Peru, 2003

Peru has no doubt that multilateralism is the best

instrument for confronting global challenges, as well as

for guaranteeing peace and international security. For

that reason, the United Nations is indispensable. All

Member States must have the conviction to strengthen

it, to contribute to its institutional regeneration and to

reform it. With a reformed United Nations, we will

continue our struggle against poverty; we will maintain

the world development agenda; we will assure

democracy; and we will fight decisively against drug

trafficking and international terrorism.

The terrorist attacks taking place in different

areas of the world and the threats to peace in several

regions create an international climate of instability

and insecurity that calls for urgent solutions. Terrorism

conspires against the democracies of the world.

Terrorism conspires against the health of the world

economy. Terrorism contributes to making the poor

even poorer. Peru strongly condemns the terrorist

attack on the United Nations headquarters in Baghdad

and wishes to pay sincere tribute to all the victims, in

particular to Sergio Vieira de Mello, Special

Representative of the Secretary-General.

We cannot accept terrorism as a political tool. In

our case, the 20 years of violence bequeathed by the

Sendero Luminoso is a hard lesson to cope with.

According to the final report of the Truth and

Reconciliation Commission, recently submitted to my

Government, thousands of lives were lost and more

than $30 billion in losses were reported. This report is

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the result of a resolute political decision of our

Government to make sure that Peru never again has to

face irrational acts of terror.

Truth must also be a means to prevent impunity

and to lead us to reconciliation with justice. My

Government is firmly struggling against impunity. That

is why we consider that the fugitives who fled Peru

when the corrupt regime of the past decade was

overthrown should answer to justice for the gravity of

the crimes they committed. We will insure these people

a fair trial and all the guarantees of due process, within

the framework of the Inter-American Convention on

Human Rights and Peruvian law.

That is why we hope that our requests for

extradition will be taken into account. Democratic

States have the responsibility to avoid impunity. In this

regard, the Peruvian State wishes in this Assembly to

thank the 20 friendly countries that have announced

their decision to detain anyone on the list of

extraditables if they enter their territories.

Poverty, social exclusion and fundamentalist

ideologies are among the causes of the current crises.

The hopes of our countries to be part of an inclusive

globalization are not bearing fruit. Despite some

achievements at the national level, there is a wide

chasm to bridge if we are to build such an inclusive

globalization. For example, in the case of Peru, despite

an unfavourable international environment the

economy grew by 5.2 per cent last year, one of the

highest rates in Latin America. Inflation was below 1

per cent, international reserves rose to their highest

level yet, and exports reached unprecedented figures.

However, we must concede that all these

indicators are not enough to make the common people

feel the benefits of such macroeconomic achievements

in their own pockets. Today, it is necessary for the

global economy to reach an annual average growth of 7

to 8 per cent if we wish to reduce poverty and to create

employment. If we in the developing world,

particularly in Latin America, grow by 6 or 7 per cent,

it will barely be enough to recover the per capita

income of 1970. We have to achieve adequate growth

as soon as possible. The poor cannot wait another 15

years for their economies to grow in a sustained

manner that will reduce poverty.

Democratic governance in Latin America is at

risk. There is no doubt that there is a correlation

between the health of the world economy, social

inclusion and democratic governance. World leaders

cannot close their eyes. There is no possible

governance without a reduction of poverty. We must be

creative and courageous in order to ensure that Wall

Street's macroeconomic requirements meet the

expectations of Main Street.

Last year before this Assembly, I highlighted the

need to defend democracy from market turbulence by

creating innovative financial mechanisms. We said that

the time had come to build a new global consensus to

reaffirm democracy and re-evaluate development with

social equity. Since then, Peru has been working on a

series of initiatives in this regard. Last May, 19

democracies of Latin America and the Caribbean,

members of the Rio Group over which I have the

honour to preside approved a key document that we

call the Cusco Consensus. This document comprises

four Peruvian initiatives on innovative financial

mechanisms that allow us to finance democratic

governance in the region; to increase public investment

in roads, hospitals and schools; to create jobs; and to

supplement private investment.

In relation to one of these proposals, last August,

jointly with the President of Brazil, Luiz In·cio Lula da

Silva, we decided to work together on the

establishment of the South American Infrastructure

Authority project, which will operate as a fiduciary

agency to facilitate the financing of investment projects

for the integration of South America. I am sure that

that experience can be duplicated in other parts of the

world.

Likewise, we have signed a memorandum of

understanding on physical and economic integration to

set into motion three axes of development

integration in Peru, Bolivia, Brazil and Ecuador

on the road to South America's integration.

Accordingly, Peru signed an agreement that will lead to

the creation of a free trade zone with MERCOSUR.

From this international forum, we would like reiterate

that those efforts and achievements in the area of

integration constitute decisive steps on the path

towards building a South American community of

nations. However, I wish to point out that, beyond the

decisions that two or more countries of the subregion

may take, it will be essential for the international

community to commit itself to the initiatives emanating

from an exercise in collective reflection.

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Developing nations are concerned about the

alarming increase in external vulnerabilities resulting

from instability in financial flows and their impact on

investment levels and economic growth in our region.

Those countries also perceive the presence of

protectionism in the area of trade, in particular on the

part of certain industrialized nations. I would like to be

frank in this connection: we ask developed countries

not to demand that we open our markets while they

protect their products with billions of dollars in

subsidies every year, especially in the agricultural

sector. Our countries can no longer withstand

asymmetrical relations in the area of trade. The time

has come to build a two-way business highway that is

more transparent and predictable. We are being asked

to open up our markets in the agricultural sector while

there are still countries that are investing billions of

dollars every day to subsidize their own products. Do

not ask us to practice something that you do not

practice yourselves. Our countries are aware of the fact

that we have to be competitive, but we must build that

two-way commercial highway.

Peru is especially concerned about the negative

results of the recently held ministerial conference of

the World Trade Organization in Cancun, which,

despite some progress, was unable to reach consensus.

There is a continuing desire for multilateralism and

free trade in Peru. We therefore trust that there will be

a return to negotiation in the next few months so as to

realize the goals set out at Doha, which placed

development foursquare on the agenda of the WTO.

We have an obligation to build a more just, secure

and humane world. That is why today I ask the United

Nations and our great friend of peace, Secretary-

General Kofi Annan, to exercise their great authority

and prestige to promote within the World Bank, the

International Monetary Fund, the Inter-American

Development Bank and the member countries of the

Group of 8 a wide debate on the innovative financial

mechanisms that will make it possible to finance

democratic governance in the region; increase public

investment in schools, hospitals and roads; generate

jobs and promote private investment. That is the only

way by which globalization can be inclusive, and by

which governance can be strengthened. May God bless

peace in the world.