Local view for "http://purl.org/linkedpolitics/eu/plenary/2002-12-05-Speech-4-167"
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Mr Cox, President of the European Parliament, Mr President of the Commission, Mr President-in-Office of the Council, it is truly an honour to be here, in a place that sets the standard for democracy in the world. It comprises three hundred and seventy-four million Europeans who have decided to join hands to build together a far more integrated world, which goes beyond business and trade.
I have come here today to share with you a concern that is latent in the heart of Latin America. I have raised this matter at the Guayaquil Conference of Presidents and at the General Assembly of the United Nations. Today, with great affection, but at the same time, with great frankness, I would like to speak my mind on a subject on which much still remains to be done, but I am raising it as an idea. The developing world, and Latin America in particular, is facing a huge challenge: the challenge of harmonising the responsible handling of economic policies. We have undergone 30 years of structural change, 30 years in which we have been asked to put our house in order economically; we have been trying, some more than others, with varying degrees of rigour. After 30 years of structural change, however, we have been unable to engage, we have been unable to connect structural change with a new period of sustained economic growth that generates jobs worthy of employees, that generates income and that increases internal consumption and consequently improves the quality of life of the people.
Ladies and gentlemen of Parliament, Latin America is silently becoming disillusioned with democracy. We now find ourselves with a dilemma which North Americans would define by saying we need to reconcile Wall Street with Main Street. We cannot close our eyes and ears to the pots and pans that demonstrators are pounding in Argentina, Venezuela, Ecuador, Colombia and Uruguay. We cannot turn a blind eye to this situation. People are starting to wonder why there is so little work and so much poverty when they have all this democracy. The industrialised countries tell us that the way forward is to strengthen democratic institutions and that we should climb aboard the train of globalisation and competitiveness, while the man in the street is wondering how to meet his family’s most basic needs.
I know that I am deliberately simplifying the argument, to show that there is a great dilemma when it comes to reconciling the responsible handling of economic policies. Thirty years of unsuccessful change must not lead us to act irresponsibly. We must not advocate a return to populism. Something, however, must be done. The men and women of Latin America are starting to take to the streets to protest, and in doing so they are directly or indirectly beginning to complain about democracy. That is dangerous. I am telling you this as a fervent supporter of freedom, democracy, human rights and the environment. I cannot, however, turn a blind eye to what I am seeing and hearing.
In Peru, 54% of men and women are condemned to living below the poverty level, and 23% are condemned to living below the extreme poverty level. What do we tell them? We believe in democracy. Furthermore, some are now saying that under Fujimori’s dictatorship they were better off. Something is happening in the region.
I know that you are involved in meeting the great challenge of integrating Europe and perhaps I am distracting you by sharing my concern. If I am, however, I make no apologies. I would simply like to tell you that there is a continent that is prepared to buy and sell, that is prepared to live in harmony with democratic beliefs, with the defence of human rights and environmental protection. I hope that the process of European integration, which I admire, will not lead you to ignore what is happening in a continent which has great potential.
In April or May the Member countries of the Rio Group will meet in Lima, and I have deliberately asked for the main topic to be finding the financial means to fund governability and democracy in Latin America. Democracy costs money – it is like a plant that needs to be watered after planting and we cannot take it for granted. Our hearts bleed when we see a sister nation such as Argentina. We are sad to see a possible chain reaction in the region and, however responsible we are in handling economic policy, nothing can shield us from the chain reaction due to which the region is once again swinging between new authoritarian regimes with different faces.
We must be careful. Democracies cannot be overthrown by traditional military coups, but democracy can be weakened by a lack of tangible results for the poor.
We have asked two international bodies to help us find financial mechanisms to nourish governability and democracy, beyond the agreements with the International Monetary Fund and the World Bank, which set levels of debt for us, so that we can make commitments on fiscal deficit levels. I am in favour of this.
We cannot allow ourselves to fall into populism, because the consequence is hyperinflation and hyperinflation makes the poor even poorer. What, however, is good about not having inflation? Why should we faithfully comply with the recipe of the International Monetary Fund? My government has just signed an agreement with the Fund, but what is the good of this if it does not produce the results that the poor expect, and they begin to lose faith in democracy?
