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### Viewing cable 06SANJOSE1251, GOCR TROTS OUT THE "COSTA RICA CONSENSUS"

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06SANJOSE1251 | 2006-06-07 16:48 | 2011-03-14 18:00 | UNCLASSIFIED | Embassy San Jose

Appears in these articles:
http://www.nacion.com/2011-03-12/Investigacion/NotasDestacadas/Investigacion2711772.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasDestacadas/Investigacion2707705.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasSecundarias/Investigacion2707712.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasSecundarias/Investigacion2707716.aspx

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    VZCZCXYZ0000
    RR RUEHWEB

    DE RUEHSJ #1251/01 1581648
    ZNR UUUUU ZZH
    R 071648Z JUN 06
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC 5276
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

` `

    UNCLAS SAN JOSE 001251

    SIPDIS

    SIPDIS

    E.O. 12958: N/A
    TAGS: PREL ECON EAID EFIN CS
    SUBJECT: GOCR TROTS OUT THE "COSTA RICA CONSENSUS"

    REF: A. SAN JOSE 204
         ¶B. SAN JOSE 1059

     Summary
    ---------
    ¶1.  The GOCR used the Santo Domingo meeting of the OAS
    General Assembly to make its proposal "to link international
    cooperation with peace, social investment, sustainable
    development, and a reduction in military spending," which it
    calls the Costa Rica Consensus.  In his speech to the OASGA
    on June 5, Foreign Minister Bruno Stagno urged rich countries
    to forgive the debts of and provide financial resources to
    developing countries that invest in people and not in arms.
    In all likelihood, the GOCR will repeat this proposal in the
    EU Summit in Vienna and other international fora.  End
    summary.

    Background
    ----------
    ¶2.  Oscar Arias, president of Costa Rica in the late 80s, a
    Nobel Peace Prize winner, and reelected president this year,
    has for many years been calling on the wealthy countries of
    the world to be more generous in providing aid to developing
    countries, including middle-income countries like Costa Rica.
     During his recent election campaign, Arias promised an
    "active and progressive" foreign policy that would strive "to
    overcome the enormous asymmetries between rich countries and
    poor countries" (ref A).  Two days before his May 8
    inauguration, Arias urged visiting U.S. members of Congress
    to increase assistance to deserving countries.  He claimed
    that the USG spent USD 500 billion on arms but only USD 16
    billion on development aid (ref B).

    ¶3.  In a press interview given June 4, on the eve of a trip
    to Europe, Arias elaborated on his critique of what he sees
    as USG stinginess.  He said:  "Twenty years ago they gave us
    economic assistance.  Today we don't have any.  Twenty years
    ago I was able to renegotiate our foreign debt so that they
    took USD one billion in debt off our shoulders so that we
    could invest in roads, infrastructure, and education.  That
    doesn't exist today.  Our country doesn't qualify for aid, so
    the only path to national development is trade.  I don't
    understand that.  It's wrong, but there is no other way."

    Better to Receive
    -----------------
    ¶4.  Addressing the OAS General Assembly in Santo Domingo on
    June 5, Foreign Minister Bruno Stagno formally introduced
    Arias's "Costa Rica Consensus."  He told the OASGA:  "My
    country's proposal is to link international cooperation with
    peace, social investment, sustainable development, a
    reduction in military spending, and the achievement of the
    objectives of the Inter-American Agenda that are included in
    the Millennium Objectives of the United Nations.  In this
    context, our organization (the OAS) is called to assume the
    leadership that these new times impose on it.  This is the
    spirit of the 'Costa Rica Consensus.'  A proposal of all
    Costa Ricans to the countries of the hemisphere and of the
    world in which we call on the rich countries to establish
    mechanisms to forgive the debts of and provide financial
    resources to developing countries that increase investment in
    health, education, and housing and reduce spending on arms
    and soldiers."

    ¶5.  Perhaps taking a page from the Arias book, an
    unidentified member country of the System of Central American
    Integration (SICA) proposed a Central American fund for
    "social cohesion" to benefit the poorest areas of the
    isthmus.  The proposal was made at the SICA Summit in Santo
    Domingo, which immediately preceded the OASGA, and implies a
    redistribution of wealth within Central America from
    better-off countries like Costa Rica to the very poor like
    Nicaragua and Honduras.  Costa Rican Second Vice President
    Kevin Casas told the press that the GOCR had "serious
    objections" and "grave concerns" abQ66FPBNc

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