2006 Secretary of State’s Award for Corporate Excellence Ceremony - General Motors

ASSISTANT SECRETARY SULLIVAN: Good afternoon. Welcome to the State Department. I am Dan Sullivan, the Assistant Secretary of State for Economic and Business Affairs. As you know, today we are gathered for the presentation by Secretary of State Condoleezza Rice of this year's winners of the Secretary's Award for Corporate Excellence.

Emceeing today's ceremony will be Josette Sheeran who is the Under Secretary of State for Economic, Business and Agricultural Affairs. As I know many of you know Josette and her outstanding qualities as a business leader, skilled diplomat, innovator and advocate for U.S. business, businesses and their workers throughout the world.

I am also pleased today that, thanks to the wonders of technology and the American Embassy Television Network, we are linking live with U.S. Embassies to honor this year's winners, so we can participate throughout the hemisphere.

Now it is my honor to present to you Under Secretary of State Sheeran and turn the program over to her.

Josette. (Applause.)

UNDER SECRETARY SHEERAN: Well, thank you so much, Dan. Good afternoon, everyone and welcome to this great celebration of the partnership between the U.S. private sector and the Western Hemisphere. I'm delighted that all of you could join us here today at the 8th Annual Award for Corporate Excellence. It's an event that I look forward to because it's a chance to put a spotlight on some of the truly good work that the private sector does day in and day out all over the world.

In a few moments, Secretary of State Condoleezza Rice will announce the winners, but before she does, I wanted to say a few words about the award itself. The State Department established the ACE award in 1999 in order to recognize the critical role U.S. businesses can play abroad in advancing good corporate citizenship and individual hope and opportunity -- actions that help create enabling environments where democracy and economic empowerment can flourish.

U.S. companies are nominated by U.S. ambassadors throughout the world. Nominations are based on achievements in areas such as: employment practices, responsible environmental stewardship and contributions to the overall growth and development of the local economy. Winners represent both large and small to medium size enterprises. Past winners include Cisco Systems, Motorola, Coca-Cola, Fiji Water, Chindex International and F.C. Shaffer, to name a few. The ACE Award is a unique way to highlight the good work that very small enterprises do also. Last year, the small enterprise winner was Lapa Rios Ecolodge, which focuses on ecotourism in Costa Rica.

Secretary Rice called the lodge, "a model of environmental stewardship and enlightened corporate leadership."

This year, there were over 50 ACE nominations. Every one of the nominees is doing important work in helping people in their host countries have a better life for themselves, their families and their communities. Through exemplary programs, these companies have recognized good corporate citizenship involves more than just investing in buildings and equipment, it means investing in people.

For the first time, almost half of our 12 ACE finalists who were announced last month were U.S. companies operating in Latin America. We weren't necessarily surprised -- the last couple of decades have seen a revolution of democracy and freedom in our hemisphere. Latin America and the Caribbean have posted four consecutive years of growth. Only the second time in 25 years this has happened and the outlook for 2007 is good also.

Chile has become the first country in the region to meet the Millennium Development goal of reducing extreme poverty in half. Countries long ravaged by internal strife are getting serious about internal reforms, including those that allow small and medium entrepreneurs to flourish. Take El Salvador, according to this year's World Bank Doing Business report, El Salvador in two years reduced the time to start a business from 115 days to 26. Salvadoran entrepreneurs can now register with necessary government agencies in a single visit.

ACE winners past and present promote positive change through the vitality of public-private partnerships. The ACE Award also speaks to Secretary Rice's vision of transformational diplomacy. It recognizes how America's expansive economy can help create a safer world where hunger and poverty are replaced by hope, and frustration with opportunity. When the government and private sector work together to support programs that invest in people, fair labor and the environment, we create a world where all our children have a brighter tomorrow. It is now my honor to introduce Secretary of State Condoleezza Rice to present the ACE awards. Please join me in welcoming her. (Applause.)

