The Honorable Kenneth Valley, Minister of Trade and Industry of Trinidad and Tobago,
Dr. Bhoendradath Tewarie, Pro Vice-Chancellor, St. Augustine Campus of the University of the West Indies,
Representatives from the Corps Diplomatique,
Representatives from international and regional organizations,
Specially Invited Guests,
Ladies and Gentlemen:

Over the past 25 years the world has changed fundamentally and dramatically.

• Old paradigms no longer apply;
• Traditional centers of power are shifting;
• State-to-state relationships are evolving in unexpected ways;
• Trading systems are being transformed;
• National borders are increasingly porous;
• National and global security is inextricably linked;
• Technology has democratized access to information and upended traditional notions of competitiveness and productivity.

Indeed, we live in a world of uncertainty and insecurity, in the realization that nobody really knows where we are heading to.

Ladies and Gentlemen, our own Hemisphere has changed as well. Just to mention a few of these developments:

• Democracy has been established throughout the Americas, but it is still in a flux of challenge and survival, not having delivered on its expectations and promises;
• Areas of conflict between and within OAS member states persist even as there is a strengthening and deepening of relations;
• Political and social unrest in one country threatens the stability of neighboring countries, bringing to the fore regional security as a critical challenge and objective;
• Environmental degradation in one country harms the ecosystem in others.
• Corruption, crime and health challenges, among other problems, challenges the very social fabric of societies, inhibits economic growth and investment in countries.
• At the same time we observe that traditional barriers of language and distance are giving way to greater contact and cooperation in the Americas.

It is increasingly clear that the national, the regional and the global can no longer be cleanly separated. Even as countries pursue their own agendas, there is at the same time a convergence of interests, in many areas. Changes in perception and strategy are therefore necessary.

Today, at this conference, we acknowledge this reality and we join to chart a new course for the nations and peoples of the Americas. I wish to thank the organizers of this important debate for inviting me and OAS to participate, and also to congratulate you with your strategic insight in bringing this wealth of knowledge, experience and skills together to strategize and learn from the analysis of yesterday’s and today’s developments in charting the way for tomorrow and the future.

The OAS Agenda

Indeed, the boldness of the objective inherent in the conference topic, “Re-Mapping the Americas,” suggests a break from the traditional and a willingness to forge new paths.

Many of the issues that you plan to address over the next couple of days are ones with which the Organization of American States grapples on a daily basis.

Trade, governance, security, the environment, health, cross-cultural communication, multilateral cooperation, change management, education and development writ large -- all the issues that you will confront in one way or another and from different perspectives – are all topics that confront our 34 Member States.

At the OAS, we too are going through a period of change. I am proud to be a part of this new leadership. We are charting a new course that brings a reinvigorated holistic approach to the hemispheric agenda, an approach that emphasizes strategic partnership, constructive action and measurable results.

I believe that those of you assembled here today are likewise working toward an approach that goes beyond ideology and focuses on action.

I believe in a Western Hemisphere of nations where advancing the national interest is a priority and promoting the hemispheric good is the norm.

In this vision of the Americas, the OAS plays a key role as a neutral arbiter and strategic partner.

The OAS, the oldest regional organization in the world, is the single most important platform for political dialogue and consensus building in the Americas. Through its unique convening power, it is able to provide leadership in the inter-American system by bringing together 34 Member States from this Hemisphere; 62 Permanent Observers from Europe, the Middle East, Asia and Africa; as well as international organizations and specialized agencies to give political momentum to critical areas in development, democracy and security.

For me, it is particularly important to preserve the political and institutional integrity of the OAS, by maintaining consistency in its political resolve and action, improving institutional efficiency, and facilitating the development goals of the democratic community of nations of the Americas.

However, even as we address issues of regionalization and globalization, it is abundantly clear that the ability of countries to provide opportunities for its citizens to realize their full human potential lies at the root of development.

At the OAS, we support an integral and integrated approach to development that combines governance, economic, cultural, social and environmental issues. However, it is clear that for all sectors and groups to reap noticeable gains from the fruits of development and democracy, there must be significant improvement in the ability of states, especially small states, to benefit from market reform and economic liberalization policies and to deliver those benefits to their people. By rethinking all of these issues and indicating your willingness to propose new concepts and recommendations, you have identified yourselves as not only participants in change but, more importantly in my view, also as agents of change.

