Testimony
of J. Curtis Struble, Acting Assistant Secretary of State, Bureau of Western
Hemisphere Affairs, Senate Foreign Relations Committee, April 2, 2003
J.
Curtis Struble, Acting Assistant Secretary Of State, Bureau of Western Hemisphere
Affairs
Remarks to the United States Senate Committee On Foreign Relations
Washington, DC
April 2, 2003
As Prepared
Chairman and Members
of the Committee:
Thank you for the opportunity to discuss the Administration's foreign
assistance priorities for the Western Hemisphere. No region of the world
is more important to our prosperity and security than the Western Hemisphere.
In no other region do events have the capacity to so directly and so immediately
affect our national interests and the well-being of the American people.
We are at a critical
juncture in the economic and political development of the Americas. The
weaker and more vulnerable economies of Latin America have been badly
hurt by the combination of a U.S. economic slowdown, a more risk-averse
attitude among international investors, and the impact of September 11,
2001 on tourism and hemispheric trade. The ensuing financial crises have
been contained for now, though there are no grounds for complacency. Even
during the "good times," hemispheric growth was weak except
for star performers like Chile, El Salvador, Mexico, and the Dominican
Republic, which embraced reform and moved to open their economies. Too
many of our hemisphere's citizens have begun to question whether the triumph
of democracy the crowning achievement of the hemisphere in the
last 20 years can better their lives.
At the same time,
there are encouraging signs that the framework for success has been built
throughout the region: economic development in Mexico resulting from the
North American Free Trade Agreement (NAFTA); Chile's strong economic performance;
and the predominance of democracy, which has brought freedom to every
nation in the hemisphere save one. Recent elections in the hemisphere
have been celebrations of democracy, including peaceful transitions to
new administrations. With the Inter-American Democratic Charter, we have
recognized the hemispheric consensus for the freedoms we cherish and responsibilities
we accept. Economic progress, though often tenuous, has been achieved
through effort and sacrifice. Poverty has declined in countries embracing
reform, such as Mexico, Chile, and El Salvador. We have created partnerships
to advance common interests with Canada, Chile, Brazil, Argentina, and
of, course, Mexico. In short, we have made great progress. U.S. assistance
has been, and continues to be, a major factor in our success. That said,
our work is far from over.
We pursue three objectives
in the hemisphere: deepening democracy, including increasing governmental
integrity; encouraging both national and individual development, including
expanding economies to strengthen trade; and enhancing security, including
securing our hemisphere against the depredations of terrorism, increased
personal security, and heightened regional stability.
Our continued progress
in achieving these aims in the hemisphere requires that we confront, in
a systematic way, those problems that have seemed too large and entrenched
to address directly. They include corruption, failures of governance,
inadequate education systems, insufficient health care, and crime. We
can no longer afford to dismiss these issues as endemic or to address
transnational threats in a piecemeal fashion. The kind of progress we
want the kind that creates strong, resilient democracies and growing,
modern economies requires a broad commitment to address these issues.
Democracy
Democracy has come
a long way in this hemisphere over the last 20 years. While free elections
are now the norm throughout most of the Americas, free elections alone
are not enough. The people of the hemisphere are expressing discontent
with the quality of their democracy and the perceived inability of their
governments to deliver higher standards of living, safe streets, and good
schools. They want, and we promote, the second-generation democratic reforms
of deepening democratic institutions and investing in people.
To deepen and develop
democracy, the member states of the Organization of American States (OAS)
adopted the Inter-American Democratic Charter on September 11, 2001. At
the very moment our nation confronted terrible tragedy, the free nations
of the Western Hemisphere reaffirmed our commitment to the principles
of democracy targeted by the terrorists. The Charter acknowledges collective
responsibility to promote, protect, and advance democracy in this hemisphere
and has been the basis for more active regional engagement in crises in
the region.
The President announced
on May 20, 2002, an initiative to promote a transition to democracy in
the only nation in the hemisphere that did not adopt the Charter
Cuba. In his landmark speech, President Bush made clear that a rapid,
peaceful transition to democracy characterized by strong respect for human
rights and open markets in Cuba remains one of the critical priorities
of U.S. foreign policy. Through our democracy outreach program, we provide
books, radios, and other informational material to Cuban dissidents, opposition
leaders, and human rights workers. We seek to expand this program, and
so request an increase in ESF for Cuba to $7 million in fiscal year (FY)
2004. Unfortunately, our efforts to encourage democratic reform and transition
were answered by the regime's arrests of dozens of opposition leaders
and representatives of independent civil society since March 19, in the
most significant act of political repression in years.
