ated Marxist-led Dominica United Labor
Costa Rica
Caribbean traditions of democracy and
representative government. The Cuban
Party.
constitution contains provisions for
President,
Feb.
Feb.
popular and competitive elections;
Congress
1986
1990
freedom of the press, speech, and
Dominican Republic
religion; and guaranties of civil liberties.
However, in accordance with the con-
Costa Rica is one of Latin America's
stitution, these protections are not
President,
May
May
oldest constitutional democracies. The
available to "enemies of socialism," as
Congress
1986
1990
Constitution of 1949 eliminated the army
defined by the state. Thus, Castro rules
in order to end any institutionalized
through classic authoritarian and
military threat to elected civilian govern-
Marxist-Leninist repression. There are
Despite an earlier history of alternating
ment; created a fourth branch of
no independent institutions or freedom
civil turmoil and authoritarian rule,
government-the Supreme Electoral
of press or speech. Neither an
democracy and fair election procedures
Tribunal-with remarkable independent
independent judiciary nor a free trade
have become institutionalized in the
powers to assure scrupulously honest
union exists, and there are restrictions
Dominican Republic. Suffrage in the
elections; and prohibited presidential
on religious practice.
Dominican Republic is universal and
compulsory for those over age 18 and
married. Over 70% of the registered
voters participated in the 1986 national
27
Type of
Date of most
Date of
election(s)
recent election(s)
next election(s)
elections. The country's three major
rule, and Febres Cordero declared his
elected civilian president in more than
political parties, the Reformist Party,
intention to complete his term and to
50 years; more than 80% of the elec-
the Dominican Revolutionary Party, and
hold elections as scheduled in 1988.
torate went to the polls.
the Dominican Liberation Party, are
Febres Cordero, a businessman, is a
International observers attested to
represented at all levels of the
member of the Social Christian Party
the fairness of both rounds of the 1984
government-federal, state, and local.
(PSC), which in the 1984 elections joined
presidential elections. Legislative and
With the election of Joaquín Balaguer in
several other parties in a coalition called
municipal elections, held as scheduled in
May 1986, the Dominican Republic has
the National Reconstruction Front to
March 1985, were again judged by inter-
now had six consecutive elections at
defeat the presidential candidacy of
national observers to have been free and
4-year intervals. This follows a 5-year
Rodrigo Borja Cevallos of the
fair. In a surprise result, the Christian
period of instability (1961-66) and the
Democratic Left (ID). Borja is one of
Democrats obtained an absolute majority
long dictatorship of Rafael L. Trujillo
several candidates expected to seek the
in the Legislative Assembly by winning
(1930-61). Two of those elections-in
presidency in 1988. In the midterm elec-
33 of 60 seats. The remainder of the
1978 and 1986-resulted in the transfer
tions of June 1986, the ID won 17 seats
seats were split among ARENA (13
of power to the major opposition party.
in the unicameral Congress, giving it the
seats), the Party of National Conciliation
largest congressional representation of
(12 seats), and several minor parties. El
any political party. The ID and other
Salvador is now preparing for the next
opposition parties hold a total of 40 of
Ecuador
round of Legislative Assembly (1988)
the 71 seats in Congress and have vigor-
and presidential (1989) elections. In addi-
ously debated government initiatives,
tion to the established parties, new con-
Congress,
June
Jan.
especially economic policy.
servative and social democratic parties
Municipal
1986
1988
are seeking legal inscription from the
Central Electoral Council and working
Jan.
El Salvador
to build support for the next elections.
May
President
1984
1988
(2d round)
(1st round)
President
May
May
Grenada
1984
1989
Seven years of military rule ended in
1979 when Ecuador returned to civilian
Congress,
Mar.
Mar.
Municipal
1985
1988
Parliament
Dec.
