[Senate Hearing 112-55]
[From the U.S. Government Printing Office]
S. Hrg. 112-55
U.S. POLICY TOWARD LATIN AMERICA
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON WESTERN HEMISPHERE, PEACE
CORPS, AND GLOBAL NARCOTICS AFFAIRS
OF THE
COMMITTEE ON FOREIGN RELATIONS
UNITED STATES SENATE
ONE HUNDRED TWELFTH CONGRESS
FIRST SESSION
__________
FEBRUARY 17, 2011
__________
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COMMITTEE ON FOREIGN RELATIONS
JOHN F. KERRY, Massachusetts, Chairman
BARBARA BOXER, California RICHARD G. LUGAR, Indiana
ROBERT MENENDEZ, New Jersey BOB CORKER, Tennessee
BENJAMIN L. CARDIN, Maryland JAMES E. RISCH, Idaho
ROBERT P. CASEY, Jr., Pennsylvania MARCO RUBIO, Florida
JIM WEBB, Virginia JAMES M. INHOFE, Oklahoma
JEANNE SHAHEEN, New Hampshire JIM DeMINT, South Carolina
CHRISTOPHER A. COONS, Delaware JOHNNY ISAKSON, Georgia
RICHARD J. DURBIN, Illinois JOHN BARRASSO, Wyoming
TOM UDALL, New Mexico MIKE LEE, Utah
Frank G. Lowenstein, Staff Director
Kenneth A. Myers, Jr., Republican Staff Director
------------
SUBCOMMITTEE ON WESTERN HEMISPHERE, PEACE
CORPS, AND GLOBAL NARCOTICS AFFAIRS
ROBERT MENENDEZ, New Jersey, Chairman
BARBARA BOXER, California MARCO RUBIO, Florida
JIM WEBB, Virginia MIKE LEE, Utah
JEANNE SHAHEEN, New Hampshire JIM DeMINT, South Carolina
TOM UDALL, New Mexico JOHNNY ISAKSON, Georgia
JOHN BARRASSO, Wyoming
(ii)
C O N T E N T S
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Page
Feierstein, Hon. Mark, Assistant Administrator for Latin America
and the Caribbean, U.S. Agency for International Development,
Washington, DC................................................. 14
Prepared statement........................................... 16
Responses to questions submitted for the record by Senator
Marco Rubio................................................ 39
Kaplan, Richard H., president and CEO, Inter-American Foundation,
Washington, DC................................................. 20
Prepared statement........................................... 21
Menendez, Hon. Robert, U.S. Senator from New Jersey, opening
statement...................................................... 1
Mora, Frank O., Ph.D., Deputy Assistant Secretary of Defense for
the Western Hemisphere, U.S. Department of Defense, Washington,
DC............................................................. 23
Prepared statement........................................... 25
Responses to questions submitted for the record by Senator
Marco Rubio................................................ 40
Rubio, Hon. Marco, U.S. Senator from Florida, opening statement.. 5
Valenzuela, Hon. Arturo, Assistant Secretary of State for Western
Hemisphere Affairs, U.S. Department of State, Washington, DC... 7
Prepared statement........................................... 8
Responses to questions submitted for the record by Senator
Marco Rubio................................................ 41
(iii)
U.S. POLICY TOWARD LATIN AMERICA
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THURSDAY, FEBRUARY 17, 2011
U.S. Senate,
Subcommittee on Western Hemisphere,
Peace Corps, and Global Narcotics Affairs,
Committee on Foreign Relations,
Washington, DC.
The subcommittee met, pursuant to notice, at 2:18 p.m., in
room SD-419, Dirksen Senate Office Building, Hon. Robert
Menendez (chairman of the subcommittee) presiding.
Present: Senators Menendez, Udall, and Rubio.
OPENING STATEMENT OF HON. ROBERT MENENDEZ,
U.S. SENATOR FROM NEW JERSEY
Senator Menendez. Good afternoon. This hearing of the
Western Hemisphere, Peace Corps, and Global Narcotics Affairs
Subcommittee will come to order.
Let me first welcome all of our guests and witnesses. I
know that Senator Rubio, who I understand will be the ranking
member once we fully organize, is on his way from a vote on the
floor.
Let me further say that I am chairing this hearing even
though we have not organized our full and subcommittees,
although it is my expectation when we do I will be the chair of
this subcommittee. We wanted to get the work started, and we
appreciate Chairman Kerry allowing us to do so.
I want to take this opportunity to welcome the members of
what I expect the subcommittee to be, based upon the choices of
members on both sides, certainly Senator Rubio, who will be the
ranking member of the subcommittee, and we look forward to
working with him. Let me welcome all the new members of the
subcommittee, Senator Boxer, Senator Shaheen, Senator Udall,
Senator DeMint, and Senator Lee from Utah; and those who are
returning to the subcommittee from the last Congress, Senators
Webb, Barrasso, and Isakson.
I look forward to chairing the subcommittee when we are
fully organized, and I intend to use the chairmanship to place
attention on an area of the world that I personally believe has
not had the full attention of U.S. foreign policy in a way that
it needs to; in a way that is in our national interest and our
national security. It is our intention to--working with the
chairman--have a robust schedule of hearings on the vital
issues facing the United States in this hemisphere.
Now, since it is our hope that this hearing will set the
tone for the rest of the work to come, I'm going to ask you to
bear with us a few minutes. I will deliver a longer opening
statement than we will normally have, but it is a scene-setter,
so I ask you to bear with me a few moments.
I welcome Senator Rubio, who I just spoke about a moment
ago.
Insufficient focus on the Western Hemisphere by governments
of our country going back to both parties has not always been
so. The Good Neighbor Policy during the FDR Presidency was an
era during which we were fully engaged, and in March of this
year we celebrate the 50th anniversary of the Alliance for
Progress announced by President John F. Kennedy. President
Kennedy did shine the spotlight on the region, and I want to
quote directly from his vision. He said: ``We propose to
complete the revolution of the Americas, to build a hemisphere
where all men can hope for a suitable standard of living and
all can live out their lives in dignity and in freedom.''
We can certainly say now that the region has made very
significant progress. Today most of the countries in Latin
America are free and participate in representative democracies,
with the exception of Cuba. Within the past 10 years there's
also been much material progress. So from the long view of
history, political and economic gains have indeed been made.
Latin America therefore commands a new respect and needs to be
treated with respect.
That is why we seek a deeper partnership with Latin America
than ever before. At the Summit of the Americas in Trinidad and
Tobago last year, the President proclaimed a policy of
partnership with the Americas and next month he is embarking on
a trip to strengthen that partnership. He will visit Brazil,
Chile, and El Salvador. Each of those countries have made proud
political and economic achievements. Brazil has truly emerged
as a country no longer of the future, but very much of the
present. Chile's advances are known to all and its epic rescue
of the miners from the bowels of the Earth is tribute to its
respect for life, Chilean technical know-how--with a little
help of a United States company--and Chilean pride. El Salvador
has been a true ally in our fight to establish a democracy in
Iraq and we value their friendship as we seek to curb the
scourge of narcotrafficking in Central America together.
The progress of the region is clearly evident on the
economic front. According to new projections by the United
Nations Economic Commission for Latin America and the
Caribbean, the region's economy grew by 6 percent last year and
is projected to grow by another 4.2 percent this year.
Culturally as well as economically, Latin America is a
vibrant and dynamic region. It has not only resources, but a
resourceful people that have allowed it to grow and develop. It
has its own values, its own institutions, its own attitudes
toward government, its own challenges, and its own solutions--
institutional, cultural, and technological.
I think it's important to understand these if we hope to
forge a meaningful relationship, a practical policy, and a
fruitful partnership with the countries of Latin America. Now,
I know that each country and region has its own
characteristics, but in this first hearing we want to explore
our relationship with Latin America as a whole. I think it's
only appropriate to take a holistic view as a starting point
that will give us a reference point from which to drill down
and get more specificity in subsequent hearings.
I propose, therefore, that we look at our policy on Latin
America through a prism that includes four lenses: values,
institutions, attitudes, and technology. Anthropologists use
this framework to understand societies and I think it will
serve our purposes as well.
Let's begin with the question of values. In talking about
values, I mean to highlight a belief system, a core set of
values that serves as an organizing principle for society. In
the United States, there is no question that among the values
of liberty, order, and equality, liberty ranks high above the
others. We love our freedom and we are prepared to sacrifice
for it. We hold it dear above life itself. It is with that
conviction that Patrick Henry made his case for independence
from Britain and uttered the immortal cry: ``As for me, give me
liberty or give me death.''
It is that value that American soldiers take with them when
they fight our Nation's wars. It is that value we uphold when
we stand up for freedom--of expression, of worship, of
assembly, and the right to have our grievances heard at the
expense of stability or order.
It is these values that inspired the people in Tahrir
Square in Egypt last week and today in the streets of Tehran.
It is what makes our democracy vibrant and enables us to
represent the rights of others.
There is also a place for order when it comes to protecting
lives and property, as well as in providing for the welfare of
those less fortunate in our society. Liberty allows us to
acquire property and to care for the less fortunate and gets
the place of honor in our ideological pantheon. It is an
honored place that is protected from competing ideologies such
as fascism and communism.
As we examine our relationship with Latin America, I find
it important to understand where each of the countries of the
region place the value of order and equality in relation to the
value of liberty, in order to determine what is or should be
our policy toward governments that are based on ideals that are
less than democratic and less respectful of the rights of
others than in self-preservation.
Institutions that give stability to societies enable them
to develop from cultures to civilizations. Strong institutions
protect the rights of citizens and allow nations to defend
themselves against threats to the state and its citizens.
Strong democratic institutions prevent one person from
dominating and instead allow an assembly to represent the
rights of the people and create laws on their behalf. It also
includes an independent judiciary that makes clear what the law
is and applies due process in protecting citizens' rights.
As we examine our relationship to countries in Latin
America, we need to ask what strong institutions prevail that
recognize the rule of consent by the governed, have the
security of its citizens in mind, and are governed by the rule
of law.
Institutions, of course, have no relevance and do not
resonate without acceptance by the people in their interaction
with their representatives. Representatives who do not hear
from their constituents are not able to determine what laws are
in their best interests. A society without a civic attitude,
without the willingness to participate, and without the ability
to interact with its representatives, cedes its voice to others
who may or may not react wisely to the challenges of the times.
Civil society most definitely has a role to play in a healthy
political culture. Access by citizens to their government or
governing bodies ensures that their voices are being heard and
provides the legitimacy that governing bodies need to function
effectively and efficiently in the service of their citizens.
This is one of the questions we need to ask about countries
in Latin America: How strong is civil society, the sense of
civil responsibility and engagement? How strong is the
legitimacy of governments that have to face challenges from
organized crime and from drug trafficking organizations? And in
which areas can we work together to make improvements?
Finally, when I speak of technology I mean the tools a
society has at its disposal to improve the quality of life for
a society as a whole and for the individuals within it. I
include the advances of modern science to defeat diseases like
cholera, malaria, tuberculosis. I include advances in energy
security in the fields of nuclear, solar, wind, and renewable
fuels. I include all those tools that enable us to secure our
borders, explore space, manage the effects of climate change,
and those that will help us produce economic growth and
opportunity in this century.
From time immemorial, man has been able to improve his lot
only with the creation of tools that help him solve his
problems. That is no less the case today as we explore our
relationship with the economies in the region. Here we have
many areas in which we can cooperate and strengthen our
partnerships, both in the public and private sectors. So let's
keep that in mind as we explore our opportunities for
cooperation in the hemisphere.
Our relationship with the hemisphere is one of neighbor to
neighbor, working cooperatively to improve the quality of life
for all citizens in the Americas and to uphold the values,
institutions, and attitudes contained in the Inter-American
Democratic Charter that we believe best serve our citizenry and
advance the social, political, and economic development of the
people of the Americas. And it's in that spirit that I look
forward to holding some future hearings, working with Senator
Rubio.
Finally, I have said many times, as a member of this
committee, that many of the things debated in this country
today emanate from issues that exist in the hemisphere. If we
talk about undocumented immigration in this country, it stems
in part from the challenge of societies with civil unrest or
dire economic circumstances. If we talk about our young people
who get addicted to drugs, it is in part the demand and the
creation of opportunities for the supply of that demand to
emanate from the hemisphere. If we talk about diseases that
have resurfaced after having been eliminated within our
hemisphere, disease knows no boundaries or borders. If we are
talking about creating regional opportunities for growth of
American services and products, which would create jobs here at
home, it is a tremendous opportunity to advance. And the list
goes on and on.
So I view the work of this subcommittee as something that
is integral to the national interest, the national security,
and the national economy of the United States, and that's how
we intend to proceed.
With that, let me invite our soon to be ranking member,
because we haven't formally organized, Senator Rubio, the
junior Senator from Florida, who I look forward to working very
closely with, to move the interests of our collective
hemispheric engagement.
OPENING STATEMENT OF HON. MARCO RUBIO,
U.S. SENATOR FROM FLORIDA
Senator Rubio. Thank you, Senator and Mr. Chairman, for
holding this meeting. If I need to, when we ratify this, I'll
come back and give the opening statement again a second time,
just to make sure. But I appreciate your leadership on the
committee and for holding this hearing. I think, as we talked
before, if I'm correct, this subcommittee only met a handful of
times over the last few years, and unfortunately I think it's
reflective of a lack of vision toward the region by multiple
administrations from both political parties.
That being said, I think there's been a tremendous amount
of progress made in this hemisphere. With the sad exception of
Cuba and a handful of increasingly authoritarian regimes in the
area, Latin American leaders increasingly recognize the
legitimacy of free and fair elections, of promarket economic
policies, and unprecedented cooperation to curb transnational
crime.
I think the best example of that would be Colombia. This is
a country that almost 2 decades ago was nearly a failed state.
In the process, it has now over the last two decades defeated
the Communist narcoguerrillas. It has expanded democratic
spaces and strengthened independent government institutions,
and it has opened markets and increased economic competition.
I think it reminds us that Colombia today--and I think the
panelists, I hope, will agree--is our strongest ally in the
region and certainly an example to the region of the promise of
tomorrow, when there is real leadership and a vision for
tomorrow.
But their work is not complete, which is one of the main
reasons it's imperative that our Congress approve our seriously
delayed trade promotion agreement with both Colombia as well as
Panama.
With the exception of Nicaragua, the nations of Central
America are working hard to overcome the legacy of the cold war
conflicts, to build democratic institutions, and to bring
security to their citizens. Unfortunately, the U.S. response I
think to some of these rising challenges--and again, I don't
mean that in the partisan context--appears confusing,
inconsistent, and timid.
Let me say I am pleased that the President will be
traveling to the region shortly. I think that that's a
promising first step in this new year, and I think there's much
more to be done.
I also believe that in many respects the United States and
its confusing policy toward the region has often created a
vacuum that has allowed us to lose market-share in many of
these strategic partners that we have in the region, that at a
time when other nations around the world are recognizing the
promise of Latin America, the promises of the Western
Hemisphere, and are more than eager to fill it, while we look
elsewhere or nowhere at all. So I hope that that will be a
focus of the subcommittee as well.
Let me thank the panelists for being a part of this. I hope
we'll have future repeated engagement on this issue. I
personally believe, not just because of where I'm
geographically located in Florida, but because I truly believe
that the 21st century can be a western hemispheric century, one
where the true and full promise of equality and opportunity can
bear fruit in multiple nations and it will enrich us all. So I
hope that we can be leaders in that regard. Mr. Chairman, I
appreciate your leadership on this issue and I look forward to
the testimony of the panel.
Senator Menendez. Thank you, Senator Rubio.
With that, let me introduce the rather distinguished panel
of witnesses with us today as we start off this series of
hearings. Let me take a few minutes to introduce them all
collectively and then we'll hear from them.
Dr. Arturo Valenzuela has served as the Assistant Secretary
for the Western Hemisphere at the Department of State since
November 2009. He was previously the professor of Government
and director of the Center for Latin America Studies at
Georgetown University. He is a specialist on the origins and
consolidation of democracy and the institutional dimensions of
democratic government. We look forward to his expertise and
testimony today.
Mr. Feierstein is the Assistant Administrator for USAID for
Latin America and the Caribbean. He has previously served at
USAID as the Director of the Agency's Global Elections Office.
He's worked in the State Department as a Special Assistant to
the United States Ambassador to the Organization of American
States and prior to that was director for Latin America and the
Caribbean at the National Democratic Institute for
International Affairs, overseeing programs to strengthen
democratic institutions in developing countries; something of
great interest and concern. We look forward to his comments.
Mr. Kaplan is the president and chief executive officer of
the Inter-American Foundation. He joined the foundation on
November 1, 2010, and although he's been there a short period
of time, we're looking forward to great things. From 1994 to
2010 he served at the Inter-American Development Bank, most
recently as the chief adviser to the executive vice president.
Before assuming that position, he served as chief of the
Environment and Natural Resources Management Division for
Mexico, Central America, Dominican Republic, and Haiti, where
he was responsible for all IDB programs in those countries
related to agriculture, rural development, among others, and a
lending portfolio in excess of $2 billion.
Dr. Mora is the Deputy Assistant Secretary of Defense for
Western Hemisphere Affairs. From 2004 to 2009, Dr. Mora was the
professor of National Security Strategy and Latin American
Studies at the National War College, the National Defense
University. He has taught courses on strategy, global security,
and Latin American politics to senior military and civilian
officers. He's worked as a consultant to the Library of
Congress, the U.S. Department of the Air Force, Army, CIA, the
Institute for National Security Studies, the National
Democratic Institute, the U.S. State Department, the OAS, the
Joint Chiefs of Staff--Who have you not worked for?--the U.S.