Democracy also remains
at risk in Haiti. The Caribbean Community (CARICOM) worked closely with
us on Resolution 822 of the OAS, which provides clear guidelines to restore
a climate of security to Haiti and to enable a return to full democracy
through free and fair elections. The United States was an integral part
of a joint high-level OAS-CARICOM delegation that visited Haiti March
19 and 20. The delegation delivered a strong message to the government
about the crucial importance of meeting commitments under Resolution 822
and urged the opposition and civil society to participate in the electoral
process once the government meets its commitments.
The situation in
Venezuela continues to deteriorate, undermining Venezuela's democracy
and economy while threatening regional stability. We must help Venezuela
find a solution to the current impasse to avoid further harm. The only
politically viable solution is a peaceful, constitutional, democratic
electoral process agreed upon by both the government and the opposition.
The dialogue led by the OAS Secretary General remains the best hope for
Venezuelans to reach such a solution. The proposals tabled January 21
by former President Carter either a constitutional amendment to
enable early elections or an August recall referendum present viable
options to break the impasse.
Achieving fully the
democratic objectives that our hemispheres leaders have established
requires responsible government stewardship. Secretary Powell has said,
"Promoting integrity in government and the marketplace improves the
global governance climate, nurtures long-term growth, and extends the
benefits of prosperity to all people." Corruption is the millstone
the citizens of the hemisphere continue to drag as they strive toward
modern economies and effective democracies. Corruption distorts markets
and undermines faith in the institutions of government. It limits opportunity
to only the elite and steals resources that should be used for health
care, schools, and community police. Most of all, it creates disappointment
and resentment that can destroy free and open systems.
To improve governance,
we offer enhanced help in the fight against corruption across the hemisphere.
For example, we support the efforts of President Bolaños of Nicaragua
to beat back impunity in his nation. A U.S. government-funded and trained
anticorruption unit in the police force carried out initial investigations
against tainted high-level figures. We have adopted a "no safe haven"
approach to corruption. We will deny U.S. visas to corrupt officials as
appropriate under existing law, we will monitor aid to ensure it is used
transparently, and we will assist countries in recovering stolen funds.
We have also developed a comprehensive program to combat corruption in
the hemisphere, not just through bilateral and multilateral programs,
but also through collaborative actions with our partners.
Creating governments
with integrity, where impunity is not tolerated and law applies to everyone,
requires a major commitment of effort and resources, but virtually every
U.S. national interest, from regional stability to trade, from democracy
to combating transnational crime, requires government integrity and eradication
of impunity. We work to build strong government institutions, broad-based
and effective national political parties, independent labor unions, and
a free and responsible press; enhance the rule of law and investigatory
and prosecutorial capacity; and develop ethics education at the secondary
and professional levels. We have supported the protection of workers
rights by insisting that the rule of law be observed and applied and that
acts of violence against workers and their representatives be fully investigated
and prosecuted. In FY 2002, we spent almost $75 million in Economic Support
Funds (ESF) on democracy and good governance in the region. These resources
helped to support emerging democracies in Latin America and the Caribbean
through training and technical assistance to municipalities, judiciaries
and legislatures, and programs that support prosecutors in their battles
against corruption, money laundering, and other criminal activities. Urgent
global priorities will reduce that amount in FY 2003, but we look to Congress
for support for our FY 2004 budget so that we can continue to consolidate
the region's gains. Specifically, we seek full funding for our ESF request
of $86 million, a significant portion of which will be devoted to democracy
and governance activities.
Our regional administration
of justice program strengthens rule of law, with a special emphasis on
police reform. The development of strong civilian police organizations
is essential for citizen security in emerging democracies and also for
international cooperation to combat the threat of transnational crime.
For FY 2004, funding is needed to continue programs underway in El Salvador,
Guatemala, Honduras, and Nicaragua that focus on the implementation of
new criminal procedure codes and related anti-crime initiatives. Another
ongoing activity funded from this account is the Justice Studies Center
of the Americas, an initiative of the Summit of the Americas to provide
a forum for comparative research and coordination of justice sector reform
initiatives throughout the hemisphere. Political and legislative developments
permitting, we may also initiate programs in Venezuela, the Dominican
Republic, and the English-speaking Caribbean. We hope that you will fully
fund our request for $7 million which is part of our overall $86
million ESF request to continue these efforts in FY 2004.
