January 24, 2007
HP-229

Remarks of Anna Escobedo Cabral
U.S.Treasurer
U.S. Department of the Treasury

Before the El Salvador Chamber of Commerce
"Motor De Crecimiento Y Desarrollo"

San Salvador, El Salvador - Good evening. Mr. President, Madame Vice President, distinguished leaders of El Salvador, it's truly an honor to be here. I want to thank Maria Elena de Alfaro and the El Salvador Chamber of Commerce and Industry for inviting me to join you this evening. Thank you, Patricia, for that kind introduction, and thanks to all of you for your warm welcome.

This is my second visit to El Salvador. I was here just last March when we released design changes to the $10 note. It's a pleasure to return to this beautiful country once again. It's wonderful to see your picturesque mountains and stunning waters. It's no surprise that El Salvador's beaches attract visitors from around the world.

But I'm most excited to be here because El Salvador is such an important and close partner to the United States. We continue to work together to combat terror, drug trafficking, money laundering and other international crimes. In addition, we remain committed to advancing economic reform and trade throughout the region. On behalf of President Bush and Secretary Paulson, I want to thank President Saca and his Administration for your close friendship and cooperation.

One of President Bush's priorities remains working with El Salvador and countries throughout Latin America to promote economic development and opportunity. We will continue to strengthen our cooperation to improve quality of life throughout the region and achieve our critical goals. 

This is also a unique time for our countries in some respects. Charles Glazer was recently sworn-in as the new United States Ambassador to El Salvador. Ambassador Glazer is scheduled to arrive at the Embassy tomorrow. I had the privilege of attending dinner at former Ambassador Barclay's residence last year. I know his tremendous work here has been well-appreciated by the Salvadorans. Ambassador Barclay was recently named Noble Friend of El Salvador by the Legislative Assembly – the highest recognition that branch of government can give to a foreign citizen.  I'm sure Ambassador Glazer will draw on the strong foundation of progress that Ambassador Barclay achieved during his tenure.

In particular, I'm pleased to be a part of this very important conference. I applaud the efforts of the Chamber of Commerce and Industry to promote professional development and leadership among Salvadoran women. All citizens must have the opportunity to participate in the social, political and economic spheres of society in order for a country to truly thrive.

Salvadoran women have continued to play a key role in the reconstruction of Salvadoran communities and society, and women's contributions to the mainstream economy has increased dramatically since 1992. Salvadoran women have a critical role in this society as mothers, wives, and business leaders. Because many men leave the country to seek work, women head an estimated 30 percent of Salvadoran families.

But Salvadoran women also hold many prominent political and professional positions. You have a strong example of a positive female role model in your Vice President. And the leader of this Chamber is a woman. Those are just two examples, and I know I wouldn't have to look very hard to find more. When I was asked to come here to talk about balancing public and private life, I wasn't sure if I could offer any more insight than what you see every day from women like these.

The fact is, women in so many cultures learn very quickly how to manage their professional and personal lives. After all, many of the skills we must develop to ensure the health and well-being of our families also come in handy in the workplace. For example, communication, time management, teamwork and morale building, smart decision-making, and of course, leadership are all essential skills for managers and entrepreneurs. Women carry out at least some – if not all – of these skills every day in their personal lives.  We learn how to prioritize and remain committed and focused on what's most important.

Looking around in the audience, I know that many of the women here own their own businesses. Many of you serve as role models for other women in your community as well as for young women who have not yet started their careers. Your important work is laying the foundation for others to follow. And I challenge you to continue building on your skills and developing new ones. Because I truly believe that if we continue pushing ourselves to learn new things we can continue to open doors of opportunity for ourselves as well as for others.

I know this has been true in my own life. I credit education for many of the wonderful opportunities I've been fortunate to have throughout my life. Each of us has unique skills and talents, and it's up to us to develop those skills through education so that we can contribute to our communities, whether it's through our careers, community work, or family life. Today, like so many women, I wear many hats that extend beyond my professional career as U.S. Treasurer. I am also a wife and a mother among other things.

I've always believed that a key way to teach and motivate young people is to lead by example. When my children were young I wanted them to understand the importance of education, and I wanted to set high standards for them.

I believe children will often live up to the standards we set so my children knew at a very early age that they were expected to finish high school and go on to college. All of them did.

As women, especially those who are mothers and those who are heads of households, we have the opportunity through our professional careers to teach our children that they can achieve their dreams. They can eventually have their own business or pursue the career of their choice.

This is important because young people represent the future. The strong values we can instill today will help enhance quality of life and advance economic growth and security for generations to come.