Joint Chiefs of Staff, the U.S. Southern Command, and the
Office of the Secretary of Defense. So we're thrilled to get
you here for free today. [Laughter.]
With that, let me ask Secretary Valenzuela to start. Please
limit your testimony to about 5 minutes or so. Your full
statements all will be entered into the record, and what we
want to do is give the maximum amount of time to explore
different topics with you after you lay your foundation.
With that, Mr. Secretary.
STATEMENT OF HON. ARTURO VALENZUELA, ASSISTANT SECRETARY OF
STATE FOR WESTERN HEMISPHERE AFFAIRS, U.S. DEPARTMENT OF STATE,
WASHINGTON, DC
Mr. Valenzuela. Thank you very much, Mr. Chairman and
future acting cochair of the committee. I want to take this
opportunity to acknowledge the debt that we have to this
committee for the interest and commitment that you have to U.S.
policy in the Western Hemisphere, and I will just highlight a
few points from my written testimony that will be put into the
record.
Mr. Chairman, I'm pleased to tell you that this
administration is deeply engaged in the Americas in this 50th
anniversary year of the Alliance for Progress. Since our
earliest days in office, the Obama administration has been
working hard to safeguard democratic values and fundamental
freedoms, promote economic opportunity, strengthen regional
security, and advance U.S. interests. We strongly believe that
the United States has important national security interests at
stake in the Western Hemisphere and that the best way to
advance these interests is through proactive engagement with
all of the countries of the Americas.
That is why Secretary Clinton has traveled to the region
more frequently than any other Secretary of State in modern
American history, and that is why President Obama chose to use
his State of the Union Address to announce that he will be
traveling to Brazil, Chile, and El Salvador later this spring
to ``forge new alliances across the Americas.''
We believe that the United States has a vital stake in the
success of Latin America and the Caribbean, and that a United
States policy that contributes to that success will benefit all
of the peoples of the Americas, including people in our own
country. We also know that Latin America's future depends on
the consolidation of vibrant democratic institutions that are
responsive to their citizens and capable of expanding the
boundaries of freedom, creating greater social prosperity,
unlocking the economic potential of market, and deepening the
rule of law.
Our strategy has already achieved important results. Today
two-thirds of the populations of most countries in the region
now have a very favorable impression of the United States, an
increase of 10 to 20 points over the 2008 levels.
Today we are very optimistic about the state of the
hemisphere. Since taking office in November 2009, I have
traveled extensively throughout the Americas, making 51 stops
in 23 countries. Through these visits, I have witnessed the
convergence of two powerful and positive trends: the
consolidation of successful market democracies that are making
big strides in meeting their peoples' needs and the growing
global integration of Latin America.
The greatest regional challenges, including inequality,
impunity, insufficient respect for human rights, and lack of
opportunity, are receding in most countries in the Americas.
Furthermore, nations of the hemisphere are realizing their
stake in global issues, like food security, climate change,
transnational crime, and economic competitiveness.
Let me note from the outset that there are continuing areas
of concern, of course. Venezuela is one. I want to underscore
that, despite the rhetoric of the Venezuela Government
proclaiming the triumph of socialism for the 21st century,
today Venezuela's influence in the region has markedly
declined, with only 30 percent of the region holding a positive
view of Venezuela, which is less than half of the favorability
ratings of the United States.
Furthermore, the administration remains unwaveringly
committed to supporting the Cuban people's desire to freely
determine their own future, and to that end we've taken steps
to empower the Cuban people through increased contact and
exchange. Indeed, we recognize that achieving our goals in the
Americas will require building stronger institutions of
democratic governance that respect fundamental civil and human
rights.
In 2011, several Latin American and Caribbean countries
will hold Presidential elections. We join others in welcoming
elections that are credible expressions of the popular will,
and we also encourage all countries to facilitate domestic and
international observation of the election process.
We're working hard to strengthen our economic relationships
with Latin America, including moving forward with the two
pending free trade agreements with Colombia and Panama.
President Obama has instructed USTR to intensify engagement
with the Colombians and Panamanians to resolve outstanding
concerns related to these trade agreements as soon as possible
this year.
Building a new spirit of inter-American partnership is
especially important at a time when we face a constrained
budget environment. This administration's top priorities
include critical citizen safety programs to support the
hemisphere's ability to combat drug trafficking and
transnational crime, and to achieve these goals we're
implementing the Merida Initiative with Mexico, the Central
American Regional Security Initiative, and the Caribbean Basin
Security Initiative.
Robust programs in Colombia are key to firmly secure the
country's democratic and security gains of recent years, and
the President's 2012 foreign assistance request for the Western
Hemisphere reflects these priorities.
Mr. Chairman, in conclusion let me say that the Obama
administration's Latin America policy is informed, engaged,
dynamic, collaborative, and optimistic about what the future
will hold for the countries of the Americas. And I thank you
for your attention and I welcome your questions.
[The prepared statement of Mr. Valenzuela follows:]
Prepared Statement of Hon. Arturo A. Valenzuela
Mr. Chairman and members of the committee, I want to begin by
thanking you for this opportunity to testify before you today and for
the level of interest and attention that you dedicate to the Western
Hemisphere and U.S. policy in the region. I also want to congratulate
you for your assignment as chairman of the Western Hemisphere
Subcommittee. I look forward to continuing to work with you and with
the other members of this committee to advance U.S. interests in the
hemisphere.
Mr. Chairman, I am pleased to tell you that this administration is
deeply engaged in the Americas. Since the earliest days in office, the
Obama administration has worked tirelessly to safeguard democratic
values, promote economic opportunity and social inclusion, strengthen
regional security, and advance U.S. interests. We believe the United
States has important national interests at stake in the Western
Hemisphere, and the best way to advance these interests is through
proactive engagement with all of the countries of the Americas. That is
why Secretary Clinton has traveled to the region more frequently than
any other Secretary of State in modern American history. And that is
why President Obama chose to use his State of the Union Address to
announce that he will travel to Brazil, Chile, and El Salvador later
this spring ``to forge new alliances across the Americas.''
The Obama administration is committed to leadership in the Western
Hemisphere that is guided by a set of core principles. First, we
believe that the best framework for engaging with the Americas is one
based on mutual partnership and coresponsibility. As President Obama
stated at the Summit of the Americas in 2009, ``There is no senior
partner and junior partner in our relations; there is simply engagement
based on mutual respect and common interests and shared values.''
Second, we believe that working through multilateral channels in
concert with the nations of the Americas is critical to advancing our
interests. While it is important that we maintain strong and vibrant
bilateral relationships, the solutions to the challenges we face will
be more impactful, durable, and sustainable if we partner with nations
that share our common values and goals. Third, we believe that the
United States has a vital stake in the hemisphere's prosperity--and
that contributing to its success is good policy, because it benefits
all the people of the Americas. We also know that the success of Latin
America and the Caribbean will continue to rely on the consolidation of
vibrant democratic institutions that are responsive to their citizens
and capable of expanding the boundaries of freedom, creating greater
social prosperity, unlocking the economic potential of markets,
deepening the rule of law, and fostering respect for human rights.
Today, we are optimistic about the hemisphere's course. Indeed, the
Western Hemisphere is experiencing a period of economic progress that
is a far cry from the troubles of the past. Not only did the region
avoid the worst effects of the financial crisis, but current growth
rates are projected to exceed 4 percent this year. And politically
speaking, we welcome the reduction in tensions among the nations of the
Andean region and note the smooth transfer of power that has occurred
in many countries throughout the Americas. Indeed, the nations of Latin
America and the Caribbean are undeniably promising partners in
confronting crucial regional and global challenges. In much of the
region, we are seeing the convergence of two powerful and positive
trends: the consolidation of successful market democracies that are
making big strides in meeting their peoples' needs; and growing global
integration. The greatest regional challenges--including inequality,
lack of transparency and accountability, insufficient respect for human
rights, ineffective institutions, and lack of opportunity--are receding
in most countries in the Americas. Nations of the hemisphere are
realizing their stake in new global challenges, like food security,
climate change, transnational crime, and economic competitiveness.
There are many examples of the Western Hemisphere's emerging
diplomatic and economic influence. Brazil has positioned itself as a
key actor in global economic forums like the G20. It was Mexico's
skillful diplomacy that brought the most recent United Nations Climate
Change Conference in Cancun to a successful conclusion. On a per capita
basis, Uruguay contributes more troops to United Nations peacekeeping
missions than any other nation. Colombia is sharing its judicial reform
and security expertise and working with partners such as Mexico and the
Central American nations in a coordinated fashion. Canada has been a
steadfast partner in addressing crucial issues that range from global
climate change to securing the peace in Afghanistan to restoring the
health of the world economy. Member nations of the Caribbean Community
(CARICOM) are leading in collective efforts to address citizen security
challenges in the subregion. These are just a few examples of
democratic societies with whom we can join in new networks of
partnership around the world in order to help meet the tests of our
times.
Mr. Chairman, as you know, Secretary Clinton recently unveiled the
groundbreaking QDDR process to enhance our capacity to lead through
civilian power. As she has emphasized, advancing American interests and
values will require leading other nations in solving shared problems in
the 21st century. Therefore, we must increase our reliance on our
diplomats and development experts as the first face of American power.
In 2011, the concepts underpinning the QDDR will also guide our
approach of ``dynamic engagement'' that seeks to advance U.S. interests
in partnership with the Americas as a whole, while recognizing the
value of accommodating diverse needs and interests. The Obama
administration has focused our efforts on four overarching priorities
critical to people in every society: building effective institutions of
democratic governance, promoting social and economic opportunity for
everyone; securing a clean energy future; and ensuring the safety and
security of all of our citizens. All this we seek to achieve while
harnessing and strengthening multilateral and regional institutions,
especially the Organization of American States.
We recognize that achieving our goals will require helping to build
stronger institutions of democratic governance that respect fundamental
freedoms and human rights. As we have recently witnessed during the
Presidential election process in Haiti, ensuring that democratic
elections respect the will of the people is essential to maintaining
political legitimacy and social stability. This goal united all of the
hemisphere as well as nonhemispheric partners that have made a
commitment to assisting Haiti in the wake of last year's devastating
earthquake. In 2011, several Latin American and Caribbean countries
will hold Presidential and legislative elections, including Guatemala,
Nicaragua, Guyana, Peru, and Argentina. We join others in welcoming
elections that are a credible expression of the popular will, and we
encourage all countries to facilitate domestic and international
observation and to establish mechanisms capable of mitigating disputes
that may arise through the election process.
While many countries in the Americas have strong and healthy
democracies, we all still have more work to do. As we engage with our
partners to strengthen democratic institutions and civil society
throughout the Americas, we are cognizant of the continuing weaknesses
in democratic procedures and practices and the threats to their
consolidation. Collectively, we need to be clear-eyed and proactive in
addressing risks to our common agenda. Those include attempts to expand
majoritarian or populist rule at the expense of fundamental minority
rights, effective democratic governance, or dialogue and consensus
within the rule of law. And while we congratulate the popular leaders
who have opted to leave office in accordance with the institutions of
democratic governance, rather than promoting constitutional changes to
benefit incumbents, we regret the opposite trend in several countries.
Recent developments in Venezuela raise serious concerns in this
context. Particularly worrisome, among other measures, is the
delegation of the legislative authority to the executive that extended
beyond the terms of office of the outgoing National Assembly,
undermining the authority of the new assembly and thereby
circumscribing popular will. This violates the doctrine of the
separation of powers and therefore contravenes the Inter-American
Democratic Charter. That said, we are heartened by the presence of a
coherent opposition in the National Assembly as Venezuela's
institutions must reflect the range of views in society in order for
democracy to prosper.
During 2010, Honduras made significant progress in strengthening
governance, promoting national reconciliation, addressing some of the
problems of human rights violations, and restoring diplomatic relations
with many countries in the hemisphere. As President Lobo has said, he
has sought to redirect the country on a path toward democratic
normalization following the disruption of the institutional order that
took place in June 2009. In our view, he has prepared the groundwork
for the restoration of Honduras to the Organization of American States.
The U.S. Government is supporting Honduras through robust programs
managed by several agencies, including the Departments of the Treasury,
Defense, Homeland Security, State, and USAID, and we will seek new ways
to support the country's efforts to achieve its economic development
objectives.
Since taking office, President Obama has made clear his commitment
to supporting the Cuban people's desire to freely determine their own
future. During the first 2 years of the Obama administration, we have
taken measures to increase contact between separated families and to
promote the free flow of information to, from, and within Cuba--
including new measures that will enable more Americans to travel to the
island for academic, religious, and people-to-people exchanges. And we
have engaged the Cuban Government directly on key bilateral matters
like migration and direct mail service. However, we deplore the Cuban
Government's recent announcement that Cuban prosecutors intend to seek
a 20-year sentence against U.S. citizen Alan Gross. Mr. Gross is a
dedicated international development worker who was in Cuba providing
support to members of the Cuban Jewish community. We strongly urge his
unconditional release.
Though our hemispheric agenda remains manifestly inclusive and
seeks points of convergence even in difficult cases, we remain
steadfast in our commitment to core principles and recognition of key
values such as human and labor rights, media freedom, and the
importance of robust democratic institutions. Building a new spirit of
inter-American partnership is especially important at a time when we
face a constrained budget environment. Now more than ever, our budget
choices must be strategic, and we must align limited funding resources
to the areas where our resources can make a critical difference.
The President's 2012 foreign assistance request for the Western
Hemisphere includes funding for critical citizen safety programs that
will support the hemisphere's ability to combat drug trafficking and
transnational crime. These threats to the rule of law in Latin America
and the Caribbean also threaten U.S. national security, and
strengthening the region's capacity to combat them is in our national
interest. We support full fiscal year 2012 funding from Congress for
the Merida Initiative with Mexico, the Central America Regional
Security Initiative, and the Caribbean Basin Security Initiative as
vital for the achievement of these goals. In Colombia, continued
funding is key to firmly secure the country's transformational gains on
security, democracy, human rights, and the illicit drug industry, while
U.S. cooperation with Mexico is critical to the success of Mexico's
effort to fight drug trafficking and strengthen its institutions.
The 2010 poll by the public opinion research firm Latinobarometro
also confirmed one of the core precepts of the Obama administration's
policy toward the hemisphere: that the greatest concern of citizens
throughout the hemisphere is achieving safety and security and
combating the rise of international crime. Against this backdrop, the
United States and Mexico have built an especially close partnership
over the past 2 years, in large part through our cooperative law
enforcement efforts to dismantle transnational organized criminal
groups. The Congress has appropriated $1.5 billion to support the
Merida Initiative assistance programs. By the end of 2010 the U.S.
Government had delivered 11 helicopters, millions of dollars worth of
other equipment, and trained over 6,000 Federal Police investigators
and corrections staff as well as over 3,000 prosecutors and judicial
authorities. We have shifted Merida's focus away from supplying
critical equipment to providing more training and technical assistance.
Along these lines, we are partnering with Mexico to help
institutionalize justice sector reforms to sustain the rule of law and
respect for human rights--and build a stronger institutional basis,
including at the community level, for combating crime and the drug
trade and enhancing citizen safety. In addition, the United States is
increasing its own domestic law enforcement efforts to dismantle
Mexican narcotics supply networks in our country, and combat the
smuggling of illegal financial proceeds and weapons into Mexico.
Although the road ahead remains challenging, we are certain that this
is the right approach that will lay the groundwork for long-term
sustainable results.
We have learned that a successful approach to security challenges
must be a comprehensive regional one. That is why the United States is
also working to enhance citizen safety through the Central America
Regional Security Initiative (previously part of the Merida
Initiative), which has received $260 million to date, and the Caribbean
Basin Security Initiative, which began last year with an initial
investment of $45 million. These programs are central to our strategy
to break the power, violence, and impunity of the region's drug, gang,
and criminal organizations and strengthen law enforcement and justice
sector institutions. Recognizing that the United States is one of many
players in the security sector, we are encouraging partners and donors
in the field and in capitals to better coordinate their efforts to
avoid program redundancy and to improve overall impact. Donors can
better leverage resources where they have comparable advantage, such as
coordinating with host nations on law enforcement and rule of law
programs. This week we met with the European Union, Spain, Canada, the
U.N., and other partners, and the multilateral development banks to
better coordinate international responses.
Our engagement with Central America is especially pivotal. Through
our Central America Security Strategy, we are reassessing how we can
more rapidly, and effectively, reverse the worrisome decline of citizen
safety in Central America. At the President's and Secretary's
direction, we are examining ways in which to enhance cooperation on
citizen security, especially focused on Central America, in a way that
ensures we are mindful of and addressing gaps that transnational
criminal organizations may be seeking to exploit. We are working with
partners to ensure that Central America is both a development and
foreign policy priority, and that pooled donor resources have a greater
chance of positively affecting the trajectory there.
Our support for Central America and the Caribbean is by no means
limited to security. In El Salvador, Honduras, and Nicaragua, the U.S.
Government's Millennium Challenge Corporation has spent almost $800
million in recent years modernizing farms and building or improving
hundreds of miles of highway. In the Caribbean, through the President's
Emergency Plan for AIDS Relief (PEPFAR), the United States works with
15 Caribbean countries to treat and prevent exposure to HIV, provide
care and treatment and eliminate the stigma and discrimination
associated with the disease.
