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### Viewing cable 07SANJOSE277, MONTEVIDEO CIRCLE MEETS IN COSTA RICA

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07SANJOSE277 | 2007-02-12 21:57 | 2011-04-18 20:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose

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    VZCZCXRO5333
    PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHNG
    RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
    DE RUEHSJ #0277/01 0432157
    ZNR UUUUU ZZH
    P 122157Z FEB 07
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC PRIORITY 7224
    INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS PRIORITY
    RUEHMD/AMEMBASSY MADRID PRIORITY 0593

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    UNCLAS SECTION 01 OF 02 SAN JOSE 000277

    SIPDIS

    SENSITIVE, SIPDIS

    DEPT FOR WHA/CEN JASON MACK

    E.O. 12958: N/A
    TAGS: PREL PGOV KDEM XM CS
    SUBJECT: MONTEVIDEO CIRCLE MEETS IN COSTA RICA
    ¶1. (U) SUMMARY: Costa Rica hosted the Montevideo Circle, a
    discussion forum for current and former presidents of Latin America,
    on January 27-28, 2007.  The group's topic of discussion was:
    "Democratic Stability and Opening: Unpredictable Factors for Latin

    America in the 21st Century," and the participants' remarks largely
    coincided with USG objectives for the region, including Costa Rican
    ratification of DR-CAFTA. The meeting was covered extensively in all
    domestic newspapers.  This cable reports excerpts of the press
    coverage.  END SUMMARY.
    GENERAL THEMES: INVESTMENT/TRADE THE MOTORS OF DEVELOPMENT
    ¶2.  (U) Former presidents Julio Mara Sanguinetti of Uruguay
    (founder of the Montevideo Circle), Ricardo Lagos of Chile, and
    Fernando Henrique Cardoso of Brazil promoted free trade and
    investment attraction as the motor of development for Latin American
    countries.  "Globalization has arrived to stay," said Lagos.
    Colombian president Alvaro Uribe, host Sscar Arias, and other
    speakers insisted that Latin America must insert itself into the
    world market.  They agreed that only through global trade will
    countries achieve real development and lessen domestic income
    inequalities.
    ¶3.  (U) Former Colombian president Belisario Betancour and former
    Spanish leader Felipe Gonzlez warned of the possibility of the
    region becoming "the region of the world with the most inequality."
    Betancour stated that external debt, lack of social infrastructure
    and schools, along with hunger and misery work against progress.  He
    also stressed that "education is the key to leaving hunger behind."

    ARIAS - DEVELOPMENT MUST BE BASED ON EDUCATION
    ¶4.  (U) As host, Arias stuck to familiar themes in his opening
    address.  He asked "What good is it if Latin America has regained
    democracy if it is incapable of putting food in its peoples' mouths,
    putting a roof over their childrens' heads?  What good is it if a
    peasant signs a presidential ballot if he knows nothing more than
    signing his name?  Democracy cannot live without food or a roof.
    Human development must be based on education.  One in three children
    do not go to secondary school (in Costa Rica).  Today's educational
    failure is tomorrow's economic failure."  Arias emphasized that
    hunger, ignorance, and frustration fertilize the ground for a
    resurgence of authoritarianism and that democracy should complement
    prosperity and development. Otherwise, he warned, the task of
    maintaining respect for liberties will be titanic.  Using Cuba as an
    example, Arias warned that Latin America runs a serious risk of
    returning to dictatorship.
    SANGUINETTI - INVESTMENT MEANS GROWTH AND JOBS; FREE TRADE
    AGREEMENTS (FTAs) HELP COUNTRIES MOVE FORWARD
    ¶5.  (U) Sanguinetti told an interviewer, "Only investment brings
    growth and generates jobs.  We are entering a new century, but
    walking backwards with an archaic debate.  Globalization is a real,
    scientific fact." Sanguinetti insisted that economies must open,
    given the experience of Latin American countries which have opened
    their economies.  "In general, I think that economies either open or
    fall behind.  To incorporate ourselves into the global world is not
    ideology, it's a fact.  Of course, a market economy assumes more
    open competition, that's the challenge.  One has to get used to the
    vigorousness of competition."
    ¶6.  (U) When asked how the Montevideo Circle views the new Latin
    American Left Sanguinetti replied, "This is a discussion group with
    free opinions. We have the common conviction about democracy and
    freedom.  In Latin America, unfortunately, we are living in a new
    stage of fragmentation after years of seeking integration.  Mercosur
    and the Andean Community are in crisis.  Perhaps the most effective
    and efficient integration process is in Central America."
    Sanguinetti stressed, "True democracy is based on dialogue and real
    consensus, with the objective to find mechanisms that solve the
    social and economic needs of each country."  He concluded, "In
    Europe the Berlin Wall fell, but not in Latin America.
    Liberalization has achieved positive but minor effects.  FTAs do not
    substitute for development strategies, but they are necessary for
    countries to enter new markets."
    LAGOS - FTAs PROTECT SMALL COUNTRIES; GROWTH AND INVESTMENT CAN HELP
    THE POOR

