http://www.etaiwannews.com/Opinion/2005 ... 829261.htm

Free-markets stabilize democracy


2005-10-09 / Knight Ridder / By Representative Mario Diaz-Balart

Once a region of despots, Latin America is now predominantly made up of burgeoning democracies, and the primary U.S.-backed economic reform in helping these young democracies stabilize and develop their economic promise is free trade.

In 1974, 10 of the then-23 members of the Organization of American States had democratically elected governments, whereas today all 34 member states have democratic, constitutional governments.

Furthermore, according to the 2005 Index of Economic Freedom jointly published by The Heritage Foundation and The Wall Street Journal, 20 of the 26 Latin American and Caribbean nations have improved their economic freedom scores since 1995.

U.S. President George W. Bush wisely made passing the CAFTA-DR (Central American-Dominican Republic Free Trade Agreement) a major legislative priority because he understands that free trade is key to both the United States and Latin America's futures.

"As CAFTA helps create jobs and opportunity in the United States," Bush said when signing it into law, "it will help the democracies of Central America and the Dominican Republic deliver a better life for their citizens."

By passing CAFTA, we immediately eliminated tariffs on nearly 80 percent of U.S. products shipped to those nations, which will make it easier for U.S. goods to be purchased and increase sales.

But the long-term value and geo-political significance of this trade agreement far outweighs the short-term economic boost.

Stable economies allow countries and the hemisphere as a whole to become more peaceful, democratic and prosperous. Trade agreements like CAFTA will do more to raise working standards, reduce poverty, discourage illegal immigration and provide economic opportunities than anything we could accomplish by simply providing foreign assistance.

Right now, China is intent on heavily increasing its investment and trade in Latin America, and tyrants in the region - namely Cuba's Fidel Castro and Venezuela's Hugo Chavez - are actively trying to incite socialist shifts and undercut young democracies.

According to a recent Miami Herald article, China's trade with Latin America during the past five years "has grown at an annual rate of 42 percent, reaching nearly US$22 billion last year," and "more than half of China's foreign investments have been directed at Latin America to acquire natural resources."

With subversive intentions, Cuba sends doctors to other nations even while leaving many Cubans without access to decent health care. Chavez uses his strongman grip on Venezuela's oil supply to peddle influence in neighboring countries, even going so far as to funding Colombian rebels.

It is in our nation's economic and national security interests that we confront these anti-democracy forces. Clearly, the United States needs to continue providing foreign assistance to Latin American countries. This year, the United States is providing an estimated US$1.8 billion of foreign assistance to Latin America and the Caribbean.

Yet, as important and beneficial as these programs can be, much more important to the future of Latin America - and to the United States - is free trade throughout the hemisphere.

Free trade enables free Latin American nations to develop strong economic infrastructures and improve economic stability and prosperity. This strengthens U.S. ties throughout the region instead of ceding political influence to China and others opposed to democratic government and economic freedom. Furthermore, by binding our economies through trade, we make it in those nations' self-interests to fight corruption, crime, drug traffickers and terrorists.

After all, free and healthy economies foster peaceful, democratic societies. U.S.-backed economic reforms are working, but we cannot forget about our neighbors. As these young democracies continue to grow and prosper, they will continue to be among our strongest allies.


Representative Mario Diaz-Balart, a Republican from Florida, is a member of the U.S. House of Representatives' Budget Committee.