The Cusco Consensus

We, the Heads of State and Government of the countries integrating the permanent mechanism for consultation and concerted political action, gathered in the city of Cusco from 23-24 May 2003, for the XVII Summit of the Rio Group;

Aware of the challenges in view of fast-changing developments in the regional and international situation since our last summit, we reaffirm our decision to confront these challenges, in a coordinated manner, through concrete actions to improve the lives of our peoples.

We renew our conviction that shared principles and consensus embraced represent the historical treasures we have accumulated since the inception of our mechanism, which has been progressively strengthened since the Rio Declaration of 1986;

We believe that the expansion and increase of poverty, caused by a new and prolonged period of economic stagnation, poses a fundamental threat to democratic governance, to the stability of its institutions and to social peace. This situation particularly has its most devastating effects on the most vulnerable groups of society, denying them the opportunity to use their productive potential in full;

In this sense, we identify as the main mission of the Rio Group the strengthening of democratic governance by creating consensus to consolidate the democratic institutional order and alleviate the vulnerabilities confronting the region. Therefore, we have given special treatment to two thematic axes: 1) the role of political parties in the strengthening of democratic institutionality and 2) the creation of innovative financial mechanisms designed to secure democratic governance and contribute to the alleviation of poverty.

Likewise, we deem indispensable to reinforce the Rio Group's initiative to support the multilateral system for peace, security and development based on strict compliance with international law and firm adherence to the aims and principles of the UN Charter.

We therefore adopt this Consensus, which represents the strategic agenda for the activities of the Rio Group drafted out of reflections on the situation of Latin America and the Caribbean from their own perspective. This focus will intensify the process of consultation and concerted action launched by the Rio Group on problems that affect the region and on how to strengthen our participation within the international system.

 

. Overcoming Poverty and Social Exclusion

1. We give a high-priority to overcoming poverty, especially extreme poverty, through a series of initiatives that are epitomized in the Millennium Summit Declaration, in Agenda 21 and in the Monterrey and Johannesburg summits, and which will help to improve the lives of the poorest segments of the populations, so that they can be fully integrated into society and given the opportunity to use their full productive potential to support the effort of development.

2. We recognize that any effort to effectively reduce poverty and fight against hunger, which is a concrete manifestation of poverty, must begin with children. In this sense, we express our commitment to the fulfillment of goals of UNICEF's Declaration: A world fit for children.

3. We reaffirm our commitment to attain the full integration and active participation of women in all areas of national endeavor on an equal footing with men, to protect their human rights and to eradicate all forms of violence against them, through the inclusion of gender issues in our development policies. Likewise, we will enhance programs and projects specifically targeting women from the most disadvantaged groups of society.

4. Aware that a variety of conditions influence the progressive increase in the migration of our citizens, we reaffirm the importance of adopting an integral, objective and long-term approach to all phases and aspects of migration. In this sense, we highlight the importance of strengthening cooperation between countries of origin, transit countries and target countries to ensure the full protection of the human and labor rights of migrants and their families and of promoting orderly migration programs as a factor of economic and social development as well as of fighting the illegal traffic in people, specially women and children.

5. We believe that these objectives should be achieved through a series of actions that include internally sustainable macro and micro-economic policies and good administration of public resources and externally a greater opening of international markets so that parallel actions in these two areas generate growth, increase employment, lead to a better distribution of income, reduce external vulnerabilities and generate a permanent stimulus for productive investments. It is equally necessary to ensure the adoption of social policies designed to overcome poverty and social exclusion and of measures aimed at the promotion of educational and scientific-technological strategies that assert elements of competitiveness, secure access by those who have less resources available and enable us to progressively join the Information Society.

6. We encourage the strengthening of civil society institutions and organizations that need to ensure that financial transparency and accountability criteria be applied in order to promote democratic institutionality.

