ICDT and UNDEF
Budapest - Hungary
April 23-24, 2007


Mr. Lazlo Szoke, State Secretary, Ministry of Foreign Affairs of Hungry,

Mr. Vida Helgesen, Secretary General of International IDEA,

Ambassador Istvan Gyarmati, Director of the International Centre for Democratic Transitions,

Mr. Magdy Martinez Soliman, Executive Head of the UN Democracy Fund,

Distinguished Ambassadors and members of the European diplomatic community,

Representatives of national, regional and international organizations,

Ladies and Gentlemen,



Introduction:


The political landscape of the Americas has been changing dramatically over the past decades. But, recently there was a significant turnover in the political leadership of the Hemisphere, as 13 countries underwent presidential/prime minister elections and several legislature and municipal elections were held across the various subregions.

It is indeed an interesting time for reflection on the state of democracy and the future of the democratic model of governance in Western hemisphere and across the globe. I firmly believe the time has come to review the gains and lessons learned of the last 25 years in democracy building. Certainly, the Western Hemisphere has gained much in terms of democratic governance, representative electoral democracy, economic development and human rights. But, as we witness the growth of civil unrest within nations and the lack of respect for human life; we realize there is much more work to be done. Therefore, I very much appreciate the opportunity to listen to experiences from other parts of the world.

A quarter of century has passed since Latin America began what has been considered one of the most comprehensive and enduring experiences it has had with constitutional democracy. Many of you who have followed the developments in the Hemisphere will recall how dictatorships were the norm in the 1960’s and 1970’s. In the 1980’s the democratic landscape was bleak. Authoritarian governments had not been able to implement the far-reaching economic and political reforms, which they promised when seizing power at a time of political polarization and open conflict. Central America was in the throes of civil wars, while Colombia was racked by the growing power of international drug cartels that operated with impunity while drawing armed insurgents into the business. Unresolved border disputes threatened international peace, and standards of living declined in the wake of the international debt crisis.

Today, we see a very different political landscape, a more stable and dynamic one, in which democracy, with all its advantages and limitations, is now the government of choice throughout the active membership of the OAS.
Some analysts in recent times have been somewhat pessimistic about the process of democratic consolidation in Latin America. But it is important to revisit history and observe how the democratic trends of the past two decades exceed in breadth and duration all previous waves of democratization in Latin America.

As history has shown, between 1930 and 1980, the 35 countries that make up Latin America and the Caribbean underwent 277 changes of government, 104 of which (or 37.5%) took place via military coup d’état. From 1980 to 1990, by contrast, only 7 of the 37 changes of government in the region took place through military interventions, just two of which can be described as anti-democratic in intent. The coups of the 1980’s were confined to just five countries: Bolivia, Haiti, Guatemala, Paraguay and Suriname.

When Argentina initiated its transition to democracy in 1982, only Colombia, Venezuela and Costa Rica had established competitive and multi-partisan democratic regimes. By 1991, eighteen of nineteen countries in Latin America had conducted democratic elections. In 1989, Argentines witnessed the country’s first transfer of power from one civilian chief executive to another in more than sixty years. In 2000, Mexico marked its emergence as a multiparty democracy after more than seven decades of one-party rule.

In most Latin American countries, the transition from authoritarian to democratic rule occurred through elections. Much of the work and emphasis of the Organization of American States and other international institutions during the late 80s and the 90s was, therefore, on assisting newly installed democracies strengthen their democratic institutions, and in particular, their electoral systems.

Today, while an unprecedented number of countries in Latin America can be considered formal or procedural democracies (meaning that they hold regular, competitive elections), most have yet to consolidate the substantive aspects of democratic governance. The failure of the region’s democracies to deliver tangible improvements in the quality of life for their majorities has translated into a growing dissatisfaction with democracy and readiness to question the benefits and performance of democratically-elected governments.

The bottom-line is that democracy needs to deliver more than just free and fair elections to the 220 million of the region’s 800 million inhabitants, who live in extreme poverty and in a region with the highest level of income inequality in the world.

Recently, the euphoria associated with the wave of democratization that swept through the hemisphere in the last decade or so has been tempered by the realization that poverty rates have not declined appreciably.