In El Salvador, this is significant because you're now at a critical time. El Salvador has experienced a rebirth in many ways after 12 years of bitter conflict and civil war. Since signing the 1992 Peace Accords, the Republic has emerged a leader in the region in addressing economic issues.  You were the first to ratify and implement CAFTA. According to the World Bank, in the next five years this landmark trade agreement has the potential to increase trade and investment and boost economic growth in El Salvador, lifting tens of thousands out of poverty.  CAFTA will also deepen integration in the region and promote greater levels of foreign investment. 

In addition, the tourism sector has thrived in recent years, and since dollarization in 2001, the financial sector in El Salvador continues to expand.

I also want to congratulate you on the recent signing of a compact with the Millennium Challenge Corporation. This is a five-year compact that will provide more than $460 million to stimulate economic growth and reduce poverty in El Salvador. This grant enables strategic investments in education, public services, agricultural production, rural business development and transportation infrastructure, among other critical areas that will help improve the quality of life for some 850,000 Salvadorans. Overall, the Millennium Challenge compact will provide new economic opportunities in the Northern Zone and throughout El Salvador.  As El Salvador grows stronger in areas such as education, trade infrastructure, technical assistance and governance through the Millennium Challenge, the promises of the CAFTA will continue to emerge.

To be sure, this country has come a long way since 1992. You have held seven free national elections. You have strengthened your democratic institutions, your Armed Forces and Police. Foreign investment has increased, and you play an increasing role in the global economy.  In fact El Salvador is one of the strongest and most stable countries in our hemisphere. Today, this Republic represents the promises of hope and opportunity achieved through a stable democracy.

Despite this progress, critical challenges remain. Violent crime and poverty continue to plague Salvadoran communities, affecting many women in particular. Lack of security threatens economic growth and reduces quality of life, and more must be done to stop it.

As I mentioned earlier, El Salvador and the United States share an important partnership. We share strong trade ties, and we know that working together to promote economic growth and stability throughout Central and Latin America is in all of our interests. Stronger trade and investment links between our countries could create increased growth throughout the Western Hemisphere and promote greater security and stability. But we also know that trade alone is not enough. That is why President Bush and his Administration remain committed to working with Latin America to confront a range of challenges from poverty and income inequality to infrastructure and investment.

One area that we're focused on at Treasury is how do we increase investment flows throughout Latin America? In the case of El Salvador, remittances can play a very significant role in enhancing development. Today, over two million Salvadoran citizens live in the United States. That's more than a quarter of El Salvador's population. Each year, they send home an estimated $3 billion to their families here in El Salvador.

The good news is that an estimated 2.7 million Salvadorans – 42 percent of the population – have either a checking or a savings account. In fact, El Salvador falls second to Chile for bank usage throughout Latin America. That means that there is a tremendous opportunity for remittances
to become a driving force for economic growth through savings and investment. For example, about half of the money remitted is spent on health and education. In other words, the money is being invested back into Salvadoran communities, helping to create jobs and expand opportunity. 

Remittances can have an even greater impact if we can help those receiving this money build their assets and invest their money wisely. This way there is a real opportunity for individuals, especially low-income families, to build their wealth, invest in an education, buy a house or build a business. That is why it is critical for financial institutions to reach out to their remittance customers and make valuable resources – such as credit, insurance and mortgage products – easily accessible.

One thing we also need to consider is the cost of remittance transactions. For example, the average value of a transfer to El Salvador is over $300, while the average cost of sending the remittance is roughly five percent of the transfer value. These transfer fees make up a large transaction cost.

At Treasury, we are committed to working with the public and private sectors to promote expansion of savings and investment options for remittance recipients throughout Latin American. We support and encourage the development of an environment which will facilitate the private sector's efforts to offer remittances through formal financial channels, including the banking system.

Now, what does all of this mean to you here?

A strong economy is the lifeblood of a country. It creates opportunities for growth and advancement and ensures prosperity for our families, our communities, and our countries.

There's no question, El Salvador has achieved a great deal in recent years. Not too long ago, war was a daily reality and prosperity was an unrealized hope. You have found new wealth and adopted new ideals. You have every reason to be optimistic about the bright future that lies ahead for this country. All of you here can continue to build on this success and take advantage of these opportunities by broadening your education, building your skills, and giving back to your communities.

Mother Teresa once said, "God gave us faculties for our use; each of them will receive its proper reward. Then do not let us try to charm them to sleep, but permit them to do their work until divinely called to something higher."

El Salvador will continue to flourish and it's renewed belief in democracy, freedom, and human rights will continue to bind our two nations together and ensure prosperity throughout Latin America.