As you meet here today, you have the potential to seize yet another opportunity to influence change; to draw attention to major issues on the inter-American agenda; and to highlight those areas that affect the daily lives of all our brothers and sisters in the Western Hemisphere, and inform and guide the political leadership of the Americas.

I speak, of course, of the IV Summit of the Americas.

This year’s Summit, hosted by Argentina, will commence 16 days from now and will revolve around the theme, “Creating Jobs to Fight Poverty and Strengthen Democratic Governance."

The OAS and its Member States firmly believe that movement toward the realization of these objectives is both necessary and urgent. If development is to be inclusive then economic reforms, trade agreements and business initiatives must provide benefits that are accessible to all.

Seventy percent (70%) of the world's poor live in rural areas. In our Hemisphere, this population includes large numbers of traditionally underserved communities including indigenous peoples, youth and women. Almost 240 million citizens of the Americas have to survive on less than a dollar a day. Every year some 8 million people die because they simply are too poor to survive from today to tomorrow.

And we can continue citing statistics to illustrate the imbalances in the world and in our region, but the most important point is: sincere political commitment and dedicated action is required to create sustainable economies and stable democracies.

It is in that spirit that I call on you -- members of civil society, the private sector and academia -- to join with us as partners. Together we have the knowledge, expertise and capacity to act in concrete ways to build a new Americas with opportunity for all.

Development, Governance and the Battle against Poverty

At the OAS, we believe that further economic integration and trade liberalization hold great promise for the nations and peoples of our Hemisphere. However, we are fully aware that development that focuses only on the economic is by definition deficient. Growth that does not share benefits is not sustainable. We also can not allow that in the name of these objectives individuals, groups and countries are socially or economically marginalized. A balanced approach is therefore required, providing for special and differential treatment of vulnerable economies.

We applaud the spread of democracy in the Hemisphere. However, all of us are painfully aware that countries have not always been successful in delivering the promised fruits of democracy and economic reform. This failure, in turn, threatens the social and political fabric, and creates unstable environments that undermine the ability of governments to govern. Recent surveys in Latin America reveal that almost one half of the population expressed disappointment in their young democracies and do not experience the results of the relationship between democracy, stability and development.

High unemployment remains persistent in several countries, poverty levels are on the rise in both rural and urban areas, acts of terrorism at different level, crime -including gang violence, illegal arms trafficking and kidnappings- is increasing, and pockets of social and political unrest are emerging.

Like in the case of corruption, it is of utmost importance that Governments and other relevant authorities tackle the disturbing increase of criminal activities effectively, and provide an acceptable level of security and safety to its people. The OAS continues to be concerned about the crime levels in the Caribbean and Central America, which have adverse effects on the political stability and economic outlook in these societies. This level of frustration and public skepticism is troubling and indeed it is a responsibility of all to “unite against crime”, not only here in Trinidad and Tobago, but in the Americas in general.

We have to realize that the results of democratic weaknesses, governmental inefficiencies and in abilities, economic crises and social unrest will ultimately result in problems for all, as many of our challenges and problems are inter-related and internationalized, and therefore we are bound to demonstrate collective responsibility and solidarity to preserve political stability, democracy and rule of law!

Indeed, democracy in the Americas is in crisis in several countries and tentative in others. But, is democracy failing? I personally do not think that democracy has failed.

Sometimes politicians fail and o not deliver. Weak institutions often fail to deliver. The business community fails if it does not demonstrate corporate and citizen responsibility and commitment. But citizens also fail; fail to demand accountability and transparency, fail to hold politicians to their electoral promises, fail to be engaged and fail to participate fully in the national discourse.

When democracy falters and governance is threatened, it is not simply the fault of “the Other.” We all feel the impact. Building and strengthening democracy to safeguard the rights of all and promote the development and wellbeing of its citizens is a collective responsibility.

Strategic Realignment?