SECRETARY RICE: Thank you very much. Thank you. Thank you, Josette. Thank you very much for the kind introduction and also for your very hard work on behalf of business and its support of goals of democracy and empowerment abroad.

I'm very pleased to have everyone join us here, and a special welcome to those who are joining us via satellite. I'm also very pleased to see Brazil's Minister of Development, Industry and Trade, Luiz Furlan. Thank you very much for being here. There are also a number of members of the Diplomatic Corps. Welcome.

Today it is my great pleasure to present the State Department's 2006 Award for Corporate Excellence. This award honors American companies operating abroad that have the vision to build lasting bridges in their host countries. In doing so, they embody the principles that the United States seeks to promote around the world -- innovation and leadership, conscience and compassion, freedom and opportunity. Through their efforts, the companies we honor today are nurturing democratic institutions and strengthening the foundations of freedom, the ability to earn a living, to support a family, to educate a new generation and to build a robust economy.

Perhaps nowhere is the compassion of American business having a greater impact than here in our hemisphere in Latin America. As Josette noted, almost half of our finalists this year are companies working in Latin America. Our relationship with the people of Latin America is based on shared values and enduring ties of culture and family. So today we honor not only three American companies that are doing extraordinary work in Latin America, we are also honoring the partnership in our entire hemisphere. Together we are building what President Bush has called a hemisphere that delivers hope and opportunity for every citizen. And with that, I would like to announce this year's winners.

This year's small or medium-sized enterprise winner is Sambazon of Brazil. Sambazon is an outstanding example of the positive impact that a small company can make to the economy, the environment and the society of its host country. Sambazon was selected for its efforts to promote sustainable development in the Brazilian rainforest while improving the conditions of indigenous people through creative marketing of the a?a? fruit.

Last year, Sambazon's purchases of a?a? supported nearly one thousand grower families who worked more than 66,000 acres within the Amazon estuary, but the company is doing even more for these people. It has created training workshops for growers of this unique fruit, and it offers them guaranteed contracts and micro-credit programs. In addition, the company is supporting social, environmental and scientific programs that preserve the Amazon and benefit the people of Brazil.

I am pleased to recognize Sambazon with the 2006 Award for Corporate Excellence and I'd like to ask Sambazon's CEO, Ryan Black, to step forward. (Applause.)

(The Award is presented.)

MR. BLACK: Wow, thank you very much. It's a wonderful ceremony. Thank you, Madame Secretary and Under Secretary Sheeran. It's an honor here today to represent organic agriculture and socially responsible business. I want to thank my mother and my brother for being here, and it is with great pride that I accept this award on behalf of Sambazon's employees in the United States and also in Brazil.

I also accept this award on behalf of all of our small family farmers in the Amazon rainforest as well as our NGO partners who have helped us these last six years, especially Luis Menezes at the World Wildlife Fund in Brazil and Tammy Newmark and Steve McCormick at The Nature Conservancy. Last but not least, I would like to thank OPIC and Robert Mosbacher, Jr. at OPIC for all their support to our project this last year.

The mission of a social entrepreneur is to promote positive social change through using business. In 2000, my partners and I discovered that a tiny a?a? berry from Brazil possessed the power to support thousands of small family farmers, protect biodiversity of our Amazon rainforest and provide health and wellness to the world. We committed to making sure that this discovery did not simply spread an economic boom. We saw an opportunity to create an industry which would help people and at the same time support the environment. We saw an opportunity to use a?a? as a vehicle to promote sustainable development. With this in mind we established Sambazon, which means sustainable management of the Brazilian Amazon.

Save the planet, go organic. We're very proud to promote organic agriculture and to carry on the work of the pioneers who have come before us like Steve Demos, formerly of White Wave; Gary Hirshberg of Stonyfield Farm; and John Mackey at Whole Foods Markets. We hope that Sambazon will inspire the next generation of leaders just as we have been inspired. The definition of success in business has evolved; the future is based on the principles of a triple bottom line business model which promotes social, environmental and economic success. More directly, triple bottom line businesses promote economic efficiency, ecological conservation and social equality. Triple bottom line businesses offer us, as citizens, the opportunity to become powerful policymakers by voting with our dollars. Through active participation and responsible citizenship, we have the ability to build a community and a future based on sustainability. Active participation is the rent we pay for being in this democracy. Responsible citizenship means more than just showing up at election day. Responsible citizenship is being conscience of what we are spending and who we are supporting with our everyday purchases.

