    [Weekly Compilation of Presidential Documents Volume 38, Number 3 (Monday, January 21, 2002)]
    [Pages 77-81]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Remarks to the World Affairs Councils of America Conference

    January 16, 2002

        Well, thank you for that very warm welcome. It's such a pleasure to
    be here tonight for this gathering. I want to thank the World Affairs
    Council for promoting citizen interest in global issues, especially an
    interest in our own hemisphere and its importance to our country.
        Eldon, thank you very much for your fine introduction. Back stage he
    was wondering

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    whether or not I could understand his accent. I said, ``That's not the
    problem. The problem is, can you understand mine?'' [Laughter] I want to
    thank Jerry Leach, as well. I want to thank the leadership here at the
    OAS. Cesar, thank you very much for your continued hospitality and
    leadership. It's good to see my friend Luigi again. I want to thank
    Enrique Iglesias, as well.
        I want to thank members of my Cabinet who are here, in particular,
    Mel Martinez, the Secretary of Housing and Urban Development. Thank you,
    Mel. I'm pleased to see Roger Noriega, el Embajador de los Estados
    Unidos a la OAS, for being here. Thank you, Roger. A new member of my
    team is Otto Reich, Assistant Secretary for the Western Hemisphere. I
    appreciate Otto being here. And of course, I want to thank the members
    of my National Security Council who are here, Condi Rice and John
    Maisto, for their sound and solid advice. Thank you all for coming.
        In September of last year, I welcomed my good friend the President
    of Mexico to the White House. Standing together on the South Lawn,
    President Fox and I spoke of building a hemisphere of freedom and
    prosperity and progress. That was 5 days before the terrorists attacked
    the peace and security of the world, murdering thousands of citizens
    from over 80 nations, including almost every nation in this hemisphere.
        Since the attacks, the United States has received incredible
    sympathy and support from our neighbors and friends. I've been in close
    contact with democratic leaders such as Prime Minister Chretien and
    President Fox and President Cardoso, President Lagos and President
    Toledo, to name a few. We've been talking on a regular basis about our
    common interests. Democratic leaders throughout the Americas have
    offered help and wisdom, friendship, and even peacekeepers, and for that
    this country is very grateful.
        The nations of the Western Hemisphere are resolved: We refuse to
    live in fear, so we will fight terror wherever it is exists. And we're
    committed to building a prosperous and free and democratic hemisphere.
    Nothing will distract us; nothing will deter us in completing this great
    work.
        We meet, however, at a time when there are some who question the
    path to prosperity and stability. Some wonder whether free market
    reforms are too painful to continue. Some question the fairness of free
    and open trade, while holding out the false promise of protectionism.
    And there's even greater danger--that some may come to doubt democracy,
    itself.
        Our answer to these questions and doubts must be clear, and it must
    be consistent: The hopes of all our peoples, everybody who lives in this
    hemisphere, no matter where they live, lie in greater freedom. Free
    markets and open trade are the best weapons against poverty, disease,
    and tyranny. And democracy is the nonnegotiable demand of human dignity.
        The future of this hemisphere depends on the strength of three
    commitments: democracy, security, and market-based development. These
    commitments are inseparable, and none will be achieved by half-measures.
    This road is not always easy, but it's the only road to stability and
    prosperity for all the people--all the people--who live in this
    hemisphere.
        Our first commitment is to democracy and political freedom. This is
    affirmed in the Democratic Charter of the Americas, which holds this:
    Only democracies can be a part of our inter-American dialog and system.
    And these governments cannot be democratic in name only. Citizens and
    businesses must know that the townhall, the alcaldia, is free from
    bribery and cronyism and all forms of corruption. These old attitudes
    and habits are a form of theft, stealing from people their money and
    their trust and their hopes for a better life. For freedom and
    prosperity to come, corruption must go. Freedom--the freedom to vote,
    the freedom to speak your mind, the freedom to worship an Almighty God,
    the freedom to own your own property--is the great idea of our time; it
    is the great idea of all time. And by building governments that are more
    open and honest and fair, we will make freedom more meaningful for all
    our citizens.
        Our second commitment is to security, security against acts of
    terror. It is the great calling of the 21st century. And I can assure
    you this Nation will not tire; we will not fade; we'll be resolute in
    our determination to rout