By
rule with elections under a new constitu-
1984
1989
tion. The constitution stipulates that no
president may succeed himself. The
In 1979, a reformist coup began what
inauguration of President León Febres
has turned out to be a gradual transition
The parliamentary elections of
Cordero on August 10, 1984, marked the
to democracy despite civil war and
December 3, 1984, were the first
first transition in 24 years from one
foreign intervention. In 1982, popular
national elections since 1976, the first
elected democratic government to
elections were held for a constituent
since the rise and disintegration of the
another.
assembly. Political parties allied with the
Marxist New JEWEL Movement, and
Democratic institutions have had to
guerrilla umbrella organization, the
the first since the brief 1983 U.S.-
survive several potentially destabilizing
Farabundo Martí National Liberation
Caribbean military operation to restore
events since 1979. In May 1981, Presi-
Front (FMLN), rejected an offer of
order. Not surprisingly, the elections
dent Jaime Roldós died in a plane crash,
automatic registration for the elections,
took place under the close scrutiny of
but Vice President Osvaldo Hurtado
and called on voters to stay home. Very
several observer organizations. The
assumed power in an orderly transition
heavy voting was widely interpreted as a
observers concluded overwhelmingly
even though he belonged to a different
popular plea for peace. When none of the
that the elections were free and fair. The
party. In March 1986, a disgruntled air
six participating parties won a majority,
84% voter turnout produced a firm man-
force general, Frank Vargas, staged two
the assembly selected independent
date for the New National Party coali-
uprisings against the government of
lawyer Alvaro Magaña Borja to head a
tion led by Herbert Blaize. Five other
President Febres Cordero. In January
government of national unity.
parties participated in the elections,
1987, rebellious air force troops suppor-
A presidential election was held on
including the Grenada United Labor
tive of Vargas briefly kidnaped the presi-
March 25, 1984. Eight candidates
Party of former Prime Minister Sir Eric
dent and obtained Vargas' release from
representing a broad political spectrum
Gairy and the Maurice Bishop Patriotic
military custody. This incident generated
competed in the first round. José
Movement, formed by supporters of the
coup rumors and led to opposition calls
Napoleón Duarte, a founder of the Chris-
late Marxist prime minister, who had
for Febres Cordero's resignation. In
tian Democratic Party and former
ousted Gairy in the 1979 coup.
response, the Ecuadorean Armed Forces
populist mayor of San Salvador, and
publicly rejected the notion that they
Roberto D'Aubuisson, a retired army
might use the crisis to reimpose military
officer and leader of the ARENA
(National Republic Alliance) party,
received the most votes. In a runoff held
on May 6, 1984, Duarte won 54% of the
vote to become El Salvador's first freely
28
Type of
Date of most
Date of
election(s)
recent election(s)
next election(s)
Guatemala
course of transition from capitalism to
by General Henri Namphy, replaced
socialism." The constitution states that
Duvalier, eliminated the repressive sym-
presidential, National Assembly, and
bols and practices of his regime, and set
Congress
Nov.
Nov.
regional elections are to be held every 5
in motion a process of political institu-
1985
1990
years. Since 1964, the People's National
tion-building. In June 1986, the council
Congress (PNC) has dominated political
issued a comprehensive political calen-
life in Guyana. Opposition parties and
Dec.
Nov.
dar. Fulfilling one of the initial steps in
President
some civic organizations have charged
the calendar, the CNG held Constituent
1985
1990
electoral fraud. Since 1980, there have
Assembly elections on October 19. The
(runoff)
been two elections, the first on Decem-
assembly will draft a new constitution
Constituent Assembly elections on July
ber 15, 1980, and the most recent on
which then is to be approved in a
1, 1984, with the participation of an un-
December 9, 1985. In the last election
national referendum in March 1987.
precedented 72% of the eligible elec-
Desmond Hoyte was elected president.
Elections are to be held in November
torate were characterized by interna-
Opposition parties have either pulled out
1987 for a president and for members of
tional observers to have been
of these elections (1980) or refused to
the national legislature. Dates of future
remarkably free and open. The number
acknowledge the results as valid (1985).
elections will be determined with the
of voters exceeded by nearly 800,000 the
Municipal elections were scheduled for
adoption of a new constitution.
December 1986 for the first time since
previous high recorded in 1982. Nine
political parties and one regional civic
1970; however, the opposition parties
committee, covering the legal political
decided to boycott the elections even
Honduras
spectrum in Guatemala, won seats. In
before nominations were closed. They
the 1985 National Assembly elections,
alleged that the elections would not be
fair since the PNC dominated the elec-
three parties or coalitions, representing
President,
Nov.
