Your Excellency Michele Duvivier Pierre-Louis, Prime Minister of the Republic of Haiti,
Honorable David Thompson, Prime Minister of Barbados,
President of the Inter-American Development Bank, Luis Alberto Moreno,
President of the Caribbean Development Bank, Dr Compton Bourne,
Governors and Executive Directors of the IDB,
Honorable Members of the Cabinet,
Staff of the IDB,
Members of the Diplomatic Corps,
Ladies and Gentlemen,

It is indeed an honor for me to be here in Haiti to join in the celebration of the 50th anniversary of the Inter-American Development Bank. I would like to thank President Luis Alberto Moreno for inviting the OAS to participate in this historic and important conference.

I also wish to thank the Government and people of Haiti, in particular, Prime Minister Pierre-Louis for hosting this important conference. Madame Prime Minister, I congratulate you for the very effective manner in which you have been able to translate Haiti’s needs and priorities to the rest of the world and for your continuous engagement with the international community.

Although it is true that the international community has historically demonstrated a uniquely high level of solidarity and commitment to the Government and People of the Republic of Haiti; we understand that promises alone are not enough. What Haiti needs is delivery on those pledges in order to continue its socio-economic efforts and fulfil its development commitment to the people of Haiti.

Ladies and gentlemen, 50 years of dedicated service, solidarity and hemispheric partnership is a significant milestone. The leadership and staff of the Organization of American States commend the leadership, management and staff of the Inter-American Development Bank for the sustained commitment and substantial contribution to the governments and people of the Americas.

Let me also congratulate President Luis Alberto Moreno for his steadfast leadership at the Bank, and for his understanding of the need for increased financial and technical assistance to the smaller and vulnerable countries to strengthen the economies in our region. I believe that President Moreno shares the view that the principle objectives of hemispheric economic stability and prosperity cannot be achieved without dedicated and meaningful engagement with and support to the small and vulnerable economies of Central America and the Caribbean Community.

The Inter-American Development Bank must be commended for its increased support to the small economies of the Caribbean region; and in this regard, we believe that it is important for it to work with the Caribbean Development Bank and other financing institutions. This collaboration will not only support the Caribbean Community’s integration process but will also greatly improve the sub-region’s ability to respond adequately and timely to global challenges including those emanating from further liberalization of the world economy and current or future trading arrangements.

Madame Prime Minister, Ladies and Gentlemen, Secretary General Jose Miguel Insulza, had hoped to be here with you. But as you know, in recent weeks, the OAS has been dealing with certain political issues which have also required urgent attention. It is for that very reason, I am afraid that I will have to leave after this opening ceremony and regret that I will not be able to listen to the many experts present here today.

That being said, I reiterate my pleasure in being here today. Let me assure you that the relationship between the OAS and the IDB is strong, enduring and historic. It is a relationship which dates back to 1959 when the Organization of American States established the Inter-American Development Bank.

Ladies and Gentlemen, in the midst of the global economic and financial crises, our region, and in particular the smaller economies will depend ever more heavily on institutions like the Inter-American Development Bank to support their economies and promote sustainable economic development. Today, in the face of contracting financial markets and macroeconomic uncertainties, which have already led to a slow down in international capital flows, the Inter-American Development Bank needs to be further capitalized.

While we recognize the significance of the Bank’s unprecedented efforts last year, with 48 member countries and $101 billion in authorized capital, the IDB which has now become the most important regional bank in the Americas still needs, in our view, to expand its operations and loan portfolio, by going far beyond the average of $8 billion in loans it executes per year.

Ladies and Gentlemen, the impact of globalization and fluctuating market conditions, combined with the financial crisis, create distortions in the smaller - generally open economies. This occurs in countries which often lack the financial resources to counter the impact of these exogenous developments. Whatever agreement is reached globally to mitigate the impact of the financial crisis, special arrangements will have to be put in place to reduce inequality in smaller economies.

At the 50th annual meeting of the IDB Board of Governors earlier this year in Colombia, Secretary General Insulza noted that Latin America and the Caribbean risk loosing many of the gains made over the past six years, when several countries implemented prudent economic policies that helped 50 million people escape poverty. Therefore as we look to the future, we need to work together to address the underlying causes of the present crisis, protect the gains made to date, while at the same time stimulating growth and prosperity.