The time has come to sit down together to consider creatively how to find financial mechanisms that go beyond levels of external debt and, without breaking fiscal and monetary discipline, allow us a greater degree of financial freedom to invest in public works that generate work and prevent governability and democracy in the region from being threatened.
I come here today as the constitutional President of Peru, having visited you in Strasbourg last time as a President-elect. Nevertheless, Mr President, my belief in being a rebel for the cause of democracy and freedom, human rights and the environment has not changed.
Ladies and gentlemen of Parliament, two weeks ago in my country there was a regional and municipal election and my party did not achieve good results. I could have used money, I could have offered gifts, I could have used populism and, probably, the electoral results would have been better for my party. I was not elected to govern on behalf of my party, however, I was elected to govern on behalf of all Peruvians and I have firmly decided not to adopt government decisions with the next elections in mind. I have decided to take State decisions with future generations in mind, and that is why I have paid a very high price.
Managing the economy irresponsibly would have meant bread today and hunger tomorrow. I was born in a small town 4000 metres above sea level, in the Peruvian Andes, up in the clouds. I had the opportunity to get where I am today and I have arrived here, with the privilege of addressing the European Parliament, thanks to a single factor: education.
I know that many might find my presence here strange. Some European parliamentarians have worked with me in the fight against dictatorship and corruption. I know that my presence could seem strange to many, because after 500 years, thanks to teachers and education, Peru has a President with my ethnic background who, as a result of a statistical error, has become President of the Republic. From now on, I undertake to do all I can to ensure that men and women like me might be Presidents of Peru.
This comment concerns a State policy decision. I have come to ask you, my European friends, not to sell us weapons. Please, I beg you, do not sell us planes, boats or tanks. Let us change the priorities of our precarious public budget. When I took on the Presidency last year, I promised my people not to disappoint them. This year, 2002, I have decided to reduce military spending by 20% to redirect it to health and education for the poor in Peru. I am going to do so for the next five years.
I know you are patient and are going to listen to me. Do not give us milk. Do not give us your agricultural products, please …
... because your giving us milk and wheat represents unfair competition for Peruvian farmers.
With the affection and admiration I have for this House, allow me to tell you quite frankly that the time has come to build a two-lane highway for trade. Do what you are asking us to do: open up your markets.
You tell us we should operate an open economy. Yes, I agree. You tell us we should not subsidise our agriculture, and I agree. Do not, then, however, subsidise your agriculture. Open up your markets.
The reason, dear friends, is simple, and I hope that you will take this in the spirit in which it is meant, from someone who admires the process of European integration: trade means work. If we cannot market our products we will have more unemployed men and women. If you ask us to do something that you are not prepared to do yourselves then you are not going to help us: let us do it together. If we believe that globalisation should be inclusive, we must join hands to include the poor in globalisation and one way of doing that is to build a two-lane trade highway. I like equality. I know you are doing this out of kindness. I know that you are providing food aid with humanitarian intent, but allow me to say, equally kindly, that the poor in Latin America may be poor but they have dignity. They do not want to be offered crumbs. All they ask is that you open up your markets on which we can sell our products, competing on quality and price.
Ladies and gentlemen, it has fallen to me to govern a country following ten years of cruel dictatorship, associated with corruption and trafficking in drugs and arms. We were handed a country with justifiably high social expectations. We were handed a country that had been in recession for four years. We were handed a de-institutionalised country. We were handed a country that has lost faith in its politicians.
Can you imagine in Europe having a prime minister or a president who would leave the Houses of Parliament by the back door to hide behind another nationality in Japan, and who would resign by fax? This can only be imagined in the most surreal political situation. This event struck the very core of the men and women of Peru, who cannot believe it. We have the responsibility to restore faith and confidence. Three days after taking over the Presidency, groups were already demonstrating outside the Houses of Parliament giving vent to their expectations.
