|
|
|
|
|
|
|
|
ROTARY CLUB
San Diego, California
Conference on Poverty in the Americas
November 16, 2002
Good Morning. I would like to thank the Rotary Club for the invitation to speak with you today -- it is a great honor to be here in San Diego. I am pleased to have the opportunity to tell you about the US Agency for International Development. For those of you who are not familiar with us, we are the agency responsible for administering the US government's foreign assistance programs. U.S. foreign assistance has always had the twofold purpose of furthering America's foreign policy interests in expanding democracy and free markets while improving the lives of the citizens of the developing world. Spending less than one-half of 1 percent of the federal budget, USAID works around the world to achieve these goals. USAID's history goes back to the Marshall Plan reconstruction of Europe after World War Two and the Truman Administration's Point Four Program. In 1961, President John F. Kennedy signed the Foreign Assistance Act into law and created by executive order USAID. To put that in San Diego context, that was the year that the Chargers played their first game in Balboa Stadium! Since that time, USAID has been the principal U.S. agency to extend assistance to countries recovering from disaster, trying to escape poverty, and engaging in democratic reforms. In Latin America we have missions in 17 countries which employ both Americans and local staff. USAID has working relationships with more than 3,500 American companies and over 300 U.S.-based private voluntary organizations
President Bush recently said,
"The future of this hemisphere depends on the strength of three commitments: democracy, security and market-based development. These commitments are inseparable, and none will be achieved by half-measures. This road is not always easy, but it's the only road to stability and prosperity for all the people -- all the people -- who live in this hemisphere."
--President George W. Bush January, 2002President Bush has challenged us to make foreign assistance more effective and results-oriented and has announced the largest increase in foreign aid since its creation. I will discuss the important initiatives taken by USAID to improve the way we do business to respond more effectively to the urgent needs of our closest neighbors. I will tell you something about our achievements and goals and the ways you, as people interested in foreign policy, and development policy more specifically, can help USAID to help our neighbors accelerate economic development and solidify democracy.
President Bush's National Security Strategy reflects the urgent needs of our country following the September 11 terrorist attacks. It clearly states that the U.S. Government's aim is to help make the world not just a safer place but a better place. To achieve this goal, the U.S. government, through USAID, is helping to promote political and economic freedom among all nations and especially among our neighbors in this hemisphere with whom we have such strong social and cultural ties. The U.S Government wants our allies in Latin America to have strong economies for their own sake, for the sake of the global economy, and for the sake of global security.
U.S. foreign policy interests in the region include fostering peace, stability and economic prosperity and reducing illegal immigration and the flow of narcotics to the U.S. In Latin America as well as in other parts of the globe, the USAID program supports U.S. foreign policy objectives through activities focused on promoting free trade and equitable economic growth, strengthening and consolidating democracy in the region, fostering responsible management of the natural resource base and promoting quality education and health care. We also provide humanitarian assistance to countries in time of need.
Trade and Economic Growth
Countries in Latin America and the Caribbean have already made important strides towards improving their economies. During the 1990s we saw higher standards of living, a return to positive economic growth rates and a consolidation of macro-economic reforms. As you know the region is currently experiencing economic stagnation for a variety of reasons which vary country by country. But leaders of the hemisphere have chosen to push forward on a path of free trade and are preparing their countries to negotiate free trade agreements including a Central American Free Trade Agreement (CAFTA) and a Free Trade Areas of the Americas (FTAA) Agreement for the hemisphere as a whole. President Bush has made conclusion of these agreements his Administration's highest priority for our region, and USAID's programs will help realize our shared goal and vision of a prosperous hemisphere united by trade and commerce. Increased trade both generates employment and increases job quality, thus raising wages. Since the inception of the North America Free Trade Agreement, employment in Mexico has grown by 28%, compared to population growth of only 11%, generating some 2.7 million jobs.
Our programs are playing an important role in the promotion of international trade by helping developing countries train their business people and their people in government to promote new products and to be part of the international trading system. USAID currently focuses our assistance on trade capacity building activities to help governments throughout the region prepare to negotiate, then implement these free trade agreements.
