Address by the President of the Andean Development Corporation (CAF), Enrique García, at the opening ceremony of the Special Meeting of Ministers of the CAN
Santa Cruz de la Sierra, January 28, 2002

Messrs. Foreign Ministers, I should like to open by stating my deep appreciation at having been invited to this special meeting of the Andean Community and, at the same time, to express my desire to participate in this event by collaborating in the analysis of the various problems confronting the Latin American region, and in particular the Andean Community, and to help seek pragmatic solutions that will allow our region to play an efficient and equitable role in the globalized economy

Allow me to reflect briefly on the present international situation and, within it, to draw attention to the challenges that lie ahead for us.

There is no doubt whatsoever that the events of the past two years have been most unusual: the synchronized recession in the world’s major economies, which have had serious repercussions for the region’s countries. If we go beyond the short-term problems –that reveal the decline in the key variables indicative of progress— and examine the roots of the problem, we will find that the region has not changed in the last 50 years. It continues to be extremely vulnerable to external shocks because of the nature of its production structure and exports, essentially of goods that are exceptionally vulnerable by reason of their heavy concentration of raw materials.

Secondly, we note with concern that the asymmetry that exists in several fields with regard to financing and trade is keeping the region from attaining growth that is not only sustained, but also equitable, so that the benefits reach the majority of the people living in the region.

It is in this context that from the CAF’s viewpoint integration should not be regarded as a luxury, but as a need –not a sentimental need, but a need for joint efforts with which to attack the roots of the problem.

In this connection, we consider that this special --this unique meeting, as the Andean Community Secretary General has called it-- offers an important moment for reflecting upon the need to prepare customized agendas for the region that will essentially guide us toward competitiveness, equity and a more effective and equitable role on the world stage.

It is in this area, Messrs. Ministers, that the CAF, the institution that I have the honor of presiding, will continue to support the efforts to not only resolve the short-term situation, but precisely to find the intellectual and financial instruments for attacking the root problems. It is in this context that, beyond the financing –for we are all aware that the CAF has become the main source of financing for the Andean countries— we wish to become involved: in the problems of competitiveness, small business, micro business, and capital market development, and to give a much stronger boost to regional infrastructure and logistical programs as instruments for accomplishing all of these objectives.

A final word in closing. We should also like to point up our Latin American vocation and identity and, in that context, to pragmatically stress that we are also willing to contribute to rapprochements with other countries in the region: the Mercosur, Mexico, Panama, Central America and the Caribbean, for, as you are well aware, today the Corporation has 16 members.

I would once again like to thank the Pro Tempore Secretariat, the Foreign Minister of Bolivia, and the Ministers of the Member Countries. We are at your service to assist with enthusiasm and a strong Latin American identity in the efforts of integration --not as a luxury, but as a need, as I stated earlier.

Thank you very much.