Nov.
the right, center, and left, won 23, 21,
toral machinery. The unopposed PNC
Congress
1985
1989
and 20 seats respectively. The left-of-
candidates were declared elected by the
center Christian Democrats ran well in
elections commission, but no voting took
the heavily populated Indian highlands.
place.
The April 1980 Constituent Assembly
The center-right Union of the National
elections began a process that ended
Center won the majority of seats in the
nearly 18 years of military rule. On
capital area and made a strong showing
Haiti
November 29, 1981, Roberto Suazo
on the south coast. The conservative
Cordova of the Liberal Party won 54%
parties (particularly the National Libera-
of the presidential votes and 44 of 82
tion Movement) fared less well than
Constituent
Oct.
Not
congressional seats. The major opposi-
expected but retained their traditional
Assembly
1986
appli-
tion party, the National Party, won 34
cable
strongholds in the eastern portion of the
seats. Suazo's inauguration in January
country. At the other end of the political
1982 restored democratic civilian
spectrum, the Social Democratic Party
Constitutional
Not
Mar.
government to Honduras. In 1985, José
competed openly after years of exile and
Referendum
appli-
1987
Azcona Hoyo of the Liberal Party won
cable
won one congressional seat. President
election as president with about 51% of
Vinicio Cerezo of the Christian
voters casting ballots for his party. The
Democratic Party was inaugurated on
President,
Not
Nov.
Liberal Party won 67 of 134 congres-
Congress
appli-
January 14, 1986. Guatemala still faces
1987
cable
sional seats and the National Party won
formidable social, cultural, human rights,
64. Azcona's election led to the first
and economic problems, but the progress
transfer of power between two
made since 1984 is encouraging.
On February 7, 1986, President-for-Life
democratically elected presidents in
Jean-Claude Duvalier fled Haiti, ending
Honduran history.
almost 30 years of autocratic govern-
The National Party, the oldest
ment under the Duvalier family. He left
political party in Honduras, has tradi-
Guyana
behind an impoverished people with the
tionally maintained a moderate-to-
lowest per capita GDP in the Western
conservative ideology and close ties to
President,
Dec.
No later
Hemisphere, a bankrupt government, a
the Honduran military. The Liberal
National Assembly
1985
than Mar.
faltering economy, and an almost com-
Party, which developed from the
1991
plete lack of institutions capable of par-
National Party in the early years of this
ticipating effectively in a democracy.
century, has maintained a slightly more
While Guyana maintains the structure of
The "elections" held during the Duvalier
reformist ideology. Two smaller parties,
a multiparty parliamentary republic
era were designed to perpetuate the
the Innovation and Unity Party and the
within the Commonwealth, its 1980 con-
status quo and placate aid donors insist-
Christian Democratic Party, have taken
stitution defines the country as a
ent on tangible evidence of democratic
positions somewhat to the left of the two
reform.
"democratic sovereign state in the
major parties, but neither has obtained
The National Governing Council
substantial electoral support. The
(CNG), the transitional government led
National Congress recently passed elec-
29
Type of
Date of most
Date of
election(s)
recent election(s)
next election(s)
toral reforms that include the introduc-
Institutional Revolutionary Party (PRI).
After rejecting elections as useless
tion of American-style party primaries
PRI candidate Miguel de la Madrid was
bourgeois trappings, the Sandinistas
and conventions to select presidential
elected president in 1982. But in recent
announced presidential and congres-
candidates.
years, opposition political parties have
sional balloting for November 1984, the
grown in membership and have run suc-
week before the U.S. elections. The key
cessfully in some municipal and
opposition force was the Coordinadora,
Jamaica
legislative elections. Under electoral
made up of political parties, labor
reforms begun in the late 1970s and
unions, and private sector organizations,
modified in 1986, opposition parties have
which nominated former junta member
Parliament
Dec.