Guidelines:

i) To advance in the fight against poverty, hunger and social exclusion through the formation of a Technical Work Group in order to analyze within a six months, the "Matrix of Best Practicesfor Strengthening Families and the Fight against Poverty" document elaborated by Costa Rica. The document must include an evaluation of results, definition of common high-priority areas and actions, as well as elements for the Rio Group's Social Agenda based on an exchange of experiences;

ii) As a follow-up to the Bavaro Declaration, to stimulate, through the Pro Tempore Secretariat, the flow of information exchange as well as the exchange of recommendations between regional countries participating in the preparatory process for the World Summit on Information Society being held in Geneva, in order to explore possibilities for joint action aiming to strengthen the contribution of the region to this matter. To help us strengthen our presence our presence within this on-going process, the President of Peru, as head of the Rio Group, will detail the common points of view of the Rio Group during the Summit to be held in Geneva on December 2003.

iii) To request the Organization of American States (OAS) and the Inter-American Development Bank (IDB) to carry out a study on the criteria for underpinning good management and transparency in the creation of an international registration system for civil society organizations to facilitate their access to cooperation resources when engaging in complementary work to support democratic governance as agents for the development.


. Peace and Security in the New International Scenario

7. Recognizing the role of the Rio Group in encouraging and promoting peace in the region, we believe, in view of the uncertain international situation, that it is indispensable for the Rio Group to enhance its negotiating capacity in order to influence the strengthening of a multilateral system in which the supremacy of international law and the provisions of the UN Charter prevail to secure the peaceful resolution of disputes.

8. We believe, therefore, that it is essential that the international system should rely on mechanisms to improve transparency and greater participation in the decision-making process of its organizations, particularly of the Security Council in order to make it more democratic. In this context, there is a need to reactivate initiatives related to the reform and update of the United Nations system, especially in collective security matters. There is a need to reaffirm the Security Council's role and legal standing as a body whose main responsibility is the maintenance of international peace and security. Therefore, it must be restructured in such a manner as to ensure better balance and representation.

9. Within the hemispheric context, we agree that, in the Political Declaration to be adopted during the next OAS Special Conference on Security to be held in Mexico on October 2003, the multidimensional approach to security, which is deeply rooted in the diversity that characterizes the countries of the region, should be recognized in a special form and that a flexible security architecture, which is based on cooperation and provides for a common and renewed approach to this issue, be implement. Furthermore, that concerns and threats to security should be equally treated in the Political Declaration, according to the degree of importance that our States attach to these issues. In this framework, we reaffirm the need to further deepen defense cooperation and confidence-building measures, among others, that contribute to strengthen regional security and increase transparency in bilateral, subregional and regional relations.

10. We believe that new threats to security, such as all forms and manifestations of terrorism, the world problem of drugs and related crimes, organized transnational crime, illicit arms trafficking, common crimes that affects civic security, threats to international public health, particularly HIV/AIDS and SARS, natural disasters, the shipment of radioactive material through our waters, among others, and especially their effects in Latin America, must be tackled by competent authorities in an integral manner through effective, articulated and joint international cooperation within the framework of respect for the sovereignty of the States and international law.

11. To respond more efficiently to the above-mentioned threats, we must lean towards the establishment of a flexible security architecture, which includes standards on the concept of human security and is based on a multidimensional view of the same. Thus, we have decided to intensify the presence of the Rio Group in all the competent international forums.

In this sense, we reiterate our most energetic condemnation against terrorism, which is a threat to peace and security, to the effective enforcement of the rights of all individuals and to democratic stability. Likewise, we emphasize the need to continue to fight against the world problem of drugs and related crimes, particularly those involving terrorist activities. In addition, we highlight that the fight against terrorism should be carried out with full respect for international law and human rights.

Guidelines:

i) To request our permanent representatives to the United Nations to examine ways in which to strengthen the multilateral system of the UN and to make their outmost effort to coordinate positions within the GA Open-Ended Working Group on Security Council Reform.

ii) To demand that the evolution of this process be studied during the next United Nations General Assembly.

iii) To ensure the active participation of the Rio Group countries in the preparatory works carried out by the OAS, to develop common and renewed approaches to the various aspects of security in the hemisphere, leading to the next Special Conference on Security to be held in Mexico in October.

iv) To strengthen, pursuant to Resolution 1373 of the Security Council of the United Nations, cooperation between our authorities in the fight against terrorism and its relation to illicit drugs, money laundering and illicit arms trafficking, as well as increase the flow of information in order to prevent terrorist acts and repress their financing.


