Consultative Group

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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Statement by the Prime Minister of Sweden,  Mr. Göran Persson
at the opening of the
Inter-American Development Bank Consultative Group
Meeting for the Reconstruction and Transformation of Central America.
Stockholm 25 May 1999

Your excellencies, ladies and gentlemen,

On December 29, 1996, I had the privilege and pleasure to witness the signing of the final treaty for peace in Guatemala at a ceremony in its capital city. This agreement ended a long period of civil war and violent conflicts, and concluded a region-wide journey towards peace and reconciliation. It started nearly ten years earlier in Guatemala (Esquipulas) in August 1987. There – on initiative by Costa Rica's Oscar Arias – the Central American Presidents agreed on a common platform for peaceful resolution of conflicts, the building of democratic societies and defence for human rights, and the fight against the root-cause of most despair – the poverty of the masses of the people. Oscar Arias was awarded the Nobel Peace Prize later that year, just like Rigoberta Menchu Tum five years later.

At New Year 1997, for the first time in several decades, Central America was at peace with itself. The peoples could look to the future with optimism. Although much was still left to be done, substantial progress had been made. All Central American republics had governments elected by the people, the institutions of democracy and rule of law had been strengthened, freedom of expression and respect for human rights more real. Essential but painful steps towards economic adjustment had been taken. And even though poverty, violence and other social problems were still widespread, the first signs of more economically sustainable development could be observed.

This is why it seemed so cruel and unjust when, in October last year, the appalling pictures and reports reached us. The ravages of Hurricane Mitch, and its subsequent floodings and mudslides were almost incomprehensible. Honduras and Nicaragua were the countries most affected, but Mitch left a path of destruction throughout Central America. When the clouds receded and it was possible to estimate the scope of the damage, it became clear that an enormous disaster had occurred. The figures quoted before deserve repetition. Nearly 10 000 people lost their lives and almost one million were left homeless. It was the worst natural disaster in the region this century.

Like the five presidents in Esquipulas had asked the world to support lasting peace, their successors last December in Washington made an equally convincing appeal to the international community for support for the regional reconstruction and sustainable development. An intensive effort has since been undertaken to establish national reconstruction plans to be presented and discussed at this meeting, which I have the honour of opening today.

Soon after the widespread devastation of his country the president of Honduras Carlos Roberto Flores set the right tone. He said:

– Let us use this disaster to rebuild, not the same but a better society for us all.

At the Washington Consultative Group Meeting, Central American countries and donors were unanimous that the reconstruction after Mitch was not only a burden, but offered a unique opportunity for a new start. Sustainable development for the benefit of all the people is the goal. This will be a long march and our meeting today is, I hope, yet another important leap forward along that path.

As you know, the Swedish government is committing a substantial contribution to the reconstruction and transformation after Mitch – both bilaterally and through the European Union.

In this effort we strongly stress how important it is that all post-Mitch assistance should be placed in a perspective of long-term development. The title "Reconstruction and Transformation of Central America" is to the point. What the countries hit by Mitch need is not only emergence assistance. Central America needs more than that; a true and lasting partnership. The next time we meet as governments is already next month at the EU, Latin American and Caribbean summit in Rio de Janeiro where Central America will play a major role.

Aid is a necessity in emergencies and can be instrumental in breaking patterns preventing development, but we know its inherent disadvantages. However we must see to it not to create new patterns of dependence. Central America and other regions struggling with poverty need instead a new deal, where partnership and trade gradually can become the lasting basis for our relations. Together as partners we should work for more trade and better access to export markets; credits at stable terms; relief from unbearable burdens of debt; and mutually beneficial investments that will stimulate the economic and social development of the region. Let us go for this vision. That is what will bring welfare and true liberation from poverty and dependence. That is what should be on top of our agendas..

Priorities and co-ordination of the reconstruction should not be set by donors, but by the people of Central America through their elected representatives and civil society. Governments must maintain commitments to increased democratisation, equitable economic growth, good governance and increased decentralisation. Enhanced transparency, fight against corruption and honesty in public service is essential to reassure foreign investors, domestic savers, students seeking their future and hard-working people alike. Women, children and until now marginalised groups, such as indigenous people, the poor and people with disabilities deserve a special position and more power. Brave political leadership will be needed to get there and to break with past fears and conflicts, vested interests and privileges. All political and social leaders, government and opposition alike, will be called to the test. The few can too easily destroy what the many attempt to build.

We are aware that many other crises are competing for attention in the world, not least here in Europe. Therefore we are happy to hold this conference at this point in time, as it demonstrates a mobilisation of solidarity and joint efforts by the international community to assist peoples and societies hit by devastation. If the humanity closes its eyes to some of us that are suffering, all of us will suffer sooner or later. That is a lesson we should bitterly have learnt by now. We are all one world.

We are partners in that world. Sweden sees its engagement in Central America in a long-term perspective. We are sure that the other industrialised countries working in Central America have the same perspective. We have therefore taken an initiative towards a declaration from this conference with the aim to set up some basic objectives for such a long-term perspective. Thereby we will have a basis for regular follow-up of our partnership related to the development in your countries

Sweden has a long-standing and active engagement with Central America. We have strived to assist in the search for peace and justice during the severe internal conflicts of the last decade. My late predecessor Olof Palme took a leading role in these efforts as he struggled for humanity, democracy and the rule of international law. Solidarity with Central America is deep-rooted in many non governmental organisations which was spontaneously manifested after the hurricane disaster. I see such an interaction between civil society, the private sector and governments as a special strength in the work that has to be done.

It is a great pleasure for me to welcome all of you to Sweden and this Consultative Group Meeting. I doubt that so many eminent Central Americans have ever before gathered in Europe. And as to the level of other eminent participants this morning, the agenda speaks for it self. You are all honouring us with your presence. This high level of representatives and broad endorsement of dialogue and common perspectives bode well for the days of the meeting and indeed the future.

All the eyes are on us. We must not shy away from the challenge to create something new and better. A better Central America with its rightful place in the world. The destruction caused by Mitch can be turned into a strong impulse for social change. It must not be a lasting obstacle to economic development. Let us all give a serious and committed answer to the appeal of the Central American presidents for support to sustainable development!

Now is the time for the next step in the peace process initiated ten years ago. A new partnership for development, new progress towards lasting social peace, victory over poverty, strong democracy, and harmony between humankind and nature is possible in Central America as well. The prime beneficiaries will be the coming generations. For our children's sake let us commit ourselves as brave and responsible representatives of our societies to build a better, more just and sustainable future.

Thank you.

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