Mr. Chairman, Vice Minister Gonzalo Arenas of Chile,
Distinguished Ministers and Vice-Ministers,
Ambassador Abigail Castro, Chair of CEPCIDI,
Distinguished Permanent Representatives,
Dr. Francisco Pilotti, Deputy Executive Secretary of the Department for Integral Development,
Distinguished Delegates,
Colleagues,
Ladies and Gentlemen,

I am very pleased to be here with you today, encouraged by this renewed commitment to address the most urgent issues of our Hemisphere with regard to social development, the fight against poverty, hunger and malnutrition, all aimed at the improvement of the wellbeing of all our peoples.

There is no doubt in my mind that Latin America and the Caribbean are currently experiencing relative political stability and steady economic growth - two factors that are necessary, although not sufficient, to address the needs of the most vulnerable people in the region and to build peaceful communities.

According to ECLAC, the last four years (2003-2006) can be characterized as the best ones in 25 years with regard to economic and social performance across the region. The figures show that poverty declined from 44% in 2002 to 38.5% in 2006. This is the first time since 1980 that we have reached a poverty level below 40%. The percentage of people living in extreme poverty declined by a similar proportion from 19.4% in 2002 to 14.7% in 2006.

All this means that between 2002 and 2006 the number of people living in poverty in Latin America and the Caribbean declined by 16 million to 205 million people and the number living in extreme poverty fell by 18 million to around 79 million. With continued economic expansion expected, the figures for poverty and indigence should continue their downward trend.

It is, however, sobering to note that the region has taken 25 years to reduce poverty to 1980 levels. The encouraging progress seen in the recent years must not be allowed, therefore, to eclipse the fact that poverty levels remain very high and that much remains to be done. I believe that we have to call upon the political leaders of the Americas to intensify their efforts to reduce poverty, social exclusion and to strengthen equality in the Western Hemisphere.

One of the most distinguishable characteristics of Latin America and the Caribbean is the persisting inequality of income distribution. The poorest 20 percent of the populations of our countries takes home between 2.8 percent and 8.8 percent of national income, while the richest quintile helps itself to between 42.8 percent and 64 percent.

Income disparity is rooted, in great part, in unequal opportunities for education and jobs. Latin America lacks a tradition of public spending on basic education, with the children of uneducated parents being afforded few chances to become more educated than their parents and to have a better life.

Inequality is very closely related to social exclusion, as there is a prevalence of certain groups in society living in poverty, such as indigenous peoples, people of African descent and women. We must therefore strive for a more inclusive development that goes beyond race or gender and one that benefits all in society.

According to the UN World Food Programme (WFP) and ECLAC, some nine million children under the age of five suffer from chronic malnutrition in the region. The problem is principally centred in the indigenous populations, where chronic malnutrition can affect up to 70 or 80 percent of children. In this regard, the OAS and the WFP signed an agreement last month to work together to combat hunger and malnutrition in children, and to strengthen response mechanisms during social and natural disaster emergencies in the region. I am pleased to observe that representatives of the WFP are present at this meeting and I take this opportunity to reaffirm our commitment and to seek towards concrete joint activities through our country offices.

The healthier political situation in our region is crucial to deepening our efforts to combat the ills associated with social exclusion and poverty. But the general satisfaction with the wave of democratization that has swept through the Hemisphere in the last decade or so must be tempered by the realization that poverty rates have not declined sufficiently. Moreover, with wealth disproportionately concentrated in the hands of the few, Latin America and the Caribbean remains the region with the most unequal income distribution in the world.

The bottom-line is that elections alone do not equal democracy and democracy needs to deliver more than just free and fair elections, especially to those who live in poverty. I believe that with strong and dedicated leadership, combined with strategic visioning we can achieve success stories in improving the social well being of the people of the Americas.

There is a strong recognition now, within the OAS, the Inter-American System and the Hemisphere as a whole that development that focuses only on the economic is by definition deficient. Growth without distribution, that benefits only the few, is not sustainable, and will ultimately undermine democracy and governability.

The broader consolidation of democracy, then, demands, in addition to the strengthening of the rule of law and the guarantees needed to advance respect for human rights, more solid social policies that can address the needs of the most vulnerable people in the region.

It is clear for all of us that, as stated in the Inter-American Democratic Charter, democracy and social and economic development are interdependent and mutually reinforcing, and hence the need to work in promoting democracy and democratic values while addressing the needs of the poor. The Charter also states that poverty is an obstacle to the development of democracy and, in that context, it recommends governments to promote and observe economic and social rights.

Within the OAS we are currently working on a Social Charter of the Americas, which will not only complement the Democratic Charter, but also constitute the clearest expression of the Hemisphere’s political will to forge ahead in the quest for social justice and toward compliance with global commitments, such as those expressed in the Millennium Development Goals. We look forward to hear the report on progress reached so far from the current Chair of the Working Group on the Social Charter, H.E. Ambassador Denis Antoine of Grenada.

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.

This is a Hemisphere, with more than 50% of the population under new or renewed leadership, which now demands a new paradigm for democratic governance and equitable development. Political action must therefore be consistent, firm and participatory, if societies are to embrace and resolve the formidable challenges that threaten our democracies. And the Hemisphere must move forward in unity to ensure that many of the hard sought gains are not placed at risk.

I believe that the hemispheric community needs to address simultaneously political and developmental priorities, to focus on promoting a mutually enforcing agenda. I believe that in the OAS we need to be open to consider more effective institutional arrangements to reflect this need.

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 social safely nets for the neediest in our societies to fulfil our commitment to community. We need the full engagement of civil society. We need to build awareness among the youth, to involve them and to give them hope for the future.

A combination of good governance, rule of law, sound economic and social policies, a strong and transparent public service and an engaged citizenry constitutes 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 with equity, peace and stability; cultivating real partnerships between the public and private sectors – for investments in education, for example – 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.

Ultimately, we all 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.

In light of all this, your work in these two days will be of significant importance, not only to identify the priorities and the main themes to be presented at the First Meeting of Ministers and High Level Authorities – and we sincerely thank the Government of Chile for hosting it – but also because the programmed activities will define the OAS road map for social development activities.

I therefore wish you, also on behalf of Secretary General Jose Miguel Insulza, much success in your work and I thank you for your attention.