. Democratic Governance: Defense and Consolidation of Democracy

a) The Strengthening of Democracy and the Rule of Law

12. We reaffirm our commitment to consolidate and strengthen democracy, exercise its values, defend its institutions, as well as respect and promote human rights. We notice with satisfaction that our countries are currently experiencing the most extensive and deep process of democratization in their history. Never before did the region have so many democratically elected regimes nor as many consecutive democratic transitional governments.

13. We bear in mind that democracy and economic and social development are interdependent and mutually reinforced. To consolidate democratic institutionality, our countries need to include the poorer segments of the population in the gains stemming from the economic management, while strengthening social cohesion and governance. Therefore, it is a high priority and responsibility of our governments to tend to these needs and provide a solution to social exclusion-related problems. However, the efforts of our governments require the support of the international system, by means of measures, such as opening up market access to products from the region and increasing the flow of investments to the region.

14. We realize that only democratic governments that have succeeded in achieving a high level of governance can tend to the legitimate social needs of our people. At the same time, the strengthening of the rule of law, access to an effective and impartial justice, the enforcement of human rights and the establishment of national consensus will secure a greater degree of effectiveness in democratic governance. Within this framework, we renew our firm commitment to the validity and full application of the Inter-American Democratic Charter as an instrument to promote the development and strengthen representative democracy and favor citizen participation.

b) Democracy and Political Parties

15. The process to consolidate democracy in the region demands that we continue to establish more efficient political systems. In this sense, we intend to proceed in our continuing effort to reform the State, improve the quality and transparency of the public administration, consolidate the legitimacy of its institutions and guarantee respect for human rights. Moreover, to favor citizen participation, promote education for citizenship and democracy, fight corruption and impunity, as well as lead to the reform and strengthening of public authorities, particularly of the Judiciary, all of which should be enshrined within a concept of interculturality.

16. Parties system and political parties, as well as movements and groups play a central role in democracy. Consequently, it is necessary to strengthen starting from the premise that there is no democracy without parties or parties without democracy, while understanding that social and popular organizations are an essential factor for democratic participation in the frame of the Constitution of each of our countries. On this basis, we commit ourselves to put forth our greatest efforts, and when possible in a concerted manner, in order to:

a. Deepen and provide a platform for the development of dialogue and a consensus between political parties, movements and groups, as well as between them and the organized civil society.

b. Develop democracy's participatory approach, within the framework of their respective constitutional requirements, as a core element of pluralism. In addition, the participatory approach of democracy helps to further enhance its representativeness.

c. Promote partisan and electoral laws destined to ensure the commitment of political parties, as well as movements and groups to democratic institutionality, while at the same time encouraging electoral participation.

d. Secure the autonomy of political parties, movements and groups from the economic powers by means of norms that promote free and fair electoral contests, especially equal access to the communication media.

e. Encourage financial transparency of political parties and movements as a fundamental aspect of public ethics and the fight against corruption.

f. Promote inclusive political systems by encouraging, through the competent national instances, public financing of political parties, movements and groups, electoral campaigns, as well as limitations to electoral expenditure.

g. Promote internal democracy in political parties, movements and groups, especially when nominating and running leaders and candidates for popular election.

h. Promote equal opportunities for men and women and the elimination of all forms of discrimination, as well as develop youth's interest in politics. The later to be understood as a free [and most needed] choice of the individual to intervene in public matters.

i. Support political training programs and the preparation of leaders, particularly for women, youth, ethnic groups and marginalized populations, in terms of strengthening education for citizenship and democracy in all levels of social life and, especially, from school.

j. Highlight the importance of strengthening democracy by exercising freedom of information, promoting ethical journalism and social responsibility, while simultaneously reinforcing the right to information and the right to reply by all political parties, movements and groups.

c) Innovating Financial Mechanisms to Strengthen Democratic Governance

17. We ratify the need to establish innovative financial mechanisms designed to strengthen democratic governance and confront poverty by raising new resources for productive investment and generation of productive employment in order to provide answers to our populations' legitimate social demands.