Development and Expanding Economies
Economic uncertainty
destabilizes nations and regions, just as economic advancement is inhibited
by political strife. We have exercised leadership both bilaterally and
within the international financial institutions to assist nations suffering
from financial crises. Just last month, the United States accelerated
the delivery of $10 million in ESF funds for Bolivia to help the democratically-elected
government there stave off civil disturbances related to economic conditions.
Last year, the United States provided Uruguay with a $1.5 billion bridge
loan that was repaid with interest in one week. Argentina
has now stabilized its economy. With crucial help from the U.S., it reached
a transitional accord with the IMF and has begun the long climb back to
economic recovery. The U.S. has also assisted Brazil, Colombia, and Bolivia
in their efforts to obtain significantly greater resources from the international
financial institutions (IFIs). U.S. Government contributions constitute
about one-sixth of IFI funds. Thus, U.S. money channeled through IFIs
leverages much larger assistance packages. For FY 2004, almost 30 percent
of our ESF funds for the region ($24.445 million) are budgeted for economic
growth and trade capacity building, in addition to the development assistance
funds with USAID to be spent on related activities. Half of those expenditures
for economic growth and trade capacity building ($12.37 million) are targeted
at the Andean region. These funds reduce barriers to trade, support microfinance
lending to the most needy, improve tax administration, and help the historically
disadvantaged generate the incomes they need to lift themselves out of
poverty.
Recognizing that
a strong Mexican economy is in the interest of both Mexico and the U.S.,
Presidents Bush and Fox launched the U.S.-Mexico Partnership for Prosperity
in September 2001 to promote development in the more remote areas of Mexico.
This innovative public-private initiative tackles the root cause of migration
by fostering an environment in which no Mexican feels compelled to leave
his or her home to find work. In its first seventeen months, the Partnership
has reduced the cost of sending money home for thousands of Mexicans in
the U.S., trained Mexican entrepreneurs in the use of electronic commerce,
and launched a hundred million dollar fund to finance environmental projects.
The partnership has also provided over a million dollars for feasibility
studies for Mexican infrastructure projects and initiated a $50 million,
seven-year scholarship program to enhance the capacity of Mexican institutions
of higher education. We are seeking $12 million in ESF for Mexico in FY
2004 for a variety of activities in support of democratic and economic
development, scholarships and security to promote stability and foster
economic growth.
The Third Border
Initiative, unveiled by President Bush at the 2001 Quebec Summit of the
Americas, is a comprehensive framework of cooperation with the Caribbean
region on issues that affect vital mutual interests such as security.
It also provides funding and training for disaster preparedness, environmental
management, and for the fight against HIV/AIDS. Our $9 million request
for FY 2004 for this initiative will allow us to help this region while
we help ourselves by improving stability and security in the Caribbean
through increased training of local authorities and increased information
sharing.
President Bush believes
in the transformative power of trade. The effect of the reduced tariffs
from NAFTA and the Uruguay Round equivalent to a $1,300 tax cut
for an American family of four demonstrates what trade can accomplish.
That is why the conclusion of a Free Trade Area of the Americas (FTAA)
Agreement in 2005, established as a target date by hemispheric leaders
at the Quebec City Summit of the Americas in 2001, will be critical. Parallel
to those negotiations, our discussions with the Central Americans on a
free trade agreement, like the agreement signed with Chile, move us in
the direction of a hemispheric market. Some nations of our hemisphere
require our assistance to develop the capacity to take advantage of the
agreements as fully as possible. My colleague, Adolfo Franco of USAID,
will discuss in greater detail our efforts to build trade capacity throughout
the hemisphere.
Security
For democracy and
development to thrive, a nation must be secure. Promoting hemispheric
security remains a key U.S. objective, as it is a precondition to every
objective we share stopping terrorism; ending the trafficking in
arms, illicit narcotics, and people; strengthening the rule of law and
respect for human rights; halting environmental degradation; ending lawlessness
and criminality; and expanding economies. Foreign terrorist organizations
and their supporters operate in the hemisphere, most notably in and on
the borders of Colombia, in Peru, and in the tri-border region of Argentina,
Paraguay, and Brazil.
