“Consensus of Guayaquil on Integration, Security and Infrastructure for Development” 
Second Meeting of Presidents of South America
Guayaquil, July 26 and 27, 2002

1. At the invitation of the President of the Republic of Ecuador, Gustavo Noboa Bejarano, the Heads of State of Argentina, Eduardo Duhalde; Bolivia, Jorge Quiroga; Brazil, Fernando Henrique Cardoso; Chile, Ricardo Lagos; Colombia, Andres Pastrana; Paraguay, Luis Angel González Macchi; Peru, Alejandro Toledo; Venezuela, Hugo Chávez; Uruguay, Luis Hierro López, Vice-President of the Republic, representing President Jorge Batlle; Guyana, Samuel R. Insanally, Minister of Foreign Affairs, representing President Bharrat Jagdeo; and Suriname, Maria Elizabeth Levens, Minister of Foreign Affairs, representing President Runaldo Ronald Venetiaan, were present at the Second Meeting of Presidents of South America held in the city of Guayaquil, on July 26 and 27, 2002, on the occasion of the one hundred and eightieth anniversary of the meeting between the Liberators Simón Bolívar and José de San Martín.

Top officials from various international organizations were also present, the list of which appears as Annex I.

2. The Presidents reiterated their will to continue promoting actions of coordination and cooperation with a view to creating a common South American space, and in this regard they reaffirmed the set of guidelines laid out at the various presidential summits that have been held, particularly the First Meeting of the Presidents of South America, held in Brasilia in the year 2000. They particularly cited the following:

a) Their commitment to democracy and to the democratic principles adopted in the region and enshrined in International Law, in their own Constitutions, in the Charter of the Organization of American States, and in the Inter-American Democratic Charter adopted in Lima in September 2001, in the context of which they reaffirmed their decision to coordinate actions whenever democracy is endangered in any of their countries. The crises of financing and scarcity of resources for productive investment can weaken or undermine the bases of democracy, since they hinder the satisfaction of the population’s legitimate aspirations of access to decent jobs and minimal conditions of well-being. The Presidents thus highlighted the importance of promoting, at the international level, the establishment of a financial solidarity mechanism to back democracy and governance.

b) Their efforts to seek a world of greater justice and solidarity based on unfaltering respect for the values of representative democracy and its components, human rights, international law, and disarmament and non-proliferation of weapons of mass destruction as an essential foundation of the process of South American cooperation and integration, as well as their firm support for the principle of the peaceful settlement of disputes; their determination to fight poverty and social exclusion, to ensure the rights of migrants, to protect the environment, to strive towards gradual trade liberalization and access to technology, and to promote investment and stable capital flows.

c) The indissoluble link between the democratic system and full respect for human rights, enabling the full exercise of civil, political, economic, social and cultural rights, including the universal and inalienable right to development.

In this spirit, they commended the adoption of the Andean Human Rights Charter because it is an instrument of special importance for achieving these objectives in that subregion.

d) Their belief that Official Development Assistance (ODA) is essential for sustainable human development. They noted with concern its continuing decrease and therefore exhorted once again the international community to urgently increase such assistance under the terms of the Monterrey Declaration on Development Financing. They also noted with interest the proposal made by the President of Venezuela, to create an international humanitarian fund, with the understanding that no fiscal resources should be committed by developing countries.

e) Their commitment to the fight against the international drug problem and related crimes, bearing in mind the principle of shared responsibility and from the perspective of integral, balanced cooperation. In this regard, they emphasized the efforts deployed by various countries in the areas of prevention of consumption, money laundering, environmental protection and alternative development, the sustainability of which calls for greater market access to substitute products.

f) The urgency of adopting and improving mechanisms to eliminate corruption by implementing all measures that make it possible to prevent, investigate, prosecute, take to trial and punish according to law the perpetrators and accomplices of this crime. They underlined the work carried out within the framework of the Inter-American Convention Against Corruption, which constitutes an important international example in this area.

g) Their concern about the maintenance and increase of agricultural subsidies in developed countries, which distort the conditions of competition on the international market.

3. Inspired by the vocation and aspiration of our peoples to attain a future of fruitful and peaceful coexistence and of permanent cooperation and well-being, they adopted the Declaration regarding a South American Peace Zone (Annex II). They also underscored the initiatives aimed at promoting efforts in the area of gradual limitations on defense spending and greater transparency in arms acquisitions, bearing in mind, among other things, the States’ legitimate security needs, the advisability of allocating more resources to the fight against poverty, and the consideration of the topic from bilateral, regional and hemispheric perspectives. In this context, they noted the decision of the OAS General Assembly that this topic form part of the agenda of the Hemispheric Security Commission.