Europe plays a vital role in the world and I wish today to speak frankly to you. There is no room for selective globalisation in the world; globalisation cannot be confined solely to investment, trade or finance. If globalisation makes sense in any area it is in the field of democracy, freedom, human rights and the environment, because democracy transcends nationality, just as human rights transcend colour. Equally, because it is our responsibility to bequeath to future generations an inhabitable world where our children and our children’s children can enjoy not only democracy but also a healthy environment, where the factories that produce wealth cannot destroy the cleanliness of the environment that future generations will inherit from us.
I have not come here to boast of victories or triumphs, but I can tell you that the Peruvian economy has begun to experience growth, that inflation is under 1%, that international reserves are at their highest level, and that unemployment rates are slowly beginning to fall, although not as quickly as we would like. I now face the challenge of making these macroeconomic achievements felt in people’s pockets.
Ladies and gentlemen, I am 56 years old and my journey has been long and difficult, but I have learnt that what does not kill you makes you stronger. I have come here today to share my personal conviction with you and tell you that the best investment that a family, or a society such as Peru, can make is to invest in its people’s minds. This means, quite simply, investing in health, education and justice for the poor. Investment in health and education, as you know even better than I, is an investment with a high rate of return. The business of knowledge is low-risk, long-term and extremely mobile. Populist governments may take power but they will not be able to nationalise our people’s knowledge. Governments in favour of excessive privatisation may take power but they will not be able to privatise what has been invested in people’s minds.
Today, Mr President, in conclusion, I would just like to tell you that the time has come to work together to ensure that freedom, democracy, respect for human rights and environmental protection are not just the concern of Latin America. Today I would like to share with you the thought that world economic health depends on the strength of the democratic institutions and global security. The Atlantic has become less of an obstacle. Globalisation and competitiveness, using technology, must have a human face and be more inclusive. We must achieve this by investing in health and education.
Mr President, I wanted to share these individual thoughts with you, with all of you, ladies and gentlemen, because next April, in Peru, the Member countries of the Rio Group will meet specifically to examine a proposal to find mechanisms to finance governability and democracy in Latin America, in order to prevent the poor from starting to lose hope in democracy. We have come to learn from the experience of the European integration process. Latin America is trying to achieve its own integration. The Andean countries are trying to learn from the process you are undergoing. We want an integrated Andean Community, a stronger Latin America that would be able to engage in dialogue with the European Union, and I hope that at the Rio meeting we will be able to have observers from the European Union so that, with their experience, they can guide us in this process.
Ladies and gentlemen, as you have been kind enough to give me the opportunity to speak, I would say that the millions of men and women in the world who are currently living on one dollar a day would like the European Union and other industrialised countries to make an effort to include the poor in the benefits of globalisation, giving it a human face, which would prevent the democratic institutions from being questioned and the poor from losing faith in democracy.
We certainly need to achieve economic and financial integration. Latin America certainly, now more than ever, needs to diversify its financial and trade relations. The time has come, however, to pursue integration without losing our national identity. The time has come to accept globalisation and competitiveness on the basis that our diversity is our strength. Globalisation is not intended to create a uniform culture all over the world – it would be terrible if
or
were part of world culture. I rebel.
Being global and competitive does not mean tearing ourselves away from our national culture, and being competitive does not mean taking away the human essence of the men and women of the world. Being part of the new CNN culture or the Internet culture that enables us to navigate the world cannot separate us from our languages, our food or our cultural characteristics. I would ask Parliament, for which I have the greatest respect, to join me in making every possible effort, Mr President, to begin to give globalisation a human face if we want it to be sustainable in the long term.
We cannot talk about globalisation and competitiveness when there are billions of men and women in the world who will go to sleep tonight not knowing whether they will have anything to eat tomorrow. If globalisation is to be sustainable in the long term, it must be inclusive, it must have a human face and it must include those who are currently marginalised. In Latin America, 44% of the population lives below the poverty line, and 21% of the population lives below the most extreme poverty line, on less than one dollar a day.
If you do not have a social conscience, I would ask you to think in terms of trade. Look at the waste of a labour force that could be part of the production process to enable the economy to grow in a sustainable manner. Look at the waste of a potential market comprising these 44% of Latin Americans, who could consume more bread, more milk, more shirts and more shoes. If you do not want to consider the matter in terms of social fairness, look at it in terms of a business opportunity."@en1
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