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Consultative Group
meeting for the
Reconstruction and Transformation of Central America
Inter-American Development Bank

"reconstruction must not be at the expense of transformation"

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Speech by the First Vice President of the Republic of Costa Rica
, Astrid Fische
Inter-American Development Bank Consultative Group
Meeting for the Reconstruction and Transformation of Central America.
Stockholm 25 May 1999

His Excellency the Prime Minister of Sweden
The Honorable President of the Inter-American Bank of Development (IDB)
Their Excellencies the Presidents of the Republic of Nicaragua and the Republic of Honduras
Their Excellencies the Vice Presidents
The Honorable Secretary-General of the United Nations
The Honorable Secretary-General of the Organization of American States
Members of the Official Delegations
Ladies and Gentlemen

The Government of Costa Rica is honored to participate in this historic event, which gathers the highest representatives of the international community in an unprecedented display of support to the development of Central America, a region that has demonstrated its unrelenting will to overcome the obstacles of war, and political, social, and economic instability, and that, in the last decade, has become the vivid example of how nations can resolve their conflicts through dialogue, negotiation, respect and peaceful coexistence between all sectors society.

The Inter-American Bank of Developmentīs request, and the Government of Sweden's acceptance to act as host of this important meeting, add to the overall significance of this event. This country has a long history of cooperation with Central America and also represents a source of inspiration for the region, given its level of social, political, and economic progress that has placed the human being as the center of its model of development.

It is crucial for Central America that the international community recognize and support the enormous efforts exerted by the different countries in the last decade in the processes of pacification, democratization, economic reform, the reduction of military spending, and the subjection of military power to civilian rule.

This framework promoted rates of economic growth between 3 and 4 percent in 1997 – the most accelerated of recent history – and the implementation of sustainable development programs.

Our people had just started to reap the benefits of the processes of democratization and economic reform when Hurricane Mitch, the most devastating in history, unleashed its fury throughout these territories, causing a major step back in our development.

Costa Rican territory was the first to be stricken by its force. It caused floods, destruction of housing and infrastructure, and losses in agricultural production in its path. Fortunately, due to the constant implementation of disaster prevention programs we were able to evacuate and save 16, 500 lives.

The countries most affected by Hurricane Mitch's unforgiving fury were Nicaragua and Honduras, where, in addition to material damages, the loss of human lives was devastating. Nevertheless, in its aftermath, it became evident that all of the countries were affected to some extent.

The deterioration of economic and social conditions, the increase in the level of unemployment, and the weakening of ecosystems of the neighboring countries considerably increased the flow of immigrants into our territory.

Consequently, we now coexist with an estimated 600, 000 Central Americans – close to 20% of our population – many of which have an undefined migratory status. In the spirit of solidarity and brotherhood with our fellow Central Americans, we have responded to the demands of this migrating population group, providing job opportunities and granting them access to our educational and health services. However, this entails an effort that the country is not capable of assuming for an extended period of time without deteriorating the quality and access to these same services of the vulnerable population.

Moreover, as a contribution to the process of reconstruction of Central America, last December, the Costa Rican government declared migratory amnesty for Central Americans whose migratory status is still undefined. By legalizing their status, we are in a position to fully ensure their labor rights and access to social services, in equal conditions to those of Costa Rican citizens.

Notwithstanding, our country does not have the financial capacity to face the challenge of persistent migration flows. Costa Rican authorities do not have all the answers nor the resources. In light of this situation, we hope that we will be able to rely on the international community's cooperation, enabling Costa Rica to embrace this challenge with a humane perspective and an attitude of solidarity.

With respect to our losses of transportation facilities, Costa Rica has only been able to reconstruct 14% of the damaged infrastructure. The Pan-American Highway was affected in a number of its most important tracts, a situation that has economic repercussions at a regional level since this route forms part of the Central American commercial corridor. We must reconstruct this important throughway in order to deepen the regional economic integration, as well as to convert Central America into a logistic inter-American corridor, through which the stream of commercial goods that gives life to the Free Trade Area of the Americas flows.

Costa Rica is in a vulnerable position. There are many pending challenges to reduce this condition in the areas of the environment, the reduction of poverty, disaster prevention and attention, the construction of infrastructure, and the adequate use of land.

Although each country has been affected in a different way, it is evident that the vulnerability before such phenomena is regional, as must be the responses to the situation and the long term strategies to undertake.

The road towards Central America's reconstruction must start with the transformation of its social, productive, and political structures. Our countries are vulnerable and as their leaders, we are responsible for the principles and purposes enunciated as the strategic orientation in the Central American Alliance for Sustainable Development.

We are responsible for increasing the amount of social investment in areas such as health, education, housing, and sanitation, as a fundamental tool for the reduction of poverty and, consequently, of this vulnerability. We are responsible for the enactment of political reforms aimed at improving citizen participation mechanisms, the coordination of all sectors and interests of society, and the strengthening of democratic governability.

We should adopt a culture of prevention, improve the mechanisms for environmental protection and the strengthen the productive infrastructure. We are responsible for better urban planning, the adequate use of land, the use of construction techniques according to international standards. We should also design and construct our vital infrastructure in areas of greater security and enact disaster prevention and management programs.

We, the leader of the Central American countries have responsibilities. International cooperation does not dilute, but complements and supports national efforts to undertake pending responsibilities.

In this meeting, we hope to create AN ALIANCE FOR THE RECONSTRUCTION AND TRANSFORMATION OF CENTRAL AMERICA with the participation of all parties present here. With the support of friendly governments, financial organisms, and multilateral organizations we can complement our countries' efforts to implement development proposals that reduce the vulnerability of societies to future natural phenomena, that strengthen democracy and the participation of civil society, and that prompt economic development towards a new milennium.

Costa Rica is willing to share the experience it has accumulated in its model of social and political development with the international community and its neighboring countries, and we express our commitment to this common endeavor of strategic reconstruction.

Thank you for your participation in this forum, which expresses your will to contribute in this alliance to reconstruct and transform Central America into a land of peace, liberty, democracy, and development.

Thank you.

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