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    out terror wherever it exists--in our neighborhood or neighborhoods
    around the world--security against the lawless violence of drug cartels
    and their accomplishments--accomplices. Our citizens must know that they
    can exercise their freedoms in security and in peace.
        And that is why, for example, the United States, Canada, and Mexico
    are cooperating in unprecedented ways to build smart borders for the
    21st century that ensure safety for ordinary people and trade and
    filters out terror and drugs.
        And that is also why the United States remains committed to helping
    nations like Colombia defend her democracy. Colombia and the Andean
    nations are strengthening law enforcement, reducing illegal crops, and
    expanding legitimate business opportunities as viable alternatives to
    drug farming and drug trafficking. The United States Congress and I
    recently approved $625 million to support these efforts. America will
    help all nations in the region in cutting off the supply of drugs. And
    just as importantly, America will help the nations of the regions by
    reducing the demand for drugs within our own borders.
        Our third commitment is to growing and stable economies where the
    benefits of growth are widely shared, economies where small-business
    owners and farmers and workers and investors are all able to build and
    earn their own prosperity. We must foster policies that reward, not
    punish, entrepreneurship, work, and creativity. We understand that
    sustained development depends on market-based economies, on sound
    monetary and fiscal policies, and on freer trade in our neighborhood.
        Recent events in Argentina do nothing to change this reality.
    America is deeply concerned about the difficulties facing our ally and
    our friend; we're deeply concerned about the effects of the economy on
    Argentina's great people. We share ties of commerce and culture and
    family. America is hopeful that Argentina will get through these tough
    times.
        It was an encouraging sign that the President, on taking office,
    expressed a desire to pursue a Free Trade Area of the Americas.
    Argentina and nations throughout our hemisphere need to strengthen our
    commitment to market-based reform, not weaken it. Shortcuts to reform
    only lead to more trouble. Half-measures will not halve the pain, only
    prolong it.
        The United States is prepared to help Argentina weather this storm.
    Once Argentina has committed to a sound and sustainable economic plan, I
    will support assistance for Argentina through international financial
    institutions. This assistance can soften the impact of the crisis on the
    lives of the Argentine people and help that country return to growth and
    prosperity.
        Success in the global economy comes to countries that maintain
    fiscal discipline, open their borders to trade, privatize inefficient
    state enterprises, deregulate their domestic markets, and invest in the
    health and education of their people. And those who promise painless
    protectionism or security through statism assure a bleak and stagnant
    future for their people.
        Countries that stay on the hard road of reform are rewarded. Just
    look at Chile. Chile has cut its poverty rate in half over the last
    decade. It has cut its child mortality rate by almost two-thirds since
    1980. Or Mexico, that's withstood the setbacks of the midnineties, and
    its economy has grown by more than 4 percent annually since 1996. Costa
    Rica's emphasis on education and attracting foreign investment has
    transformed its economy over the past decade. Costa Rica's exports of
    computer products are now almost 4 times greater in value than its
    banana exports and nearly 8 times greater than its coffee exports.
        My Nation is no stranger to the difficulties of reform and
    restructuring. A generation ago, our Government made a mistaken and
    failed experiment with wage and price controls. Later, during the 1970s
    and 1980s, millions of our workers were displaced as our industries
    adapted to the demands of a new global economy. We've grown through the
    pains of recession, inflation, and unemployment by strengthening our
    commitments to markets, by enacting sound monetary and fiscal policies,
    and by embracing free trade. In the end, each of these challenges made
    us stronger and more prosperous. With all its