By
begun to play an increasingly important
Arturo Cruz as its presidential can-
1983
1988
role in the Chamber of Deputies, the
didate. The Coordinadora ultimately did
lower house in Mexico's bicameral
not register its candidates because it
national legislature. Beginning with the
believed the FSLN failed to provide the
Jamaica, a member of the Common-
new Chamber that will be elected in
conditions necessary for free and fair
wealth, has been a functioning
1988, at least 200 of that body's 500
elections. Coordinadora's rallies were
democracy since independence in 1962.
seats will be allocated to the opposition
broken up by government-sponsored
Under the country's parliamentary
on the basis of a modified form of pro-
mobs. Although the electoral law
system, elections are held for members
portional representation. In addition, the
required that all parties be given equal
of the House of Representatives in each
opposition will still be able to compete
time on television, opposition parties
of the country's 60 constituencies. The
for the Chamber's remaining 300 seats,
were denied access to the media. The
constitution requires the prime minister
which are elected on the basis of single-
FSLN received 67% of the vote, and
to call a general election not later than 5
member districts. In the July 1985 con-
Daniel Ortega was elected president.
years after the first sitting of the
gressional elections, the opposition won
Some 75% of those eligible voted. Power
previous parliament. The 1980 election
8 of the 300 single-member districts then
was not at stake in the way the FSLN
saw the Jamaica Labor Party (JLP)
being contested. One-hundred seats
conducted the elections, but the fact of
defeat the then-ruling People's National
allotted to the opposition in 1985 were
holding elections at all did give the
Party (PNP) led by Michael Manley. In
divided among eight opposition parties
FSLN some credit abroad.
1983, Prime Minister Edward Seaga
on the basis of proportional representa-
Since 1984, political parties opposed
called a "snap" election. The PNP
tion. The opposition, of which the
to the FSLN have attempted to maintain
boycotted the election because it con-
National Action Party (PAN) is the
some semblance of political life inside
tended that new elections should not be
largest component, often accuses the
Nicaragua while exile groups, most of
held until the voter rolls were updated.
PRI and electoral officials of fraudulent
them linked to the armed resistance,
Following a revision of the rolls and the
practices. On some occasions, election
have formed the United Nicaraguan
adjustment of electoral districts to
reviews have indicated irregularities at
Opposition (UNO), the Southern Opposi-
reflect population shifts, the PNP par-
the local level and initial PRI victories
tion Bloc (BOS), and the Miskito-Sumo-
ticipated in island-wide municipal elec-
have been overturned. In general,
Rama Indian Unity (MISURASATA).
tions on July 29, 1986. Opposition vic-
however, election campaigns and
A new constitution was promulgated
tories in 12 of the 13 parishes have led to
balloting are conducted in an open
January 9, 1987, but was followed the
PNP domination of local government,
manner.
same day by the declaration of a state of
while the JLP controls the national
emergency. The government had said
government. The next parliamentary
that municipal elections would be held in
election must be called by December
Nicaragua
1987 but did not set a specific date.
1988 and held within 3 months of being
Since then, the government has
called.
equivocated on that promise.
President,
Nov.
1990
Congress
1984
Mexico
Panama
In July 1979, a broadly based coalition,
President
July
July
whose military component was the San-
1982
1988
dinista National Liberation Front
President,
May
May
(FSLN), overthrew the 44-year-old
Congress
1984
1989
Chamber of
July
July
Somoza dynasty. The promised democ-
Deputies
1985
1988
racy never materialized. In April 1980,
In 1968, the late Gen. Omar Torrijos and
moderate members of the original
Unlike many countries in the region,
several other military leaders seized
revolutionary junta resigned, and, by the
civilians have governed Mexico
power, instituting prolonged rule by the
end of 1981, the FSLN held all key
throughout most of the 20th century.
National Guard (subsequently known as
positions.