Ideas don't just come to mainstream by themselves; they need entrepreneurs and responsible citizens to actively engage and work day in and day out, year after year, until what was an idea of just a small group becomes the norm. And don't think that a small group of determined individuals can't change the world. In fact, and we only need to be reminded for the man whom this room is named, it is the only thing that ever has. Thank you very much. (Applause.)

SECRETARY RICE: Thank you very much for those inspiring remarks. Now I'm pleased to announce the first of two winners of the Award for Corporate Excellence in the multinational category. The first winner is General Motors of Detroit for its steadfast example of good corporate citizenship in Colombia. In addition to its numerous environmental, educational and crime prevention programs, General Motors is also helping demobilized former members of Colombia's paramilitary self-defense forces to reintegrate into civil society. It is for this work that we honor GM today. The company has trained and employed demobilized fighters giving them not just a steady paycheck but a new beginning to their lives. Even as we speak, General Motors is working with the government of Colombia's Peace Commission and other organizations to create a production facility to make uniforms that will be used by GM employees across the Andean region. The production facility will employ military widows and demobilized conflict members. But it will do more than that, it will have a lasting positive effect on the ongoing peace process within Colombia.

I am pleased to present the Department of State's Award for Corporate Excellence to Robert Lutz, Vice Chairman of General Motors. (Applause.)

(The Award is presented.)

MR. LUTZ: Well, thank you very much, Secretary Rice. It's a tremendous honor for General Motors and our Colombian operations GM Colmotores to receive this award, and it's also a great honor for me personally to be allowed to accept it on their behalf.

General Motors has a long history of commitment to the community wherever it does business. GM remains committed to being a good corporate citizen in communities around the world by creating jobs, by investing in training and education, by skills development and seeded technology and growth and improving the standard of living of literally millions of people around the globe.

We have adopted and adhered to the global Sullivan principles which aim to help improve "the quality of life" for communities, workers and children with dignity and equality. These principles guide all of our global activities in such areas as diversity, health, safety, human rights, education, employee training and employee satisfaction. Now, in Colombia we recently celebrated the 50th anniversary of the founding of General Motors Colmotores. So frankly, this honor couldn't have come at a better time as we look back on the success and the good works of the past half century and, of course, looking forward to a future filled with more of the same.

Our people in Colombia have worked very hard and in a number of different ways to earn this award. And as Secretary Rice said, perhaps the most important is our strong support of the non-profit organization Juan Bosco Obrero, which does seek to reintegrate demobilized former paramilitary members into Colombian society. Now, these former members of illegal squads are often young, often untrained, and they need a lot of help in readjusting to being able to participate in normal society, a society without war. And the Juan Bosco Obrero provides assistance and job training to these young men and women. And Colombian society as a whole reaps the benefits of their reintegration.

GM Colmotores has also supported through funding and volunteer work the needs of families and children who have been touched or displaced by violence. The Colombian Government and now the U.S. Government has recognized our efforts as having a lasting positive effect on the peace process in Colombia and greatly contributing to the quality of life of people in need, and that seems to me to be the essence of corporate social responsibility. That's exactly what we're doing because it's exactly what we should be doing. We don't need really awards to remind us of our obligation. Don't get me wrong, we take the award, we're very proud to receive it, and we thank you for it. But we take our responsibility very seriously, and we are committed to giving back to our communities all over the world.

In closing, I would just like to thank the State Department for recognizing our efforts. And I'd like to thank everyone at GM Colmotores in Colombia and congratulate you for your selfless efforts and hard work in making Colombia a better place. Thank you. (Applause.)