Ladies and Gentlemen, I would suggest that the fundamental question is not whether the most effective path toward integral development is through a process of globalization, regionalization or the FTAA. All of these processes are happening simultaneously. As we move toward increased trade and integration, there must always be room to consider such important questions as: Who benefits? How do they benefit? How can we make growth more equitable? Are there basic provisions that incorporate special and differential treatment for more vulnerable economies?

In addition to the agreements currently being negotiated, there are now over 40 trade agreements in the hemisphere. This creates its own set of challenges as countries determine how to make this complex set of trade agreements compatible. Smaller economies find their human, financial and institutional capacities stretched as they try to participate in simultaneous negotiations with different groups on different issues.

Fundamentally, however, what we are seeing in this plethora of trade agreements, whether bilateral or multilateral, is realignment – an almost organic remapping of alliances, partnerships and strategic interests.

The strengthening of relations between the Caribbean and Latin America, a key aspect for integrating the Americas, is on the rise. The insertion of two CARICOM member states (Guyana and Suriname) in the Community of South American Nations adds an encouraging dynamic to CARICOM’s integration. Belize’s membership in both CARICOM and the Central American Integration System (SICA) realizes the same dynamic in the Spanish sub-regional integration process, while the Dominican Republic aspires a bridging role between CARICOM and Central America.

Just recently, Chile and Antigua announced plans for technical cooperation on agriculture. Brazil and Jamaica have signed an agreement whereby Brazil will provide technical expertise and other support to assist Jamaica in developing its ethanol production capacity. Guyana and Suriname have a longstanding relationship with Brazil, Venezuela and other neighbors in South America and have established political, economic and migratory links.

New Challenges: Security and Development

The growth in inter-regional cooperation is evident in other areas as well. In 2002, the OAS General Assembly adopted the Declaration of Bridgetown whereby countries of the Hemisphere proposed a re-definition of the concept of security to include its multidimensional nature.

Multi-dimensional security encompasses new and non-traditional threats, including political, economic, social, health and environmental challenges. It also views threats through a three-way dynamic that incorporates inter-state, intra-state conflicts and transnational threats. These range from armed conflict to terror threats, territorial disputes, socio-political conflicts stemming from corruption and organized crime, trafficking in persons, cyber crime, gang violence, and natural disasters.

The range of security concerns emphasizes the urgent need for sustainable solutions to international and national disputes, as well as transnational threats. The effective handling of these threats is of paramount importance if the region is to see real and tangible social progress, economic development and democratic governance.

Let me draw your attention for a moment to one of the major issues on the hemispheric and global agenda at this moment. I speak of natural disasters.

This has been a difficult summer and a devastating year in terms of natural disasters. Let me publicly express once again my deep sympathy and support to the people of El Salvador, Guatemala, Honduras, Mexico, Grenada, Jamaica, the United States, Southeast Asia, and other areas that have suffered from hurricanes, floods, mudslides, earthquakes and volcanic eruptions.

The issue of natural disaster reduction, preparedness, mitigation and risk management are intricately woven into the fabric of economic growth and sustainable development. Unfortunately, the prognosis from disaster experts suggests that the frequency, scope and impact of these occurrences are likely to increase. Therefore, it is imperative that sectoral, national, regional and multilateral projects incorporate disaster preparedness and risk reduction into the development agenda from the earliest stages. There is no doubt that prevention by putting in place and enforcing risk reducing measures is ultimately less costly than reconstruction!

In my view, the upcoming Summit of the Americas provides a unique opportunity for political leaders to give comprehensive attention to the long term social and economic effects of natural disasters. It may be time to put in place a hemispheric disaster relief fund to effectively fund the short term emergency relief, as well as the economic reconstruction in the longer term.

The leadership of the OAS is committed to strengthening the mechanisms within the inter-American system to make it more supportive and responsive to national policies geared toward preparedness, response and recovery. The General Secretariat of the OAS has convened a series of meetings among responders within the inter-American system with the aim of ensuring that in the near future the Hemisphere would have a permanent inter-American committee that will work with OAS member states to provide timely information, identify resources and harmonize guidelines.

By developing this proactive and coordinated approach, the international community will be able to work with governments, financial institutions, insurance companies, builders, farmers, telecommunications companies, energy providers and others to incorporate disaster mitigation, preparedness and response into their business plans. This approach represents an integrated strategy that draws together different actors at the community, state and multilateral levels.

