As the political and economic dynamics shift both in the United States and in Latin America and the Caribbean, it is an opportune time to evaluate our successes, failures, opportunities and challenges, and to renovate our strategy there. While the 2008 elections will choose a new president and foreign policy team, I do not expect that the campaign itself will present much of an opportunity to ponder the fate of the region and our place in it. Despite some major differences that are discussed below, there is an essential bipartisan consensus buttressing our policy. To be sure, nothing has been said or done in the campaign thus far to suggest that any of the leading contenders for the presidency are proposing radically new approaches or even thinking great thoughts about the Americas.

Entender lo que está pasando hoy en América Latina, incluyendo mi país Bolivia, exige fijar la vista en cuatro cosas. En la economía; en la política y en el fenómeno “Tarzán”, que tiene su origen en el señor Hugo Chávez; en los desafíos que tenemos como país, como región; y, finalmente, en cómo podemos luchar por la democracia y por la libertad en América Latina.

When he visited Latin Americans earlier this year, President Bush explained just how free, productive societies are built. Were they listening? What a spectacle it was in March to see Venezuelan President Hugo Chávez chasing President Bush up the length of Latin America, from Buenos Aires to Port-au-Prince, shouting challenges and insults at the American leader and “empire.” Gilbert and Sullivan could have turned this indirect combat between the hemisphere’s two most self-consciously macho presidents into a smashing comic opera.

Latin America has become an ideological battleground. In the name of democratic stability, Mexico and other countries advocate neoliberal economic policy, close ties with the United States, and gradual social reform. In the name of social justice, Venezuela and its allies espouse statist economics, virulent anti-Americanism, and revolutionary social change. As Jorge Castañeda has remarked, “these two sides are fighting over the soul of Latin America…” Nations such as Chile and Brazil attempt to stand above the fray.

El presidente de Uruguay, Tabaré Vázquez, destituyó ayer al comandante en jefe del ejército, general Carlos Díaz, y resolvió arrestar por cinco días a los generales Pedro Aguerre y Miguel Dalmao por mantener reuniones con dirigentes opositores sin informar a sus mandos.

The paper draws on recent studies at the World Bank and elsewhere to highlight four aspects of Latin America’s current challenges. First, high inequality, partly related to historical relations between Europeans, indigenous and Afro-descendants, but reinforced by continuing dualism between the formal and informal sectors. Second, education, where the region suffers from a serious “secondary deficit” and weak educational quality. Third, the business climate, which exhibits continuing problems with inappropriate regulation, while infrastructure provision has suffered from cutbacks to public provision, only partly compensated for by increased private investment. Finally, Latin America’s future sources of international comparative advantage: whether in natural resource-based exports or in manufacturing, the region needs to improve performance in mobilizing knowledge and technology.

Rooftop marksmen and bodyguards with bullet-proof shields scan the crowd as President Alvaro Uribe makes his way to a campaign podium in the town square of Armenia, in Colombia's western coffee-growing region.

Latin American narcotics-producing countries were just reporting the first signs of drug abuse in their own countries, while the United States was in a full-blown crack epidemic. Today, U.S. cocaine consumption has leveled off and casual use is down substantially while drug abuse is growing in throughout the hemisphere. The inter-American dialogue on drugs has changed ccordingly, with less finger pointing and a greater sense of shared responsibility and cooperation.

With vigilance we are making progress in our counter-narcotics programs in Latin America. But there are challenges to keep up the pace and reinforce existing programs. We have lost critical hardware used in the eradication and interdiction of narcotics in the Andean region. We have diverted some equipment to other theaters of operation. There are gaps in our surveillance of key areas of the illicit drug transit zone in Central America and the Caribbean due to declining availability of air and surface patrol craft. These problems need to be remedied.

Sus relaciones con el partido de Lula Da Silva, sus lazos con el Partido Comunista chileno, sus incursiones en territorio argentino, su participación en el secuestro y asesinato de la hija de un ex presidente paraguayo, sus negocios con el zar peruano Vladimiro Montesinos y la protección de Hugo Chávez son muestras fehacientes de cómo las FARC se están expandiendo en toda la región con las pancartas de un rabioso antinorteamericanismo y un exaltado intregracionismo de tinte bolivariano.