18. We consider that such mechanisms should be oriented to increase resources, enhance the use of available resources, consider different financial policies in order to improve the level of life of the population, through measures, such as the creation of a regional trust fund to encourage private investment projects for the development of public infrastructure works, the creation of regional investment authorities that provide financing for infrastructure that generate social impact and the establishment of international humanitarian fund, among others.

19. We deem indispensable that the various proposals presented by the countries members and international organizations regarding innovative financial mechanisms be analyzed and processed at the appropriate technical levels as soon as possible.

Guidelines:

i) To invite the Latin American Parliament and subregional parliaments to develop and establish permanent cooperation bodies involving political parties and organizations of the countries members of the Rio Group, in collaboration with organizations committed to the development of democratic institutionality and the strengthening of political parties.
ii) To suggest to the above-mentioned parliamentary forums take time to review the Notice of Meeting of political parties, movements or groups representatives and civil society organizations representatives existing in the countries of the Rio Group, so that they identify formulas to encourage its strengthening and contribute to the democratic institutionality of our region.

iii) To request the Latin American Parliament to update the coming Rio Group Summit regarding the results of these efforts.

iv) To instruct the Ministers of Finance to summon a group of high-level government experts to analyze, with the assistance of the pertinent international and regional organizations, existing proposals and new proposals that country members may formulate so that they may determine, within a period of 3 months, the viability of each proposal, actions to be taken and notify the Ministers of Finance so that they may decide on whether or not to negotiate said proposals within the appropriate international setting.


. Development Variable Reappraisal and Promotion of a Free and Fair International Trade System

20. We observe with concern the increase of external vulnerability in many of our countries generated by the uncertainty of financial flows and its impact on the level of investments and economic growth in many of our countries, aggravated by the growing burden of servicing the foreign debt that falls on our economies. This has increased the inequality in the distribution of resources and in the capacity to create technology, thus deepening social exclusion of a significant segment of the population of the regional countries. We also see a disturbing increase in commercial protectionism, particularly by industrialized nations, and a decrease in international cooperation in a context of world economic deceleration and marginalization of middle-income countries.

21. In this complex situation, we affirm that the region should be inclined towards having issues such as the fight against poverty, sustainable development and security approached in an integral and balanced manner.

22. In order to confront our vulnerabilities, we commit to arrive at harmonized positions within international trade and financial forums. We must identify coincidences and/or areas of convergence in on-going trade negotiations in order to ensure the effective access to the market, develop policies to increase the added value of our products and reinforce in a reciprocal manner, the subregional, hemispheric and world channels, taking into account the special needs of the small and vulnerable economies, as well as those of the landlocked developing countries.

23. We reaffirm our commitment to the integral fulfillment of the Doha Development Agenda, adopted during the 4th Ministerial Conference of the World Trade Organization and underline the importance that the results of the round of on-going trade negotiations include the removal of protectionist practices, which slow down growth and development, by clarifying and improving the rules of the multilateral trade system and the clear and concrete application of special and differentiated treatment accorded to developing countries, particularly to the less developed countries. In this sense, we emphasize that trade liberalization of agricultural products hand-in-hand with the elimination of subsidies on production and internal aids for the production and exportation of those products are an essential element for development and a necessary condition to attain results in other areas of negotiation. Likewise, we call for the greater integration of small and vulnerable economies into the multilateral trade system and that all WTO members fully implement, as soon as possible, the Doha Ministerial Declaration regarding the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and Public Health. Likewise, we call for concrete advances on "Implementation-Related Issues and Concerns".

24. We reiterate the commitment to attain balanced and equal results in the on-going negotiations process regarding the establishment of the Free Trade Area of the Americas (FTAA), bearing in mind the interests of the Rio Group countries.

Aiming to thoroughly discuss the implications of the FTAA for the Rio Group countries, we agree to hold a Special Meeting of the Rio Group within the frame of the next UN General Assembly.

25. We hope that international cooperation, as a complement to the national efforts destined to achieve sustainable development, be guided to generate institutional capacities, infrastructure, production chains and the formation of human resources so as to turn economic growth into a social process that promotes inclusion of the poorest and most vulnerable segments of the population. International cooperation should take into account the diversity of country situations and include local social indicators in the definition of international cooperation programs.