It is a new strategy that will use the power of partnership to reduce risk by building long-term capacity and expertise, ensure quicker and more effective responses when disaster strikes and reduce recovery time for affected sectors.

A New Trading Regime

The ability to respond effectively to challenges and recover in a timely manner is particularly important in the current global climate.

By some measures, generally the region’s ability to compete in the global economy has been on the decline. Smaller economies can no longer depend on aid. Adjusting to aid reduction has been difficult for many less developed countries. While aid reduction is regrettable, it is important to bear in mind that aid does not always result in development and growth.

Between 1990 and 2002, China received $26 per capita in foreign aid and their GDP grew to $2572 per capita. Compare Zambia with foreign aid per capita over the same period at $1124, yet GDP per capita declined to $141. Clearly, other capacity and institutional prerequisites must be present for aid to work effectively.

However, at the same time that foreign aid is declining, trade preferences are being eliminated, creating yet another challenge for developing countries. The economies of the banana producing countries of the Windward Islands have been left reeling partly as a result of the loss of trade preferences. St. Kitts and Nevis has just ended the cultivation of sugar after 300 years as that sector had become unsustainable.

Two weeks ago, I had the opportunity to address delegates at the Caribbean Week of Agriculture. Agriculture has long been and will continue to be a major economic pillar for many countries in the Hemisphere. However, this sector has been particularly vulnerable to many of the reforms and revamped trading arrangements in the international system. The mood at the meeting was sober but there was also palpable energy as delegates sought to refocus and rethink the way that agriculture is conceptualized, practiced and marketed.

Indeed, as participants tackled issues of agro-energy, agro-biotechnology, agro-biodiversity, agro-tourism and food security, the strategic vision that emerged in many ways suggested a “re-mapping” of agriculture.

Similarly, I am of the view that the time is right to rethink trade priorities and objectives. Development must be at the core of trade negotiations and key to the formulation of the economic agenda. Poverty reduction, social responsibility and access to opportunity cannot be divorced from the trade and economic agendas.

With this in mind, the OAS is working with Member States to develop a Social Charter of the Americas that will address extreme poverty, inequity and social injustice, among other topics as integral areas in the pursuit of hemispheric development. The gap between the economically advantaged and the economically marginalized, the haves and have-nots, is widening. The reasons for this phenomenon and prescriptions for remedying this unwanted outcome should be on the agenda at negotiating tables, and addressed in the programs of multilateral institutions and lending agencies.

For almost two years, the FTAA negotiating track has been stalled. With the current stalemate we do not know the future of this initiative, but it has also stalled consultation between hemispheric partners on trade and economic issues. Issues related to investments, trade facilitation, exchange of information and best practices, vulnerability, and technical assistance, among other areas, have been left uncompleted and should be revitalized. I believe members states should consider the convening of meeting of ministers of commerce to discuss collaboration.

I believe that the OAS is well placed to create the space for policy dialogue in this area. From the 1970s and up until the launch of the FTAA negotiations, the OAS has played a critical role in the regional debate on trade and development, and under the still existing Special Committee on Trade these issues were debated.

I believe it is time for the OAS to provide this space again and to lead the process beyond discussion and beyond negotiations.

At this time, the OAS and partner institutions in the inter-American system must focus as well on providing support for capacity building initiatives. We must assist countries with training, identifying and accessing resources, sharing of best practices and implementation of projects that can stimulate growth and competitiveness.

Ladies and Gentlemen, the message is this: Change is inevitable. The ability to respond to and manage change will be determining factors for success. The trading regimes of the last century will not return. Business as usual is no longer an option.

CARICOM has recognized this reality. CARICOM’s move toward the establishment of a Caribbean Single Market and Economy (CSME) is a pragmatic strategy to mitigate the constraints of size and capitalize on combined strengths and capacities.
This agreement which will, among other things, allow for the free movement of skilled services and labor among 13 member states by January 2006 is a major step toward establishing an agenda for change and survival.

The ability of Latin American and Caribbean economies to grow in the face of competition from China, India and other areas with low-cost production will be a challenging and complex proposition.