    ¶7.  (U) Lagos told the media that "free trade agreements give us
    market access; they are instruments that countries must know how to
    use," he continued.  "Technological innovation and even unique
    cultural traits could be small countries' strengths. Training people
    how to confront the issue of globalization with the right skills
    seems fundamental to me.  There was a clear conviction that we were
    going to tie Chile's growth to our capacity to link to the world and
    exports were to play an important role as a measure of our growth.
    But the most important public policies are those that assure
    economic growth reaches those most in need."

    ¶8.  (U) Lagos opined that a hemispheric debate has begun over which
    is the fastest and most efficient way to eliminate the huge gap
    between rich and poor.  "For me, the fastest way is growth and to
    grow you have to invest.  Once [an economy] has the growth, then
    public policies can be created to help those who have less."  Lagos
    described the region's lean to the left as a search for political
    solutions to resolve the inequality dilemma.  "Now we are a middle

    SAN JOSE 00000277  002 OF 002

    ¶1. (U) SUMMARY: Costa Rica hosted the Montevideo Circle, a
    discussion forum for current and former presidents of Latin America,
    on January 27-28, 2007.  The group's topic of discussion was:
    "Democratic Stability and Opening: Unpredictable Factors for Latin
    America in the 21st Century," and the participants' remarks largely
    coincided with USG objectives for the region, including Costa Rican
    ratification of DR-CAFTA. The meeting was covered extensively in all
    domestic newspapers.  This cable reports excerpts of the press
    coverage.  END SUMMARY.
    GENERAL THEMES: INVESTMENT/TRADE THE MOTORS OF DEVELOPMENT
    ¶2.  (U) Former presidents Julio Mara Sanguinetti of Uruguay
    (founder of the Montevideo Circle), Ricardo Lagos of Chile, and
    Fernando Henrique Cardoso of Brazil promoted free trade and
    investment attraction as the motor of development for Latin American
    countries.  "Globalization has arrived to stay," said Lagos.
    Colombian president Alvaro Uribe, host Sscar Arias, and other
    speakers insisted that Latin America must insert itself into the
    world market.  They agreed that only through global trade will
    countries achieve real development and lessen domestic income
    inequalities.
    ¶3.  (U) Former Colombian president Belisario Betancour and former
    Spanish leader Felipe Gonzlez warned of the possibility of the
    region becoming "the region of the world with the most inequality."
    Betancour stated that external debt, lack of social infrastructure
    and schools, along with hunger and misery work against progress.  He
    also stressed that "education is the key to leaving hunger behind."

    income hemisphere, but the difference between rich and poor is as
    unjust as when we were a poor hemisphere.  This isn't Africa, but
    close."
    CARDOSO - MUST OVERCOME INEQUALITY IN EDUCATION
    ¶9.  (U) The former Brazilian leader echoed Arias's comments on
    education.  "There is an immense inequality in education," he said,
    which must be reduced to "confront change."  Cardoso urged Latin
    American universities, which he described as "isolated" and far from
    businesses that generate jobs and from the governments that dictate
    policies, to better integrate themselves into this mainstream.
    COMMENT:
    ¶10.  (SBU) Our MFA contacts made clear this was an initiative of
    President Arias's office, and not the Ministry.  Hosting this event
    is certainly in keeping with Arias's penchant to discuss (and to be
    seen as discussing) issues of global and regional import.  One San
    Jose-based diplomat hinted to the Ambassador that this latest
    Montevideo Circle event was intended to be not just another
    gab-fest, but as a first step to developing a thoughtful regional
    counterweight to Chavez-style populism.  Uribe's presence (and
    Arias's hosting) gave the meeting a higher and more relevant
    profile, and the participants' public remarks largely coincided with
    USG objectives for the region, including Costa Rican ratification of
    DR-CAFTA.  However, more than just a well-publicized conference will
    be needed to develop a regional antidote to Chavez, Ortega and Co.

    LANGDALE

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