Throughout the past 50 years it is important to note that the IDB’s lending practices have focused on addressing policy issues similar to those identified in the context of the OAS. Areas such as democracy, education, poverty reduction, environment, trade, infrastructure and energy are concepts which are recognized in the Inter-American Democratic Charter as mutually reinforcing principles of democracy, development and security.

What we at the OAS have observed about development in the Western Hemisphere is that the mainstream development paradigm is primarily aimed at opening up markets and creating trading arrangements. However this alone is not enough to eradicate poverty, inequality and social injustice. What we need is a more holistic development framework that also takes into account the human potential, labor markets, the vulnerabilities of small countries, social and political infrastructures, institutional capacity including the inability to sustain key conditions for growth and prosperity in our societies. The Bank needs to continue to assist countries in what I call “second generation” measures to strengthen democracy, fight corruption, improve efficiency, lower the cost of basic services, promote accountability, and strengthen state institutions.

President Moreno, I am pleased that you have decided to celebrate the 50th anniversary in Haiti, an excellent way of expressing your continued support to this country following the hosting of the Donor Conference last April in Washington DC. We are all pleased with the recent positive developments taking place in Haiti. In my opinion, the elimination of US$ 1.2 billion, about two thirds of Haiti’s debt, allowing for savings of about US$ 4 million per month from debt service, will undoubtedly have a positive impact on the already improved social and security climate in Haiti. This will certainly boost the economy, help with job creation and fostering entrepreneurship, and enhance the delivery of basic services to the population, especially in areas of health and education.

The OAS views Haiti as a country with great potential and opportunities. Our optimistic approach and positive image of this country is fuelled by the amount of creativity I have witnessed, the strength and pride of its people, as well as the efforts of its leaders to craft a better future. It is important for all of us to continue supporting the progress achieved in Haiti as the country prepares for Presidential and parliamentary elections in the coming months.

To the people of Haiti I take the liberty to call on them not to take for granted the many achievements in terms of political stability, security, governance and macro-economic policies; these are necessary pre-conditions to attract investment, to create socio-economic progress and to initiate new programs. I believe that it is important that the Government of Haiti increases its public information efforts on what has been achieved and what can be expected in the coming months.

At the 39th Regular General Assembly in San Pedro Sula, Honduras, six weeks ago, General Assembly Resolution 2487 was adopted in support of socio-economic development and political stability in Haiti. I wish to highlight two new elements in this Resolution which I think are critical to the work of the OAS and IDB in Haiti.

The first element is to improve coordination, efficiency and effectiveness of the five Inter-American institutions with project portfolios in Haiti. Consequently, the OAS, IDB, PADF, IICA, and PAHO are in discussion to create an Inter-American Program of Support to Haiti. Secondly, following the mandate emanating from the V Summit of the Americas, the OAS has been instructed to study modalities for the creation of a Hemispheric Development Fund for Haiti. We believe that through these initiatives, synergies can be created to make more effective use of the resources available to support the priorities and needs established by the administration of H.E. President Rene Preval.

I am pleased to announce that the Group of Friends of Haiti and Haiti Task Force of the OAS, in close collaboration with the Government of Haiti, have started preparations for a high level visit of inter-american institutions, Permanent Representatives, lawmakers and media to Haiti in early September, to showcase some of the successful projects carried out by the international community with Haiti.

In closing, Madame Prime Minister, President Moreno, ladies and gentlemen, the agenda for this 50th anniversary conference on “Economic Transformation and Strengthening Caribbean Economies in Challenging Times” is timely and significant as the region works together to mitigate the effects of the global economic and financial crisis.

The Organization of American States remains committed to working with the Inter-American Development Bank in light of the priorities established by the Caribbean Community of nations. I look forward to the outcome, which I know will help to guide our efforts in addressing the common challenges we face and in meeting the socio-economic needs of the Caribbean region.

I thank and congratulate you on your 50th anniversary.