An Agenda for Change

Ladies and Gentlemen, the world and our Hemisphere have indeed changed. These dynamics have added new challenges to existing ones, but have also opened up opportunities. We live in a hemisphere that is far from homogeneous: what is relevant to Central America may be different from the interest of the Andean Community, and their objectives may be quite different from what the Caribbean Community aims at. These are realities we have to accept and translate into our policy making.

At the same time all these countries and sub-regions compete for political opportunity, funding, negotiating power, expertise and economic opportunities and market access, and these dynamics take place in an increasingly inter-dependent Americas.

Multilateralism is an important vehicle for addressing shared problems and these are increasing.

So the million dollar question is: how do countries and sub-regions take advantage from these dynamics and use it to strengthen their democracies and economies?

In closing, allow me to draw your attention to some items for an agenda for change:

1. In the Americas of the 21st century, there will likely be increased competition for influence in the Western Hemisphere. We recognize that international relations and diplomacy have changed in its nature, in its conduct and in its objectives, and that this process will continue to evolve. For countries and groups of countries it is of critical importance to demonstrate an in depth analysis and understanding of the driving forces and interests behind these dynamics. I believe that universities and think tanks can facilitate this process and provide the necessary policy guidance to governments.

2. This understanding and the domestic opportunities and strengths should translate into a strategic foreign policy, using every opportunity to insert the identified political and economic agenda in hemispheric and global negotiating processes.

3. In isolation no country can strengthen their economies and political systems, so building strategic political and social partnerships is of critical importance and an important tool in the foreign policy strategy.

4. Promoting communication and understanding between the peoples of the Hemisphere should be enhanced. Promoting knowledge and respect for each other builds understanding, reduces conflict and bolsters stability.

5. We should reform legislation to strengthen the institutions that safeguard democracy, human rights, and the rule of law, ensure transparency, accountability and good governance.

6. We should also seek to strengthen the inter-American system to make multilateralism work more effectively by defining a specific and clear mandate for organizations in developmental and political processes in the hemisphere. The OAS is ready to be a full partner in this regard and is already working to strengthen cooperation and consultation with global and other regional organizations for the benefit of the Hemisphere.

7. I call on governments to invest in education and make it a stronger priority. The private sector must be willing partners in this regard, providing internships, assisting with training, and supporting entrepreneurship and innovation. Instruction offered by institutions of learning must be responsive to market needs, providing the training, skills and values for the upcoming generation to realize their full human potential and to prepare them to become entrepreneurs and knowledge workers. The importance of education cannot be overstated when you consider that approximately 40% of the population in the Americas is under 30 years of age. These are the workers and leaders of the 21st century. Educating this and future generations, and equipping them with the tools for a changing world, is our ultimate responsibility.

8. Partnerships at regional, state and community levels will be essential. The practice of statecraft will undergo a sea change. The Caribbean Single Market and Economy (CSME) is a bold step on this new path. In this new environment, governments must work with the private sector and civil society to advance a comprehensive development agenda.

Currently, upon the initiative of the Argentine business community, a Permanent Private Sector Forum has been created with engagement of all sub-regions. This Forum will provide the business community with an opportunity to contribute ideas and initiatives that pursue the goals of prosperity and development in the Hemisphere. The forum is also intended to create public-private initiatives to promote job creation and assist member countries in delivering the benefits of democracy. Similar partnerships at the national level will create buy-in, bolster public confidence and enhance the ability to deliver on development initiatives. The first meeting of this Permanent Private Sector Network will be held on 2 and 3 November in Buenos Aires, Argentina.

9. Inter-sectoral linkages (for example, between agriculture and tourism) should be strengthened to take full advantage of productive capacity, inherent synergies and expanded market potential.

10. And finally, keeping current with innovations in technology is essential for competitiveness and reducing the digital divide. In addition, technology is a growth area that offers opportunities for entrepreneurs and smaller economies.

Once again, business as usual cannot be an option, creativity and a mentality of thinking outside of the box will be required, governments will have to be alert in ceasing opportunities; and therefore I look with much interest to the deliberations over the coming two days and to the results of your brainstorming.