4. The Presidents reiterated their strongest condemnation of terrorism it all its forms and manifestations as a threat to international peace and security as well as to human life and dignity, and to peaceful and civilized coexistence, thus endangering the stability and consolidation of democracy. They reaffirmed the need for countries to fight for its elimination in a coordinated manner, in strict compliance with the rights and observance of the applicable rules of the United Nations Charter and International Law in general. The Heads of State recalled their firm condemnation of the terrorist attacks of September 11, 2001; their immediate recurrence to the Inter-American Security System, particularly TIAR; and their complete willingness to implement the resolutions of the United Nations Security Council and the General Assembly. They also highlighted the Inter-American Convention to Prevent, Combat and Eliminate Terrorism, adopted during the Thirty-Second General Assembly of the OAS, and the tasks carried out by the Inter-American Committee on Terrorism (CICTE).

5. In the context of the meeting convoked by President Noboa, the Presidents emphasized that, true to the mandate of its Liberators and its identity as a region with a common history and a shared cultural heritage, South America wishes to build an integrated area, through coordination and by eliminating any obstacles that hinder the strengthening of physical links and the harmonization of the institutional, legal and regulatory frameworks of its countries. The achievement of this goal will enable the region to participate more fully in international capital, goods and technology flows, since its geography provides an extraordinary physical foundation for the intensification of its efforts to integrate production, infrastructure and trade.

6. In this context, the Presidents reiterated the importance of expanding and strengthening regional infrastructure as an essential factor for the integration of South America’s economic space and the development of its countries, the mitigation of poverty and the incorporation of individuals, particularly from the marginal or more vulnerable sectors, into the benefits of modern society. In this perspective, they recognized that the interrelationship between infrastructure and development must be explored with a strategic vision, with a South American approach, and under the principle of an open regionalism, conditional on the results of an analysis of five underlying principles: a) geo-economic perspective; b) social sustainability; c) economic efficiency; d) environmental sustainability; and e) institutional development.

7. Convinced that the physical integration of the South American space will optimize the region’s huge economic potential and its ability to compete by adding value to its natural resources, benefiting the synergy and specialization of strategic sectors, and enabling the improvement of the income levels and well-being of the populations of the region, the Presidents agreed to strengthen and deepen South American integration by means of active policies to accelerate economic growth on a sustainable basis, reduce vulnerability to external factors, improve the distribution of wealth, and decrease poverty levels in the region.

8. The Heads of State reaffirmed the relevance and strategic importance of the Initiative for Regional Infrastructure Integration in South America (IIRSA), as a viable instrument for multisectoral integration in the various Caribbean, Pacific and Atlantic coastal areas, in non-coastal areas of South America, and between these areas; and they ratified full support for its implementation as an appropriate approach to:

a) promote and facilitate the economic and social development of South America;

b) improve the international competitiveness of the region, increase its participation in the world economy and be better prepared to face the challenges imposed by globalization; and

c) strengthen regional integration and cooperation by expanding markets, promoting the convergence of public policies and achieving the social and cultural rapprochement of South America.

9. The Presidents welcomed and emphasized the significant progress made by the twelve South American countries as a whole in the framework of the Initiative for Regional Infrastructure Integration in South America (IIRSA), as defined in the Brasilia Communiqué of September 2000 and implemented through its Action Plan, agreed upon at the Meeting of Ministers in Montevideo on December 4-5 of that year. They also noted the concrete achievements presented at the Meeting in the respective Report (Annex III), including the identification of 162 transportation, energy and telecommunications projects. They likewise highlighted the joint efforts of the Inter-American Development Bank, the Andean Development Corporation, and the Financial Fund for the Development of the River Plate Basin comprising the Technical Coordination Committee of the Initiative, which is a fundamental pillar of its implementation and ensures the stability and continuity of the process.

10. The Heads of State underlined that the Third Meeting of the Executive Steering Committee (ESC), held in Brasilia on May 26-27, 2002, established important guidelines to fortify the future development of IIRSA. In particular they:

a) took cognizance, with satisfaction, of the request to the Technical Coordination Committee (TCC) to develop consolidated activities based on a strategic South American vision, according to the principles enumbrated in the records of that meeting.

b) applauded the ESC’s initiative of seeking innovative financing mechanisms for regional infrastructure projects that will make it possible to increase the capacity for attracting investments.

c) reaffirmed the guiding principles established at that meeting, aimed at facilitating and encouraging private sector participation in IIRSA, which should harmonize policies and actions with national entities that promote private investment, to enable the development of projects in a regional context.