In addition, the United States continues to prioritize economic
growth programs that leverage the emerging leadership potential and
resources of many Latin American and Caribbean countries. Innovative,
partnership-based initiatives like the Energy and Climate Partnership
of the Americas and Pathways to Prosperity initiative will support
Latin America and the Caribbean's ability to lead its own development
by encouraging others to assume leadership roles and commit their own
resources in order to promote key policy innovations. Latin America and
the Caribbean will also benefit from the administration's Feed the
Future and Global Health Initiatives, which will help foster healthy,
prosperous societies.
U.S. economic engagement with the Western Hemisphere extends far
beyond foreign assistance for Latin America and the Caribbean. The
Western Hemisphere remains a critical economic partner to the United
States and many of our neighbors are also among our top trading
partners. In 2009, total U.S. merchandise trade between the U.S. and
Latin America and the Caribbean reached $524 billion and 40 percent of
Latin America and the Caribbean's exports flowed to the United States,
making us the region's single largest export destination. The Western
Hemisphere, including Canada, absorbs 42 percent of U.S. exports and
total trade with the hemisphere reached $1.5 trillion in 2009. Earlier
this month, President Obama and Prime Minister Harper released a
declaration intended to keep the United States safe while increasing
American jobs through minimizing bottlenecks and nontariff barriers.
Around 84 percent of our overall trade with the region takes place with
our 10 FTA partners in the hemisphere. NAFTA alone represents the
largest free trade area in the world, accounting for $735 billion in
trade in 2009. The administration continues to work with our NAFTA and
CAFTA-DR partners on improving the flow of trade through regulatory
cooperation and trade capacity-building programs. In addition, the U.S.
continues to be the largest investor in the region, supplying
approximately 37 percent of the foreign direct investment (FDI), which
totaled $34 billion in 2008.
Remittances have also become a critical dimension of the economic
relationship between the United States and our neighbors. While the
flow of U.S. remittances to Latin America and the Caribbean declined
about 11 percent following the 2008 financial crisis, the overall
figure of $62 billion in 2009 remains impressive and underscores the
strong family ties with the region. We are currently initiating
programs, such as the BRIDGE initiative that was launched in El
Salvador and Honduras last year, that seek to harness the investment
potential of these remittances to help these countries fund vital
infrastructure improvements.
The Western Hemisphere will be a key target of the President's
National Export Initiative, known as NEI. As part of his strategy for
restoring strong economic growth in the United States, President Obama
has called for doubling U.S. exports in 5 years--an ambitious goal.
Last month's deal with South Korea paves the way for congressional
approval of a long-stalled FTA with a crucial Asian ally, and creates a
valuable example of how best to move forward on our other two pending
FTAs with Colombia and Panama. President Obama has instructed U.S.
Trade Representative Ron Kirk to intensify engagement with the
Colombians and Panamanians to resolve outstanding concerns relating to
these trade agreements as soon as possible this year. If we are
successful, we will move those forward for congressional consideration
immediately thereafter.
Our efforts to advance economic opportunity are complemented by
initiatives to expand social inclusion and provide support to
marginalized groups. We also seek to advance gender equity through
education, outreach, and government-to-government dialogue. A new area
of emphasis is our effort to combat discrimination based on sexual
orientation, and we are prepared to speak out forcefully to denounce
violence against lesbians, gays, bisexuals, and transgendered persons
in the Americas. We have made significant strides in supporting racial
and ethnic inclusion throughout the region, including with indigenous
communities. We look forward to increasing these efforts during 2011,
which the United Nations has named the International Year for People of
African Descent.
Secretary Clinton attended the inauguration of Brazilian President
Dilma Rousseff to underscore our commitment to elevate our bilateral
relationship with this rising power to a new level. The United States
and Brazil share many common interests and values and are natural
partners on a wide range of regional and global issues. We have made
important progress in that front over the last year. Brazil was the
first country to take the lead in an initiative under the Energy and
Climate Partnership of the Americas. The United States commends
Brazil's leadership in Haiti, along with that of many other Latin
American and Caribbean countries, and we are pursuing opportunities to
work together on development projects in Central America and Africa.
Brazil stands out in the global marketplace for the tremendous
potential opportunities it offers U.S. companies. We will work with
American exporters and investors to take advantage of that potential
and would like to devote more resources to efforts that strengthen our
bilateral mechanisms with Brazil, such as the Economic Partnership
Dialogue. President Obama's visit will be incredibly important to our
efforts to establishing a strong working relationship with President
Rousseff and her government.
In South America, the United States has forged especially strong
partnerships with Colombia, Peru, and Chile. Our relations with these
countries have never been so comprehensive, with both regional and
global dimensions. Last fall, President Obama met with his counterpart,
Colombian President Juan Manuel Santos, at the United Nations in New
York where they announced the creation of the High Level Partnership
Dialogue, which Deputy Secretary Steinberg launched when he traveled to
Colombia in October. The Dialogue marks a new chapter to broaden our
maturing and wide-ranging relationship, making Colombia an ever-more
vital strategic partner. We are working to finalize a new framework
agreement with Bolivia that will reaffirm both governments' commitment
to engagement based on mutual interest and respect, and in a manner
consistent with our laws and policies regarding assistance and
counternarcotics cooperation. We have engaged Ecuador on a range of
important bilateral, regional, and global issues. And we have also
struck a new tone in our dialogue and engagement with Uruguay and
Paraguay. We strongly believe it serves U.S. interests when we engage
both with our friends and allies as well as those countries with which
we may not see eye to eye.
This approach goes beyond traditional relationships between
governments. People-to-people contacts build mutual understanding and
bring to light our shared values. Our diplomatic posts throughout the
Western Hemisphere reach youth, civil society groups, opinion leaders,
and others who take a constructive interest in the future of their
society and how it relates to its neighbors. Educational and cultural
programs, outreach through new and traditional media, and diverse
voices from U.S. culture are all ways we project our values and
translate our policy goals into ideas and actions that affect people's
lives.
It is important to note that the Obama administration's strategy of
engagement has contributed to a shift in Latin American public opinion.
According to the 2010 poll by Latinobarometro, two-thirds of the
population in most countries had favorable attitudes toward the United
States--an increase of 10 to 20 points from 2008 levels. The role of
the United States in Latin America is also overwhelmingly viewed as
positive. This suggests that the Obama administration's strategy has
reversed the dangerous depletion of good will toward the United States
that had occurred during the prior decade.
We are also continuing to help the Haitian people rebuild after the
terrible earthquake that struck the country a year ago. As President
Obama emphasized shortly after the earthquake, U.S. commitment to Haiti
will be sustained. We are proud of the role of the United States in the
unprecedented bilateral and multilateral cooperation in support of
Haiti. Since the earthquake, the U.S. Government has spent $1.1 billion
in humanitarian relief assistance and an additional $406 million in
recovery assistance toward job creation, rubble removal, shelter
solutions, health and other priorities. In addition, the U.S.
Government has pledged $1.15 billion in new money toward
reconstruction. To date, we have disbursed more than $332 million to
provide debt relief and contribute to the Haiti Reconstruction Fund.
This has allowed the Haitian Government to use its resources to support
the construction and repair of houses, remove rubble in critical areas
of Port-au-Prince, establish funds to finance private sector activity,
and provide education assistance. The United States has also provided
over $43 million in assistance since the onset of the cholera crisis in
October 2010, for medical supplies and services; and cholera treatment
facilities and information campaigns to increase public awareness of
prevention and treatment of the disease.
A democratic transfer of power is vital to Haiti's long-term peace,
stability and opportunity for economic growth. The United States and
the international community support an election process in Haiti that
reflects the will of the Haitian people. A free and fair process will
allow the incoming government to enjoy full legitimacy, while
representing the best way to promote stability and reconstruction.
Since the November 28 election, our message has been consistent: the
people of Haiti have the right to choose their leaders. The Haitian
Provisional Electoral Council (CEP)'s February 3 announcement of the
final results of the November elections was an important milestone in
this electoral process. The United States stands ready to assist
Haitian electoral authorities in the next round of elections, currently
scheduled for March 20, to promote a free and fair electoral process
and reduce the level of fraud and irregularities that affected the
first round. As Haiti moves forward with the second round of elections,
it is essential that all political actors, including candidates and
their supporters, continue to work peacefully and within the law. In
short, there has been progress, and, while uneven, it has deepened the
resolve and commitment to Haiti of the international community,
including the United States.
In conclusion, our hemispheric policy is based on the premise that
the United States has a vital interest in contributing to the building
of stable, prosperous, and democratic nations in this hemisphere that
can play a pivotal role in strengthening a rules-based international
system capable of meeting today's global challenges. As President Obama
and Secretary Clinton have said, policy must be conducted on the basis
of mutual respect and shared responsibility through dialogue and
engagement. The United States must be a more effective and determined
partner in helping countries throughout the Americas achieve their own
chosen paths as determined by their own people. Today, the Obama
administration's Latin America and Caribbean policy is informed,
engaged, dynamic, and collaborative--and optimistic about what the
future will hold for the countries of the Americas.
I thank you for your attention.
Senator Menendez. Thank you.
Mr. Feierstein.
STATEMENT OF HON. MARK FEIERSTEIN, ASSISTANT ADMINISTRATOR FOR
LATIN AMERICA AND THE CARIBBEAN, U.S. AGENCY FOR INTERNATIONAL
DEVELOPMENT, WASHINGTON, DC
Mr. Feierstein. Mr. Chairman, members of the committee,
thank you for the invitation to testify today. I welcome the
opportunity to share with you how USAID is advancing prosperity
and security in the Americas.
During my 4 months on the job, I've been heartened by
bipartisan expressions of support for USAID. There is
widespread recognition that the agency's work advances our
national interest. Our investments to promote economic growth,
stem drug trafficking, and combat disease in Latin America and
the Caribbean produce jobs, safer streets, and a healthier
environment in our country.
This is a propitious time in the Americas. Political and
economic progress has produced a mature set of partners with
which we can advance common objectives. At the same time, USAID
is implementing innovative approaches to development. These
dynamics present us with a historic opportunity to make
sustainable gains that will leave citizens throughout the
Americas better off.
The hallmark of this administration's approach to
development is sustainability. As President Obama said when he
announced his development policy last September, the purpose of
development is, ``creating the conditions where our assistance
is no longer needed.''
USAID is taking steps to achieve that objective. First, we
are accelerating the shift from providing aid to building the
capacity of countries to provide for themselves. Our overriding
goal in Latin America and the Caribbean is to strengthen the
capacity of governments and civil society to expand economic
opportunity, strengthen democratic governance, and improve
citizen security.
Second, we are increasingly collaborating with businesses,
because long-term development and job creation depend upon an
active and vibrant private sector.
Third, we are consolidating resources in priority countries
and priority sectors. We are guided by President Obama's pledge
to ``focus our efforts where we have the best partners and
where we can have the greatest impact.''
As countries reach a point when they no longer need our
assistance, we will recruit them to work with USAID as fellow
donors. Such partnerships will be especially important in
dealing with issues that require a multinational response, such
as gang activity and drug trafficking.
Areas of Mexico, Central America, and the Caribbean suffer
today from the highest rates of nonpolitical violence in the
world. As regional leaders develop strategies to combat crime,
it's in our interest to support them. The flow of drugs into
this country harms our youth and saps strength and resources
from our communities. The lack of security also threatens to
undermine our other development work. Crime discourages
business investment, diverts valuable resources, and corrodes
state institutions.
In response, the Obama administration had deepened the
Merida Initiative and expanded the security effort into the
Caribbean. USAID is continuing our longstanding work to
strengthen judicial systems. But the heart of our effort in
this area involves preventive measures, namely providing youth
vulnerable to the lure of crime with positive alternatives.
We are also committed to maintain and advance democracy in
the hemisphere. Despite overall democratic gains, there has
been a narrowing of political space in some countries and
unrelenting repression in another. Autocratic governments might
try to make it more difficult to work in solidarity with
citizens struggling to exercise basic human rights, but the
United States will not yield in our support for those who want
to enjoy universally recognized rights.
Mr. Chairman, the hemisphere's development challenges
converge in one form or another in Haiti, USAID's highest
priority in the hemisphere. As we move into the second year of
post-earthquake reconstruction, we are implementing our new
approach to development. We are partnering with Haitian
Government institutions, ramping up our collaboration with the
private sector, and implementing novel approaches.
We're encouraged by the progress made in Haiti over the
past year. The number of people living in camps has fallen by
more than half a million. The U.S. Government alone has removed
nearly 1.5 million cubic meters of rubble. More Haitians have
access to clean water today than before the quake, and the
cholera epidemic has stabilized.
To be sure, the challenges before us in Haiti are
formidable. With over 800,000 Haitians still living in camps,
moving people into permanent housing is a top priority. Another
is clearing remaining rubble. Beyond these needs, Haiti's long-
term development plan is in place, with United States efforts
focused on infrastructure, health, agriculture, and governance.
We are optimistic about Haiti's prospects. The Haitian's
people's determination not just to survive, but to thrive,
reminds us all what is in reach when we join forces for the
common good.
That dynamic in Haiti is repeated every day in various
forms in the largest cities and smallest villages throughout
the Americas. We help each other not only because it's the
right thing to do, but because our well-being is linked to
people throughout this vast and diverse hemisphere.
Thank you, Mr. Chairman. I look forward to the committee's
questions.
[The prepared statement of Mr. Feierstein follows:]
Prepared Statement of Hon. Mark Feierstein
Mr. Chairman and members of the committee. thank you for the
invitation to testify today. I appreciate and welcome the opportunity
to share what the U.S. Agency for International Development is doing to
advance prosperity and security in the Americas, and I am eager to hear
your advice and counsel as well.
It is also an honor to testify with my colleagues, Assistant
Secretary Arturo Valenzuela, Deputy Assistant Secretary Frank Mora, and
President Robert Kaplan. As a college student, I read Dr. Valenzuela's
work on political development in the Americas. He helped shape my
thinking then, and I cannot think of a more accomplished diplomat to
frame the policy environment within which USAID operates in the
hemisphere today.
Mr. Chairman, during my 4 months on the job, I have had the benefit
of meeting with you, other Members of Congress and your staffs to
discuss development challenges and opportunities in the Americas. Your
ideas have enriched my thinking, and have already improved USAID's
strategic and programmatic approach in Latin America and the Caribbean.
I have also been heartened by the bipartisan expressions of support
for USAID's work in the Americas. There is widespread recognition about
how the agency's investments advance our national interest. USAID's
work is not charity. Our programs may reflect the generosity of the
American people, but they are not only from the American people, as the
agency's motto says; they are for the American people.
When we help stabilize and grow economies closely tied to our own,
we help develop markets for our products. When we help farmers in coca
producing areas of Colombia harvest legal crops or steer vulnerable
youth in Central America toward constructive endeavors, we help to stem
the flow of drugs to our communities. When we reduce deforestation in
the Amazon, we help stabilize rainfall cycles for farmers in our
country. And when we reduce the prevalence of disease in the Americas,
we help keep our communities healthy.
President Obama's upcoming visit to Brazil, Chile, and El Salvador
underscores that amidst competing global priorities and challenges, the
Americas remain a vital strategic partner for the United States.
The President's trip comes at a most propitious time. The
hemisphere is more prosperous, more democratic, and more independent
today than ever before. Sound financial management has helped spur
several years of robust economic growth. Thanks to greater access to
education and innovative social programs, poverty has declined and
income inequality narrowed in many countries. Citizens are better
organized and governments more responsive to their needs.
Despite this progress, few countries in Latin America and the
Caribbean are poised to be classified as ``developed.'' Poverty rates
in Latin America and the Caribbean remain high, with millions working
outside the formal economy and denied access to credit. Many economies
are characterized by a lack of diversification and low productivity.
Crime rates have reached frightening levels, overwhelming ill-equipped
judicial bodies. Schools are failing to prepare students for modern job
opportunities. Governments are not collecting the revenues they need to
provide essential services, rendering weak state institutions even more
ineffective. Climate change is posing new economic threats. And some
countries are even regressing politically, as governments impose new
restrictions on political activity.
Although many of these challenges are not new, we are better
positioned than ever to make progress on them. As governments and civil
society have advanced, they have become better development partners for
the United States. At the same time, USAID, under the energetic
leadership of Administrator Raj Shah, is implementing innovative
approaches to development, based on lessons learned from around the
world. These two dynamics--a more mature hemisphere and a more modern
and effective development approach--present the United States and our
neighbors with a historic opportunity to make sustainable development
gains that will leave citizens throughout the Americas better off. Our
overriding goal in Latin America and the Caribbean is to strengthen the
capacity of governments, civil society and the private sector to expand
economic opportunity, strengthen democratic governance, and improve
citizen security.
The hallmark of the Obama administration's approach to development
is sustainability. Of all the metrics we use to gauge our success, none
is more important than reaching the point at which we can close up shop
in a country. As President Obama said when he announced his new
development policy in September, the purpose of development ``is
creating the conditions where our assistance is no longer needed.''
There are a number of steps USAID is taking to achieve that
objective. First, we are accelerating the shift from being an agency
that provides aid to one that builds the capacity of countries to
provide for themselves. We are donating less food and putting greater
emphasis on helping farmers to increase agricultural production and
access markets. Those changes are already evident in Haiti and Central
America, where farmers we are assisting have experienced rising
incomes.
