Ambassador
Ambassador's Speech
REMARKS BY AMBASSADOR E. ANTHONY WAYNE AT FUNDACION DEL RIO DE LA PLATA (FURP)
February 27, 2009
Thank you. It’s a great pleasure to be here in Mar del Plata with so many good friends.
I have just returned from Washington, so I would like to share some thoughts on the direction of our new Administration and Congress. It is undeniable that President Obama faces a daunting array of challenges. However, I can report that the new Administration is facing these challenges with courage and energy. Since his assumption of office, President Obama has reminded all Americans that we have faced challenges before and overcome them. He has inspired a sense of hope and unity in our people as we face difficult economic times. Just two days ago, the President told a Joint Session of Congress:
“The answers to our problems don’t lie beyond our reach. They exist in our laboratories and universities; in our fields and our factories; in the imaginations of our entrepreneurs and the pride of the hardest-working people on Earth. Those qualities that have made America the greatest force of progress and prosperity in human history we still possess in ample measure. What is required now is for this country to pull together, confront boldly the challenges we face, and take responsibility for our future once more.”
The most pressing challenge facing the United States government and all governments of the world is the global economic crisis. The United States is in recession. Jobs are being lost, houses foreclosed, and businesses shutting down. The same story is repeated around the world – unemployment is up, production is down, and banks are weakened. All of this bad news has led to an erosion of confidence. Thus, President Obama’s first response to the economic crisis is to send a message of hope and unity declaring before Congress, the American people, and a global audience “We will rebuild, we will recover and the United States of America will emerge stronger than before.”
In his Inaugural Address, he reminded us all that private enterprise and market economies remain the engine of the world economy and a powerful generator of prosperity. It is worth remembering that from 1996 to 2006 the U.S. economy grew at an average rate of 3.1% per year A remarkable rate for a developed economy. This rate of growth in the world’s largest economy, distributed by growing international trade, contributed substantially to global growth that helped lift five hundred million people out of absolute poverty between 1981and 2005 .
Just as President Obama seeks to inspire hope and unity in the American people, we need hope and unity among the nations of the world. The United States will play an important role, but we realize that the nations of the world need to work together to respond to this crisis. A spirit of hope and cooperation will help bring us together. Blame, recrimination and raw self-interest will tear us apart. We should all remember the lessons of history. The Great Crash of 1929 was severe, but its consequences were compounded by the crushing trade restrictions put in place afterwards.
At the Summit of G-20 leaders on April 2 and at the G-20 Finance Ministers’ Meeting on March 14, it will be important to affirm the commitment made at the November G-20 Summit to refrain from creating illegal barriers to trade. While concerns have been expressed about the so-called Buy American provisions of the economic recovery legislation, in fact, the final legislation ensures that no part of the new law will violate our international trade agreements.
Around the world, politics and economic interests will tempt governments to restrict trade. Our leaders will need to work for the common good by rejecting illegal trade or investment restraints and working together to reform financial systems and to create new opportunities for trade and economic growth.
President Obama has made clear since the earliest days of his campaign that he will approach all foreign policy matters with recognition of the need for multilateral cooperation and a profound respect for the views of other nations. The April G-20 Summit will likely be the first meeting between President Obama and President Fernandez de Kirchner and I can say this new team in Washington is looking to Argentina to help forge a consensus that will stimulate recovery.
Let me review some of the efforts that the Administration has taken to respond to the economic crisis. In the less than six weeks since Inauguration Day, the Congress has passed and the President has signed into law the American Recovery and Reinvestment Act which will provide nearly 800 billion dollars in economic stimulus. To provide a fast stimulus the money will extend unemployment benefits, provide tax relief to 95 per cent of Americans, invest in infrastructure projects, and provide budget support to the states. The quick initiation of billions of dollars of infrastructure projects will also build the foundations for future growth.
The President has committed to spend this money with the maximum possible transparency. The White House has established a special website www.recovery.gov that will allow any American, or anyone with Internet access, to see where this money goes and to offer questions and comments.
The Obama Administration has also put forward a “Homeowner Affordability and Stability Plan” that will offer assistance to as many as 7 to 9 million homeowners who are making a good-faith effort to stay current on their mortgage payments, while attempting to prevent the destructive impact of foreclosures on families and communities.
In order to assure the stability of the financial system in this time of market turmoil, the Administration is using provisions of earlier legislation to provide capital buffers for major financial institutions. The government will take temporary shares in some institutions in return for this capital, but will not take majority ownership of historically private banks. President Obama is committed to well-regulated but privately owned financial institutions. In his Inaugural Address, he rejected the idea that we should turn away from market-based economics and said that the power of markets to generate wealth and to expand freedom is unmatched.
These recovery and stabilization efforts will undoubtedly increase the U.S. government budget deficit. That’s to be expected from a stimulus program. However, this week the President hosted a National Budget Summit where he committed to reducing the budget deficit by half within four years. This will help resolve the imbalances that have affected international trade and exchange rates in recent years.
President Obama is committed to a foreign policy guided by engagement and dialogue. As the President said in his address to Congress two nights ago:
“In words and deeds, we are showing the world that a new era of engagement has begun. For we know that America cannot meet the threats of this century alone, but the world cannot meet them without America. We cannot shun the negotiating table, nor ignore the foes or forces that could do us harm. We are instead called to move forward with the sense of confidence and candor that serious times demand.”
The new Administration looks forward to hearing Argentina’s views - from the government and private sector alike - on the best way forward on economic issues and on the many other issues we face together, including supporting multinational peacekeeping missions, combating international terrorism, disrupting drug trafficking, money laundering and other international criminal networks; stopping nuclear proliferation, and defending human rights and supporting freedom. Our Embassy is committed to moving forward on all these crucial issues, both bilaterally and as part of multilateral processes like the G-20 and the Summit of the Americas.
I believe deep in my heart that cooperation between our governments is fostered by strong relationships between our peoples. That’s why I am always pleased to meet with FURP and other NGOs committed to international exchange. FURP’s delegation to observe the U.S. elections was a large and distinguished group that shared the excitement of an historic election. FURP’s youth leadership groups are always impressive. I have heard that this year’s group is one of the best our Washington colleagues have ever worked with. Please accept my congratulations on your exchange programs and on your commitment to fostering discussion and cooperation through your chapter here in Mar del Plata and FURP chapters throughout Argentina. Encouraging exchanges and closer people-to-people ties is one of my Embassy’s highest priorities, because those kinds of contacts are the best way for the people of our countries to understand each other better. I am grateful that we can share that mission with outstanding organizations like the Fundacion Universitaria del Rio de la Plata.
Thank you.
