Secretary of State John Kerry on Expanding Prosperity in the Western Hemisphere

During his address at the 44th Washington Conference on the Americas, U.S. Secretary of State John Kerry spoke about Latin America’s transformation in recent decades and the potential for greater economic development in the region. “[T]his hemisphere is exhibit A that incredible progress is possible when there’s the right kind of leadership,” he said. “Today it’s crystal clear that if we work together and play our cards right, the Western Hemisphere can become literally the most stable and prosperous region in the world.”

In the past decade, Latin American and the Caribbean economies grew 4 percent a year, the secretary noted, while trade between the United States and the Americas nearly tripled. Plus, over 73 million Latin Americans were lifted from poverty. “You could take all the people in New York, Mexico City, Rio de Janeiro, Toronto, and Bogota, and you still wouldn’t be halfway to that number of people who have been lifted out of poverty,” said Kerry. The region’s success owes to a number of reasons. “It happened because leaders and institutions were willing to make the tough decisions to break away from the past, to try to make peace where there were insurgencies, and to open up new markets with trade agreements,” Kerry stated. Still, he cautioned that much works remains to be done to expand prosperity.

Kerry outlined four areas that can help ensure continued economic growth in the Americas: education, trade and economic integration, energy security, and good governance. On education, the 100,000 Strong in the Americas initiative is helping increase student exchanges. On trade, Kerry observed that the United States has free-trade accords with 12 countries in the hemisphere—more than any other region in the world. The secretary also pointed out the NAFTA remains important, and he will travel to Mexico later this month. He highlighted one trade challenge: less than 1 percent of 30 million small U.S. companies export their goods and services out of the country.

Read a complete transcript of the secretary's remarks.

“The world’s new energy map is no longer centered on the Middle East but on the Western Hemisphere,” said Kerry, commenting. “The region will account for two-thirds of the growth in the world’s oil supply over the next two decades.” Still, he noted that climate change is a serious risk, noting the importance of clean energy technology and legislation, such as a law passed by Mexico last year. He added that connecting energy grids is vital, and that once Costa Rica completes a new power line, “all six Central American countries will be linked into one power grid for the first time in history.”

On good governance, Kerry said: “If we manage revenue effectively and transparently and maintain a sufficient tax base, then our nations can invest in the services and infrastructure needed to support social mobility and competitive economies.” He warned that corruption and fragile institutions erode investor confidence and economic opportunities.

Finally, the secretary touched on Venezuela and Cuba. “We believe the future of Venezuela is for the people of Venezuela to decide,” he said. “The serious and worsening economic and social challenges in Venezuela can only be resolved with the input of those people.” On Cuba, he noted that the Obama administration’s policies are working to strengthen civil society on the island. “None of us want to see the Cuban people continue to be left behind as the rest of the hemisphere advances.” He added that there’s “important overlap between U.S. policy and the emerging micro-entrepreneurial sector in Cuba,” and noted AS/COA’s new report on potential U.S. policy impacts on these small businesses.