Similarly, we will continue to provide life-saving medical care,
where needed, but we are placing a greater emphasis on improving the
capacity of governments to manage their own health systems and provide
affordable and high-quality care for their citizens. In Paraguay and
Guatemala, for example, we are supporting the Ministry of Health's
efforts to broaden the reach and efficiency of the country's medicine
supply system.
As school attendance rates have risen in recent years, we are
emphasizing the improvement of education quality. In Jamaica, for
example, we are supporting the government's efforts to increase early
grade literacy and the acquisition of math skills.
We are also dedicating fewer resources for one-time elections and
more to enhance the capacity of government agencies to provide
essential services. That means not just strengthening Congresses and
municipalities, but helping Ministries of Health to guarantee high-
quality, affordable care and Ministries of Education to ensure that
children are being prepared for 21st century jobs.
Second, to strengthen institutions abroad, we are channeling
resources more directly through governments, local NGOs and the private
sector. We will continue to use outside contractors where appropriate,
but will direct more assistance to local entities in order to
strengthen them and reduce dependence on outside assistance. In Peru,
for example, we are providing direct assistance to the national
counterdrug agency and municipal governments to develop economic
alternatives for former coca growers. In the coming weeks, we plan to
give every USAID mission in the hemisphere a target for the share of
its program portfolio to be channeled through organizations in their
host countries.
Third, we are increasingly collaborating with businesses. Long-term
development and job creation depend upon an active and vibrant private
sector. By partnering with private companies, we not only leverage
resources; we create durable enterprises that will provide long-term
development dividends. For example, spurred on by an incentive fund
created by USAID and the Gates Foundation, the telecommunications
company Digicel introduced a mobile banking service that will provide
any Haitian with a cell phone with access to financial services. When
we partner with private companies on initiatives like that, we achieve
the development hat trick. We save money and advance our development
objectives; firms gain access to markets and sources of supplies; and
the poor improve their livelihoods.
In order to achieve our sustainable development objectives, we are
also consolidating resources in priority countries and sectors. We are
guided by President Obama's pledge at the United Nations to ``focus our
efforts where we have the best partners and where we can have the
greatest impact.'' For USAID, that will mean operating in fewer
countries; in each country working in fewer sectors; and in each
sector, implementing fewer programs. In Latin America and the
Caribbean, we are closing two missions. In recognition of the gains
that Panama has made since we reopened our office there in 1990, we
will be closing the mission and winding down our programming. And in a
cost-saving measure, we plan to manage our Guyana projects from one of
our regional offices. Steps like these will enable us to shift program
resources and staff to countries where the need is greatest and where
we are confident we have strong partners to achieve our development
goals.
We are also reducing our work in some sectors in Latin America and
the Caribbean, such as family plan. We will continue to look for smart
ways to exit other sectors, as well as other countries, and revisit our
portfolio of programs to make sure we are utilizing our resources in
the most effective way possible.
In the field of development, where there is so much need,
determining funding priorities is a challenge, and I can understand why
a decrease in funding in any area might be disappointing. The question
is not whether help is needed in a given area, because the response
would almost always be an unequivocal yes. Rather, the question is
where can the United States Government best leverage our scarce
resources and most effectively deploy our range of agencies to have a
transformative and lasting impact.
As countries reach a point when they no longer need our assistance,
we will actively recruit them to work with USAID as a fellow donor. We
are already working with countries like Brazil and Chile, which have
valuable lessons to share from their recent successes in achieving
broad-based economic growth. We are looking to expand upon those
arrangements and form new ones.
Such partnerships will be especially important in dealing with
development issues that respect no borders and require a coordinated,
multinational response. In Latin America and the Caribbean, USAID is
confronting two transnational threats in particular. The first is the
escalating gang activity and drug trafficking.
Areas of Mexico, Central America, and the Caribbean are suffering
from the highest rates of nonpolitical violence in the world. In some
countries in the region, murder rates are nearly 10 times higher than
in the United States. As regional leaders develop strategies to counter
the crime wave, it is in our interest to support their efforts. In an
increasingly globalized world, organized crime, like disease and
environmental degradation, penetrates borders. The flow of drugs
through the Caribbean and Central America often continues into this
country, harming our youth and sapping strength and resources from our
communities.
The lack of security also threatens to undermine all our other
development work in the region. Crime is discouraging business
investment and diverting public and private resources that could
otherwise be used for more productive investments. Organized crime is
corroding state institutions, undermining faith in democracy. Drug
trafficking organizations have a greater presence in some areas than
the government. Given the primacy of improving the security
environment, we plan to channel as much of our resources in the region
as possible to promote security and reduce the influence of organized
crime. The President's 2012 foreign assistance request for the Western
Hemisphere reflects the importance of programs that advance the common
security interests of the United States and our neighbors.
Beyond our self-interest in helping to combat organized crime and
drug trafficking, we have an obligation to do so along our southern
border. As Secretary Clinton has noted, the demand for drugs in the
United States drives much of the illicit trade, while guns purchased in
the United States are used in violent crimes in Mexico and other
neighboring countries. USAID programs are an integral part of President
Obama's National Drug Control Strategy and its goals to significantly
reduce drug use and its consequences in the United States by 2015.
The Obama administration is deepening President Bush's constructive
Merida Initiative to combat crime in Mexico and Central America and
expanding the effort into the Caribbean. USAID is continuing our
longstanding work to strengthen the capacity of judicial systems to
fairly and effectively provide justice; but the heart of our work now
involves supporting preventive anticrime measures, namely providing
youth vulnerable to the lure of crime with positive and productive
alternatives. That means creating safe urban spaces, providing job
training, and engaging in concerted efforts to keep children in school.
As Mexico, Central America, and the Caribbean are mostly transit
points for the movement of drugs, we also continue to work with drug-
producing countries to cut off the source. In Colombia, USAID has
helped reduce coca production by as much as 85 percent in the
geographic areas where we collaborated with the government and local
communities. Today, thousands of farmers in Colombia who once
cultivated coca are now growing legal crops, thanks to USAID
assistance. Where guerrilla groups and drug trafficking organizations
once operated with impunity in ungoverned terrain, peace is returning
and civilian agencies of the state are arriving to provide services.
As countries deal with crime's debilitating impact on development,
another emerging issue--one with truly transnational impact--looms
large for the region's economies: global climate change. The increase
in average temperatures, changes in rainfall patterns, rising sea
levels, glacier melts and extreme weather patterns linked to climate
change are predicted to have an adverse economic impact on an already
vulnerable region.
Many of the region's key economic activities, such as agricultural
production in Central and South America and tourism in the Caribbean,
are acutely sensitive to climate change. Added to this is the strain on
national budgets when droughts, heavy flooding or powerful hurricanes
siphon off scare resources to finance disaster relief and recovery
efforts.
Through the Obama administration's Global Climate Change
Initiative, we are responding to this threat by strengthening the
capacity of communities and governments in Central and South America to
improve land-use management to minimize deforestation, a principal
source of emissions in Latin America. We are also working with the
small island nations of the Caribbean to develop adaptation plans to
protect critical industries and resources. And we are exploring
partnerships with the private sector to devise creative ways to
mitigate the economic costs of catastrophic events like hurricanes and
flooding.
Many of these challenges may seem daunting, but the United States
is fortunate to have an impressive set of institutional partners to
work with. Unfortunately, we cannot always work as closely with all
governments in the region as we would like. Nevertheless, even in some
of the more politically challenging settings, we have been able to
identify particular ministries and officials eager to work with us to
advance common objectives. And when that is not feasible, we are often
able to collaborate with capable NGOs.
In some countries, our objectives are more elemental. While the
hemisphere has experienced impressive democratic gains in recent years,
there has been a narrowing of political space in some countries and
unrelenting repression in another. Freedom House reports that 10
countries in Latin America and the Caribbean are only ``partly free,''
with political rights and civil liberties decreasing in six countries
in the past 2 years. Governments fearful of their own people are
restricting the rights of individuals, the media, civic organizations
and political parties.
Autocratic governments might try to make it more difficult to work
in solidarity with citizens struggling to exercise basic human rights,
like freedom of expression and freedom to assemble. But the United
States will not yield in our support for those who want to enjoy
universally recognized human rights.
Mr. Chairman, the many development challenges I have discussed
today converge in one form or another in Haiti, USAID's highest
development priority in the hemisphere. As we move into the second year
of post-earthquake recovery and reconstruction, we are already
implementing our new approach to development. We are partnering
successfully with Haitian Government institutions to respond to the
cholera epidemic; address security; and boost the economy. We are
ramping up our partnerships with the private sector to generate jobs
and benefit from innovative approaches to tackling development
challenges, like the mobile banking initiative. And we are including
the Haitian people in the reconstruction effort. As contracts are
awarded in the coming months, we will be reaching out to Haitian
organizations to maximize their ability to compete. To the extent
possible, we want to partner with local entities, rather than outside
contractors, in order to creating lasting local capacity.
We are encouraged by the progress made in Haiti over the past year.
In coordination with other donors and in support of the Government of
Haiti, USAID has saved countless lives, began to build the country back
better and strengthened the government's capacity to provide for its
citizens. The number of Haitians living in camps has fallen by 700,000
since last spring. The U.S. Government alone has removed over 1.3
million cubic meters of rubble. More Haitians have access to clean
water and health services today than before the earthquake. And thanks
to the leadership of the Haitian Ministry of Health, with the support
of the international community, the cholera epidemic has stabilized,
with the number of cases growing more slowly and the fatality rate
down.
To be sure, the challenges before us are still formidable. With
over 800,000 Haitians still living in camps, moving people into safe
resilient housing is one of our top priorities. Another is clearing
away the remaining rubble. To make more progress on this front, we need
help from other donors and the Government of Haiti in addressing land
tenure issues and prioritizing funding for rubble removal and
resettlement of the displaced.
Beyond these immediate needs, Haiti's long-term development plan is
now in place, with United States efforts focused in four areas:
infrastructure, health, agriculture and governance. In a major
reconstruction development last month, we reached agreement with the
Inter-American Development Bank and one of the world's largest
garmentmakers to develop an industrial park with the potential to
double the size of Haiti's textile sector.
Despite the daunting challenges in Haiti, I am hopeful about the
country's prospects. We have been encouraged by the ability of Haitian
Government agencies to rebound from the devastating earthquake and will
be eager to work with the new government when it comes on board. But
fundamentally, it is the tenacity and resilience of the Haitian people
that inspire and drive us. Their unrelenting determination not just to
survive, but to thrive, reminds us all of what is in reach when we join
forces for the common good.
That dynamic in Haiti--of peoples, organizations, and governments
coming together--is being repeated every day in various forms in the
largest cities and smallest villages throughout the Americas. We help
each other not only because it is the right thing to do and is an
expression of our values, but because our well-being is linked to that
of people throughout this vast and diverse hemisphere. As the peoples
of Latin America and the Caribbean become more prosperous and more
secure, so will we. Ultimately, successful development abroad will
depend on efforts in the countries themselves. But USAID stands ready
to help, because it is in our national interest to do so.
Thank you, Mr. Chairman. I look forward to the committee's
questions.
Senator Menendez. Mr. Kaplan.
STATEMENT OF ROBERT H. KAPLAN, PRESIDENT AND CEO, INTER-
AMERICAN FOUNDATION, WASHINGTON, DC
Mr. Kaplan. Chairman Menendez, future Ranking Member Rubio,
members of the subcommittee, congratulations in advance on your
committee assignments and we look forward to working with you
and all of the committee members. It is my pleasure to testify
before you today on behalf of the Inter-American Foundation, a
small independent foreign assistance agency of the U.S.
Government that works directly with the organized poor in Latin
America and the Caribbean.
Policy deliberations naturally emphasize broad trends and
impacts at the national or regional level, and I appreciate
your interest in bringing a community perspective to the table.
We know from our own country's experience that healthy
communities strengthen democracy, create economic
opportunities, and enhance social resilience. For four decades,
the Inter-American Foundation has been providing small grants
to support self-help ideas and solutions proposed by the poor
themselves. The impact of the IAF's grants can be life-
changing. Our grants help start or expand small businesses,
create jobs, develop skills, and access markets for local
products. They promote inclusion of disadvantaged groups or
address basic needs, such as nutrition or access to clean
drinking water, sanitation, or health care.
Regardless of the immediate purpose, the fundamental long-
term objective is to enhance local social capital as people
work together to solve their most pressing problems and in the
process build stronger communities and more stable societies.
The experience of the IAF staff working directly with the
organized poor in 21 countries gives us firsthand insight into
their concerns and aspirations.
While there's been much progress throughout the region,
many challenges remain. There are still deep pockets of poverty
where people struggle to meet their most basic needs.
Globalization has opened opportunities, but it has also made
the poor more vulnerable to economic shocks. Lacking better
alternatives, the poor often settle on land exposed to
hurricanes, earthquakes, or man-made hazards. Too often, the
poor fall victim to traffickers and illicit activities and the
destabilizing violence that comes with them. Despair at lack of
opportunities at home leads some to migrate, despite the
personal risk and the immediate cost to their own families and
communities.
We receive hundreds of proposals every year from grassroots
groups with imaginative ideas for overcoming these challenges.
These groups embrace democratic values and are committed to
participating actively in civic life. They believe in the
opportunities available in the market economy and have a
fervent desire to join in. These are decent, hardworking people
living in difficult circumstances, but full of spirit and the
will to succeed. Their creativity and perseverance despite the
odds are inspiring.
The proposals the IAF receives build on the proponent's own
resources and what they are able to mobilize from others. Since
the agency's founding in 1969, grantees have contributed or
mobilized almost $1 billion, far exceeding the IAF's own $665
million.
Supporting initiatives designed and implemented by the poor
is a good investment. It increases the likelihood of long-term
success and enhances local social capital and capacity to solve
other problems or take advantage of future opportunities.
The scale of the Inter-American Foundation's program is
very small and it is clear we must work in partnership with
others. The flexibility that comes with being small and
independent allows us to experiment, share our experience with
others, and encourage others to--and bring others to the table.
One example is our relationship with a network of corporate
foundations from the region, which allows us to lever our
investment two-to-one while helping private donors advance
beyond charitable philanthropy to have a long-term sustainable
development impact.
The IAF has consistently encouraged a culture of results as
part of our programs. Since 2000 we have required all grantees
to report their progress by applying a grassroots development
framework designed to track both tangible and intangible
results. This results-based approach helps all of us learn what
works and adjust accordingly.
Funding small-scale self-help development and
entrepreneurship, the Inter-American Foundation supports the
efforts of disadvantaged people throughout the hemisphere to
escape poverty, improve livelihoods, and participate more
actively in their nation's civil society. Through our
respectful and responsive approach, the IAF develops goodwill
toward the United States and maintains a positive presence at
the community level, including in countries where bilateral
government relations may be strained.
Mr. Chairman, in conclusion let me say that cost-effective
investments at the grassroots that help make Latin America and
the Caribbean a better place in which to live are fundamentally
in the interest of the United States. This was Congress'
mandate to the Inter-American Foundation four decades ago and
it is as important and relevant today as ever.
Thank you very much.
[The prepared statement of Mr. Kaplan follows:]
Prepared Statement of Robert N. Kaplan
Chairman Menendez, Ranking Member Rubio, and members of the
subcommittee, it is my pleasure to testify before you today on behalf
of the Inter-American Foundation (1AF), a small independent foreign
assistance agency of the U.S. Government that works directly with the
organized poor in Latin America and the Caribbean. Policy deliberations
naturally consider broad trends and impacts at the national or regional
level, and I appreciate your interest in bringing a community
perspective to the table. We know from our own country's experience
that healthy communities strengthen democracy, create economic
opportunities and enhance social resilience.
For four decades, the Inter-American Foundation has been providing
small grants to support grassroots development in Latin America and the
Caribbean. We invest in self-help ideas and solutions proposed by the
poor themselves, and we work with them directly. Our grants to local
and community-based groups complement their own resources to address a
problem or take advantage of an opportunity to improve families'
livelihoods where they live. Individual grants may help start or expand
small businesses, create jobs, develop skills or access markets for
local products. They may promote inclusion of disadvantaged groups or
address basic needs, such as nutrition or access to clean drinking
water, sanitation, or health care. Regardless of the immediate purpose
of the limited funding we provide, the fundamental long-term objective
is to enhance local social capital as people work together to solve
their most pressing problems, and in the process build stronger
communities and more stable societies.
The experience of the IAF's staff working directly with the
organized poor in 21 countries gives us firsthand insight into their
concerns and aspirations. While there has been significant progress
throughout the region over the last few decades, many challenges
remain. There are still deep pockets of poverty where people struggle
to meet even their most basic needs. In many places, public and private
institutions are not yet able to engage the poor effectively to help
them along a viable path out of poverty. Globalization has opened
opportunities, but it has also made the poor more vulnerable to
economic shocks such as rising food or fuel prices. Lacking better
alternatives, the poor often settle on land that is particularly
exposed to hurricanes, earthquakes or man-made hazards. Too often, the
poor fall victim to criminal opportunists trafficking in drugs or women
and children and to the destabilizing violence that comes with them.
And despair at lack of opportunities at home leads some to leave,
despite the personal risks and the immediate cost to their own families
and communities.
