Remarks at the closing session of the Asia-Pacific Economic Cooperation Summit in Santiago

Weekly Compilation of Presidential Documents, Nov 29, 2004

I think you can tell that I believe free trade is necessary for economic development, that free trade is essential to prosperity. But it is not sufficient, and we understand that. All governments in the region must make the difficult choices needed to stabilize economies and to keep public finances on foot. We have been impressed by the reform programs in Chile and Colombia and Uruguay that have spurred growth and investment in those countries and throughout the region.

My Nation and many others have acted to lift the crushing burden of debt that limits the growth of developing economies and holds millions of people in poverty, and we will continue to do so. We will continue working to relieve the current debt of those highly indebted poor countries that pursue sound fiscal policy. We will continue to encourage our large trading partners to adopt flexible market-based exchange rates for their currencies. Expanding prosperity has lifted millions in our region out of poverty, has bound our nations closer together, and has benefitted all our people. And my administration will continue to promote progrowth, pro-trade economic policies for the good of all.

Our second goal is to spread the benefits of freedom and democracy and good government across parts of the world. We've seen progress toward these goals in the recent history of the Asia-Pacific region. We've seen some interesting lessons of history as free markets take hold, the demand for limited government and self-rule builds. That's why it's important to promote free trade and open market policies.

In the long run, economic freedom and political liberty are indivisible, and the advance of freedom is good for all, as free societies are peaceful societies. My Government and many others are working with countries to lay the foundations for democracy by helping them institute the rule of law and independent courts and a free press and political parties and trade unions. We have joined with other members of the Organization of American States to create the Inter-American Democratic Charter. This charter recognizes democracy as a fundamental right of all peoples in the Americas and pledges our governments to promoting and defending the institutions and habits of liberty.

Because political liberty and economic freedom go hand in hand, America and many nations have changed the way we fight poverty, curb corruption, and provide aid. In 2002, we created the Monterrey Consensus, a bold approach that links new aid from developed nations to real reform in developing ones. We created the Millennium Challenge Account in America that says, "We'll increase aid and help to nations which are willing to fight corruption, which are willing to educate their people, which are willing to spend money on the health of their citizens, and nations which are willing to expand economic freedom." We owe that to the taxpayers of the United States, to promote the habits necessary for free societies to develop. And we believe every nation is capable of fighting corruption, is capable of putting good economic policies in place, is capable of educating their people and helping defeat the scourge of bad health care.