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    tests and difficulties, a faith in freedom is never disappointed.
        This belief in markets is justified within our borders and beyond
    them. Open trade and investment bring healthy, growing economies and can
    serve the cause of democratic reform. From the success of NAFTA, we know
    these are facts, not theories.
        Acting on this belief, we went to Doha, and strongly support a new
    global trade negotiations. In this region, we are acting on a number of
    fronts. We're working to build a Free Trade Area of the Americas, and
    we're determined to complete those negotiations by January of 2005. We
    plan to complete a free trade agreement with Chile early this year. And
    once we conclude the agreement, I urge Congress to take it up quickly.
    And I ask the Senate to schedule a vote, as soon as it returns, on
    renewing and expanding the Andean Trade Preference Act.
        Today I announce the United States will explore a free trade
    agreement with the countries of Central America. My administration will
    work closely with Congress toward this goal. Our purpose is to
    strengthen the economic ties we already have with these nations, to
    reinforce their progress toward economic and political and social
    reform, and to take another step toward completing the Free Trade Area
    of the Americas.
        All of these efforts depend on one thing: Congress must pass trade
    promotion authority. The House of Representatives acted. In the Senate,
    the Finance Committee has given its strong bipartisan approval. Now it's
    time for the full Senate to approve trade promotion authority, so I can
    put it to work for the good of America--and all of the Americas.
        Markets and trade, development and democracy, rely on healthy and
    educated people. Therefore, we are also working to bring better health
    care and greater literacy to the nations of our hemisphere. The United
    States' funding for international basic education assistance programs
    this year will be over 45 percent higher than last year. And this
    spring, the first of our regional teacher training centers will open in
    Jamaica. Additional centers will be operating in South and Central
    America by year's end.
        I have called upon the World Bank and other development banks to
    increase the share of their funding devoted to education. The Inter-
    American Development Bank has significantly increased this share over
    the past year. All the development banks should keep moving in the
    direction of making sure our neighborhood is well educated. I've also
    urged the World Bank to provide up to 50 percent of its assistance to
    the world's poorest nations in the form of grants rather than loans,
    grants for education, for health, for nutrition, for water supplies, and
    for sanitation.
        To this end, my next budget will include nearly $50 million increase
    in aid to the World Bank programs that assist the poorest countries. If
    the Bank demonstrates it can use the funds to achieve measurable results
    and helps move forward reform, I'm prepared to consider requesting
    increases over $100 million in each of my subsequent budgets. This would
    mean that the amount--the annual U.S. contribution to these World Bank
    programs would be 30 percent higher than 3 years ago.
        This hemisphere is on the path of reform, and our nations travel it
    together. We share a vision, a partnership of strong and equal and
    prosperous nations, living and trading in freedom. Together, we will
    defend that vision against lawlessness and violence. We will assert it
    against terrorism and protectionism. Especially in times of adversity,
    we'll maintain our vision, because it unleashes the possibilities of
    every society and recognizes the dignity of every person. Together--and
    I mean together--we will build and defend this hemisphere of liberty.
        Thank you for coming.

    Note: The President spoke at 6:30 p.m. in the Hall of the Americas at
    the Organization of American States. In his remarks, he referred to Sir
    Eldon Griffiths, chairman, World Affairs Councils of America, who
    introduced the President; Jerry Leach, president, World Affairs Councils
    of America; Cesar Gaviria, Secretary General, and Luigi Einaudi,
    Assistant Secretary General, Organization of American States;
    entertainer Enrique Iglesias; Roger Noriega, U.S. Ambassador to the
    Organization of American States; President Vicente Fox of Mexico; Prime
    Minister Jean Chretien of Canada; President Fernando Henrique Cardoso of
    Brazil; President Ricardo Lagos of Chile; President Alejandro Toledo of

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    Peru; and President Eduardo Alberto Duhalde of Argentina. The Office of
    the Press Secretary also released a Spanish language transcript of these
    remarks.