Much of the discontent expressed by citizens relates to the perception that benefits of development are not equitably distributed. The issue therefore is not just poverty but also inequality, both of which generate demands that affect governance. There are indicators which suggest a growing impatience with the limited impact of social and economic progress at micro levels. This challenge has long been recognized and was clearly articulated in the OAS Declaration of the Inter-American Program to Combat Poverty and Discrimination which noted that, “Economic growth is a fundamental condition, but not sufficient, to promote a better quality of life, overcome poverty, and eliminate discrimination and social exclusion.”

However, there are signs of progress. In 2004, the Region experienced the highest growth in twenty years. In 2006, the GDP growth in Latin American region averaged 4.4% and is predicted to slow down to 3.7% for 2007. The pace of growth is modest by global standards but is still considered strong compared with the region’s growth path over the past decade. Second, most democratic setbacks have resulted in institutional changes that adhere to democratic norms and constitutional procedures. Third, public opinion polls throughout Latin America and the Caribbean show that, despite its shortcomings, democracy remains the government of choice in the hemisphere.

In the annual Latinobarómetro, for example, an established policy research company, citizens show a marked support for democracy over authoritarian rule. When asked, however, if they are satisfied with the results of their democracy, respondents indicated high levels of dissatisfaction.

As democracies are being consolidated, citizens in many countries feel empowered to use their freedom of expression to hold elected governments accountable, to demand growth that includes employment and poverty alleviation as intrinsic components. In short, as national dialogues have intensified and hemispheric discussions have advanced, there is consensus that delivering the benefits of democracy must become integrated into governments’ strategic objectives.

This process requires transforming systems of governance so that basic needs are met, equal access to the rule of law is provided and competing interests are resolved peacefully and transparently rather than through violence. Strong leadership, sound state institutions and political will of key political and social actors are critical for engineering such a transformation.

Clearly, this is a Hemisphere of nations in search of a strategy that offers the most effective mechanisms for advancing development in order to lift large portions of the population out of poverty.

The analysis of United Nations former Secretary General Kofi Annan which posits that “good governance is perhaps the most important factor in eradicating poverty and promoting development,” is indeed apt. As the nations of the Americas grapple with issues of governance and poverty reduction, it is increasingly clear that an integral and integrated approach to development must combine governance, economic, security, cultural, social, technological and environmental issues.

The commitment of the OAS toward promotion and defense of democracy:

The OAS, through successive mandates, summit agreements, and most recently the Inter-American Democratic Charter, is adapting its institutional initiatives to respond to the new needs and demands of Member States in the areas of justice and security, development, and democracy. At the crux of this process is the need to develop new paradigms for a more advanced form of collaborative democracy that fosters the peaceful resolution of disputes, consensus building and cross-sector collaboration in the development of participatory public policymaking.

As the first regional organization to identify the defense and promotion of democracy as one of its fundamental purposes, the OAS has established itself as a leader in this arena. Meeting in Bogotá, Colombia in 1948, representatives from 19 Latin American countries, the United States and Haiti enshrined democracy as a guiding principle of the Organization in its founding charter. A 1985 amendment characterized democracy as “an indispensable condition” for the stability, peace and development of the region and included the promotion and consolidation of representative democracy among the essential purposes of the OAS. Further changes incorporated in 1992 called for the suspension of governments that attain power through undemocratic means.

In 1993, the Managua Declaration directly called for a more explicitly preventive role on the part of member states. Specifically, the Declaration announced the “conviction that the Organization’s mission is not restricted to defending democracy wherever its fundamental values and principles have collapsed, but also calls for ongoing and creative work to consolidate democracy and a continuing effort to prevent and anticipate the very causes of the problems that work against democratic rule”.

The 1991 “Santiago Commitment to Democracy and the Renewal of the Inter-American System,” more commonly known as “Resolution 1080,” was the precursor to the Inter-American Democratic Charter. The approval of this extraordinary, seminal document manifested the near completion of the “third wave of democracy.”

Drawing on the lessons of the recent past, Resolution 1080, called on the Secretary General and the OAS states to take decisive action in the case of an interruption of the constitutional order. This resolution attempted to back up the rhetoric of 1948 with concrete actions and was invoked on four separate occasions: Haiti (1991), Peru (1992), Guatemala (1993), and Paraguay (1996).

Member states reaffirmed their commitment to the defense and promotion of democracy on September 11, 2001, when they unanimously approved the adoption of the Inter-American Democratic Charter. The 28 articles provide a comprehensive definition of the essential elements for democracy -- previously characterized by the conduct of elections -- and endow the OAS with strengthened mandates to promote and defend democracy in the hemisphere.