SECRETARY RICE: Thank you very much. And now I would like to make one further award. In the past we've generally granted the Award for Corporate Excellence to only two firms, a multinational enterprise and a small or medium enterprise. But this year our selection committee determined that two large companies were equally outstanding. So I'm pleased to announce that the second ACE winner in the multinational enterprise category is Goldman Sachs of New York for its outstanding corporate stewardship in Chile.

Goldman Sachs was selected for endowing a gift of 680,000 acres of wilderness in the Tierra del Fuego to the Wildlife Conservation Society for a national preserve. The reserve is the size of Rhode Island and it contains rare and fragile ecosystems unique to South America. Goldman Sachs worked with the Government of Chile to obtain support for this nature reserve, and it created an advisory council that includes some of Chile's most distinguished experts. Together, these partners are working to educate the local community, to conduct scientific research and to promote sustainable development of ecotourism.

These efforts are helping to create jobs and a better quality of life for many Chileans. I am pleased to present the Department of State's Award for Corporate Excellence to Goldman Sachs Chairman and CEO, Lloyd Blankfein. (Applause.)

(The Award was presented.)

MR. BLANKFEIN: Secretary Rice, Under Secretary Sheeran, Assistant Secretary Sullivan, Assistant Secretary Shannon and distinguished members of the diplomatic community, thank you for this tremendous recognition of the uniqueness of Tierra del Fuego and the work and creativity of the people of Goldman Sachs who helped preserve this extraordinary part of the world. You heard the Secretary describe the environmental wonder Tierra del Fuego represents and the fact that the people of Chile and around the world will be able to enjoy its natural splendor in perpetuity. This alone makes this venture special.

But I also want to acknowledge that the opportunity to preserve Tierra del Fuego came to life out of what appeared to be a routine business transaction. In 2002, we purchased a portfolio of distressed debt which included notes secured by 680,000 acres of ecologically significant forest land. Our people looked beyond the traditional options for this property and identified a rare opportunity to create value though not in the same sense commonly thought of in the world of finance. We determined that this environmentally precious land could and should be preserved.

With the Wildlife Conservation Society we announced a partnership to protect much of the wilderness at the southernmost edge of South America. Through this unprecedented private-public alliance, Goldman Sachs and the World Conservation Society are working with Chilean conservationists and other partners to establish a world class nature preserve that preserves and protects this land's unique ecological characteristics. This undertaking made possible by the expertise and vision of the people of Goldman Sachs and the diligence and passion of WCS illustrates in a compelling way that the private sector can play an important role in helping to protect the environment.

Finally, I want to acknowledge the contributions of some specific individuals. John O'Leary was the former U.S. Ambassador to Chile who sadly passed away last year. John and his business partner Kathy Barclay, who is here today, did a brilliant job in guiding Goldman Sachs through this donation. I'm delighted that John's wife, Patricia Cepeda is here to see the fruits of his hard work. Craig Kelly, the current U.S. Ambassador to Chile was a strong advocate from the beginning. And finally, Steven Sanderson, President of the Wildlife Conservation Society, and his team are diligently working to create one of the great conservation projects in South America.

So on behalf of the people of Goldman Sachs and our partners at the Wildlife Conservation Society, I am privileged to accept this honor. Thank you very much. (Applause.)

SECRETARY RICE: Thank you. Thank you very much, Lloyd.

Well, this is quite a trio and quite an inspiring trio from different aspects of business that have found different and creative ways to partner with the people of Latin America for sustainable development, for prosperity, and indeed in support of democratic values. These awards signal the influential role that American business can play in ensuring the continuing evolution of peaceful and democratic and open societies.

On behalf of the men and women of the State Department, I want to thank you again for your hard work and compassion. I want to thank you for your attendance at this very special event. And I would now like to turn the program back to Josette Sheeran who is going to lead to the interactive portion with the embassies. Thank you very much. (Applause.)

