Honorable Secretary of Commerce of Puerto Rico, Bartolome Gamundi;
Chairman, Executive Director and Members of the Board of Directors of the CCAA;
Distinguished Members of the Head Table, and a special word of appreciation to Dr Winston Cox, Executive Director for the Caribbean at the IDB, and Ambassador Hector Morales, Permanent Representative of the USA to the OAS,
Business leaders and entrepreneurs;
Fellow representatives of Multilateral Entities participating in the event;
Ladies and Gentlemen:

I am indeed pleased and honored to have been invited by the Board of the Caribbean-Central American Action to be here with you once again to engage in this important and timely dialogue on Regional Sustainability and more specifically to share my views on why regional sustainability is important, what is threatening it and what can and should be done to enhance sustainable peace, stability, security and prosperity in our region.

I take this opportunity to congratulate CCAA with their commitment to the Caribbean and Central American region and being able to bring together, under difficult circumstances and in challenging times for the private sector, such an august gathering.

Introductory remarks

While we indeed live in interesting and challenging times in the Americas as a consequence of what is happening globally and regionally, we also have made progress in the Western Hemisphere.

Some 30 years ago we still had many dictatorships in Latin America and therefore the security paradigm in objective, scope and approach was quite a different one. Since then Latin America has gone through a democratization process that has given way to new democracies with vast and accentuated diversity bringing to the fore the different strategic political, economic and social interests within and among countries and between sub-regions.

Politically, since 2005, we have witnessed a significant turnover, through democratic means, in the political leadership of the hemisphere, with more than 20 countries undergoing general elections.

The diversity in objectives and interests in terms of how to organize societies, how to mobilize forces in societies, how to relate to neighbouring states and other countries in the Western Hemisphere and beyond, has created a new political landscape and has added new realities, opportunities and challenges to efforts aimed at ensuring constructive political cooperation on peace, security and prosperity in the hemisphere, and at the same time it has brought to the forefront many of the latent conflicts in various countries posing new strains on governments and societies.

Although limited progress has been made, the Western Hemisphere, despite reasonable economic growth, continues to have unacceptably high levels of poverty (some 220 million people in Latin America live on less than 2 US$ a day), highest levels of income inequality in the world, social exclusion and discrimination.

The global order is changing, bilateral and multilateral relations are being modified as we speak in the context of the required global strategic re-positioning, and no doubt the 21st century will be marked by many competing players for world power. Across politics, economics, culture, military strength, a new world order is emerging. Countries such as China, Brazil, India, and regional groups such as the European Union are now major political and economic actors.

In this regard, the emergence of new economic powers such as China and India and the resurgence of political players such as Russia, among others, have led to new patterns of foreign policy orientation and trading relations. In our region, for example, the increased economic interest of China and India in Latin America and the Caribbean region is having a noticeable impact on economies. These new developments provide for opportunities in economic cooperation, but potentially also hold risks. Change brings opportunity but can also create costs. The preparation and ability of our countries -- at both the public and private sector levels - to manage and optimize the benefits of change is therefore critical in this new environment.

Why is regional sustainability important ?

To foster sustainable social and economic development, to be able to attract investments and to be able to become competitive globally as a region, the Western Hemisphere needs peace and stability.
In 2002 the OAS member states adopted the Declaration of Bridgetown on multidimensional approaches to security and, in 2003, the Declaration on Security in the Americas. Both Declarations take account of the inter-dependence of threats and challenges, at the international, national, and local levels, as well of the cross-border impact of these challenges affecting democratic governability and stability in our member states, to include non-traditional threats to hemispheric security, such as natural disasters, communicable diseases, destruction of the environment as well as poverty, illicit drugs, human trafficking, and acts of terrorism. It also brought to the fore the difficulties that lie ahead in the process of building a strong regional consensus on a feasible security strategy and architecture for the Americas.

Many believe that today the Western Hemisphere is being characterized by perhaps the highest levels of insecurity, tension, and unfriendliness among nations since the end of the Cold War.

We all know that instability and conflict situations are often related to traditional threats to security. However, in the context of the broadened definition of security, security concerns are also related to political inefficiencies, development challenges and environmental threats.

So, even as the hemispheric community must grapple with crisis situations, in a very rapidly changing international environment, the nations of the Americas must also simultaneously focus considerable energy on finding and pursuing strategies that can help to achieve sustainable economic growth.

What is threatening regional sustainability?