The Democratic Charter presents a more holistic concept of democracy; it recognizes that democracy can be threatened from gradual deterioration as well as sudden shocks; and it provides renewed mandates to engage in countries before political developments reach the crisis stage. Most importantly, though, the Inter-American Democratic Charter reinforces the commitment of the 34 countries of the hemisphere to the centrality of democracy in efforts to improve the lives of all citizens.

Finally, the Inter-American Democratic Charter provides a more nuanced and less burdensome mechanism for hemispheric action in addressing potential crises of democratic governability in a timely manner.

In 2005, the Organization of American States (OAS) deployed Special Missions to Bolivia, Ecuador, Haiti and Nicaragua in response to requests for assistance from each government to help address real or potential situations of political and/or institutional crisis of various types. These experiences highlight the important role played by the OAS in fulfilling hemispheric mandates regarding the implementation of initiatives designed to respond to ongoing or potential political and/or institutional crisis, as well as assisting member states in the prevention and resolution of conflicts.

The recognition that many states in the Western Hemisphere require assistance with institutional reforms to help ensure the primacy of the rule of law and the democratic framework within which freedom and socio-economic development can flourish has been an important element in the formulation of the current strategic plan of the OAS.

Since 2005, when SG Insulza and I were elected, the OAS has made an concerted effort to work with member states to develop and support a more 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.

There is strong recognition, now; within our Organization that development that focuses only on the economic aspect is by definition deficient. Growth without equity is not sustainable, and will ultimately undermine the quality of democracy and the ability to govern.

Meeting the challenges of democratic Governability in the 21s century:

One of the difficulties in understanding what is happening seems to derive at least in part from efforts to search for regional explanations for political, economic, and social realities that exist and can be understood only in their national context.

It is evident that there is a need for strengthening the political systems within our hemisphere as demonstrated by the fact that since the current phase of democratic governance began in the early 1980s, 14 elected presidents have not been able to finish their constitutional terms of office. Although the circumstances of their departures vary—including impeachment for corruption, the shortening of terms in office in the wake of electoral fraud, and social unrest accompanying the implementation of austerity policies—all of the heads of state were weakened by flagging support and the lack of majorities in parliament, making it impossible for them to govern.
Democratic consolidation requires building state capacity, accountability, representation, and broadening the political participation. Government institutions must improve their ability to deliver state services, enforce rules and regulations and maintain public order. Recently, we have witnessed the importance of balance power among branches of government and the need to generate a shared sense of duty and cooperation among the legislative, executive and judicial powers.
Political parties which have traditionally played a central role in democracies, appear to be losing influence even as instantaneous communication has democratized access to information. An observable trend among young people is the tendency to identify with and become members of virtual communities that mobilize their membership around specific interests or issues – a role previously occupied by political parties. The preference of youth for virtual political organization rather than party membership can be quantified throughout the hemisphere where current statistics reveal that party membership among youth has declined significantly. As governments seek to consolidate and strengthen democratic governance, strategies of engagement must be reformulated to respond to the new technological realities and to a more informed citizenry that is undergoing its own process of social and political evolution.
Where political parties have failed to adequately represent disparate interests, organized civil society, more specifically nongovernmental organizations, have partially filled the vacuum. Increased participation of civil society in informing policy issues and public discourse has enhanced governance in the twenty first century even as it has made it more complex.

The “third wave of democracy” in Latin America has embraced the new role of civil society and the gradual but steady growth of direct citizen activism. However, mechanisms to channel citizen activism within the system have not been systematized in tandem with the growth in influence. Thus, there has emerged a marked tendency toward the utilization of de facto political power through demonstrations, national strikes and other tactical actions.

The Inter-American Democratic Charter tacitly acknowledges that the governments of the region must have the willingness and the capacity to open communication with social sectors and effectively channel public expectations into consensus-building and problem-solving processes.

Consequently, the OAS has also directed much of its efforts toward strengthening democratic governance by building national capacities to engage in constructive dialogue and institutionalize conflict prevention and resolution mechanisms. This has been considered one of the most strategic forms of support the OAS has provided to member states experiencing democratic transitions.