At the IAF, we receive hundreds of proposals every year from
grassroots groups with imaginative ideas for overcoming these
challenges. We see in their organizations their embrace of democratic
values and their desire to participate actively in civic life. Their
proposals illustrate their strong belief in the opportunities available
in a market economy. These are decent, hard-working people living in
difficult circumstances but full of spirit and the will to succeed.
Their creativity and perseverance, despite the odds, are inspiring.
Assistant Secretary Valenzuela recently told an audience at the
Brookings Institution that U.S. policy toward Latin America must be
``respectful, responsive, and realistic.'' This has been the Inter-
American Foundation's approach at the grassroots since the beginning.
In 1975, an appraisal of the IAF and its grantees during the first 5
years was titled ``They Know How'' to acknowledge the capabilities of
our partners and to underline the central tenets of the IAF's
responsive approach and respect for local knowledge. We provide an
opportunity for marginal populations to articulate their principal
challenges and map a way forward. In the process, this approach
strengthens bonds within communities, as well as engagement with
society at large.
The proposals we receive identify a funding gap after taking into
account the proponents' own resources and what they are able to
mobilize from others. Since the agency's founding in 1969, grantees
have contributed or mobilized almost $1 billion--far exceeding the
IAF's $665 million investment. In deciding whether to fund a proposal,
IAF staff confirm on the ground that the communities themselves play a
protagonist role. This approach both increases the likelihood of
success and enhances local social capital so that community groups can
build on the experience to solve other problems or take advantage of
future opportunities.
The scale of the Inter-American Foundation's program is very small,
and it is clear to us that we must work in partnership with others. We
have always tried to use the flexibility and agility that comes with
being small and independent to experiment, share our experience and
encourage others to bring their resources to bear. For example, over
the last several years, we have developed a robust relationship with a
network of corporate foundations from the region that, by cofunding
with us, have learned to direct their own programs to address long-term
development needs rather than short-term charity. Through this
relationship, the IAF levers its investment two-to-one and nurtures a
still-incipient culture of private philanthropy in the region.
We can also play a useful role by complementing and extending the
impact of large public or private development projects. Over the years,
we have seen marginalized communities lose out or be displaced if they
are located in the footprint of multimillion dollar investments in
infrastructure, natural resources extraction or tourism. By providing
timely support to these communities, the IAF may be able to help them
take advantage of the economic opportunities that accompany these
investments instead.
The Inter-American Foundation has consistently encouraged a culture
of results as part of our program of development grants. Since 2000,
all grantees have been required to report on their progress by applying
a ``grassroots development framework'' that the IAF designed to track
both tangible and intangible results. Grantees submit reports every 6
months, and the data are independently verified on site. More recently,
we have begun to return to communities 5 years after the IAF's support
has ended in order to assess the ongoing impact. This results-based
approach helps us and our grantees learn what works and adjust
accordingly.
By funding small-scale, self-help development and entrepreneurship,
the Inter-American Foundation supports the efforts of disadvantaged
people throughout the hemisphere as they begin to break out of poverty,
improving conditions for themselves and future generations, and
participate more actively in their nation's civil society. Through its
support, the IAF develops goodwill toward the United States and
maintains a positive presence at the community level, including in
countries where bilateral governmental relations may be strained.
Cost-effective investments at the grassroots that help make Latin
America and the Caribbean a better place in which to live are
fundamentally in the interest of the United States. This is the mandate
with which Congress charged the Inter-American Foundation four decades
ago, and it is as important and relevant today as ever.
Senator Menendez. Thank you.
Dr. Mora.
STATEMENT OF FRANK O. MORA, PH.D., DEPUTY ASSISTANT SECRETARY
OF DEFENSE FOR THE WESTERN HEMISPHERE, U.S. DEPARTMENT OF
DEFENSE, WASHINGTON, DC
Dr. Mora. Thank you, Mr. Chairman and members of the
committee. I'd like to begin by thanking you for the
opportunity to testify before you today and for your interest
in U.S. defense policy in the Americas. And thank you, Mr.
Chairman, for that nice introduction.
I value the insights and the work of this committee in
advancing U.S. interests in the hemisphere. Indeed, my hope is
that I can help you better do your job by being transparent in
mine, and that my testimony today is responsive in this regard.
Mr. Chairman, the Defense Department is focused on
strengthening its relationships in the Americas by using
defense diplomacy to institutionalize ties. This approach is a
byproduct of the Obama administration's commitment to equal
partnership in the region. As the President made clear in his
remarks at the Summit of the Americas in 2009, from a defense
standpoint the framework of partnership makes perfect sense
because interdependence goes beyond economics and culture. It
also includes security and defense. In an age of transnational
security challenges, nations can no longer afford to go it
alone. In fact, we act unilaterally at our own peril, because
these problems require multinational solutions. Collective
action is essential for homeland security and for the security
of our neighbors.
U.S. defense policy in the region is therefore guided by
one principal objective and that is to be a partner of choice.
The institutionalization of relationships is critical to the
security of the region because we require continuity to make
progress in countering transnational challenges. For this
reason, we have chosen to forge defense cooperation agreements,
also known as DCAs, with countries such as Brazil and Colombia.
DCAs provide long-term umbrella frameworks for security
relationships. They also have the added benefit of providing
transparency, a key element of building trust and confidence on
defense issues, and a point that Brazil and Colombia have
understood well.
Bilateral working groups, also known as BiWGs, are another
important formal mechanism for sustaining our relationships in
the region. Since I became Deputy Assistant Secretary of
Defense for Western Hemisphere Affairs, we have participated in
BiWGs with countries such as Argentina, Brazil, Colombia, El
Salvador, Mexico, and Peru. Each BiWG is different, of course,
with a specific emphasis on those issues or areas of most
importance to the bilateral relationship. But they all allow
for senior level discussion.
These discussions normally result in a structure and a plan
for how we should move forward and cooperate. I believe BiWGs
provide an important blueprint for our strategic engagement in
the region.
Of particular note, Mr. Chairman, I would note, I would
take notice of a strategic dialogue that we will begin next
month when I will travel to Uruguay to participate in our
first-ever strategic dialogue. So our list of BiWGs soon will
increase.
A BiWG with Mexico was held for the first time in 2010, an
indication of our increasing collaboration against a shared
threat. In addition, we are working closely with Mexico to
develop a strategy to tackle emerging threats along its
southern border with Guatemala and Belize.
In 2010 we also held the first binational human rights
dialogue with Mexico, an initiative we are working to establish
on an annual basis. Similarly, our BiWGs with Brazil has been
revitalized. After a 6-year lull, the BiWG was reconvened in
November 2008 in Brasilia and has met regularly ever since.
In addition to the BiWG and the defense cooperation
agreement, we signed a general security military information
agreement, GSMIA, in November 2010 to facilitate the exchange
of classified information with Brazil. In sum, United States-
Brazil defense cooperation is closer today than at any time
since 1977, when Brazil unilaterally withdrew from a military
cooperation agreement with the United States.
Of course, Brazil's selection of the Super Hornet would be
another key element in broadening our cooperation for the
future. As part of this proposal, the U.S. Government has
allowed for significant technology sharing with Brazil. In
fact, this is technology that has been provided only to our
close partners, which is a clear indication of the strength of
our partnership with Brazil.
Our diplomatic approach is also yielding impressive results
with regards to natural disaster response. At the 2010
Conference of Defense Ministers of the Americas in Bolivia,
Secretary Gates spearheaded a proposal, cosponsored by 13
countries, that seeks to develop a framework for military
support to civilian-led disaster relief operations and to
standardize a system for facilitating collaboration among
militaries during these crises.
Finally, I would like to underscore that U.S. Southern
Command and U.S. Northern Command are vital to our efforts in
building partnerships by supporting humanitarian assistance,
security assistance, training, military education, peacekeeping
exercises, and multinational operations, which brings together
many nations to confront illicit trafficking in a collaborative
environment.
Mr. Chairman, I would like to close by reiterating that
this is just a snapshot of our activities in the Americas, but
I hope it has provided you with a sense of how we approach
engagement in the region.
I very much look forward to your questions. Thank you.
[The prepared statement of Dr. Mora follows:]
Prepared Statement of Frank O. Mora
Mr. Chairman and members of the committee, I would like to begin by
thanking you for the opportunity to testify before you today and for
your interest in U.S. defense policy in the Americas. I value the
insights and work of this committee in advancing U.S. interests in the
hemisphere. Indeed, my hope is that I can help you better do your job
by being transparent in mine, and that my testimony today is responsive
in this regard.
Mr. Chairman, the Defense Department is focused on strengthening
its relationships in the Americas by using defense diplomacy to
institutionalize ties. This approach is a by-product of the Obama
administration's commitment to equal partnership in the region, as the
President made clear in his remarks at the Summit of the Americas in
2009.
From a defense standpoint, the framework of partnership makes
perfect sense because interdependence goes beyond economics and
culture; it also includes security and defense. In an age of
transnational security challenges, nations can no longer afford to go
it alone. In fact, we act unilaterally at our own peril because these
problems require multinational solutions. Collective action is
essential for our homeland security and for the security of our
neighbors. U.S. defense policy in the region is therefore guided by one
principal objective: To be a partner of choice.
The institutionalization of relationships is critical to the
security of the region because we require continuity to make progress
in countering transnational challenges. For this reason, we have chosen
to forge defense cooperation agreements (DCAs) with countries such as
Brazil and Colombia.
DCAs provide long-term, umbrella frameworks for security
relationships. They also have the added benefit of providing
transparency, a key element of building trust and confidence on defense
issues, and a point that Brazil and Colombia have understood well.
Bilateral Working Groups (BWGs) are another important formal
mechanism for sustaining our relationships in the region. Since I
became the Deputy Assistant Secretary for Western Hemisphere Affairs,
we have participated in BWGs with countries such as Argentina, Brazil,
Chile, Colombia, El Salvador, Mexico, and Peru.
Each BWG is different, with a specific emphasis on those issues or
areas of most importance to the bilateral relationship, but they all
allow for senior-level discussion. These discussions normally result in
a structure and plan for how we should move forward and cooperate. I
believe BWGs provide an important blueprint for our strategic
engagement in the region.
Of particular note, I will travel in March to Uruguay to
participate in a first-ever bilateral Strategic Dialogue with Uruguay,
so our list of BWGs will soon increase. A BWG with Mexico was held for
the first time in 2010--an indication of our increasing collaboration
against a shared threat. In addition, we are working closely with
Mexico to develop a strategy to tackle the emerging threats along its
southern border with Guatemala and Belize. In 2010, we also held the
first Binational Human Rights dialogue with Mexico, an initiative we
are working to establish on an annual basis.
Similarly, our BWG with Brazil has been revitalized. After a 6-year
lull, the BWG was reconvened in November 2008 in Brasilia and has met
regularly ever since. In addition to the BWG and DCA, we signed a
General Security of Military Information Agreement (GSOMIA) in November
2010 to facilitate the exchange of classified military information. In
sum, United States-Brazil defense cooperation is closer today than at
any time since 1977, when Brazil unilaterally withdrew from a military
cooperation agreement with the United States.
Of course, Brazil's selection of the Super Hornet would be another
key element in broadening our cooperation for the future. As part of
this proposal, the U.S. Government has allowed for significant
technology-sharing with Brazil. In fact, this is technology that has
been provided only to our closest allies and partners, which is a clear
indication of the strength of our partnership with Brazil.
Our diplomatic approach is also yielding impressive results with
regards to natural disaster response. At the 2010 Conference of Defense
Ministers of the Americas (CDMA) in Bolivia, Secretary Gates
spearheaded a proposal--cosponsored by 13 other countries--that seeks
to develop a framework for military support to civilian-led disaster
relief operations and to standardize a system for facilitating
collaboration among militaries during these crises. Clearly, the region
is coming together to ensure we are best prepared when another Haiti-
like disaster strikes.
Finally, I would like to underscore that U.S. Southern Command and
U.S. Northern Command are vital to our efforts in building partnerships
by supporting humanitarian assistance, security assistance, training,
military education, peacekeeping, exercises, and multinational
operations like that of Joint Inter-Agency Task Force-South (JIATF-
South), which brings together many nations to confront illicit
trafficking in a collaborative environment.
Mr. Chairman, I would like to close by reiterating that this is
just a snapshot of our activities in the Americas, but I hope it has
provided you with a sense of how we approach engagement in the region.
I very much look forward to your questions.
Senator Menendez. Well, thank you all for your testimony.
It's very helpful to start a foundation here.
I think we'll start with 7-minute rounds, based on the
number of members who are here, and we'll see how we progress.
So the Chair recognizes himself.
Let me start with you, Mr. Secretary. Citizen security and
narcotics. My global view is that we've made a lot of progress
in the hemisphere, but there are some areas that still are
problematic. In the area of citizen security and narcotics
trafficking in Mexico, Central America, and the Caribbean, I'm
not sure that our progress is certainly keeping up with that of
criminal and drug trafficking organizations. Certainly the
situation in Mexico is particularly gruesome. We have seen as
many as 10,000 people murdered as a result of showdowns between
criminal organizations or between those organizations and
public authorities. Certainly this past Tuesday, two U.S.
Immigration officials were shot and one, Special Agent Jaime
Zapata, was killed, and our thoughts and prayers are with him
and his family. The agents were on a well-traveled highway in
an armored car with diplomatic plates.
So I'm concerned that our interests and our challenges are
incongruous with the essence of what we are trying to do there.
I was a strong supporter of the Merida Initiative, but I look
at the fiscal year 2012 budget, which actually decreases
funding for counternarcotics efforts and law enforcement by 7
percent for the region, and wonder how we do that at a time
when we are still facing a very significant, severe challenge?
We still have the Central America issue. As we seek to pressure
the narcotraffickers, working with the Mexican Government, that
squeezes them into Central America, and then squeezed into the
Caribbean, so much so that we recently--the United States
Government--recently denied the Dominican Republic use of
certain container ports to ship to the United States.
So help me out here.
Mr. Valenzuela. Sure. Mr. Chairman, I think you're
absolutely right that there's nothing perhaps that's more
important for most of the citizens in Latin America--and this
is throughout the continent--than citizen security. It's
particularly serious in the case of Mexico, Central America,
the Caribbean--Central America and the Caribbean because in
some ways they're caught like a ham in a sandwich between
Mexico and Colombia.
We've been redoubling our efforts to pay attention to this
issue, and we're doing so by strengthening our Merida
Initiative and working with Mexico as well as expanding our
efforts in Central America with CARSI, with the Central
American Regional Security Initiative. We just had a meeting
this Monday with the European Union, with the Canadians, with
others, because this has to be an international response, and
coordinating better other donors is allowing us to strengthen
our own strategic approach to this as well. The Europeans
provide about one-third of assistance to Central America, for
example, in some of the other areas.
But our focus, Mr. Chairman, very specifically is on trying
to bring down the drug trafficking organizations and the
cartels, but at the same time moving to strengthen institutions
like police and governance, judicial institutions, while at the
same time, as Mark made it clear in his testimony, we have a
whole host of programs that are also looking at things like
youth at risk in places like El Salvador, where this is a
significant problem.
This is an international----
Senator Menendez. I'm all for institution-building, which
is something I advocated for when we were doing Merida, arguing
that it couldn't all be firepower. But when we move our budget
in a direction that is opposite our challenge, we are not
aligning ourselves in terms of our challenge and that's my
concern. So I hope the administration will work with the
Congress to make sure that our resources meet our challenges,
because I appreciate that the European Union is a third and
there is another third involved there.
Mr. Valenzuela. The Inter-American Development Bank, the
World Bank, and others----
Senator Menendez. Those are all good, and coordinating,
maximizing, and leveraging our effort is fantastic. But I don't
want the security of the communities in my State of New Jersey
to depend upon any of that effort. I want it to depend upon our
own.
Mr. Valenzuela. I couldn't agree with you more, and I'd
like to work--the administration would like to work with the
Congress to make sure that those levels remain high.
Senator Menendez. I appreciate that.
Let me talk about democracy and development, Mr.
Feierstein. I am concerned when I look at the AID request for
democracy, human rights, and governance programs in Latin
America, typically around $2 million, which is approximately 1
percent of the total funding of $1.9 billion requested for the
region.
Now, it seems to me that, while we celebrate the advances
of the region, I certainly am concerned by efforts in the
region to disguise authoritarianism as the exercise of
Presidential power or convenient constitutional reforms, as we
have seen in Venezuela, in Nicaragua, and as some anticipate in
Guatemala prior to the September elections. So what steps are
we taking, if democracy promotion is important to us and
important to the citizens of the hemisphere for the fulfillment
of their own hopes, dreams, and aspirations? Why are we not
looking at this in a more robust way?
Mr. Feierstein. Thank you, Mr. Chairman. I very much
appreciate the question. We have a robust set of programs in
Latin America and the Caribbean to advance democracy. We think
of them in three baskets. First, we work in the area of
institution-building, strengthening electoral bodies,
strengthening Congresses, municipalities, and that's a
recognition, as you said, Mr. Chairman, and Senator Rubio as
well in his opening remarks, of the progress that the
hemisphere has made. In most cases, we're talking about
strengthening institutions, strengthening democracies, as
opposed to the promotion of democracy.
But second, I think we need to broaden how we think about
governance. We tend to think about Parliaments, mayors'
offices, but I think we need to think as well about Ministries
of Education, Ministries of Health. To the extent that we are
trying to create local capacity throughout the region and make
governments more efficient in providing services to their
people, the strengthening of those institutions is vital as
well.