UNDER SECRETARY SHEERAN: Well, please join me again in thanking Secretary Rice for being such a marvelous presenter. Thank you. (Applause.) Now we get to the section of the program, it's like those reality TV shows where you get to visit the home base and see the enthusiasm for these programs that we're promoting today on the ground where they're making a real difference in people's lives. We're going to first link up with our embassy in Brazil. And I think the moment has come where we will welcome Ambassador Cliff Sobel, a dear friend of mine, our new ambassador in Brazil -- there he is -- and also Mr. Gusmao, the managing director of Sambazon in Brasilia will also be joining us. Cliff -- Ambassador Sobel, now over to you.

AMBASSADOR SOBEL: Thank you, Madame Secretary. We also want to extend our congratulations to Sambazon, as we say here Parabayans (ph). It's a well-deserved recognition. Sambazon is still a small company, but is growing every year. But small and medium size companies are the backbone to economic growth and job creation. Sambazon has not only created jobs, it has helped to preserve the environment as we've already heard. The company's stated goals from the very beginning are to bring a healthy, nutritious fruit to the United States, but also to help deforestation by supporting an alternative source of income to approximately 1,000 local family farmers living on the shores of the Amazon.

Last month the Government of Brazil announced a reduction in the deforestation of the Amazon jungle. There are many reasons for this, but one of those is the harvesting of the a?a? fruit. We often hear about the need for renewable energy, but here we have renewable harvesting. The thinking embodied by Sambazon is an example that is worth showcasing and that is why we here at the Embassy are so glad that they have been recognized.

Sambazon's focus on helping poor communities to earn an income is important. By providing subsistent farmers with a secure market for a cash crop contributes greatly to the income security of local people. In some cases, growers are attaining over 80 percent of their annual income from this crop. The company is able to pay a premium because they have reduced the middle man. The farmers are earning over 50 percent more than the average regional wages.

Recently the Overseas Private Investment Corporation, OPIC, provided financing, enabling the company once again to grow, opening up a processing plant employing more than a hundred people in Amap?. The factory not only allows the company to grow, but also allows for greater harvesting in a much larger area. This is another example that the U.S. Government through OPIC is financing and helping the businesses, American businesses and their Brazilian partners here grow and prosper.

Sambazon's corporate responsibility program is a model. It is helping rural farmers, it is preserving the environment, it is increasing income to the local farmers and it is creating a sustainable, ever further harvest for future years. This is to be applauded and once again I offer my congratulations for this very important award. And I want to thank the panel in Washington for recognizing this very, very worthwhile company. Let me introduce one of their senior managers here today, Mr. Gusmao, to talk a little bit about the company.

MR. GUSMAO: Thank you very much, Ambassador Sobel. This is a very special occasion for all of us at Sambazon. Being distinguished with the Award of Corporate Excellence is a great honor to our team as it rewards entrepreneurship, commitment and determination to making a dream happen. Moreover, it reinforces our allegiance to sustainability and engagement in multicultural teamwork. I want to specially thank our teams in Brazil and the U.S. for producing the world's best organic aca? pulp and creating and marketing superb aca? based products that bring health and wellness to the world. Special thanks to our host state, the state of Amap?, Governor Waldez G?es, all his secretaries and Suframa and all other Brazilian agencies for their support to our project.

Since 2000, Sambazon?s work in creating demanding for aca? berries has generated thousands of new jobs and provided consistent income to small family farmers. Sambazon's innovation was not only to create and market healthy products from organic aca?, but to successfully help protect biodiversity in the Amazon rainforest on economic grounds and that means making sure that everyone profits: the small family farmer, the community, the environment and the end consumer.

Open last July, our Amap? factory already created more than 1,400 new jobs in the region and an aca? demand of $7.5 million per year, which means income to the growers, additional income. We are proud of our -- very proud of our first landmark in sustainability and the triple bottom line that our CEO Ryan Black just mentioned. This plant is also the cornerstone of our future growth into the next decades.