Today we witness in the Americas that regional sustainability and stability are threatened because of conflicts, tension and insecurity within and among countries. More than ever the origin of these conflicts is intra-state, related to social and economic difficulties (Haiti); the position and role of indigenous and marginalized groups (Bolivia); incidents of tension, and even confrontation, between governments and interest groups or civil society organizations (Nicaragua).

While these internal conflicts receive much attention, it does not mean that inter-state tensions have vanished. The on-going “debate” between the Bolivarian Republic of Venezuela and the United States of America continues, Ecuador and Colombia continue discussions on the re-establishment of friendly and diplomatic relations, Belize and Guatemala which have had a longstanding territorial differendum will be signing an agreement at the OAS headquarters next week as an important next step toward resolving the border issues.

I believe that mediation of conflict, open dialogue and the ability to have recourse to a multilateral forum such as the OAS are critical to strengthen the hemispheric integration process and to sustain an inter-American community of nations working toward a common goal of prosperity, development and peace for its citizens.

Development challenges

Security and development for small island states of the Caribbean and the countries of Central America have peculiar characteristics that make them vulnerable to risks and threats of a transnational nature, such as natural disasters, sudden changes in the global economy or systematic environmental damage.

The impact of natural disasters has created in many countries a set back of their economies for many years, like in Grenada a couple of years ago and in Haiti now. Under these circumstances Governments are challenged to maintain acceptable levels of stability and security. In a similar fashion the effects of global warming will impact on the ability of societies to maintain current levels of economic growth and life style, resulting in an increase of unemployment, rural degradation, increased migration and subsequently economic instability, social unrest and conflict among groups in society.

I already referred to the unacceptable levels of poverty and inequality in the Western Hemisphere. If not addressed adequately, these will remain an important source and force of instability and insecurity in our societies. Studies have shown that crime and violence have a significant relationship with poverty, lack of economic opportunities and education. Therefore it is of critical importance that Governments not only address the symptoms of poverty, crime and violence, but seek to analyze and address the underlying structural causes of these problems.

The current financial crisis will in some form affect most, if not all, countries in the Western Hemisphere. This can further exacerbate existing weaknesses and distortions resulting in political instability, economic decline and increase the level and intensity of poverty. Those CARICOM and Central American countries heavily depending on tourism and remittances will witness their economies shrinking, resulting in closure of businesses and increase of unemployment. Exports in certain countries will decline, which will result in declining revenues for Governments, impacting on the capacity to deliver on social policy objectives, especially in education and health care. I believe that in the context of hemispheric stability, security and sustainability in whatever global and regional arrangement is developed to mitigate the impact of the financial crisis, it needs to include special measures to assist the small and vulnerable economies of the Americas. These countries do not have the finances, the institutional capacity neither the economic structure to respond effectively to the impact on their own.

The vulnerability of these small states to external forces has a significant implication for long term sustainability, regardless of the development model adopted. At the same time, smaller states perhaps have the potential to respond in a much more nimble manner to economic shocks and security challenges. But, effective responses demand strong partnerships. This is perhaps at the basis of sustainability for the Caribbean and Central American regions. Partnerships between the public and private sector, strengthened partnerships with other countries in the region – not only North-South but also South-South cooperation – and partnerships with the multilateral organizations of the inter-American system.

Security challenges

Let me just take a minute to talk about some of the security concerns that are threatening the stability of our countries and the sustainability of our economies. These include the scourge of illegal drug trafficking, accompanied by illegal trafficking in small firearms and ammunitions, creating instability in many parts of receiving countries, transnational organized criminal groups involved in trafficking of persons, youth gangs, and terrorism.

Recently, this hemisphere has been faced with a wave of organized juvenile crime. Criminal gangs, called Maras have become major security threats in Central America and in some countries of the Caribbean. This new cross-border phenomenon and security challenge has traceable links between gangs in the United States with partner groups in El Salvador, Honduras, Nicaragua, Jamaica, among other countries. There are 300.000 gang members in Central America; it is disturbing to observe that in some countries gang members exceed the police force. Some of the gang members have killed as many as 10 people by the time they reach age 15.

A couple of weeks ago during my official visit to El Salvador, I took the opportunity to visit a center for youth gang members, where I spoke with two twenty year young Salvadorians, who had killed as a member of youth gangs. I asked them how they reached this point in their life. The one answered that with no parental control he ended up in the streets and in the company of criminals and subsequently joined a youth gang, while the other one indicated that problems at school led him to use drugs and become a Maras member.