Finally, there are countries that you mentioned where we
are seeing a backsliding; and we need to continue our robust
programs to support civil society, to support political
parties, to support a range of media, to protect and to try to
create political space, and of course, in the one country where
there are no freedoms, to try to help to create civil society
networks and help give people the opportunity to communicate,
both among themselves and with people in other countries.
Senator Menendez. Well, I'd like to follow up with you, but
I will wait for the second round and turn to Senator Rubio.
Senator Rubio. Thank you.
Let me start first by kind of describing what I hope is our
vision for the region, and I think it's not in conflict with
what I've read in your statement or what the President has
stated. I just wrote this down here, so it's a work in
progress. But basically my vision for the region, I think ours
from all the testimony here today, is that the Western
Hemisphere is a close and mutually respectful partnership with
our neighbors. We understand that from time to time among
friends there will be disagreements on policy issues,
particularly on some international issues, but by and large
we're going to find ourselves, if we're truly partners, on the
same side more often than not, because we're going to have very
close security and economic ties.
Is that a fair vision for the future? Do you think that in
essence describes what our hopes should be for the region?
Mr. Valenzuela. I think so. I think so, Senator. There's no
question that we find that we have real, genuine partners in
the hemisphere and that we share extraordinary values with the
countries of the hemisphere. It's simply not true that there's
a distance between us in that regard.
I think as we move forward constructively to try to
advance, each country has its interests, but we have common
interests, and that's what's, I think, encouraging about the
Western Hemisphere. And they are things like strengthening
democratic institutions or freedoms, as well as becoming more
competitive and a very difficult 21st century, where Latin
America has fallen behind.
Senator Rubio. In that light, I want to examine, in the
time that I have, briefly three key points in the hemisphere
that I think are critical to any successful carrying out of
this vision. The first is Mexico. Unfortunately, I think, in
recent years we've seen statements by some in our government
claiming that the country might even be on the verge of a
failed state. I think it was unfortunate that that was the
statement that was uttered.
The reality of it is that, from everything I have read--and
please correct me if I'm wrong--the Mexican Government appears
to be deeply intent on confronting this challenge internally
and solving it, in much the same way Colombia was over the last
two decades. I was hoping you could elaborate on that briefly,
and I think Dr. Mora as well may want to comment on that.
Mr. Valenzuela. Yes, I certainly would agree with that,
Senator. I think that we have a very close, respectful, and
constructive partnership with Mexico on this. It is a very
significant challenge. It's one where we've recognized our
coresponsibility as a demand country with regard to narcotics
and so on. But at the same time, we've moved forward.
Frank Mora mentioned earlier that for the first time there
really is an extraordinary cooperation on the security side
with Mexican authorities. What I'd like to stress--and this
goes back to the chairman's point earlier about some of the
funding--is that in Mexico in particular we've moved from some
of the original expenses for some of the heavy equipment and
things like that, that were very expensive, to moving to other
areas where they are really significant, particularly setting
up police, making the judicial institutions work better,
particularly at the local level, and so on and so forth.
This has to be a multipronged policy. It has to be a
comprehensive policy. We're working effectively, I think,
together with Mexico in order to overcome those challenges.
Dr. Mora. Yes, Senator, I agree with your assessment of
Mexico. I think, as the President and Secretary Clinton have
expressed, we do not believe there is any attempt to overthrow
the Government of Mexico. We don't think it's a weak state or
failed state or anything of that sort.
Certainly we recognize the violence that exists. We are all
concerned with that violence. Certainly Mexico is. But I think
in part I would say, Senator, that part of the reason for the
violence is a result of some of the success the Mexican
Government is having in terms of pressuring the drug
trafficking organizations, the transnational criminal
organizations, creating more conflict. So I think that's
important to underscore.
The other thing I'd like to also emphasize, and Secretary
Valenzuela mentioned, the kind of cooperation that we're doing
in collaboration with Mexico is really extraordinary from a
mil-to-mil standpoint. We are engaged with our partners, both
our partner Sedena, which is the National Secretariat of
Defense, and the Navy on exchange and training and information-
sharing, providing equipment of course, subject matter
exchanges, human rights training--a whole host of activities
that we really didn't do and weren't doing 4 or 5 years ago.
It's really a testament to the commitment of both
governments, President Calderon and the Government of the
United States, to deal with this very serious--very serious
problem.
Senator Rubio. I want to move on to the second key part of
the region, country, and that's Colombia. We've talked about
that before in our statements. What exactly are we asking of
them in order to consummate this trade agreement? First of all,
they're not waiting around, as they shouldn't. They are
beginning to examine other partnerships around the world as the
United States continues to take longer and longer to consummate
something that makes total sense from both perspectives. So
they're acting in their best national interests and moving on
without us.
What are we asking of them? What is the checklist that has
to be accomplished in order to get this deal done?
Mr. Valenzuela. Senator, as we said earlier, the President
has instructed--in fact, as we speak today there is a USTR-led
interagency group in Colombia at this particular point to look
at some of the outstanding issues that are still on the table
with regard to that.
But we certainly see a commitment on the part of this
government to move forward on some of the remaining issues that
exist. Those have to do with issues having to do with labor
code and violence against unionists and that kind of thing.
But let me assure you that we see very close engagement
with the Colombians to try to, in fact, get to the outstanding
issues.
Senator Rubio. I guess where I'm getting at with the
question is: Is there somewhere I can go in this city where
someone will give me a sheet of paper that will tell me, these
are the things that we are trying--that we would like Colombia
to do in order to consummate this deal? Does that kind of
matrix exist, the particular metrics that we're asking them to
meet? I've been here 6 weeks, so maybe it's out there and I
haven't found that place yet.
But if someone could show me who has that, so we could
perhaps be helpful.
Mr. Valenzuela. I think the answer is we're working on it,
and that this mission in Colombia this week of USTR should help
to advance some of the points on that.
Senator Rubio. And I won't belabor the point. But when you
say we're working on it, I guess my question is: So we don't
have that yet? If the Colombians were here with us today and
they told us, we want this deal, what do we need to do, our
answer would be, we're still working on it?
Mr. Valenzuela. We're working on it, but, look, let me also
say that I would defer also to USTR on this since they're the
ones that have the lead on this issue.
Senator Rubio. Thank you.
Senator Menendez. Thank you, Senator Rubio.
Senator Udall.
Senator Udall. Thank you, Chairman Menendez.
I share both of their comments about Mexico in terms of
worrying about it and worrying about the relationship. New
Mexico, my State, is a border State and we're one of four that
borders six states down in Mexico, and there's a great deal of
worry down on the border in terms of the narcotrafficking and
the gang activity.
I think if you went to the border and asked the people on
the border if they thought things were getting better, you
would have the perception that it isn't getting better. And yet
the panel here seems to say we're working on it, it is getting
better. Dr. Mora, you're talking about the sharing that's going
on in terms of the DOD.
The numbers--we're seeing the numbers go up in terms of the
murders, aren't we? And I know that the President has put on a
big effort to try to tackle this. But can you give me a sense?
What would you tell somebody down there on the border that's
saying there are murders now occurring in the United States?
There's evidence that these gangs or people are coming over and
in the United States gang activity is going on related to gangs
down in Mexico. It's a very worrisome thing, I think, if you're
down there right on the border and hearing all the stories and
hearing the reports.
Please help me out here.
Dr. Mora. Senator, I'll talk briefly about that. I think
that, as I mentioned earlier, I think the more pressure the
Mexican Government places on these organizations, the more the
violence will spill over into other areas, either south to
Central America or to the Caribbean. Our approach is that we
need to be proactive. We need to enhance the degree to which we
are collaborating and sharing information, in my case with
HEDENA and SOMAR, and that we are doing.
Senator Udall. You're sharing intelligence, is that
correct?
Dr. Mora. Indeed.
Senator Udall. And we haven't done that for a long time?
Dr. Mora. I wouldn't be able to tell you since when.
Senator Udall. I think that's an encouraging development,
the sharing of intelligence. I know that there is probably a
worry on our side that by sharing intelligence it's going to go
to the wrong places. Is there any evidence that's happening?
Dr. Mora. There's no evidence on my side, Senator.
Senator Udall. Please, go ahead. You were continuing.
Mr. Valenzuela. If I could simply add to that, that, yes, I
think that we can certainly understand why citizens in your
State and others are worried about what's going on in Mexico.
Citizens in Mexico are worried about what's going on in Mexico.
But indeed, we do feel that the proper measures are being taken
in order to address this issue.
We saw similar challenges in some ways, although very
different in other ways, in other countries have been
addressed. Colombia is one of them, for example, and I don't
want to draw parallels between the two because there are some
significant differences as well.
But the point I'm trying to make is that it takes time to
make some progress on these sorts of things.
Finally, let me just add the following insight, that this
is an issue that has to be dealt with on a regional basis. I
think that this is what we've tried to do. The spillover effect
into Central America, into the Caribbean, is something that we
would not want. So we have to have an integrated, transnational
approach to this phenomenon. When we address it that way, I
think that we're going to be successful in getting a grip on
this.
Senator Udall. Thank you.
Let me ask about USAID. I note in your statement you said
that the hallmark of the Obama administration is to approach
development from the sustainability standpoint, and that the
President has said creating the conditions where our assistance
is no longer needed. My understanding--and you talk a little
bit about contractors in USAID. Over time, haven't we gone from
personnel on the ground, people in the countries, giving
assistance to more and more contractors and putting an emphasis
on U.S. companies and that kind of thing? And doesn't that hurt
our ability to really do the capacity-building that I think the
President's talking about here?
Mr. Feierstein. Thank you, Senator, very much. I appreciate
the question. What we're trying to do now at AID----
Senator Udall. Can you turn the mike on?
Mr. Feierstein. Thank you, Senator.
Dr. Shah, the Administrator of USAID, has introduced a set
of reforms and the heart of those reforms is what we call
procurement reform. The goal is to create sustainability, to
create local capacity--that is, strengthening governance, NGOs,
and the private sector.
What we're trying to do is move from a model where we tend
to work with U.S.-based contractors and shift that toward
working more directly with and channeling resources through
local entities. That is a process that we've already begun,
that we intend to accelerate in the coming months and years.
I can tell you that in my bureau, for example, I'll be
giving every one of my missions, every one of our offices in
the hemisphere--we have 17 of them--specific targets they'll
have to hit in terms of the amount of resources going through
local entities, as opposed to going through outside
contractors.
As President Obama said in his development policy, we're
trying to create the conditions whereby our assistance is no
longer necessary. The only way to get there is to strengthen
that local capacity.
At the same time, we're also trying to work much more
closely with the private sector in a lot of these countries,
not only to leverage resources, but there's also a recognition
that the most effective and efficient way to create jobs is via
a vibrant private sector. So we've been able to collaborate and
partner with companies in a number of arenas.
Senator Udall. Thank you.
Thank you all for being here today. I yield back.
Senator Menendez. Thank you, Senator.
Let's do a second round. I have a series of questions I
want to pursue. Let me go back to democracy for a moment.
I just wanted to make sure I wasn't wrong, so I had my
staff check, and we have $37 million from State, but that is
mostly rule of law, not a lot of support for civil society.
Rule of law is important; don't misunderstand. I think that's
very important. But we have about $2 million in AID in
democracy promotion. I look at what is happening in Venezuela.
I look at what is happening in Nicaragua. I look at what may
very well happen in Guatemala. I look at some of the other
places, and I say to myself, how do we, with those--how much
are we really committed to democracy promotion with that?
What is our ability to really do democracy promotion, which
is really to help civil society be in a position to make its
own claims upon its government in a rightful manner, where
liberty is one of the essential elements?
Mr. Feierstein. Thank you, Senator. To be honest, it's not
clear to me which document you're referring to. But in terms of
our fiscal year 2012 budget the President has presented, we
have not yet determined how the money would be allocated within
each country and toward which sectors.
We are undergoing a process throughout the entire agency,
including----
Senator Menendez. It's more than $2 million?
Mr. Feierstein. Well, we are undergoing a process
throughout the agency, including in my bureau, where every
single mission basically lays out a strategy which they present
to Washington for our approval. And I can assure you that as
these strategies come through my bureau and through my office,
we will make a priority of the strengthening of democracy. I
can't commit to specific figures now----
Senator Menendez. I know. I'm just trying to push the point
that--I'm talking about fiscal year 2011 numbers, so if I start
there I get a sense of where we're at. So I hope that it will
be more robust, but I don't think that we can really say that
we are into democracy promotion, which I think is incredibly
important.
Look at what is happening in the Arab world. There is a
wave. We are either part and with that wave and helping it or
we are behind it. I don't think that's unique to the Arab
world.
So I think that it's important in this regard. So I hope we
can get you as an advocate.
In the context of democracy programming, of course, I have
to raise the question, Mr. Secretary, with you on Cuba. I, of
course, oppose the President's stated changes, primarily
because I see them as open-ended and largely sending huge
amounts of money to the Castro regime at a time in which that
regime has huge economic consequences, as is evidenced by their
dismissal of thousands of state workers. And they would never
have done that but for economic necessity. They would have
never reduced the third-largest army in the Western Hemisphere
during the period of the Soviet Union per capita without
economic necessity.
The most hated symbol of the Cuban revolution, the American
dollar, now freely sought and traded, unfortunately retained
only by state government entities, was now sought because of
economic necessity.
So when I see the new regulations and then I see entities
already up that say: ``Salza and Afro-Cuban dance. Beginning to
advance dancers welcome. You can choose to focus''--I could do
this for them without going to Cuba. ``You can choose to focus
on salza and other popular dances, like mamba, cha-cha-cha.''
This is going to create democracy for the people of Cuba?
Mr. Valenzuela. Senator, the administration----
Senator Menendez. By the way, the price tag is $3,000 for a
single person, to go to Cuba to learn salza, cha-cha-cha, and
mamba.
Mr. Valenzuela. I think I would prefer to sign up with your
lessons, Senator, if you don't mind.
If I might say, look; the President's policy toward Cuba
and the intent of these changes in the regulations is because
the President feels and the administration feels that we need
to move forward much more effectively to engage directly with
the Cuban people, in order to encourage their own ability to
determine their own future.
The particular--I would be extremely surprised if the
particular instance that you referred to, the dance lessons,
would be in any way countenanced by this kind of a program.
Senator Menendez. I hope so, because this is a company that
got from the 1990s to 2004 a series of licenses to do a lot of
this. So my point is that to the extent that you could get real
people engagement, with real itineraries that get to real
Cubans, not those who are constrained and/or directed by the
government to engage with citizens--being on a beach in Cuba,
having a cuba libre, which is an oxymoron, and smoking a cigar
made by hands that get a fraction of their wages is not my way
of how we create freedom.
So I just hope--I have a long list of these and I hope that
you will look at them as an exercise.
Mr. Valenzuela. If you would share some of those with us.
But we're going to work very closely with OFAC, with State
Department guidance, to make sure that, in fact, when the
licenses are given that, in fact, they do meet the objectives
of this program, which is to engage directly with the Cuban
people and have Americans engage directly with the Cuban
people. We think that this is a way of giving them the kind of
space that they need in order to become independent of the
clutches of the regime.
Senator Menendez. Mr. Kaplan, poverty and inequality have
longstanding challenges in the hemisphere and, while we have
seen growth, the reality is that nearly 40 percent of the
hemisphere live on less than $2 a day. That in my mind will
continue to be the nature of a huge challenge, and the
inequality between those who have and have not, we have seen in
other parts of the world how that can create instability.
Now, your agency is known for its work in dealing with
indigenous needs and responding with real people, identifying
problems and solutions. How do you identify meritorious
projects and how have you managed to stay engaged in countries
like Bolivia and Venezuela while other agencies seem to be
struggling to do the same?
Mr. Kaplan. Thank you, Senator. I also would like an
opportunity to talk about what we do as democracy-building as
well. I think the point that you made before, that anything
that's enhancing, that's strengthening civic society, civic
participation, is also contributing to democracy. We consider
that the work that we do responding directly to proposals
presented to us by communities throughout the region, where
they're designing their own projects and they're figuring out
how to do it themselves, bringing in resources to complement
their own resources, and then proceeding to learn how to do it,
and to fail sometimes, but succeed more times, strengthens
social capital, strengthens the communities, and is a building
block for democracy as well.
So I think all of our programs in fact could be perceived--
could be presented as democracy-building through that lens,
because we are responding directly to the requests from the
communities.
To your questions, let me say we receive about 500 project
requests every year from across the hemisphere. We can't fund
all 500. We fund--last year we funded about 75 projects. So we
have a process of going through those projects, looking at
them, and then visiting every single one of them, spending time
with the community, with the group that's working with the
community directly, that is proposing the project, and then
proceeding to fund it.
The projects go forward for 2 or 3 years and there's a
results-based process for following up on it, and then
strengthening the capacity of the communities themselves to
report the results, to comply with audits, so it's capacity-
building again at the community level and with community
organizations.
In countries where other agencies have had more tense
relationships perhaps, I think that we've been successful
because we've worked, not through the government; we work
directly with the communities themselves, and the communities
have appreciated the respectful approach that we have in
working with them and have welcomed the support. We don't tell
them what to do. We listen to what they think they should do
and we work with them to fill the gaps so that they can do it.
Senator Menendez. Senator Rubio.
Senator Rubio. Thank you.