In this context, the Heads of State decided to instruct the TCC, through the ESC, to speed up the implementation of these actions.

11. They also emphasized that public and private efforts together with those of the multilateral lending agencies will permit:

a) the financing of capital contributions by the State sector;

b) the financing of private investment;

c) the study of innovative means that would make it possible to reorient indebtedness policies for multinational projects considering the beneficiary Parties as a whole, as well as to seek flexible debt limits.

12. Advised of the results of the Third Meeting of the ESC and of the South American Integration Initiatives, the Heads of State expressed their deep satisfaction with:

a) the signing of the “Memorandum of Understanding for the Development of a Connections Infrastructure for Transport between Bolivia and Chile,” which established a bilateral group to study the development of connections between those two countries and to hold discussions in order to continue designing a physical integration infrastructure for binational transportation;

b) the commitment of the Foreign Ministers of Guyana and Venezuela to establish a Technical Committee to examine a direct connection between both countries via a highway that would complement the connection already provided for in the Brazil-Guyana-Suriname-Venezuela axis, in keeping with IIRSA objectives.

13. The Presidents underlined the far-reaching importance of prioritizing and implementing the integration and development axes provided for within the IIRSA framework, and their positive effects in promoting a climate of understanding and cooperation. In this context they noted:

a) the agreements between Bolivia-Chile and Guyana-Venezuela, which are IIRSA results and reaffirmed their conviction that the interest of the South American countries in concrete development projects can contribute to regional integration in a spirit of mutual understanding and cooperation.

b) the importance of the efforts deployed on the basis of the Physical Integration Protocol between Chile and MERCOSUR and by the Mixed Chilean-Argentinean Technical Group as valid forums for a road and railroad infrastructure.

c) the relevance of the commitments assumed by Brazil and Paraguay to promote infrastructure connections in the areas of transportation, communications and energy, which will constitute an invaluable contribution to strengthening the interoceanic axis that passes through and links regions of Brazil, Paraguay, Bolivia, Argentina, Chile and Peru.

d) the importance of the Amazon Multimodal Axis, which through its two branch highways will benefit the Amazonian countries by extending their economies into the Pacific and Atlantic basins.

e) the need to particularly bear in mind the situation of countries with geographical obstacles for access to international markets by ocean routes.

f) their decision that the cooperation schemes in the scope of IIRSA should especially take into account the harmonious and sustainable development of populations, respecting the particular features of their cultures, particularly with regard to indigenous populations.

14. The Presidents decided to instruct their representatives to multilateral agencies, IDB, ADC, FONPLATA and the IBRD, to award priority to projects implemented within the IIRSA scope.

15. They expressed their satisfaction with Uruguay’s recent entry into the Andean Development Corporation and Argentina’s signing of the instruments of adherence, thereby completing the membership of all the MERCOSUR countries and Chile in that organization.

16. The Presidents reaffirmed the strategic role that energy plays in South America’s social and economic development. In the process of regional infrastructure integration, they stressed the need to increase the levels of security, reliability and quality of energy supplies in South America, and the appropriateness of developing regional energy markets with practices that are compatible with the principles of sustainable development. To move forward in this endeavor, they noted the advisability of increasing coordination at both the national and regional levels.

17. The Presidents agreed on the importance and need to expand and deepen energy cooperation and integration processes in the South American region. They recognized the significant progress made in this area which has made it possible to formulate and realize important interconnection and energy exchange projects. In this context they also recommended the promotion of activities to explore and seek alternatives sources in those countries that have energy resource deficits, and to seek mechanisms to provide assistance to countries that declare energy emergencies.

18. It was underscored that suitable and progressive harmonization of legal and technical frameworks, especially in matters of energy transport, interconnections, fuel specifications and similar instruments of energy sector trade in the region, is an important factor for regional economic integration, to promote the development of a more open market, without any barriers that can limit free trade in energy, under the principles of free access and non-discrimination. For this purpose, they took note of the document entitled “Proposal for the Harmonization of the Andean Community Regulatory Frameworks.” 

19. With respect to private and public investment in this sector, the Presidents stated their firm determination to create and consolidate the establishment of wider markets and to improve mechanisms facilitating direct foreign investment flows to the region within a framework of legal stability. They likewise emphasized the important role played by the public and private sectors, and the alliances between them, and agreed to consolidate the conditions of regulatory stability and transparency that support them, under each country’s national legislation.