We are encouraged
by the response of the Guatemalan government to our concerns about counternarcotics.
The March 19 seizure of over a ton of cocaine was a vivid demonstration
of Guatemala's commitment to improve counternarcotics operations. In the
last several months, the old counternarcotics police force has been replaced,
seizures have increased, and seized drugs have been destroyed. The government
of Guatemala has also taken steps to improve and enhance cooperation on
extraditions and maritime counternarcotics efforts. Illegal narcotics
flows continue to pose a significant threat to Guatemala and the other
Central American countries, and it is important that the United States
and Guatemala continue to increase our cooperation.
The State Department's
Bureau of International Narcotics and Law Enforcement Affairs (INL)
bilaterally as well as multilaterally through the OAS is supporting
a wide variety of programs to address drugs, crime, and violence throughout
the hemisphere. There is close coordination between INL and my bureau
to ensure that International Narcotics Control and Law Enforcement (INCLE)
and ESF-funded programs and activities are complementary. We are improving
cooperation with our allies, strengthening the efforts of the Financial
Action Task Force (FATF) and the two FATF-styled regional bodies that
cover the Caribbean and South America to combat money laundering, and
enhance border controls. We can only create a secure environment by working
together and the Western Hemisphere has been notably active in this effort.
Following the September
11, 2001 attacks, members of the hemisphere invoked the Rio Treaty, our
collective security agreement for the region. The OAS, with strong U.S.
leadership, also revitalized the Inter-American Committee Against Terrorism
(CICTE) and endowed it with a comprehensive work plan. We are transforming
CICTE into an effective body of counterterrorism experts that can take
concrete action. In less than one year, the OAS drafted the Inter-American
Convention Against Terrorism, a binding legal instrument that establishes
mechanisms for coordinated action against terrorism, which has already
been signed by thirty-three of the thirty-four member states. Recently,
under the leadership of governments in the region, the U.S. has collaborated
with Brazil, Paraguay, and Argentina to establish the "Three Plus
One counterterrorism cooperation mechanism to address activities
relating to terrorism as well. U.S. officials, in the context of the Commerce
Departments Transshipment Country Export Control Initiative (TECI)
and State's Export Control and Border Security (EXBS) Program, also have
begun discussions with Panamanian officials on strengthening their trade
control and border security systems to prevent terrorists and other entities
of concern from acquiring key goods and technologies associated with weapons
of mass destruction.
In December 2001,
the U.S. and Canada signed the Smart Border Action Plan, creating a more
secure and more efficient border. To the south, we enhanced our shared
border security with Mexico by signing and implementing a similar Border
Partnership Plan in March 2002. Over the past year, we have made significant
progress toward our mutual goal of keeping North America safe from terrorism
while sustaining trade and transportation flows crucial to our economies
and citizens.
We sought and obtained
new legal authorities to better help Colombia in its battle against terrorism.
With your support, since July 2000, the U.S. has provided Colombia with
almost $2 billion to combat the intertwined problems of drug trafficking
and terrorism. These resources have strengthened Colombias democratic
institutions, protected human rights, fostered socio-economic development,
and mitigated the impact of the violence on civilians. We requested $37
million in FMF and $34 million in ACI funds as part of the 2003 supplemental
to meet these goals.
You also passed the
Andean Trade Preference and Drug Eradication Act, creating new jobs and
hope for Colombia's people. For FY 2004, we are requesting additional
resources for Colombia and its neighbors, to build on these successes.
Our request for funds for the Andean Counterdrug Initiative (ACI) -- directed
at Colombia, Bolivia, Brazil, Ecuador, Panama, Peru, and Venezuela
is $731 million for FY 2004.
Another threat to
stability in the hemisphere is the lingering obstacle of cross-border
conflicts, especially a series of unresolved border disputes that can
flare into small-scale confrontations. These disputes poison relations
between neighbors and impede efforts toward cooperation and integration.
To enhance hemispheric integration and guarantee the success of the FTAA,
our neighbors must resolve these disputes equitably. Development efforts,
such as those we have undertaken on the Peru/Ecuador border, can help
cement cross-border economic cooperation and development in the disputed
area and beyond. Our FY 2004 request includes $4.5 million for the Peru-Ecuador
peace process, part of our pledge to assist in bringing peace to the area.