I have here the President's order regarding Cuba from
January 14. It reads that: ``In continuing efforts to reach out
to the Cuban people in support of their desire to freely
determine their country's future,''--which is the stated goal
of policy toward Cuba; it says that--part of the things it
expands is purposeful travel for the purpose of enhancing
contact with the Cuban people and supporting civil society
through purposeful travel.
Are you familiar, Mr. Secretary, with the case of a United
States citizen that traveled to Cuba to distribute
communications technology on the island, particularly I believe
to the Jewish community?
Mr. Valenzuela. Yes, I am, Mr. Rubio.
Senator Rubio. Would distributing technology to members of
that community or to the Cuban people fall within the context
of meaningful purposeful travel? I mean, would it fall within
the guise of what we're talking about here, to enhance contact
with the Cuban people?
Mr. Valenzuela. With respect to Mr. Gross, Mr. Gross was in
Cuba as a long-term development worker. He was working with
elements of the Jewish community----
Senator Rubio. To make contact with the Cuban----
Mr. Valenzuela [continuing]. To make contact with the Cuban
people.
Senator Rubio. Well, he's facing 20 years in prison; is
that correct?
Mr. Valenzuela. He might face 20 years in prison, that's
correct.
Senator Rubio. So are we going to issue an advisory to
Americans that are looking at doing purposeful travel to make
contact with people in Cuba, that they may also face 20 years
if their contact is too purposeful?
Mr. Valenzuela. Anybody who travels to Cuba, I imagine
that, including relatives of Cubans--and the numbers increased
this year; there are about 300,000 Cuban Americans who traveled
to Cuba--may take some risks in traveling. But it is our view
that it's very important for us to be able to have the capacity
to have both--not only Cuban Americans, but also citizens
across our country----
Senator Rubio. Right, but is the State Department prepared
to begin advising both Cuban Americans and non-Cuban Americans
traveling to Cuba what you've just said, that there are risks
to traveling in Cuba?
Mr. Valenzuela. I think--I don't know whether there's some
specific guidance on that, but I think that there is an
awareness that there is a risk and that we--institutions that
send--I was a professor at Georgetown and when our students
would go down on a license to Cuba we always were mindful of
the fact that they needed to be particularly careful.
Senator Rubio. So specifically, based on your testimony and
what we've read about this particular case and others, isn't it
wise--or would it be unwise to advise people looking to travel
to Cuba, be careful how much contact you make, because if you
upset the Cuban Government you may be jailed and face 20 years,
and by the way we may not be able to do much at all?
In fact, what have we done with the case of the U.S.
citizen?
Mr. Valenzuela. I think, at least from the experience that
I've seen--we have one case right now. I can't think of any
other case recently of somebody who has been--of an American
citizen who's been arrested for this kind of activity. There
are all kinds of people who've been going down to Cuba for a
long period of time on the people-to-people program, and I can
think of people, friends of mine from Tampa, for example, who
go down with their church to Cuba all the time.
Senator Rubio. But the church visits are largely run
through the ecumenical council, correct?
Mr. Valenzuela. Well, look. Let me clarify that these--
again, the travel is going to be purposeful, regulated travel,
where individuals and organizations and institutions will have
to get licenses in order to go. So it's under the framework of
the same sorts of arrangements that we have now.
Senator Rubio. Now, in terms of--because I think there's
clearly a cost-benefit analysis that I hope the Department made
or is making in this decision in the administration, between on
the one hand the benefits of people-to-people contact, if you
don't go to jail, and the other of the revenues that it
provides the Cuban Government, which is a repressive regime.
In fact, in January alone we know of 260 political arrests.
In fact, yesterday Sarah Fonseca was brutally beaten in the
streets of Havana. So it continues to be a repressive regime,
and it has to pay for its repression. One of the ways it does
that, perhaps the single largest source of funding to the Cuban
regime, is remittances and travel by Cuban Americans to the
island.
For example--many people may not know this. You have a
Cuban American; you've got to get a Cuban passport. The funds
all flow to the Cuban Government. Then you've got to go out and
get a ticket through a charter company, which is basically--if
this is an accurate assessment, basically a business partner of
the Castro government, where a significant percentage of the
money you pay for your travel to Cuba flows to the Cuban
Government, correct?
Mr. Valenzuela. Yes. Our policy, Senator, is to have rules
and regulations that will maximize the contact between the
American people and the Cuban people----
Senator Rubio. I understand, but I'm looking at the revenue
side. What I'm trying to get at is you have to get a Cuban
passport, which is money directly to the Cuban Government, a
source of revenue. Then you've got to get a ticket through a
charter company, which is the business partner of the Castro
government--revenue to the Cuban Government. Then when you land
you get hit with an entry fee, which is direct revenue to the
Cuban Government. Then they make you change your currency,
which they take 20 percent of--revenue to the Cuban Government.
Estimates are that about $4 billion a year flow directly to
the Cuban Government from remittances and travel by Cuban
Americans, which is the largest--perhaps the single largest
source of revenue, to the most repressive government in the
region.
Mr. Valenzuela. The remittances to Cuba are a large number,
too. But let me just simply say this, that there may be some
ancillary benefits to the Cuban Government, but it is our view
that to be able to have direct contact with the Cuban people,
that Americans have direct contact with the Cuban people, will
provide them with the kind of space that will allow them to
become much more independent of the regime.
If we continue to isolate the Cuban people, we simply play
into the hands of the Cuban regime. I think that we need to in
that sense expand----
Senator Rubio. But that goes back to the case of this
American citizen, whose attempt was to create a technology or
help people create a technology platform where there could be
communication with the outside world.
I guess my last question, and it kind of is redundant--I
asked this earlier, but this is important, because a lot of
people from my State are expressing an interest in traveling to
Cuba, including people that are not Cuban Americans. Is the
Department of State prepared to assure American citizens that
if they go to Cuba they'll be able to talk to whoever they
want, do whatever they want within the civil laws--obviously,
you can't violate the civil law. But they'll be able to talk to
anybody they want, including somebody like Sarah Fonseca?
They'll be able to go there and actually tell people about the
outside world, talk to dissidents, and that they will not get
in trouble?
Are we prepared to assure people if they travel to Cuba
nothing bad will happen?
Mr. Valenzuela. Senator, I can't give you that assurance.
But I will also point to the fact that there's been a lot of
experience with travel to Cuba, including that of many, many
Cuban Americans, and we still continue to think that that has a
beneficial effect in promoting greater freedom in Cuba.
Senator Rubio. Thank you.
Senator Menendez. Thank you, Senator Rubio.
Two last questions. Dr. Mora, technology transfer issues,
particularly in relation to Brazil. Despite some of the United
States and Brazil's disagreements on foreign policy, we share a
long tradition of cooperation in the area of national security,
to include fighting shoulder to shoulder during the Second
World War.
With the beginning of Brazil's new administration under
President Rosef, it would seem we have the opportunity to reset
our strategic relationship along the lines of our shared
history. I am aware of Brazil's recent interest in the United
States--in the United States offer to sell fighter aircraft,
the Super Hornet, as part of a foreign military sales
transaction between our two countries. In fact, the Congress
approved the sale in 2009, underscoring that commitment.
I know that there have been concerns raised by the
Brazilians about our commitment to this sale. To what extend do
you believe that such a sale promotes cooperation,
interoperability, and shared security interests with the United
States?
Dr. Mora. Absolutely, Senator. As I said in my opening
statement, this is a critical part of our defense cooperation
with Brazil. It links us in ways that perhaps is an extension
or continuation of the defense cooperation agreement that we
signed last year.
Now, we understand a final decision has not been made on
whether--on the fighter competition. The United States I think,
Senator, has made a robust proposal of the Super Hornet
technology. In fact, I would argue the technology transfer that
we are offering of this magnitude would put Brazil on par with
our close partners. So it is a robust offer. It is significant
tech transfer, and it is in par, as I say, with many of our
close partners. And it demonstrates really our commitment, not
only to the sale of this aircraft, but really a commitment to
increasing, deepening, our defense-defense relationship.
Senator Menendez. So to the extent that Brazil is going to
make a decision, is it fair to deduce from your answer that
they should have no concern about our commitment to make that
sale and to share the associated technology?
Dr. Mora. That is correct, Senator.
Senator Menendez. All right. Thank you very much.
Is this something that Secretary Clinton will be raising in
her upcoming consultation, do you know, with Minister Patriota?
Mr. Valenzuela. Yes, we always raise these issues.
Senator Menendez. Then last, Mr. Secretary, on a milder
note, I want to ask about competitiveness in the hemisphere for
U.S. companies and interests, which obviously means jobs here
in the United States. I see the hemisphere opening up trade
opportunities with regions such as China, Korea, Japan, to
mention a few, as well as creating regional blocs. U.S.
companies have had significant growth in the hemisphere and I
wonder, as I have no doubt that some countries in the region
want to limit U.S. influence and engagement, are there
opportunities for the United States that we are missing out,
for example as China takes a more prominent presence in terms
of investment in trade in the region?
What should we be doing?
Mr. Valenzuela. A couple points. One is, the region itself
needs to become more competitive. There's no question about it.
It's still--the growth rate for the last couple of years have
been based on primarily exports of raw materials. Most
countries in Latin America, including Chile and Brazil, that
for example sell 60 percent of all exports to China, which are
raw materials, realize that their future comes from value-added
activity, and that requires in turn increasing levels of
competitiveness, which in turn of course requires greater
investment in such things as education, technology, and that
kind of thing.
In fact, one of the advantages that U.S. firms already have
in the region is that U.S. firms are much more likely to be
involved in production chains with firms in Latin America than,
say, the Chinese. But there's no question that I think that we
can do a better--and should do a better--job to try to promote
the ability of American firms to do better in Latin America.
The Western Hemisphere is today the source of 43 percent of
all U.S. exports. It's the area of the world where 37 percent
of all U.S. direct investment is. There are 400 million people
who are coming into the middle classes in Latin America. So the
opportunities are great there.
One area that we need to work on, though, and this is one
of the things that fits in with what we discussed earlier, is
that many U.S. firms are reluctant to move into Latin America
because of issues of judicial insecurity and things like that.
So strengthening the rules of the game, making them much more
transparent--other competitors often don't play by those
rules--is an important part of the dialogue that we have with
Latin America moving forward.
Senator Menendez. Let me thank you all for your testimony
and answers to our questions. We're going to keep the record
open for 5 days for anyone on the committee who may have
additional questions. We urge you to answer them in a timely
fashion. I appreciate the contribution you've made to this
opening hearing on United States policy toward Latin America.
Clearly we see our relationship as a partnership, and when the
committee formally organizes it is my intention to pursue
hearings on citizen security in the Americas, renewal and
reform of the Peace Corps, poverty and inequality in Latin
America, challenges and opportunities for democracy in the
Western Hemisphere, and additional topics.
We've laid a broad brush. We've only touched the surface.
There are many topical issues that are cross-cutting as well as
country-specific issues that are opportunities for us to delve
into. So we look forward to working with the chairman and with
those interested in advancing in our partnership in Latin
America to realize our joint dream of a safer, more prosperous,
and democratic Western Hemisphere whose citizens can ultimately
realize their dreams, hopes, and aspirations where dignity and
freedom can become a reality.
With that, this hearing is adjourned.
[Whereupon, at 3:46 pm., the hearing was adjourned.]
----------
Additional Material Submitted for the Record
Responses of Assistant Administrator Mark Feierstein to Questions
Submitted by Senator Marco Rubio
Question. Authoritarian governments the world over--and especially
in Latin America--are taking aggressive measures to limit our support
for democratic advocates in close or repressive societies. How is your
agency responding to these autocratic challenges?
Answer. Some autocratic governments are trying to make it more
difficult for USAID and others to work in solidarity with citizens
struggling to exercise basic human rights, like freedom of expression
and freedom to assemble. But the United States will not yield in our
support for those who want to enjoy universally recognized human
rights. We support NGOs, independent media, and political parties
committed to democratic principles. We and our implementing partners
take our lead from the advocates for democracy in a given country. They
guide us about the most effective way to promote democracy.
Question. Do you believe that the implementing community has the
tools to continue to operate under the difficult environment they are
facing in some of the countries in the region?
Answer. Yes. Our implementing partners, and USAID, have years of
experience promoting democracy and human rights in difficult
environments throughout the world. They are experts in democratic
development, are familiar with the countries they operate in, speak
fluent Spanish, and have extensive in-country contacts. As
organizations that in most cases work globally, they apply lessons
learned from many other countries. They work closely with and take
their lead from the democracy advocates they support in order to
maximize their effectiveness and minimize the risks associated with
advancing democracy and human rights in politically challenging
settings.
______
Responses of Dr. Frank Mora to Questions Submitted by
Senator Marco Rubio
security cooperation with honduras
Question. As you know, our government has had a long standing and
productive relationship with Honduras, including vital counternarcotic
cooperation through the Joint Task Force-Bravo (JTF-Bravo).Have we
restored--or increased--all security cooperation with Honduras to pre-
June 2009 levels?
Answer. We have restored the level of security cooperation with
Honduras to pre-June 2009 levels, with the following caveats.
Per U.S. Government policy, our reengagement and security
cooperation with Honduras is to focus on military professionalization,
countering illicit trafficking (CIT), combating terrorism, and
capacity-building for humanitarian assistance and disaster relief. For
example, we have resumed all International Military Education and
Training (IMET) and Foreign Military Financing (FMF) activities that
reinforce these principles and/or improve nonlethal technical skills.
Security assistance for lethal weapons aid was restricted in 2009.
However, it is increasingly evident that we need to initiate a staged
approach to bolstering our assistance to units directly involved in CIT
operations, which are facing formidable opposition, including high-
caliber weapons, from drug trafficking organizations. U.S. Embassy
Tegucigalpa is currently pursuing authorization to resume lethal
weapons assistance (initially for select, vetted units directly
supporting CIT operations), with the goal of subsequently normalizing
lethal weapons aid to pre-June 2009 levels during 2011. The Defense
Department supports the Embassy's request to resume lethal weapons aid,
and the Department of State notified Congress of its desire to provide
equipment, including weapons, for a unit assigned to the violent La
Mosquitia region of Honduras.
disrupting trafficking networks
Question. Have we seen an improvement in our success rate in
disrupting illicit trafficking on the Mosquito Coast since the Lobo
government has been in power?
Answer. We have seen an improvement, although it is too early in
the Lobo administration to make an accurate judgment. It is clear,
however, that the government of President Porfirio Lobo shares our
concerns about the difficult situation in La Mosquitia. Using the
policy and resource framework provided under the Central America
Regional Security Initiative (CARSI), President Lobo is supportive of,
and cooperating on, a bilateral, integrated strategy to strengthen the
operational capabilities of Honduran security forces and law
enforcement officials, as well as to spur increased development, jobs,
and growth opportunities in La Mosquitia.
The strategy for La Mosquitia is a whole-of-government approach and
is focused on prevention, interdiction, and law enforcement. USAID, for
example, is working on the prevention side by partnering with Honduran
agencies (e.g., the Ministries of Health, Education, and Social
Investment) and the private sector to bolster health, education, and
economic opportunity. The U.S. Military Group in Honduras has
established partnerships with U.S. agencies, the Armed Forces of
Honduras, and other governmental and nongovernmental organizations to
support interdiction efforts, provide mobility, and build capacity to
counter illicit trafficking in La Mosquitia.
Finally, the support of the Lobo administration has been
instrumental in ensuring the effectiveness of Joint Task Force-Bravo
(JTF-B) efforts in La Mosquitia. In 2010, for example, JTF-B, in
coordination with their Honduran counterparts, launched more than a
dozen helicopter rapid response and deliberate missions in support of
the Drug Enforcement Agency and has executed four forward deployments
in La Mosquitia.
the balloon effect
Question. Transnational criminal organizations have responded to
security successes in Colombia and the sustained efforts in Mexico by
increasing their activities in Central American countries, thus
threatening to overwhelm the capacity of these countries' security
forces to protect their innocent populations. What is the status our
Nation's efforts to more closely partner with Central American security
forces? Have you identified any U.S. mandates limiting the potential
expansion of these cooperative efforts?
Answer. DOD supports U.S. Government efforts to build the capacity
of the nations of Central America to fight illicit trafficking. Led by
the Department of State, the Central America Security Initiative
(CARSI) is the principal vehicle currently employed to partner with
Central American countries. DOD support to CARSI includes funding for
equipment, training, and technical assistance to counter the corrosive
impact of gangs, transnational criminal organizations, and arms and
narcotics trafficking.
DOD also administers the Foreign Military Financing (FMF) and
funding from the Counternarcotics Central Transfer Account (CN CTA).
FMF and CN CTA funding for fiscal year 2010 included funding for
counterterrorism and counternarcotics trafficking training for Belize,
interdiction boat refurbishment for the Guatemalan Naval Special
Forces, maritime mobility and communications equipment for El Salvador,
vehicles and aviation spare parts for Honduras, aviation and maritime
modernization for Nicaragua, helicopter maintenance and crew safety
equipment for Costa Rica, and training of border security units for
Panama.
Additionally, Joint Interagency Task Force South (JIATF-S), a
USSOUTHCOM subcommand led by the U.S. Coast Guard, is the keystone of
regional maritime detection, monitoring, and interdiction efforts for
the United States and our partner nations. JIATF-S coordinates
information from multiple sources, including U.S. and partner nation
law enforcement; and DOD assets such as Maritime Patrol Aircraft (MPA)
and radar, and U.S. Coast Guard and Navy ship patrols. JIATF-S detects
and monitors suspect aircraft and maritime vessels, and then provides
this information to international and interagency partners who have the
authority to interdict illicit shipments and arrest members of
transnational criminal organizations (TCOs). In 2010, JIATF-S and our
international and interagency partners were directly responsible for
interdicting 142 metric tons of cocaine and denying TCOs $2.8 billion
in revenue.