For almost 60 years, this leadership has
the Panamanian Defense Forces). The
been drawn exclusively from the
30
Type of
Date of most
Date of
election(s)
recent election(s)
next election(s)
Panamanian Constitution, in effect since
effectively powerless. A state of siege is
(APRA) of President Alán García mark-
1972, provides for basic civil liberties;
continuously renewed and human rights
ing the first transfer of power between
freedom of the press, speech, and
problems persist. Though Paraguay has
democratically elected civilian presidents
assembly; and regular, competitive elec-
few political prisoners, the free exercise
in 40 years. APRA also gained a
tions. While Panama is generally viewed
of individual liberties is curtailed, and
majority in the Congress. Nationwide
as an open society and constitutional
opposition media voices remain banned
municipal elections in 1980, 1983, and
norms are followed for the most part,
or under heavy government pressure. In
1986 have reinforced the democratic
the Defense Forces' involvement in
February 1983, President Stroessner
trend and have recently brought local
governmental affairs is pervasive.
was reelected to a seventh term that
self-government to many rural com-
The 1984 elections, the first direct
ends in 1988. The elections resulted in
munities for the first time
presidential and legislative elections held
the ruling Colorado Party officially
APRA, founded by Victor Raul Haya
in Panama since Torrijos came to power,
receiving more than 90% of the votes
de la Torre in 1928, was Peru's first
remain a source of friction between the
cast. Opposition party officials claim,
mass political party. Inspired by the
government and opposition party
however, that the elections were
Mexican Revolution, APRA has been
leaders. Although more than three-
characterized by impediments to voter
both anti-imperialist and anti-Marxist.
quarters of Panama's electorate par-
registration, fraud, ballot-box stuffing,
Over the years, it has evolved into a
ticipated in the elections, the vote was
and tabulation irregularities. The United
social democratic party; it champions
widely perceived as flawed, due to the
States strongly supports the evolution of
integration of all of the disparate
prolonged vote tabulation process which
a more open political system in
elements of the Peruvian population into
was marked by irregularities. The
Paraguay, in which freedom of the press
the country's society. The center-right
resignation in September 1985 of Presi-
and expression are protected and all
Popular Christian Party favors a greater
dent Nicolás Ardito Barletta, who had
democratic parties can participate.
role for private enterprise in the
been declared the winner of the 1984
economic development of Peru. The
contest, under pressure from the
United Left (IU) is a coalition of leftist
Panamanian Defense Forces was viewed
Peru
parties, including two communist
as a further setback to democracy.
organizations and entities further to the
Barletta was succeeded by Eric Arturo
left of the communists. In the 1983
Delvalle, who had been elected vice
Congress,
Apr.
Apr.
municipal elections, the IU won the
president in 1984.
President
1985
1990
mayoralty of Lima, Peru's capital and
The Democratic Revolutionary Party
largest city; the APRA candidate won
is the largest member of the National
this position in the 1986 local elections.
Democratic Union Coalition, the political
Municipal
Nov.
Nov.
Ex-President Belaunde's Popular Action
organization affiliated with the Panama-
1986
1989
Party fared badly in the 1985 national
nian Defense Forces. The Panameñista
election and became a minority party.
Party of Arnulfo Arias is the opposition
party with the greatest mass support,
Peru returned to democratic rule in
but historically it has been a major
1980, ending 12 years of military dicta-
political force only when Arias has been
torship. The new constitution, pro-
St. Christopher and Nevis
an active candidate. The Panamanian
mulgated in 1979, provides for the
Christian Democratic Party is well-
separation of powers among an
connected internationally, maintaining
Parliament
May
By
executive (president), a bicameral
close contact with the Christian
1984
1989
legislature, and a judiciary; one 5-year
Democratic International. This opposi-
term for the president; a second-round
tion party is respected for its ideological
balloting system in presidential elec-
integrity but lacks a significant grass-
St. Christopher (commonly called St.
tions; and enfranchisement of illiterates.
roots following.
Kitts) and Nevis, which became an
In the 1980 elections, Fernando
independent member of the Com-
Belaunde Terry, whom the military had
monwealth in 1983, has a parliamentary
ousted in 1968 when it came to power,
system of government with an elected
Paraguay
was elected president. In April 1985,
House and an appointed Senate. Prime
Peru again had free and fair elections
Minister Kennedy A. Simmonds, leader
for a president, two vice presidents, and
of the People's Action Movement, rules
President,
Feb.
Feb.
240 members of the two houses of Con-
in coalition with the Nevis Reformation
Congress
1983
1988
gress. In July 1985, the Popular Action
Party, led by Simeon Daniel. This coali-
Party of President Belaunde turned
tion government returned to power in a
power over to the rival American
peaceful, democratic election in 1984.
