Presented by:

Foro de Coordinaciones de ONG de Guatemala [NGO Coordination Forum], a tertiary level organization, recognized as a legal entity by the Government of Guatemala, with legal Representative: Helmer Velásquez, Address: 2ª. Calle 16-60, zona 4 de Mixco, Residenciales Valle del Sol, Edif. Atanasio Tzul 3er. Nivel. Telephone: (502) 433-4007 (...08 or 09), Email: foro@intelnet.net.gt

Consejo de Investigaciones para el Desarrollo de Centroamérica (CIDECA) [Research Council for Central American Development], nongovernmental organization legally constituted as a development agency with legal status recognized by the Government of Guatemala and as legal Representative: Jorge Mario Salazar. Address: 17 calle 11-72 zona 2 Ciudad Nueva, Guatemala. Telephone: (502) 254-0582, Email: cideca@itelgua.com

The Role of National Governments, Political Intermediation
and the Processes of Social Exclusion and Inclusion in Guatemala,
in the Context of the FTAA.

The following text is intended as a contribution following analysis, consultation and reflection, and is based on experience gained through the work carried out by Guatemalan civil society organizations in a development-centered process. We are particularly interested in presenting our thoughts on aspects reflecting the role of national governments and that of political intermediation, as well as the effect of the processes of exclusion/inclusion in the context of the FTAA, and what one hopes to see included in the FTAA Agreement.

We begin with the inalienable principle that sovereignty resides in the people, which is the essence of the democratic system and, as such, is not subject to negotiation. Rather, international relations must be based squarely on the fundamental purpose outlined in our Constitution: TO CONTRIBUTE TO THE MAINTENANCE OF PEACE, THE STRENGTHENING OF DEMOCRACY, AND THE SHARING OF MUTUAL AND EQUITABLE BENEFITS AMONG STATES.

We must not forget that Central America has States which are still young and little developed, with institutionalized policies and atrophied operations: “push-button States”. This distortion of its true role, however, must not serve as justification for the dismantling of the State.

Contrary to this trend (which is at least beginning to be reviewed, given its obvious and disastrous consequences for the people), the FTAA should become a sovereign opportunity for the people to endow themselves with strong and democratic States.

To this end, THE FTAA MUST FOLLOW EXPLICIT POLICIES DESIGNED TO PROMOTE:

1- Strengthening of the State under the principle that the State is restored to and based on social justice.

2- Ensuring the sustainability of the State and to this end, in accordance with the principle of sovereignty, imposing tax rates equal to those applied in the developed countries, on the activities of the multinational corporations.

3- Leaving intact the State’s role as the entity that guide’s its national economy.

4- Defending our absolute sovereignty over our natural resources. Under its domestic legislation, each State must in turn guarantee the autonomy of aboriginal peoples over the use and application of these resources within the areas where they are located.

5- Consolidating democracy by promoting a continuous series of consultations with the citizenry.

6- Including within the negotiating process and in the conclusions of the FTAA Agreement provisions that guarantee the role of the State as the entity responsible for the general good.

We quote one article from the Political Constitution of the Republic of Guatemala: “THE ECONOMIC AND SOCIAL SYSTEM OF THE REPUBLIC OF GUATEMALA IS FOUNDED ON PRINCIPLES OF SOCIAL JUSTICE. IT IS THE OBLIGATION OF THE STATE TO GUIDE THE NATIONAL ECONOMY IN A MANNER THAT UTILIZES THE COUNTRY’S NATURAL RESOURCES AND HUMAN POTENTIAL TO INCREASE PROSPERITY WITH THE AIM OF ACHIEVING FULL EMPLOYMENT AND EQUITABLE DISTRIBUTION OF THE NATIONAL INCOME.”

2. Political Intermediation.

Guatemala’s political landscape is badly fragmented, with widespread mistrust of politicians and sporadic participation by voters at election time only, or when a particular issue sparks debate. The system is dominated by elitist special interest groups, and the political parties themselves are ineffectual.

The policies that govern public finance are dictated by the international financial institutions, multinational corporations and the foreign policies of powerful nations, further weakening the role of political parties.