20. The Heads of State also emphasized the importance of diversifying energy sources in their respective countries, stressing that the joint development of energy resources will provide a high degree of energy capacity, efficiency, reliability and sustainability for the region. They stressed the advisability of stimulating electric power interconnections between countries of the region. They also recognized the potential of natural gas, together with other energy sources and resources such as hydroelectricity, solar energy, wind energy and biofuels.

21. The Presidents ratified their decision to continue implementing programs to increase electricity service coverage and to improve the quality and reliability of electric power, emphasizing the role of the energy sector in policies to overcome poverty. They recognized, once again, the importance of the public and private sectors and the alliances between the two, in meeting that objective. They emphasized that the electrification of rural and marginal urban areas poses one of the greatest political, social and economic challenges to the governments of the region.

22. The Presidents highlighted the need to develop an energy services sector that will establish productive linkages with the regional economy and guide the strengthening of the sector, with a view to greater participation in the added value of these services and the generation of productive chains with companies in the region.

23. The Heads of State instructed the relevant authorities of their countries to participate on a coordinated basis in multilateral negotiations on trade in energy-related goods and services, bearing in mind the characteristics and conditions of energy planning in each country.

24. The Presidents instructed the national officials responsible for IIRSA implementation in each country, and urged the specialized regional and international organizations, to coordinate with each other in the energy area, in the work of the IIRSA technical offices (the respective TEGs) and of the said organizations, in order to contribute to broad and gradual integration within a regional context, which could result in an energy agenda for the region, aimed at studying the bases for a possible South American Energy Charter.

25. The Heads of State also highlighted the importance of science and technology and awarded priority to their development in the region. They recalled that South America has achieved significant technological developments in several areas of knowledge and, consequently, decided to promote and deepen cooperation among the countries of the region, particularly in the area of new information and communication technologies. In that regard, they noted with satisfaction the creation by the Government of the Federative Republic of Brazil of the South American Program to Support Cooperation Activities in Science and Technology (PROSUL) as provided for in the “Brasilia Communiqué.” 

26. The Presidents also expressed their satisfaction with the significant results attained during the First Meeting of Foreign Affairs Ministers of MERCOSUR and the Andean Community that took place in La Paz on July 17, 2001, with the participation of Guyana and Suriname; and they encouraged holding another meeting of the Mechanism for Dialogue and Political Consensus created on that occasion, to foster the coordination of positions, among the countries involved, on issues of common interest.

27. The Presidents emphasized the importance of the CAN-MERCOSUR negotiations and reiterated that it is imperative that they be completed this year, thereby strengthening their bargaining power in other negotiation processes, particularly the FTAA.

28. With respect to the participation of countries with small economies in FTAA negotiations, the Presidents agreed that this process should suitably consider those countries’ circumstances, needs, economic conditions and opportunities. In that regard, they endorsed the need to find appropriate modalities, aimed at strengthening the capacity of those countries to participate in the FTAA negotiation process and to implement, fully and effectively, the results achieved in those negotiations.

29. The Heads of State directed that the Third South American Conference on Migrations to be held in Quito next August 15 and 16, adopt an Action Plan on International Migration in South America to provide, among other purposes, the development of coordinated regional policies to protect the fundamental rights of South American migrants worldwide, especially in social security matters and including reciprocal consular assistance, as well as the bases for the adoption of coordinated regional policies to combat the illicit trafficking of persons; and to work towards harmonization of the legislation on migration in the countries of South America.

30. Bearing in mind the transcendence of the World Summit on Sustainable Development to be held in Johannesburg, the Presidents decided to adopt a Declaration on this subject. It appears as Annex IV of this Consensus.

31. In referring to the negative effects of imbalances in the international economic and financial system of the region, the Presidents reiterated their support for and solidarity with the people and the Government of the Republic of Argentina, in view of the efforts they are making to surmount the current adverse situation, and urged the international financial community to extend the support needed to reactivate the economy of their sister South American nation.

32. The Presidents expressed their solidarity with the people and the Government of Colombia in defense of democracy, which has just been strengthened by a successful electoral process. They rejected the terrorist actions and the violations of International Humanitarian Law by groups acting outside the law.

33. The Presidents expressed their unanimous desire for personal success and fulfillment to Colombian President Andrés Pastrana and Bolivian President Jorge Quiroga, who will soon turn over their positions to democratically elected successors. They also expressed appreciation for the contributions made at the summit meetings in which the two outgoing presidents took part.

34. The Presidents expressed their appreciation to the government and people of the Republic of Ecuador, and particularly to President Gustavo Noboa, for the hospitality offered to all the participants and for the excellent arrangements which ensured the success of the Second Meeting of Presidents of South America that will set a renewed course for regional integration.