FROM THE OFFICE OF PUBLIC AFFAIRS

June 29, 2004
JS-1835

Remarks at Independence Day Celebration
Under Secretary John B. Taylor
Inter-America Development Bank
Washington, DC
June 29, 2004

Thank you Hector Morales.  We are grateful to you and the staff of the US Executive Director's office for all of your hard work to represent the United States at the IDB.  Thanks also to Enrique Iglesias for your leadership at the IDB and for the excellent work you and your staff are doing.

As you are well-aware, the government of the United States of America under President Bush's and Secretary Snow's leadership has been especially active in our economic dialogue with Latin America and the Caribbean this year, beginning with the Special Summit of the Americas in January, our continuing progress in the Group for Growth with Brazil, and in the Partnership for Prosperity, which concluded today in Mexico.  And, just last week Secretary Snow met with President Lula and Minister Palocci where our bilateral Group for Growth was highlighted. 

The global economy is the strongest it has been in many years, led by strong growth and job creation in the United States.  Latin America is fully participating in this global recovery, thanks to good economic policies in many parts of the region.  I've had the opportunity to visit several regional countries this year and I continue to be impressed by the many government initiatives throughout Latin America and the Caribbean that are pursuing productivity-led growth, consolidating fiscal responsibility, and improving transparency for the benefit of their citizens.

In 2003, six of the region's seven largest economies increased primary budget surpluses to bring down debt levels and reduced or maintained low inflation.  Growth in 2003 was at or near four percent in countries from Peru to Colombia to Costa Rica.

And growth is accelerating in 2004.  Mexico grew at a five percent pace in the first quarter of 2004; growth in Argentina, Brazil, and Chile was above six percent.  The United States has worked closely with its partners in the region to stabilize their economies in the wake of the difficulties of 2001-2 to pave the way for this return to growth; we are committed to continuing this work by supporting efforts throughout the region to remove the impediments to higher economic growth over the long term.

The IDB plays a fundamental role in the process.

In addition to its important lending and grant activities to the public and private sectors, in the last year we've also seen the IDB play a key role in the region's economic development through its commitments at the Summit of the Americas, particularly in the areas of remittances and expanding credit to small businesses. 

The leadership of the G7 has recognized the important work on remittance at the IDB and, in particular, the Multilateral Investment Fund under Don Terry's leadership.  Indeed, the example has been expanded into a global initiative to reduce the cost of sending remittances.  We also appreciate the good work on financing for small businesses at the IDB.

The US has also recognized this work and has indicated our willingness to begin negotiations on a replenishment of the Multilateral Investment Fund (MIF).

So, we look forward to seeing the results of these activities, and to witnessing the benefits of economic development reach more and more citizens of Latin America and the Caribbean.

Thank you very much, for coming to this Independence Day Celebration.  Happy Birthday United States of America.

I did not know you would be handing out American flags today, so I brought my own American flag.  I must say that I took this flag (which I wave here today as you wave your flags) out of a small box which I keep in my office in the U.S. Treasury.  The box is labeled "The Under Secretary's First Aid Kit."  The kit was given to me by former Secretary of Treasury and State George Shultz as I was moving into this job about three and half years ago.  It's for emergencies.  For example, it includes a pair of dice to roll when a tough decision must be made.  And it includes a blind fold!  The flag is for days when patriotism is called for.  And today is one of those days when I want to be patriotic.  And, again, Happy Birthday United States of America.