26. We also hope that international financial mechanisms continue to explore flexible and agile economic and financial systems that enable to increase and place at disposal, in a timely manner, the necessary resources to boost the economic and social development of our countries, particularly the initiative for the Highly-Indebted Poor Countries (HIPCs).

27. We coincide that the process to accelerate Latin America's integration should include the effective geographical articulation of the region through the creation of necessary physical infrastructure and the convergence between the various subregional integration processes to have a more dynamic intra-regional trade that helps overcome the current levels of development of the countries of the region and allows it to better confront the challenges posed by globalization.

Guidelines:

i) To create a high-level think tank who will be responsible for proposing, after examining the current globalization process, initiatives that bridge the gap between the two different approaches of the Davos and Porto Alegre forums, emphasizing sustainable development, the fight against poverty, overcoming poverty and reducing social exclusion. These proposals will be included in a report to be submitted in ten months for the consideration of the National Coordinators and of the Heads of State and Government during the next Rio Group Summit.

. Cultural Identity and External Relations

28. We express our conviction that the region should permanently secure its rich ancestral heritage, which is the foundation to its shared identity based on ethnic and cultural diversity, to better define policies for international insertion based on our own interests. The definition of such policies must allow us to extent our influence in the international scene so as to create an international order that is not only based on political, economic and commercial values but also on the cultural integrity of the peoples we represent.

29. We emphasize the importance of the preservation and revitalization of the rich immaterial patrimony of our peoples in reaffirming their corresponding cultural identities and in the development of the region. In this sense, we commit ourselves to encourage the culmination of negotiation process that leads to the adoption of a UNESCO convention for the safeguarding of the intangible cultural heritage.

30. For more than a decade the Rio Group has launched an ambitious dialogue with the European Union. We grant special significance to this dialogue for it has allowed us to continue to expand political, economical, commercial, cultural and co-operational ties. These ties have become a reality at regional, subregional and bilateral level. At political level, a wide dialogue agenda has been identified and will be developed between our regions within the various forums and mechanisms. Concerning economic, commercial and cooperation issues, important partnership treaties that include free trade agreement have been agreed upon and will continue to be encouraged. We also deem that we should secure our cultural ties, which reciprocally enrich the ties between the Latin American and European Union countries.

31. We likewise value the meetings that the Rio Group regularly holds with other countries and groups of countries, which have contributed to strengthen dialogue and narrow the gap regarding key issues of the international agenda.

32. We emphasize the need to turn the United Nations and the Rio Group into the consensus voice of its members in important issues of the agenda of the world organization, strengthening the role of our Mechanism as the top regional speaker.

Guidelines:

i) To work together in order to attain the objectives of the third Latin America-European Union Summit to be held in Mexico in 2004, which swill seek to strengthen bioregional political dialogue, deepen knowledge among Latin America and the Caribbean and the European Union, attain concrete results in areas of cooperation between the two regions, facilitate the negotiation and conclusion of ongoing agreements between the European Union and the various subregions of Latin America and the Caribbean, including agreements with Mercosur, the Andean Community and Central America and increase the chances of trade and investment between the two regions.

ii) To provide that the priority we grant to the issues of this Strategic Agenda be properly reflected in the dialogue that the Rio Group regularly holds with other countries and groups of countries.

iii) To entrust the Ministers of Foreign Affairs of the troika to explore the possibility of establishing new dialogue mechanisms with other countries and groups of countries in order to enhance the Rio Group's external projection.


 

We the Heads of State and Government of the countries integrating the permanent mechanism for consultation and concerted political action, express our gratitude towards the President of Peru, Dr. Alejandro Toledo, and the Peruvian people, especially the people of Cusco for the warm hospitality we have received, as well as for the excellent organization that has lead to the successful conclusion of this Summit. Therefore, we agree this document should be known as The Cusco Consensus and signed in the Inca fortress of Sacsayhuaman. Likewise, we would like to thank the Government of the Federative Republic of Brazil, for reiterating their invitation to hold the XVIII Rio Group Summit in that country in 2004.

 

The President of the Bolivarian Republic of Venezuela has signed the present document with a "strict reserve".