There is growing realization that the institutionalization of dialogue mechanisms in which government and social sectors can interact and mitigate potential conflict early on, as well as jointly address issues of social concern can lead to more sustainable and participatory democracies.

During this process of democratic transition, NGOs have assumed the role of representing specific interests of society, from the environment, health and education, to issues such as corruption and transparency. Many NGOs have done valuable work in the consolidation of democracy and their inclusion in the Summit of the Americas process beginning with the Quebec City Summit in 2001 is testament to their important role.

The utilization of de facto political power and alternate channels of political expression have emerged in the face of the inability of political institutions, primarily political parties, to meet the changing demands of society. Nowhere is this more apparent than in the electoral and political financing regimes. The growing costs of campaigns and the concomitant pressures to raise more funds have significantly shifted the priorities of parties. In this context, the onus is on political parties to avoid becoming solely electoral vehicles, neglecting their fundamental role of aggregating interests and influencing the development of national policy. Independent of the objective realities, the perception by citizens that parties and their leaders may prioritize the interests of their contributors before those of the general public is harmful to the body politic.

A more active electorate:

Clearly, elections do not equal democracy. However, the indispensable nature of holding free and fair elections remains undisputed. While it is possible to have elections without democracy, one cannot have democracy without legitimate, transparent, free and fair elections. Elections are the cornerstone of representative democracy and constitute the only legitimate form of transfer and exercise of power in democratic states.

Elections provide a unique opportunity for the electorate to indicate their priorities, interests and concerns by exercising their right to vote. Fully cognizant that perception by the electorate that elections meet the criteria for being transparent, free, fair and credible is equally important has prompted governments throughout the Americas to reach out to the OAS and other international organizations to observe domestic electoral processes.

In this regard, the OAS has played a critical role as the only inter-American institution which has observed more than 130 elections and provided technical assistance to more than 22 countries. For over 15 years, our Organization has been bolstering public confidence in the electoral process and creating a secure environment in which voters can exercise their franchise without fear of intimidation or retribution are fundamental prerequisites for strengthening governance. Recently, based on the experience of the Organization, the OAS played a key role in the preparations leading up to national elections in Haiti. This process led to an unprecedented number of Haitians registered and eligible to vote--over 3.5 million for first time in it history. Haiti, now, possesses a modern electoral registry system, which the government can use to lay the groundwork for the establishment of a national civil registry system.

Between 2005 and the end of 2007, over a dozen countries in the Americas will have selected new leaders at the polls. Constitutional reform processes are on the rise and recently, Ecuador experienced a voting process on the need for constitutional reform, recorded as having had one of the highest levels of participation in the history of the country.

As Argentina and Guatemala go to the polls to elect or re-elect new leaders, there is no doubt the hemisphere will have a new political agenda, which can shape a positive path for growth and development in Latin America and the Caribbean for several years to come.

I believe the time is ripe for a new paradigm for democratic governance and equitable development. However, political action must be consistent, firm and participatory, if societies are to embrace and resolve the formidable challenges that threaten the region’s democracies. The hemisphere must move forward in unity to ensure the continuation of democratic rule and that the many of the hard sought gains are not placed at risk.

Developing the social capital for development:

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. In Latin America and the Caribbean 213 million people live on less than two dollars a day. While poverty has declined worldwide over the last two decades, very little progress has been made in our region.

As previously noted the concentration of wealth in certain sectors and in larger cities leaves significant numbers of people outside of the modern economy with little access to social services, infrastructure and credit to move up the economic ladder. According to the Inter-American Development Bank, some 68 million people in Latin America and the Caribbean lack access to safe water, and 110 million are un-served by public sanitation systems.

With many economies in Latin America and the Caribbean unable to create enough jobs and income to address the real concerns of economic opportunity or to provide the quality public services that citizen’s demand, the development gap has become a central issue which certainly has influenced the outcome of several national elections.

Every year some 8 million people die because they simply are too poor to survive from one day to the next. The challenge for all our governments is, therefore, to reduce poverty while ensuring sustainable growth. The promise of a comprehensive development, security and governance agenda must be accessible to all citizens, especially the 220 million people who live below the poverty line.

When I reflect upon this reality, I think about the American political philosopher John Rawls: who stated “the success of a society is not measured by the situation of its most wealthy inhabitants, but rather by the ability of the poorest citizens to lead dignified lives and realize their dreams.”