There has been little change in
Popular Revolutionary Alliance Party
The leader of the opposing St.
Paraguay's political system since Gen.
Christopher-Nevis Labor Party, Lee
Alfredo Stroessner emerged as the
Moore, lost his seat in the 1984 elec-
political strongman in 1954 following
tions, thus limiting his ability to
several years of instability. The legal
challenge the present government.
opposition parties are guaranteed one-
third of the seats in Congress but are
31
Type of
Date of most
Date of
election(s)
recent election(s)
next election(s)
St. Lucia
leader Vincent Beache. Both parties are
replacing the hereditary monarch,
centrist. The three nominally radical
represented by an appointed Governor
parties that contested the 1984 elections
General, with a president as head of
Parliament
May
By
were resoundingly defeated.
state. The government is a Westminster-
1982
1987
style parliamentary democracy in which
the executive and legislative branches
Suriname
are interdependent; the judiciary is
St. Lucia-an independent nation within
independent. The nation's bicameral
the Commonwealth since 1979-is a
Until a violent military coup in February
Parliament has a maximum term of 5
parliamentary democracy in the British
tradition with an elected House of
1980, Suriname was a functioning
years. There have been six parliamen-
Assembly and nominated Senate. Elec-
democracy with a history largely free of
tary elections since independence. The
violence. The last national elections-and
first five elections were won decisively
tions are constitutionally due every
the only ones held since independence in
by the Peoples' National Movement
5 years and have been free, fair, and
1975-were the parliamentary elections
(PNM), formerly headed by late Prime
keenly contested. The centrist St. Lucia
Labor Party (SLP) won the first
of 1977. The new military government,
Minister Sir Eric Williams. In the
headed by Lt. Col. Desiré Bouterse,
December 1986 general elections,
postindependence election in 1979 but
suspended the constitution and placed
however, the center-to-left National
was brought down by internal squab-
bling and economic decline. The govern-
effective power in the hands of a five-
Alliance for Reconstruction, under the
member military authority, subsequently
leadership of A. N. R. Robinson,
ing United Workers Party, a conserv-
reduced to its current two members. In
resoundingly defeated the ruling PNM.
ative party led by Prime Minister John
August 1985, Bouterse, the chairman of
Compton, won the 1982 elections. The
the military authority, was made head of
Progressive Labor Party, a leftist
government. In January 1985, a
splinter group of the SLP, is the only
31-member National Assembly was
Uruguay
other major opposition group but is seen
appointed; 14 members were nominated
as unlikely to attract any significant
by the military, and 17 were nominated
electoral support.
President,
Nov.
Nov.
by the labor unions and a business
Congress
1984
1989
association. The assembly was tasked
with drafting a new constitution. The
St. Vincent and the Grenadines
military authority announced in
Uruguay has one of the longest
December 1986 that the constitution
democratic traditions in Latin America,
would be ready by March 1987. The con-
and voting is taken very seriously. The
Parliament
July
By
stitution is expected to be submitted to a
advent of military rule in 1973, in the
1984
1989
popular referendum by September 1987.
wake of long-term economic decline and
General elections are scheduled to be
a serious problem of insurgency and ter-
held no later than March 1988. In July
rorism, is seen by almost all Uruguayans
St. Vincent and the Grenadines is a
1986, a new cabinet composed of
as an anomaly in the country's political
British-style parliamentary democracy
representatives of military, labor, and
history. The return to democratic rule,
with an elected House of Assembly
business groups, as well as of the three
marked by the inauguration of President
(lower house) and an appointed Senate
traditional political parties, was
Julio Maria Sanguinetti for a 5-year
(upper house). The country has been an
appointed to implement a program of
term in March 1985, following elections
independent member of the Com-
political and economic reforms. The
in November 1984, was supported by the
monwealth since independence in 1979.
nature of this program has not been
vast majority of Uruguayans. Voter
Elections are due every 5 years and have
further defined.
turnout was estimated at more than 90%
been free, fair, and keenly contested.
of the electorate. The victorious Col-
Five parties contested the 1984 elec-
orados won 41% of the vote, followed by
tions. The two major parties are Prime
35% for the Blancos and 22% for the
Minister James Mitchell's New
Trinidad and Tobago
Broad Front. These parties now hold
Democratic Party and the opposition St.
roughly those same proportionate shares
Vincent Labor Party of newly elected
Parliament
Dec.