One-third of the population in Latin America and the Caribbean continues to live in poverty and, of these, over 50% live in rural areas. To foster inclusion of these marginalized populations, USAID is helping farmers increase their competitiveness through programs like our Opportunity Alliance in Central America and the Andean Regional Initiative which aims to improve rural infrastructure and agricultural capacity in the Andean region in order convince farmers to engage in licit economic activities rather than in production of coca or opium poppy.
The private sector's role as an engine of economic growth can not be underestimated. A statistic I find amazing is that previously official development assistance accounted for 80% of funds flowing to the region and the private sector only 20%…..now that is completely the reverse. USAID is changing its business model to adapt to this new reality and is partnering with the private sector to achieve common development objectives. More than $23 billion annually is sent in remittances by private citizens from the United States and other countries to points all over Latin America. Because those making these transfers often do not make use of formal financial institutions, as much as 15% of what is sent is lost to intermediaries in the form of transaction costs. USAID is working to lower these transaction costs, so more money sent as remittances actually reaches beneficiaries. USAID is seeking creative ways to encourage those who receive remittances use that money productively, for savings and investments, and not just for consumption.
Democracy
In addition to advances in the economic sphere, during the 1990s we witnessed progress in democratic governance in the Hemisphere including credible and successful elections that brought transitions of power from one democratically elected government to another.
We have to be realistic in foreign policy and in development assistance. Without strong, democratic political leadership in a developing country, development will not prosper. I want to emphasize this. Stable, honest, democratic Governments increase dramatically the prospects for success in development.
In the political arena, all the countries of the hemisphere save Cuba joined the community of democracies by the 1990s. This was a major achievement after the military and leftist dictatorships and the civil conflicts of the 1970s and 1980s. USAID has made significant progress in building the institutional foundation that has been essential to the successful development and functioning of democracies. In the areas of justice reform and rule of law, transparency and anti-corruption and local government and civil society strengthening, USAID has helped develop the building blocks and constituencies for democracy and good governance in the region.
Despite this impressive progress and 10-15 years of democracy, some countries its state is very fragile. Threats to democratic stability include little change in poverty rates and unemployment; increased crime and violence, that many democratic governments have been ill equipped to restrain, often due to poor economic conditions; and wide-scale corruption and the lack of transparency and accountability. Surveys of democratic values conducted in several Latin American countries indicate that, while governments remain committed to democracy, citizens who are crime victims or who have been disadvantaged by poverty and corruption have less confidence in democracy to solve their problems.
The hemispheric commitment to democracy remains high with the commitment by many leaders to an ambitious democratic reform agenda. So far, democratic systems have persisted even in the face of severe economic crises. However, economic downturns, internal conflicts such as the protracted struggle in Colombia, and high crime levels threaten the success of many of these democratically elected governments. USAID is encouraging judicial reform, support for the rule of law, and programs to give minority ethnic and racial groups and other underrepresented groups such as Afro Latinos more of a voice in their respective societies, all as a means of ensuring these fragile democracies survive. USAID is also working to root out corruption which debilitates so many institutions and weakens government services in so many of the countries of our region. USAID understands that investments in democratic consolidation require a long-term commitment to help change political cultures, institutions and practices, and we are in for the long haul.
Today, the foreign policy institutions, USAID included, are focusing more attention on the accountability of institutions in process of democratic governance. The problem of corruption in large parts of the developing world is more debilitating than almost any other problem they face. Some countries have had such high levels of extortion by predatory governments that large parts of the gross national product simply get diverted and never appear to the people in terms of services or growth or infrastructure.
Natural Resources
The World Bank estimates that poor environmental policies and management cause a four to eight percent drag on gross domestic product. Poor environmental management also creates conditions that worsen the impact of natural disasters. Many of the region's economies depend heavily upon the natural resource base particularly in the Caribbean. Continued over-exploitation and mismanagement not only threatens the natural resource base but directly reduces economic opportunities and propels people to migrate to seek their fortune elsewhere, often to the U.S. USAID addresses these challenges in by working to protect bio-diversity and provide employment opportunities to local communities. USAID also supports environmental partnerships to sponsor the use of technology for pollution prevention and clean production, and projects in water and sanitation.