We seek an increase
in Foreign Military Financing (FMF) for the region. We share the concern
of the U.S. Southern Command that a decade of reduced security assistance
and local military budgets has left the region's militaries in need of
modernization. These militaries, particularly in Central America and the
Caribbean, are sorely pressed to protect national airspace and waters
from transnational criminals who smuggle drugs, arms, and people. Hurricane
Mitch in 1998 and the El Salvador earthquakes of 2001 showed that regional
armed forces are a key element of Central Americas ability to cope
with large-scale national disasters. Our FMF request for $143 million
in FY 2004 is well above the FY 2003 level and focuses on the Andes. The
higher level of FMF is required to support the Colombian governments
efforts to take back control and governance of those areas of Colombia
currently dominated by terrorists and narcotics traffickers. FMF support
is also critical for Colombias neighbors to preclude narcotics and
terrorism from spilling over Colombias borders. FMF programs will
focus on strengthening security forces in border areas and complement
the ACI-funded activities that I mentioned earlier.
On the related topic
of legal authorities for our work in this region, you have provided us
with expanded authorities in Colombia. We ask that you extend these authorities
for the coming years, to permit us to assist the Government of Colombia
in combating the dual threats of narcotics and terrorism. We also ask
that these authorities be free of restrictions that can cause unhelpful
delays. In fact, we hope these authorities can be extended indefinitely,
removing the need to seek their renewal each year, which injects uncertainties
into the planning process.
We would like to
explore with the Committee's staff the prospect of reviewing and rationalizing
current Colombian reporting requirements. Consolidation of these requirements
would, in addition to increasing efficiency, provide you with a clearer
picture of our efforts. We have identified several other areas where legislative
changes may facilitate implementation of our policies. We are still reviewing
these areas within the Administration and would like to engage with you
and your staff on these at a later date. For example, there are now so
many separate exceptions to the prohibitions on police assistance that
it is hard to know what is allowed in any particular situation. This makes
coherent planning difficult. There are also gaps between existing authorities
that create unintended consequences. We look forward to discussing these
issues with you.
At State, we have
identified several other areas in which we would like to engage with you
and your staff on legislative changes that would facilitate implementation
of our policies. For example, there are now so many separate exceptions
to the prohibitions on police assistance that it is hard to know what
is allowed in any particular situation. This makes coherent planning difficult.
There are also gaps between existing authorities that create unintended
consequences. We look forward to discussing these issues with you.
Conclusion
Although we are paying
close attention to events elsewhere in the world these days, this does
not mean we are neglecting our own hemisphere. We are deeply engaged
from negotiations for a historic hemisphere-wide free trade area, to significant
contributions toward increasing regional security, to sustained work to
improve the governance of our region. Public diplomacy plays a critical
role in all our efforts. From broadening public outreach in Cuba to explaining
our objectives in Colombia, from media campaigns in Haiti to deter immigration
to support throughout the hemisphere for free elections, public diplomacy
is ever-present. We work toward a public diplomacy strategy of broad,
continuous engagement with all levels and age groups of American societies.
While we have increased efforts to engage those who shape public opinion
and make decisions through the American Fellows Program and programs like
the Humphrey, Fulbright, and International Visitor programs, we also need
to reach out to the average voter and the successor generation in ways
that will deepen the understanding Latin Americans have of the United
States on a personal level. This means more vigorous information outreach
programs, creating opportunities for person-to-person interaction, and
actively listening to what our neighbors are saying. These efforts must
continue in parallel with the efforts I have described above.
Admittedly, all is
not rosy in the Western Hemisphere. Although we have come a long way,
there has been backsliding, and growing democracies face threats from
all sides. We are optimistic, however, because our problems are not intractable.
We can overcome existing challenges together and bring a free, secure,
and bright future to all the peoples of the hemisphere.
President Bush believes
that freedom is the key to unlocking potential. Freedom allows the creativity
that is the essence of human nature to express itself and be realized.
Freedom is the path of political, social, and economic progress. As President
Bush said, this hemisphere of eight hundred million people strives for
the dream of a better life, A dream of free markets and free people,
in a hemisphere free from war and tyranny. That dream has sometimes been
frustrated but it must never be abandoned. He knows there
are millions of men and women in the Americas who share his vision of
a free, prosperous and democratic hemisphere. Working together as partners,
I am confident that we will achieve this goal.
As of April 16, 2003,
this document is also available online at http://www.state.gov/p/wha/rls/rm/19286.htm