Ted Menzies, Chairman of the Board of Governors
Distinguished Governors,
Luis Alberto Moreno, President of the IDB,
Ladies and Gentlemen,


Ted Menzies, Chairman of the Board of Governors, congratulations on your election to the position. At the onset, allow me to convey to you the greetings of Secretary General Jose Miguel Insulza, who regrets that he could not join you this morning. I am pleased to represent the Organization of American States with the following statement.

As the oldest regional political organization in the world and the premier multilateral forum in the Western Hemisphere, the Organization of American States has one fundamental, and I would say, almost exclusive purpose: promoting democracy for achieving peace, stability and prosperity for the people in the Americas. We want democratic governments in the region and that democracy be practiced.

In contrast to a few decades ago, today it would be fair to say that the majority of countries in the region enjoy stable democracies. Much remains to be done to strengthen democracy and, along the way, we may well experience setbacks and difficulties, which we have to resolve in a peaceful, negotiated manner. But there can be no doubt that, after Europe, the Americas is the most democratic region in the world.

But despite the remarkable progress, we are increasingly concerned about three important threats to our democracies and economies: weak governance, inequality, and insecurity.

And I mention these challenges here today because, more than ever, our interests are not only aligned but interlinked with those of the IDB, a major partner for the OAS and governments of the Hemisphere for helping countries deliver the benefits of democracy to their citizens.

I highlight the interdependence of the OAS's and the IDB’s objectives as the Bank needs proper governance and political stability in recipient countries for its loans to contribute to sustainable development and growth. Our region has made important progress in democratic governance and economic development during the last two decades, but it is still far from fulfilling the citizens’ expectations. Issues such as public sector management, accountability, a sound legal framework for development, and transparency coupled with reliable information, all of which are key elements for good governance, are essential to achieve the objectives of financial and technical assistance.

A second major threat to our democracies is inequality, manifested by many social injustices in our societies, including marginalization and exclusion of vulnerable groups, like women, youth, persons with disabilities, afro-descendants, and indigenous people. The important improvements regarding poverty and inequality reduction in the region during the 2002-2007 period are being jeopardized by the triple critical needs of food, fuel, and finance, which, if not addressed effectively, are likely to continue not only to push the poorest people down, but to hold them down.

These threats reduce access to economic opportunities for all and pose great risks to our democracies. As we have recently witnessed in the Middle East, economic distress is a prime breeder of political instability and war. The inability of many countries to generate adequate economic growth, and reduce poverty and inequality can generate conditions that can threaten democracy, democratic institutions and democratic governance.

This is why, following the Fifth Summit of the Americas in Trinidad and Tobago, the OAS in 2010 launched the Inter-American Social Protection Network to promote cooperation for the exchange and transfer of social protection best practices and experiences. This important initiative involves collaboration with all development agencies of the Inter-American System in order to raise the standard of living of our peoples, while strengthening democratic governance and peace in the Americas, and lifting citizens out of poverty in a structural way.

Mr. Chairman, ladies and gentlemen, while our region has had no wars or violent political clashes over 80 years, the nations of this Hemisphere are challenged by increasing levels of insecurity. The rise of illegal drug-trafficking, illegal trafficking of small weapons and organized crime explains the dramatic and negative statistic that our region has one of the highest homicide rates in the world. Insecurity is one of the major concerns of citizens in our Hemisphere.

While today we can celebrate the virtual end of political violence and instability that dominated the 80s and early 90s, existing security threats have the risk to undo all the significant progress made in recent decades in consolidating democracy, alleviating poverty, and improving living standards in the Hemisphere.

The current insecurity trend, especially poses a threat to governance in vulnerable States and regions within countries, which are at greater risk both because they are easy victims of organized crime, and because crime deepens their vulnerability. In addition, IDB’s studies show that violent crime reduces the Latin American GDP by more than 12%. Private security spending, which is approaching $7 billion in Latin America, is far higher than government spending on security and justice in the majority of countries in our region. At the same time studies have shown that if security challenges are addressed effectively it can lead to significant increase of economic growth.

Ladies and gentlemen, the security challenges in our countries cannot only be resolved by taking short term measures, such as higher sentences, strengthening judicial systems, better equipment for law enforcement forces, intra- and inter-country operational collaboration, and legal cooperation, it requires also a more structural approach that mandates investments in institutions, education, social protection systems, job creation, rural developments. In short: a more holistic and integrated approach.

Recognizing the need to find regional solutions to the security threats in our Hemisphere, I am pleased to inform you that the next OAS General Assembly in the first week of June, to be held in El Salvador, will focus on the theme ¨Citizen Security in the Americas.¨

For the leaders of the nations of the Western Hemisphere, the Sixth Regular Summit of the Americas, in April next year in Cartagena, Colombia will provide another opportunity to demonstrate and solidify political will and collective commitment to peace, prosperity and stability in the Amercas.

The OAS mission to promote democracy in the Hemisphere faces important challenges that can only be tackled effectively through strong and sustained collaboration with institutions of the Inter-American system, and in particular with the IDB.

The OAS and the IDB have a long history of cooperation. We are particularly pleased that the Tripartite Committee, comprised of the OAS, IDB and ECLAC, was relaunched last May. This Tripartite Committee, which was established more than 50 years ago, has played a key role in assisting countries in building stronger democratic institutions and promoting sustainable development and social inclusion in the Americas.

Mr. Chairman, ladies and gentlemen, I take this opportunity to congratulate the people of Haiti with their peaceful and orderly conduct during the recently held second round of the Presidential and legislative elections, and also extend appreciation to the all stakeholders for their efforts to improve the electoral process. We look forward to the announcement of the final results and the installation of a new President and government, and call on all stakeholders to facilitate a peaceful and smooth transition of power. I call on the hemispheric community to continue the demonstrated commitment to the people of Haiti for the years to come and to redouble financial and technical assistance towards reconstruction, sustainable development and budget support based on the priorities and needs established by Haiti under Haitian leadership.

In closing, ladies and gentlemen, developments in our own region and also beyond, demonstrate that there is need to re-think our objectives, actions and programs so as to align our efforts more effectively with the immediate and longer term needs or the countries and the citizens. The people of the Americas expect no less ! The OAS, in partnership with the IDB, PAHO, IICA, ECLAC, and other specialized agencies, remains the multilateral platform for the development of such a positive, practical, shared and forward looking agenda for the Americas.

I thank you very much for your attention.