[Congressional Record Volume 143, Number 149 (Thursday, October 30, 1997)]
[Extensions of Remarks]
[Pages E2140-E2141]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              FINISHING THE JOB OF REFORM IN LATIN AMERICA

                                 ______
                                 

                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                       Thursday, October 30, 1997

  Mr. HAMILTON. Mr. Speaker, I would like to bring to my colleagues' 
attention my monthly newsletter on foreign affairs from October 1997 
entitled Finishing the Job of Reform in Latin America.
  I ask that this newsletter be printed in the Congressional Record.
  The newsletter follows:

              Finishing the Job of Reform in Latin America

       The President's recent trip to Latin America highlights the 
     striking changes in relations between the United States and 
     its neighbors in the hemisphere. There were no glaring 
     disputes or major anti-American protests. There were many 
     points of agreement between the President and his 
     counterparts in the countries he visited--Venezuela, Brazil 
     and Argentina. Reform has taken hold in Latin America, but 
     much remains to be done to finish the job.
       Democracy and free markets. Democracy and free markets--
     long time U.S. foreign policy goals for the region--have 
     become the norm throughout Latin America during the past 
     decade. These changes have had tangible benefits: U.S. 
     exports to Latin America are growing twice as fast as those 
     to any other region of the world.
       In Venezuela, President Caldera has restored confidence in 
     a government previously riddled by scandal. An emerging oil 
     industry is rapidly absorbing U.S. investment and produces 
     more oil for U.S. consumers than any other country. Through 
     fiscal and monetary discipline, Venezuela is beginning to 
     tame corruption and inflation.
       In Brazil, military regimes are gone, replaced by and an 
     elected president and an independent Congress. The Brazilian 
     economy is the eighth largest in the world, and by far the 
     largest in Latin America. No longer constrained by Brazilian 
     protectionism, $7 billion in direct investment poured into 
     Brazil from the United States last year alone. Brazil's 160 
     million consumers bought more U.S. goods last year than did 
     China.
       Argentina has also replaced military juntas with a 
     succession of elected presidents and legislatures. 
     Argentina's military--once a law unto itself--is now a model 
     for international cooperation and participation in 
     peacekeeping operations. President Clinton designated 
     Argentina a major non-NATO ally based on its impressive 
     peacekeeping record and responsible international role.
       Incomplete reform. Reform in Latin America is not yet 
     complete, and the progress made so far is fragile. Corruption 
     continues to hinder investment and benefit the well-
     connected. Narcotics remains a dangerous and costly problem. 
     Journalists do not have the freedom to expose official 
     corruption, and justice systems lack credibility. Poverty and 
     vast disparities of income still threaten economic reform and 
     play into the hands of antidemocratic forces. These problems 
     are widespread, and are especially evident in Colombia, where 
     guerrillas threaten democracy, and Peru, where the greatest 
     threat to democracy is the president.
       U.S. Policy. The U.S. needs to take a clear-eyed view of 
     both the achievements and shortcomings of reform in Latin 
     America. Our policy toward the region should work to 
     consolidate the substantial gains in democracy and civilian 
     control of the military. Yet we need to do more to address 
     narcotics, corruption, human rights abuses, and income 
     disparities. U.S. leadership and sustained interest in the 
     region can strengthen reformers and help move Latin America 
     toward further reform.
       First, the United States must lead on free trade and 
     economic integration in the hemisphere. Opening Latin 
     America's economies is the most important step we can take to 
     help create a new middle class in Latin America and 
     consolidate democracy. To make U.S. leadership on trade 
     possible, Congress must grant the President fast-track 
     negotiating authority and approve trade parity for the 
     Caribbean economies.
       Closer trade ties and market reforms will also help address 
     the most critical internal problem in the region: low living 
     standards and vast social economic disparity. Trade and 
     liberalization will foster economic discipline and reduce 
     inflation, which hurts the poor the most. They will also free 
     up resources spent previously on inefficient state 
     industries, providing funds to implement additional reforms 
     in education and social programs. President Clinton should 
     urge his fellow leaders to implement such reforms when he 
     meets with them at the Summit of the Americas next year in 
     Chile--having fast-track authority will boost his ability to 
     do so.
       Second, the United States must work more closely with its 
     partners in Latin America. U.S. unilateral action--as with 
     the Helms-Burton law on Cuba--undermines cooperation, and 
     stands in stark contrast to the cooperative successes we have 
     had elsewhere in the hemisphere. We need multilateral 
     cooperation to address our common problems, including 
     corruption, arms trafficking, environmental degradation and 
     the flow of narcotics.
       Narcotics not only lead to misery in North America, but are 
     a leading source of corruption and a threat to democracy in 
     Latin America. The issue can only be addressed as part of a 
     multi-faceted U.S. policy of regional cooperation. To promote 
     such cooperation, Congress should repeal the certification 
     statute, which requires the President to sanction countries 
     that don't measure up to U.S. counter-narcotics standards. 
     That statute has outlived its usefulness.
       Third, the United States should redouble efforts to 
     strengthen the rule in Latin America. These advances depend 
     on the political will of the region's leaders, but U.S. 
     technical assistance programs can provide the

[[Page E2141]]

     support necessary once leaders decide to let independent 
     institutions operate.
       Fourth, regional and international organizations should be 
     strengthened and encouraged to support reformers and build a 
     consensus on democratic reform. The Organization of American 
     States can play a central role in promoting press freedom, 
     and the U.S. should encourage the Inter-American Development 
     Bank to support educational reform and small enterprise.
       Conclusion. Latin America has come a long way in a short 
     time, much to the benefit of the United States. The 
     President's trip put an important focus on the region, and 
     the challenge now is to sustain the attention of U.S. 
     policymakers. With strong support for reform from the United 
     States, the region can consolidate the gains we have so long 
     sought and help create a more stable, democratic and 
     prosperous Latin America.

     

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