By
1986
1992
Trinidad and Tobago achieved
independence in 1962, initially retaining
the British monarch as head of state.
The country became a republic in 1976,
32
Type of
Date of most
Date of
election(s)
recent election(s)
next election(s)
in the bicameral legislature. In addition
Dependent Territories
to the Colorado and Blanco parties, a
third political factor is the leftist Broad
Front coalition, including Christian
Democrats, Social Democrats, socialists,
Anguilla
vote of "no confidence" in August 1986.
and communists.
Elections in September 1986 brought
Chief Minister Lavitty Stout's Virgin
Mar.
House of Assembly
By
Islands Party to power.
1984
1989
Venezuela
The British monarch is represented by
Cayman Islands
Congress,
Dec.
Dec.
an appointed Governor, who presides
President
1983
1988
over an elected Executive Council and a
House of Assembly. Chief Minister
Legislative
Nov.
Nov.
Emile Gumbs led his Anguilla National
Assembly
1984
1988
Venezuela has had a democratic govern-
Alliance to victory in March 1984 over
ment since the dictatorship of Gen. Mar-
cos Perez Jimenez was overthrown in
the opposition Anguilla People's Party.
The Cayman Islands is a British depend-
1958. Presidential elections are held
ent territory with a parliamentary form
every 5 years and are preceeded by
of government. The Legislative
years of campaigning. In the last four
Aruba
Assembly consists of 12 elected
elections, the opposition party has won
members and three official members.
and been duly seated. In the 1983 elec-
There are no political parties in Cayman,
tions, Social Democratic candidate Dr.
Parliament
Nov.
By Nov.
though loosely structured "teams" of
Jaime Lusinchi was elected president.
1985
1989
like-minded politicians have banded
The central government has considerable
together to contest elections. The last
power since state governors are
election took place in 1984. Elections
appointed, not elected. There are
On January 1, 1986, Aruba became an
must take place at least every 4 years.
municipal elections for aldermen every 5
autonomous state within the Kingdom of
years, shortly after the national elec-
the Netherlands. Prior to this date,
tions. Although there are a variety of
Aruba formed part of the Netherlands
small parties, including the Communist
Antilles. The Aruban Government is a
Montserrat
Party, which cover the entire political
parliamentary democracy. General elec-
spectrum, power has alternated between
tions for the 21-member Parliament are
held every 4 years. A free election was
Feb.
By
the two major parties, the Social
Legislative Council
held on November 22, 1985, to choose
1983
1988
Democrats (Accion Democratica) and the
Christian Democrats (COPEI).
the Island Council, which became the
Venezuelans are enthusiastic supporters
National Legislature when Aruba
of democratic elections and encourage
achieved separate status.
Montserrat is a British crown colony.
Elections are held every 5 years. In
electoral activity in other Latin
March 1983, Chief Minister John
American and Caribbean nations with
Osborne was reelected, but his People's
less experience.
British Virgin Islands
Liberation Movement lost two of its
seven seats in Parliament to the opposi-
tion People's Democratic Party.
Legislative Council
Sept.
By
1986
1991
The British Virgin Islands is a British
dependent territory governed by an
appointed Governor and an elected local
government. Former Chief Minister
Cyril Romney's government fell to a
33
Type of
Date of most
Date of
election(s)
recent election(s)
next election(s)
Netherlands Antilles
French Overseas Departments
Staten
Nov.
By Nov.
1985
1989
French Guiana
ment pour la République slates on the
right. Guadeloupe's northern dependen-
cies, St. Martin and St. Barthelemy,
The Netherlands Antilles is an
National
Mar.
By
operate as separate political entities but
autonomous part of the Kingdom of the
1986
1991
retain representation in the regional and
Netherlands. The government is a
general councils located in Guadeloupe.
parliamentary democracy. There are two
levels of government: the central
French Guiana normally holds elections
government and the local governments
every 5 years. It elects one Senator and
of the island territories of Curaçao,
one Deputy to the French Senate and
Martinique
Bonaire, St. Maarten, St. Eustatius, and
National Assembly.