I believe Governments should pay special attention to the position of youth in their societies, especially as they represent the majority of the population and the future work force. Young people feel frustrated, excluded and marginalized, because even with a better education they often cannot be employed. Many believe that if this situation continues the so called “inter-generational transmission of poverty” will become a dark reality for many young people.

Their confidence in political leaders and political processes is declining every year and in absence of options many find themselves in criminal environments, youth gangs and transnational criminal organizations. I believe that if the problems and needs of the youth are not adequately addressed this may become a serious security problem for many countries in the future.

What can and should be done to enhance regional sustainability ?

Let me now turn to What can and should be done to enhance regional sustainability ?

First of all, I believe, sub-regional integration and cooperation systems should revisit their strategic objectives and in light of changes in the regional and international environment. In an era where historical political relations and trade preferences are fading out and in the context of the proliferation of membership of member states in other sub-regional integration systems, it is clear that the nature and scope of the integration process has changed and that new dimensions have been added to this process.

Due to the increased inter-dependency among countries governments must realize that managing today’s transnational threats and challenges will require a cross-regional, principled, and multilateral “coalition for global governance” that incorporates new players and vulnerable economies. This needs to include a more structured dialogue among the institutions in the inter-American system and the sub-regional entities on a more effective implementation of the political, economic and social agenda.

Thirdly, we should also seek to strengthen diplomacy and proactive engagement. We expect that the recent election in the United States of America will present new opportunities for enhanced cooperation and engagement in securing a more stable political and security environment for Latin America, the Caribbean and the U.S.

In this regard, a principled approach to the relationship in a multilateral context with Cuba is going to be of importance and member states of the OAS may wish to consider mandating the General Secretariat to start this process of structured engagement.

I am convinced the increasing development aid and south-south collaboration will assist in a meaningful way those small and vulnerable economies in the Western Hemisphere to overcome the challenges they face so that they do not become a source of instability which can threaten regional security.

It is high time for political leaders of the Western Hemisphere to consider a new development paradigm, that is not only focused on trade and related arrangements, but also takes into account the vulnerabilities of countries, the social statistics, corporate social responsibility, and the human potential, one that is truly multilateral in nature and one that is truly transformative.

The Western Hemisphere will need to engage in creating the conditions for stability and security through the design and enforcement of a hemispheric wide strategic and comprehensive security arrangement which places social and economic development at its center.

Intensify strategic collaboration and communication between CARICOM and SICA at the political level, the private sector and foster more people-to-people contacts. CARICOM and Central America share many similar challenges and by working together and advocating their cause with one voice the sub-regions can enhance economic growth.

Lastly, we believe that the role of the private sector as the engine of growth needs to be strengthened; there is need to create a dialogue space to discuss trade facilitation measures, especially in air and sea transport. In this regard a meeting of Ministers of Trade would be considered opportune.

Concluding remarks

We have to be realistic in the Hemisphere. We cannot separate the political agenda from the social or economic agenda. We cannot want on the one hand strong and flourishing democracies and at the same time not to foster trade and economic cooperation and the flow of goods, services and people in the Hemisphere.

One such opportune occasion to discuss these objectives and required scope for collaboration and collective action will be the upcoming fifth regular Summit of the Americas, which will take place in Port of Spain, Trinidad and Tobago from 17-19 April 2009.

At this meeting the hemispheric leaders will have the unique opportunity to foster collectivity, promote multilateralism and adopt a new strategic agenda for the Americas that relates more directly to needs and priorities of the people of the Americas. As we already have adopted many laudable declarations and mandates, this fifth and first Summit of the Americas in the Caribbean will, out of necessity, have to focus on more efficient coordination, effective implementation, dedicated financing windows and the role of the private sector and the civil society as partners in this process.

In closing, ladies and gentlemen, let me reaffirm the commitment of the Organization of American States, as the main political platform for consensus building, to continue supporting the strengthening and deepening of democracy and electoral processes, facilitate and sometimes mediate political crises in and between countries, strengthen state institutions and facilitate resolution of border conflicts, all aimed at creating peace, stability and security.

While we live in interesting and challenging times, we do have opportunities for change and solutions; all we need to do is put our collective shoulders behind these massive challenges. Peace, harmony, prosperity and stability are shared responsibilities of all in our societies. No one, no country can create these conditions alone, but together we can!

I thank you for your kind attention.