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Opening Statement of Congressman Dan Burton,
Ranking Member, Subcommittee on the Western Hemisphere
Hearing of the Subcommittee on the Western Hemisphere
Title: "Poverty and Inequality in the Americas"
March 28, 2007

Mr. Chairman, thank you for holding this hearing today. So far this year the Western Hemisphere Subcommittee has convened hearings on overall U.S. Policy toward Latin America, Haiti's development needs, and the opinion of the United States in Latin America based on polling data. In each of these hearings, the critical need to deal with Latin America's poverty and inequality has been a recurrent theme. Resolving this problem should, in my opinion, permeate the very core of all efforts of reform in the region, and be a major contributing factor in any future foreign policy strategy.

First, the fact that poverty and inequality exist is not debatable. The World Bank reports that indigenous people comprise 15 percent of the world's poor, and the indigenous population of Latin America is estimated at 28 million. Therefore, there is a very large inherent poverty problem that Latin American countries must address with diligence. The female population is also at a disadvantage with minimal work opportunities and often inadequate laws governing women's rights. Many indigenous women face major health concerns and domestic violence on a regular basis. Each of these disadvantages adds to the social exclusion of women in Latin America.

Second, we must recognize that this rampant poverty and inequality in Latin America is the cause of additional problems in the region. Drug cultivation and use, gang activity and general unrest are often the byproducts of poverty. These evils continue to plague the region and maintain a negative status quo in many Latin American nations, such as a stagnant economy. Persistent poverty is also making it difficult for many in the region to see the value of democracy. As we all know, the constant despair felt by the poverty stricken masses adds fuel to the fire of left-leaning socialist style leaders.

Third, corruption cannot be left out of the equation when looking at a solution to this problem. Since Latin America reportedly has the highest level of income inequality in the world, it is obvious that in addition to poverty there is also extreme wealth in the region. The dilemma lies in the fact that the wealth of nations in our hemisphere is not utilized in a manner that promotes prosperity across all socio-economic classes. If countries are able to sincerely work to fight corruption within their borders, other tools will then become available to open up the region to opportunities for growth.

So finally, we must work to establish long-lasting methods for opening such long term growth opportunities. Passing the previously negotiated Free Trade Agreements and extending Trade Preferences is one obvious place to start. Addressing the millions of dollars of remittances that travel to Latin American countries is another way to promote efficient use of the funds available to individuals and communities. Increased economic activity in communities will create job opportunities that provide a taxable income, lead to pride in one's community and result in broader educational prospects. It is these fundamental changes that will lift communities out of poverty in the long term.

It is my hope that today's hearing will bring to light concrete proposals for alleviating poverty and reducing inequality in the impoverished areas of the Americas. I would like to thank our highly qualified panelists for being here today, and I look forward to hearing their views of how to promote an environment of change and prosperity in Latin America.