As the Hemisphere grapples with the new security challenges of this century, such as organized crime, youth gangs, the spread of HIV aids, natural disasters, corruption and drug trafficking, world bodies like the UN and others must work in tandem with Regional Organizations to maximize resources, create synergies and support countries working towards democratic stability and consolidation.

In this regard, I would like to highlight a few recommendations to those present at this conference, which the OAS would hope to work on with the collaboration of your institutions.

Policy Recommendations:

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 itself in the identified political and economic agenda and global negotiating processes.

3. In isolation, no country can strengthen its economy and political system; therefore, 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. A new democratic paradigm will require the development of tools, methodologies, institutional capacities, formal and informal mechanisms for dialogue and negotiation. Governments and civil society actors that are better equipped, informed and skilled in initiating and maintaining dialogue will be better prepared to bring about the kinds of innovative and sustainable solutions that can lead to social and political change at local, regional, national and international levels.

6. We should reform legislation to strengthen the institutions that safeguard democracy, human rights, and the rule of law, ensure transparency, accountability and good governance. There is no doubt that the quality of institutions and the policymaking process are important factors in achieving economic and social goals.

7. 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.

8. Governments need to invest more 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 less than 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.

9. Partnerships at regional, state and community levels will be essential. The practice of statecraft will undergo a sea change. For example, 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.

10. If economic and fiscal reforms are to continue, institutional deficiencies will need to be addressed and resolved. In order to gain more share of the global market, Latin America and the Caribbean need to offer quality regulatory, trade and sound financial structures in order to remain competitive globally. 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.

Currently, upon the initiative of the Argentine business community, a Permanent Private Sector Forum has been created with the 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.

11. 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.


Democracies throughout my hemisphere as well as through out the world are confronting urgent and complex problems that cannot be resolved at the ballot box, alone, and that exceed the capabilities of governments alone. Democracy alone is not enough to create sustainable economies.

A combination of good governance, rule of law, sound economic policies, a strong and transparent public service and an engaged citizenry constitute the foundation for democratic growth and consolidation. By respecting fundamental rights and freedoms; moving forward with an agenda that emphasizes democracy and human rights, development, peace and stability; cultivating real partnerships between the public and private sectors, and between government and civil society as well as communities of distinct ethnic, social and economic backgrounds, this Hemisphere may begin to realize its full potential.

Conclusion:

As my office prepares for the 37th Assembly of the OAS in Panama City in June, we are cognizant of various elements needed to assist the strengthening of democratic governability in the Member States. But even as the OAS continues to respond to the pressing concerns of Member States; such as strengthening democratic institutions, ensuring that institutions meet the demands of its citizens and intervention in the event of a democratic crisis, we are aware that even more can be accomplished through strategic partnerships and the power of multilateralism.

I believe that the International Community needs to simultaneously address political and developmental priorities – again, focus on promoting a mutually enforcing agenda. We need to provide consistent, stable, enforced and transparent rules for the private sector to invest and generate productive employment. We need a healthy and well-educated work force that can live in peace and achieve prosperity. We need a social safely net to care for the neediest in our societies to fulfill our commitment to community. Achieving these goals requires functioning political and policy institutions that can translate the values and requirements of the population into the reality of everyday life.

As we enter a new period of mandates, and a new strategic agenda for the Americas, the OAS stands ready to continue:

· focusing efforts on strengthening democracy through education and support for the electoral process;
· maintaining a strong commitment to the protection of human rights;
· pursuing a security agenda which reflects a modern understanding of the profound impacts of regional conflict; terrorism; illegal drugs, firearms, and human trafficking; and natural disasters;
· promoting development policies that include the participation of vulnerable groups and that promote environmental stewardship; and
· Working more closely with the private sector and regional and sub-regional agencies in the formulation and execution of an effective development agenda.

Finally, let me close by bringing your attention back to the central issue of change. For the first time in history, both Chile and Jamaica have female heads of government. These elections are testimonial of the change that is taking place in the Hemisphere. It is a significant step forward and a positive development for democratic governance when citizens vote for their interests, priorities and concerns, regardless of gender.

Ultimately, all of us have a collective responsibility in helping to build and maintain environments that support domestic and hemispheric objectives of peace and security, justice, social equity, development, and democratic governability and to provide hope and opportunity for all the citizens of the Americas and the world at large.

Thank you.