Resistance to these forces and the effort to propose alternatives has passed into the hands of civil society organizations as we seek ways to transform these levels of participation into a means for controlling the processes producing globalization and defending the interest of the common man.

Participation and coordination of the various sectors of society must be understood to represent the emergence of qualitatively different forms of political intermediation, a phenomenon which is vitally necessary for the democratic strengthening of a nation.

THERE IS A NEED FOR PERMANENT PROGRAMS TO STRENGTHEN THE CAPACITY OF CIVIL SOCIETY TO MAKE ITS VIEWS KNOWN AND TO MONITOR THE WORKINGS OF GOVERNMENT. IT FOLLOWS THEN THAT THE FTAA MUST CONDUCT A MASSIVE INFORMATION AND AWARENESS CAMPAIGN.

Fostering civil society’s ability to provide political intermediation by formulating public policy and monitoring social outcomes will enhance its role as a key actor in national development.

In the field of development, the terms social exclusion and social inclusion assume a range of opportunities that are denied to some but not to others, in an ongoing and increasingly contradictory process.

The term “exclusion” is applied to those who remain outside the established political and economic system, and can be seen in unemployment and the reduced security and social benefits available to the poorest segments of society.

By recognizing social justice as its guiding principle, the FTAA must reverse this situation and promote “inclusion,” establishing stable living conditions through welfare and social security systems. In the specific case of Guatemala, historically the majority of this country’s population has remained in the exclusion camp, that is to say, most Guatemalans have never had access to benefits under the social service system. Meanwhile the State, as the central administrative institution, looks after the economic interests of powerful groups and serves as the principal agency promoting a system of domination which includes everything from open racism, discrimination and exploitation, to oppression and marginalization, thus resulting in social injustice in all its ugly forms.

In the context of the FTAA, Guatemala therefore represents a tremendous challenge in terms of policies, programs and social intervention strategies to improve the lot of the large majority of Guatemalans that have been historically excluded. Moreover, the country must now face yet more disparities arising from the requirements of the free trade agreements.

Based on the above, one of the most pressing contradictions to be resolved is that of the opposition between multiculturalism and racism.

One element which will help to resolve this contradiction is to ensure that the FTAA includes a requirement that the large multinational corporations contribute funding for intercultural education and citizen participation programs, and that the signatory States agree to promote those programs.

Historically, the indigenous people of Guatemala have demonstrated a high degree of organization which, for example, has enabled them to maintain a high profile in our society. No one provided this position to them; instead, they carved out a space through their own efforts. A passing reference is not enough, however, and the FTAA must formally acknowledge the forms of organization developed by the citizens of each country, and foster and respect the specific organizational structures developed by indigenous peoples, as well as their ancestral rights.

In the end, an economic development strategy which is not fashioned with an approach to intercultural development in mind, will fail to close the gap between rich and poor, and achieve sustainable development.

• Establish and develop policies that permit the general public to take part in discussing the contents of the FTAA, financed through contributions from the multinational corporations.
   

• The policy bodies established by the FTAA can only aspire to that level of legitimacy which is commensurate with the degree to which the general public is allowed to participate in the international debate.
   

• Recognize and promote the sovereign status of our States.
   

• Indigenous peoples must be granted recognition of their autonomous status as stewards of the country’s natural resources.
   

• The conventions, agreements and treaties that are signed must include provision for financial support to create systems and programs under which ordinary citizens are encouraged to monitor the workings of government.
   

• Before signing the FTAA Agreement, the States must sign and ratify the CONVENTION FOR THE PROTECTION OF MIGRANT WORKERS AND THEIR FAMILIES, which guarantees the rights of these people.
   

• As part of guaranteeing free trade in goods and services, we should also guarantee freedom of movement for workers and their families.
   

• Specific institutional arrangements must be made for citizen participation as part of the FTAA Agreement: a place in which to prepare social intervention strategies, provide open channels of communication, make suggestions and determine requirements for government programs and international organizations, and plan the activities to be carried out by civil society.
   

• Regional and international institutions must support and promote programs designed by civil society organizations in order to provide training, instruction and general education on the FTAA and globalization, and thereby improve the general capacity to take part in and manage development.
   