More than one-half of the cocaine destined for the United States
makes its initial landfall in Honduras and Guatemala; nearly all of
that crosses the Guatemala-Mexico border. Focusing specifically on this
vulnerable Mexico-Guatemala-Belize border area, we are engaged in
planning with our U.S. Northern Command, U.S. Southern Command, U.S.
interagency, and partner nation colleagues to develop a subregional
operations capability among these three countries.
U.S. law currently prohibits provision of FMF and International
Military Education and Training (IMET) to the Guatemalan Army
(Consolidated Appropriations Act, 2010, Public Law 111-117). Assistance
to the Guatemalan Air Force, Navy, and Army Corps of Engineers (for
disaster preparedness and peacekeeping) is not affected, provided the
U.S. Secretary of State certifies that they are respecting
internationally recognized human rights and cooperating with civilian
judicial investigations and prosecutions.
______
Responses of Assistant Secretary Arturo Valenzuela to Questions
Submitted by Senator Marco Rubio
Question. I am concerned about the persistent delays in the
delivery of equipment and I want to work with the administration and
the committee to resolve the situation.
Has the administration identified the specific obstacles
slowing the delivery of badly needed equipment?
Answer. We have identified the significant hurdles to managing and
moving Merida Initiative assistance and we are working to address them.
Although it has taken longer than we would have wanted to move
assistance under the Merida Initiative, the pace of delivery continues
to accelerate. Furthermore, key pieces of large equipment have been
delivered, while more is well along in the procurement process.
To date, approximately $295 million in equipment has been delivered
to Mexico. Examples of equipment delivered include 3 UH-60M helicopters
($76 million), 8 Bell 412 helicopters ($88 million), 318 polygraph
machines ($2.3 million), various pieces border security and of
nonintrusive inspection equipment (NIIE) ($25 million), and IT
equipment ($28 million). We are committed to delivering $460 million in
equipment this calendar year alone, as part of the Secretary's goal to
deliver $500 million in total assistance to Mexico this calendar year.
As mentioned, the greatest obstacles to delivering assistance have
been identified and are being addressed. For example, staffing in
Washington and at Embassy Mexico City's Narcotics Affairs Section (NAS)
needed to grow, and it has--from 21 to 107 full time staff supporting
the Merida Initiative. To address office space concerns, we opened the
first ever Bilateral Implementation Office (BIO)--a shared United
States-Mexico office space outside of the Embassy that allows for daily
exchanges among the staff of both countries. We expect this to
facilitate improved planning for and delivery of assistance. In
addition to hiring staff, working level bilateral relations and trust
had to be established. Now that staffing is in place, working-level
relations are strong, and contracting processes are better understood
by Government of Mexico counterparts, we are seeing an acceleration of
deliveries to Mexico.
Certain delays to providing assistance were unforeseen, or simply
unavoidable. For example, the contract award for NIIE was protested by
a losing vendor, delaying delivery of $100 million in assistance for
much of last year. We have overcome the protest delays, which will
allow us to move most of this NIIE this year. Another delay in
assistance was caused by advanced aviation modifications required by
Mexico. For the UH-60Ms, for example, the GOM-requested modifications
pushed back the delivery date by approximately 10 months. To minimize
these delays, relevant offices in the State Department, as well as at
the Department of Defense, are collaborating very closely.
Other steps taken to streamline Merida assistance include:
1. We recently brought on an experienced INL Senior Advisor to
conduct a full review of INCLE-funded Merida Initiative programs,
identify possible bottlenecks, and engage in efforts to implement
programmatic changes.
2. We are working more closely with Mexican counterparts to help
them provide clear program requirements, which are required for our
contracting and procurement processes. We are also exploring ways to
build training in strategic planning into the Merida programs
themselves.
3. We are exploring new contracting mechanisms for large training
programs, that could move large sums of assistance as quickly as needs
demand.
4. We are moving funds away from slow-moving projects, toward high
impact programs that can be executed faster.
Question. Have you identified the need of legislative fixes to
address these bottlenecks, especially as we look into increasing
security cooperation in Central America and the Caribbean?
Answer. As discussed above, the major bottlenecks to providing
Merida Initiative assistance have been identified and are being
addressed. In many cases, they related to having insufficient staff; in
others, they related to the procurement processes that are part of an
open competitive process. Our GOM counterparts are now much more
familiar with our processes and better able to provide the
specifications for equipment requirements that are needed for contract
proposals; and we anticipate a rapid acceleration in the pace of
delivery this year. We are also looking to increase staff in support of
new Central America and Caribbean programs, including expanding our
procurement and administrative support, where necessary.
Question. When can we expect the next round of Cuba policy changes
by the administration and what will be their nature?
Answer. The administration is working to advance U.S. national
interests through policies that support the Cuban people's desire to
freely determine their future. Over the past 2 years, we have taken a
number of important steps in support of this objective. On January 14,
the President directed changes to regulations and policies governing
purposeful travel, nonfamily remittances, and airports supporting
licensed charter flights to and from Cuba. These new measures will
increase people-to-people contact, support for civil society in Cuba,
and enhance the free flow of information to, from, and among the Cuban
people. The changes also build upon the President's April 2009 actions
to help reunite divided Cuban families, facilitate greater
telecommunications links with the Cuban people, and increase
humanitarian flows to the island.
The administration believes that these actions are important steps
in reaching the widely shared goal of a Cuba that respects the basic
rights of all its citizens. We want to ensure that the United States is
doing all we can to support the Cuban people in fulfilling their desire
to live in freedom. There are no additional policy changes contemplated
at this time, although policy can be adjusted to advance U.S. national
interests.
Question. As you know, the Government of Colombia is considering
extraditing notorious drug trafficker Walid Makled to Venezuela instead
of the United States. U.S. prosecutors have identified Mr. Makled as
``a king among kingpins,'' and his arrest is testimony to our excellent
security cooperation with Colombia. Considering the control exerted by
President Chavez over the Venezuelan judiciary, and Mr. Makled's
implication of senior Venezuelan officials in the illicit drug trade:
How is the administration working to make sure that this
notorious drug kingpin is extradited to the United States
instead of Venezuela?
How confident is the administration of the Venezuelan
Government's intentions and capacity to fully investigate and
punish all individuals implicated by Mr. Makled?
Is the administration aware of any connections between Mr.
Makled's drug trafficking activities and terrorist activities
and organizations?
Answer. The President designated Makled as a significant narcotics
trafficker under the Foreign Narcotics Kingpin Designation Act in May
2009. Colombian authorities arrested him in 2010 on the basis of
information and a provisional arrest warrant from the United States. We
have formally requested Makled's extradition to the United States, and
have separately made clear, publicly and privately, to the highest
levels of the Colombian Government, our intense interest in Makled's
extradition to the United States, given the seriousness of the offenses
he is charged with and the quality and volume of evidence to support
the charges.
The decision on extradition rests with the Colombian Government,
and we respect their processes and internal deliberations. As you may
know, we have a particularly healthy extradition relationship with
Colombia; between 2002 and 2010, the Colombian Government has
extradited 1,149 individuals to the United States.
While it is impossible to predict how Venezuela will react in this
case, we have repeatedly expressed our concern about Venezuela's
counternarcotics efforts generally; since 2005, we have found that
Venezuela has ``demonstrably failed'' to meet its international
counternarcotics obligations. We are also concerned about the
independence and capabilities of the judiciary in Venezuela. As
reported in the 2009 Human Rights Report, ``judicial independence and
competence is compromised due to corruption and political influence,
particularly from the Prosecutor General's Office.''
Finally, regarding the possibility of connections between Mr.
Makled's drug trafficking activities and terrorist activities and
organizations, the Department of State does not have any specific
information in this regard. However, the fact that the FARC, a
terrorist organization, is known to be involved in narcotics
trafficking in the region makes this a legitimate cause for concern and
one which we are tracking.
Question. As you know, Venezuela is building deep and troubling
ties with Iran--the world's most active state sponsor of terrorism. I
believe these ties are--or will soon begin--to undermine the
multilateral sanctions against the Iranian regime's pursuit of an
illicit nuclear weapons program. You have recently said that the
administration is ``looking into'' whether Venezuela is in violation of
sanctions against Iran.
How long would this process last?
Will the administration's findings be publicly available?
Answer. We have seen the recent press and other reports, including
the purported PDVSA documents made public February 23, suggesting that
Venezuela has sent refined petroleum to Iran. If true and accurate,
these shipments may render the companies involved eligible for
sanctions under the Iran Sanctions Act (ISA), as amended by the
Comprehensive Iran Sanctions, Accountability, and Divestment Act, and
the administration will comply fully with the law. We are reviewing the
possibility that Venezuelan companies may have engaged in sanctionable
activity under ISA, as amended, and will provide Congress with the
basis of any determination.
Question. I commend the administration and our Ambassador in Haiti
for speaking out early and clearly against attempts to manipulate the
results of the November 2010 Presidential elections.
What is the current status of recovery and reconstruction
efforts in Haiti?
Answer. In the immediate aftermath of the earthquake, the U.S.
Government deployed assets from across the government in the largest
U.S. humanitarian response on record. We provided rescue, food, water,
shelter, medical treatment, and other essential items and services to
help Haitians immediately begin rebuilding their lives.
Since the earthquake, the U.S. Government, working with partners,
provided food for more than 4 million people--the largest emergency
urban food distribution in history--and continues to target 1.9 million
with food assistance. The United States and international partners
provided basic shelter materials to 1.5 million people before the start
of the rainy season in May 2010. We supported the immunization of more
than 1 million Haitians against highly communicable disease including
polio and diphtheria. With partners, we provided safe drinking water
for up to 1.3 million people daily following the earthquake.
The Government of Haiti estimates that 80 percent of schoolchildren
were able to return to school last year with the help of the United
States and the international community. The U.S. Government and the
international community have assessed damage to nearly 400,000
buildings and homes, enabling hundreds of thousands of people to return
home. Short-term employment projects have cumulatively employed more
than 350,000 people. We have supported the rebuilding of the Haitian
Government, including temporary offices for government officials. We
continue to strengthen capacity in Haitian institutions.
We have helped the Government of Haiti respond to the cholera
outbreak, providing technical expertise and nearly $45 million in
assistance. This money has funded the establishment of more than 30
cholera treatment facilities with more than 1,100 beds.
In the first year alone, the U.S. Government helped clear more than
1.3 million cubic meters of rubble from areas prioritized by the
Haitian Government. We have completed more than 15,000 temporary
shelters sufficient to house more than 75,000 displaced Haitians, and
about 31 percent of the international total of more than 48,000. We are
working with partners to promote an industrial park in Haiti's North,
providing employment for tens of thousands of Haitians and harnessing
the region's untapped economic potential.
We are pleased that the elected authorities in Haiti followed the
recommendations of the Organization of the American States electoral
mission and look forward to working with Haiti's new authorities after
the second electoral round.
Though much remains to be done, the U.S. commitment is long term.
Question. To what extent has Haiti's precarious political
situation--with runoff Presidential elections scheduled for March--
affected the pace of recovery and reconstruction?
Answer. For all intents and purposes, the Haitian Government has
been without a functioning legislature since May 10, 2010, when the
terms of all members of the Chamber of Deputies and one-third of the
Senate expired. President Rene Preval has been making decisions via
executive order since that time.
This has had an impact on the Preval administration's ability to
make long-term decisions and Haiti's ability to enact through
Parliament critical reform legislation, such as fiscal, judicial, and
constitutional reforms key to long-term assistance objectives.
In addition, rioting in Port-au-Prince and other urban areas
sparked by the announcement of preliminary results of the November 28
elections hindered local reconstruction and international efforts to
respond to the cholera crisis. For these reasons, peaceful and timely
transfer of power, based upon an electoral process that reflects the
will of the Haitian people, is critical to the consolidation of Haiti's
democracy and the reconstruction effort.
Question. What is the administration doing to ensure a fair and
transparent process during the second round of elections in March?
Answer. For the second round of elections, the U.S. Government has
determined to focus its on-the-ground capacity on the following:
minimizing voter disenfranchisement by supporting activities which
focus on helping voters to locate their names on voter lists, find
their polling stations, and retrieve their voter ID cards; helping to
improve organization and transparency at the polling station level with
the aim of increasing the credibility of the electoral results; and
increasing the transparency and credibility of the tabulation process.
The United States will continue to provide technical and financial
assistance in other areas we are supporting, but rely on the work of
our partners to use their on-the-ground capacity to achieve outcomes
associated with those areas.
We have committed an additional $1 million for the second round to
support initiatives such as the provision of technical assistance to
the Provisional Electoral Council (CEP) call center, training to
domestic observer groups and capacity building for the Vote Tabulation
Center (CTV). In addition, we are providing an additional $500,000 to
support the Organization of American States observation mission, funds
which will be used to deploy 200 observers nationwide to observe the
elections and conduct a quick count following the vote count on March
20.
In focusing its capacity in these areas, we are looking to see
measurable improvements in these areas from the first round.
Question. Since its default on more than $81 billion in sovereign
debt in 2001, Argentina has repeatedly refused to negotiate in good
faith with its creditors and ignored rulings by U.S. courts to pay its
obligations. Despite now having the capacity to pay its debts,
Argentina still owes U.S. bondholders over $3 billion and the costs of
Argentina's default and debt restructuring to the United States is
estimated to be billions more.
What has the administration done to address this unfair
treatment of American creditors and American taxpayers, who
have been forced to shoulder the costs of Argentina's
irresponsible conduct?
Answer. Prompt payment of debts is a hallmark of wise economic
stewardship. I have repeatedly urged the Government of Argentina to
resolve all of the outstanding claims against it.
The Government of Argentina has stated publicly its interest in a
resolution of its outstanding debts, and completed a second debt swap
with bondholders in 2010.
Argentina is currently subject to Brooke amendment sanctions under
the Foreign Operations Appropriations Act and Section 620(q) sanctions
under the Foreign Assistance Act for its arrears to the U.S.
Government. These sanctions prevent most U.S. assistance and official
creditor agency lending to Argentina. The U.S. Government and other
Paris Club creditors continue to encourage the Government of Argentina
to normalize relations with all creditors, including the United States.
We also urge the Government of Argentina to pay all outstanding
arbitral awards held by U.S. investors.
Question. The Organization of American States (OAS) has served as
the primary organization to build hemispheric consensus on regional
matters. Yet, over the last decade or so, the OAS has performed
dismally at responding to nearly every challenge to democracy in the
region. You have spoken about implementing the Inter-American
Democratic Charter ``more effectively.''
Can you give us specifics on how the administration plans to
do this?
Answer. Together with other democracies in the hemisphere, we need
to continue to strive to improve adherence to the principles set forth
in the Inter-American Democratic Charter and other inter-American
instruments that deal with democracy and human rights. The Organization
of American States (OAS) is not a perfect institution, but it is the
best forum available in the Western Hemisphere for strengthening the
collective promotion and defense of democracy.
One of the underlying premises of multilateral diplomacy and the
OAS is that collective action can be more effective than a single
country acting alone. That means working with the often widely
divergent views of the active Member States to seek consensus where
that is possible.
The Inter-American Democratic Charter serves as a benchmark for
assessing the state of democracy in the hemisphere, but the provisions
of the Democratic Charter do not have the force of a legally binding
instrument. As we seek full adherence to democratic norms we must
persuade other governments that protecting democratic values throughout
the hemisphere is an obligation of OAS membership.
While challenges exist in the OAS, there are success stories big
and small, the most recent being elections in Haiti and the quiet role
it exercised in peacefully resolving the hunger strike by opponents of
the Chavez government in Venezuela. We also note the success of the
Inter-American Commission on Human Rights (IACHR). The recent ability
of opposition elements to petition the court for redress is something
we support and continue to encourage.
Countries are changing their practices and even their laws based on
the findings of the Commission and the work of Special Rapporteurs who
note publicly when governments fail to support the principles of human
rights and rule of law that support democracy. These are important
steps and the work being done is effective and unique to the region.
The United States, together with other countries has renewed its
support for the Commission, including its work in monitoring challenges
to the civil rights of citizens, including press freedom, freedom of
assembly, and the freedom to run for elected office.
The United States contributes $3 million annually to enable the OAS
to reinforce democratic institutions through the OAS Democracy Fund,
which supports not only the important work of the IACHR, but also
mobilizes hemispheric efforts in electoral observation missions and
technical assistance to electoral bodies, conflict resolution, and the
strengthening of institutions and political parties. Most of this
funding is used to ensure the credibility of electoral processes in OAS
Member States, which is fundamental to democratic systems. But the OAS
can only do this where Member States agree.
Much more needs to be done to make the OAS an effective institution
in support of democracy. We must, therefore, continue our work to
increase OAS action in support of democratic values, but must not
overlook the real impact it is already having in support of democracy
and human rights, both in the Western Hemisphere and in Africa, where
active collaboration with the African Union is beginning. Conscious of
the challenges to the OAS, we are undertaking a concerted diplomatic
strategy to engage with individual government to highlight the
importance of strengthening democratic institutions and bolstering an
effective OAS response to interruptions in the democratic order.
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