Saba. General elections for the
22-member Staten, or parliament, and
National
Mar.
By
for the Island Councils are held every 4
1986
1991
Guadeloupe
years.
An overseas department of France, Mar-
National
Mar.
By
tinique enjoys an open political system.
Turks and Caicos Islands
1986
1991
In recent years, elections in Martinique
have been highly competitive and often
May
To be
In Guadeloupe, elections are open,
very close, with strong, well-known local
Legislative Council
1984
deter-
democratic, and actively contested by
candidates heading up tickets offered by
mined
parties on both the left and the right.
both the right and the left.
Voter turnout is traditionally low; often
The Turks and Caicos Islands is a British
fewer than 40% of registered voters cast
Crown Colony. The government consists
ballots. As a French overseas depart-
of a Governor appointed by the Queen
ment, Guadeloupe's political parties are
and an 11-member elected Legislative
essentially local versions of those com-
Council. The People's National Party
peting in metropolitan France. Com-
(PNP), headed by Norman Saunders,
munists and socialists compete
won eight seats in the May 1984 elec-
independently of each other on the left,
tion. Saunders was appointed Chief
while disagreements have led to the
Minister but had to resign when he was
formation of separate Union pour la
arrested and subsequently convicted of
Democracie Française and Rassemble-
narcotics trafficking offenses in the
United States. Nathaniel Francis
replaced Saunders as Chief Minister but
resigned in 1986 when a Commission of
Inquiry established by the Governor
"Twenty-five years ago, when the Alliance for Progress was
found Francis and two of his ministers
first launched, the entire hemisphere seemed to discover that
unfit to hold public office. The commis-
there could be no long-term security without economic
sion also found the leader of the opposi-
development. Today, we are learning a new lesson: in addition
tion party to have been involved in a
conspiracy to commit public order offen-
to the nexus between security and development, there is a
ses to overthrow the Francis govern-
second nexus-this one between security and democracy."
ment. As a result of these internal dif-
ficulties, the constitution was amended
Elliott Abrams,
Assistant Secretary of State
by an Order of Council that replaces the
for Inter-American Affairs,
Executive Council, drawn from elected
to the Inter-American Defense
members of the Legislative Council, with
College, Washington, D. C.,
an Advisory Council, nominated by the
June 13, 1986
Governor. The constitution is currently
under review.
34
Additional Information
Recent steps to strengthen the rule of
Report," August 1986. The progress
law in Latin America and the Caribbean
made in one particular case also is sum-
are summarized in U.S. Department of
marized in "Guatemala's Transition
State Special Report No. 145, "Hemi-
Toward Democracy," Public Information
spheric Cooperation in the Admin-
Series, November 1986. Special Report
istration of Justice," April 1986. The
No. 132, "Revolution Beyond Our
role of the military within a democracy is
Borders: Sandinista Intervention in Cen-
the subject of Current Policy No. 844,
tral America," September 1985,
"A Democratic Vision of Security," an
examines in detail the manner in which a
address by Assistant Secretary of State
powerful minority proclaimed itself a
Elliott Abrams before the Inter-
vanguard committed to revolutionary
American Defense College, June 13,
internationalism and sought to under-
1986. U.S. support for democracy in
mine elections and democratic reforms.
Central America in accordance with the
These materials and others on U.S.
recommendations of the National Bipar-
foreign policy and U.S. relations with
tisan Commission on Central America
Latin America and the Caribbean are
(the "Kissinger Commission") is exten-
available by writing to the Bureau of
sively documented in the report to the
Public Affairs, Room 5815A, United
President from the Secretary of State,
States Department of State, Washing-
Special Report No. 148, "The U.S. and
ton, D.C. 20520, or by telephoning
Central America: Implementing the
(202) 647-6575.
National Bipartisan Commission
Published by the United States Department of State Bureau of Public Affairs Office of
Public Communication Editorial Division Washington, D.C. March 1987
Editor: Colleen Sussman
U.S. GOVERNMENT PRINTING OFFICE: 1987-1 81-738 / 40054
35
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