Health and Education
A top concern of U.S. foreign policy has been the scourge of HIV/AIDS worldwide. USAID addresses the many development issues that cross national borders such as HIV/AIDS and other infectious diseases. We work to share best practices, establish regional networks for human rights and local government, and share information among countries. Due to the proximity of our Latin American and Caribbean neighbors and the increasing pace of migration and of travel between the U.S. and Latin countries, infectious diseases, including HIV/AIDS and tuberculosis, are of special concern to the U.S. In response, USAID works in many parts of Latin America and the Caribbean to prevent the spread of HIV/AIDS and tuberculosis through education, detection and more effective treatment.
USAID has made significant progress in increasing the access to education particularly at the primary level. In 1992, the net enrollment rate for primary school for the Latin America and Caribbean region as a whole was 87.5%, though gross inequities existed between countries. By 1998, with some help from USAID, the net enrollment rate in Latin America and the Caribbean had increased to 97%, showing that the region is approaching universal primary coverage. We continue to stay the course to assure that in an economically integrated hemisphere, everyone has the opportunity to acquire skills to fully participate in an increasingly global economy.
Humanitarian Assistance
In addition to helping countries develop democratic free market systems that allow social progress and political stability, the U.S. government also must be prepared to step in to help in times of emergencies, whether natural or man-made. Humanitarian assistance is the visible expression of the humanitarian impulse in the American people, it is the ethical dimension of our Nation, our people, and it shows both the pragmatic and the altruistic side of to American character. As you know, whenever there is a natural or man-made disaster--floods, famines, hurricanes or earthquakes--it is almost always the United States that shows up first and provides the most. This is true even in countries where we have no diplomatic relations and might even be regarded as our adversaries. This assistance is provided by USAID.
Future Outlook
Back to our hemisphere, despite recent achievements, more work remains to be done. Recent events - the drastic fall in the world's coffee prices and the subsequent economic consequences for Central America, the financial crisis in Argentina, the civil conflict in Colombia, increasing levels of crime and terrorism and border disputes - are having profound effects on people's income levels in the region and lowering the quality of life. These stresses contribute to increased illegal immigration into the United States, increasing rates of HIV infection, as well as to the drug trafficking which so debilitates both our society and those of our neighbors in the region. Clearly, an effective U.S. Government response is urgent.
As part of this response, on March 14, 2002, President Bush made a major statement on foreign assistance and its importance to the national security and foreign policy interests of the United States. He announced that the United States will increase its core assistance to developing countries by 50% over three years. In his speech, the President announced creation of a $5 billion Millennium Challenge Account. This represents the largest planned increase in foreign assistance in the last four decades.
The President stated clearly the new funds would be available to countries, including those in Latin America and the Caribbean, that show progress in ruling justly, which provide their citizens with economic freedom and which invest in their own people. The funds will be used to root out corruption, increase respect for human rights, and strengthen the rule of law. Aid from this account will flow to those countries which invest in their people through education and health care. Aid will be provided to countries that introduce sound economic policies through open markets, individual entrepreneurship and sustainable budgets. The goal of the Millennium Challenge Account is to reward sound policy decisions that support economic growth and reduce poverty.
Since 9/11, the American people now fully understand and appreciate the value of foreign assistance. The U.S. Government will continue to promote economic growth in Latin America. USAID will continue expanding trade and private investment that are the primary engines of economic growth. USAID will help to alleviate poverty, improve education, protect the environment, strengthen democracy and improve people's access to quality health care.
Few development programs are successful without dynamic partners. We are working closely with businesses, non-profits, universities, foundations and private voluntary organizations to complement work with host country governments to better achieve our overall goals. USAID needs your help with this effort. USAID needs you, as leaders of the community, to use your entrepreneurial spirit, your innovative thinking and work with us to realize our shared goal to promote economic growth and alleviate poverty in Latin America and the Caribbean.
Thank you.
 |
|||
|