• An agreement of the magnitude of the FTAA only makes sense if it is based on the principles of social justice and recognition that true sovereignty comes from the people. Consequently, there must be an explicit clause in the FTAA Stating that the Agreement in its entirety shall be put to referendum and must be approved by the people.
   

• Given that discussions on the system of intellectual property rights established in the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights continue to generate controversy of every sort, particularly over the expiration of deadlines for its implementation and the submission of an ever-greater number of disputes to the Dispute Resolution Mechanism, and since there is every likelihood that in the new round of negotiations over the question of intellectual property, the views of the large multinational corporations will prevail, to the detriment of the interests of the population at large, we are taking this opportunity to present the following proposal.

• This proposal takes into account that the region of Mesoamerica, despite its relatively small size, represents 7% of the world’s biological diversity and is also home to a wide range of cultural diversity as well. Within the current debate, we have watching with mounting concern the economic, political, social, environmental and ethical implications that this problem presents. We deem it vital that the social interests of the indigenous communities be given priority in the negotiations, rather than the economic interests of the more powerful nations and the multinational corporations in the region. If the development of the region is the true goal, then the social interests of the population must be paramount.

• Our countries are weak and our people are poor. Our economies are not developed. We are heavily dependent on exports of agricultural products, and we lack the strength to undergo the process of deregulation in specific productive sectors as a precondition for their insertion into the global economy. Accordingly, it is important to insist on measures to determine performance based on standards of social, economic and environmental justice that permit establishment of international regulations making it possible for our governments, and the people they represent, to protect our natural resources as well as our producers, and to establish rules linked to the rights of our indigenous peoples.
   

• Our concern is based primarily on the granting of intellectual property rights to living organisms, which is closely linked to the question of new plant varieties and food security for our people. The FTAA negotiations should have as their fundamental objective to prevent a monopoly over the sale and distribution of seeds which would make our countries, which are rich in biodiversity but lacking in technology, even more dependent. We worry about the growing interest of rich countries in exploiting these resources, not only for economic gain but also as a political strategy for the food potential they represent.
   

• Our proposal is intended to ensure that countries with major biological diversity are able to participate in the benefits derived from access to this largesse, and to this end it is appropriate that the indigenous communities of the region be made the protectors of that biological diversity. This argument is based primarily on the provisions of Convention No. 169 Concerning Indigenous and Tribal Peoples in Independent Countries, of the International Labor Organization, which has been ratified by some of the countries of Mesoamerica.

• In essence, the Agreement should incorporate provisions to protect biological diversity and the traditional knowledge of indigenous populations by establishing a link to the Convention on Biological Diversity which seeks to protect this valuable resource, ensuring its sustainable use as well as fair and equitable participation in the benefits derived from a region’s genetic resources, and at the same time recognizing the sovereign right of States to their biological and genetic resources, and the equitable division of the benefits arising from the commercial use of these resources and traditional knowledge.

• We also believe that the rules governing access to genetic resources should prevail over all other trade rules arising under the Agreement. In the case of a country that does not yet have such rules, any trade agreement that enters into force after the FTAA is established shall not become effective in that country until its government has enacted regulations governing access to and utilization of its resources.

• In addition, the biological and genetic endowment of a country must be designated a part of its national heritage, and the same is true for traditional knowledge which likewise requires protection - two factors which must be spelled out in the intellectual property agreement. The granting of patents in this area must be subject to national laws and customary practices in each region, and decisions must be in accordance with the national interest and tradition knowledge of the people. This will require a review of the way in which such patents are awarded in order to ensure that indigenous communities are duly protected from the theft of their resources and the lack of transparency in the actions of some companies.
   

• In such cases, tradition knowledge must be seen as a national good, as part of the heritage of a people. And in all such cases, the central government must use all the means at its disposal to uphold the rights and ensure that the benefits go to its people, doing everything possible to preserve, utilize and share equally with every member of its society the benefits derived from tradition wisdom.

• Finally, we feel it is important to state clearly that the international trade system is unfair primarily for the least-developed countries, and therefore the rules of the game being negotiated reflect the interests and economic power of the large corporations, and not those of the people who make their home in the countries in the Western Hemisphere.