Finally, I expect that whenever you honor us by, honor us by enjoying Sambazon aca?, you share the feeling of helping to preserve and manage a small part of the Brazilian Amazon. Thank you very much. (Applause.)

AMBASSADOR SOBEL: Madame Under Secretary, I think we're turning it back to you.

UNDER SECRETARY SHEERAN: Well, thank you, Ambassador Sobel. Thank you, Sambazon and Ryan Black for all that you have contributed. Fourteen hundred jobs is transformational kind of work and we thank you for your triple bottom line. Now, it is my pleasure, we get to move to Colombia and to welcome Ambassador Bill Wood of the United States and Mr. de Francisco, the legal director of GM Colmotores in Bogot?. And welcome, Ambassador, and you have the floor now.

AMBASSADOR WOOD: Thank you, Under Secretary Sheeran, Secretary Rice, Assistant Secretary Sullivan, Vice Chairman Lutz. It is a pleasure today to have with us here in Bogot?, Santiago de Francisco, Corporate Secretary of GM Colmotores and Legal and Government Affairs Manager. You also have a group of GM Colmotores employees present. Hello. Including Gilberto Ardila, GM Colmotores top volunteer this year who put in more than 200 hours in volunteer service to the community. Congratulations to all of you, and special congratulations and thanks to Gilberto.

The Secretary of State's Award for Corporate Excellence recognizes outstanding corporate citizenship, exemplary employment practices, and responsible environmental stewardship by a U.S. company operating in a foreign country.

Today we recognize the success and extraordinary contributions of GM Colmotores to the well being of the company's workers and of its neighbors, including many displaced victims of violence here in Colombia. GM Colmotores supports programs to improve security in nearby neighborhoods, improves education in needy schools, and supports community institutions among poor Colombians.

The company and its employees contribute time, money and ideas to fulfill their model of a broad-based and mutually beneficial corporate compact with society. In Bogot?, for example, GM Colmotores supports the Centro Don Bosco Obrero. It is my pleasure to recognize Father Jaime Garcia, Director of the Centro Don Bosco Obrero. The center serves more than 4,000 young people in Cuidad Bolivar, one of the most troubled neighborhoods in Bogot?.

Many of the students used to be members of Colombia's illegal armed paramilitary groups. GM Colmotores and the Don Bosco Center prepare them for a new beginning with job training, counseling and other social support. GM Colmotores supports the Don Bosco Center through volunteer work, assistance programs, technological subsidies, educational materials and technical advice. Father Jaime's work, with the support of GM Colmotores, will give these young people a new change at a meaningful lawful life. It is the best possible example of the private sector helping troubled young people return to healthy, productive private life.

GM Colmotores also has demonstrated an extraordinary commitment to the environment. In spite of steadily growing production over the past five years, GM Colmotores has reduced energy consumption by 47 percent and water consumption by 57 percent and reuses 95 percent of all waste material. In each of the last four years, GM Colmotores has received the Mayor of Bogot?'s Award for Environmental Excellence.

Secretary Rice's selection of GM Colmotores for the Award for Corporate Excellence affirms the quality and character of this company as it celebrates 50 years of service to Colombia and demonstrates that good corporate citizens can be our best diplomats and representatives abroad.

GM Colmotores' efforts will serve as an example for the rest of our international community. Colombia is a better place for your efforts. And the United States is stronger for having corporate representatives like you around the world. Congratulations.

Now it is my pleasure to introduce Santiago de Francisco, Corporate Secretary of Colmotores. He will accept the award on behalf of GM Colmotores here in Colombia. Mr. de Francisco, congratulations. (Applause.)

MR. de FRANCISCO: Thank you. Madame Secretary of State, Mr. Ambassador, distinguished Washington colleagues, ladies and gentlemen. It is a great honor for our company and a source of immense satisfaction to receive the 2006 Award for Corporate Excellence. At GM Colmotores corporate social responsibility is a priority. We are committed to the development of Colombia and constantly seek to positively influence our surroundings because we are convinced that an active social role is the guarantee of our success in the long run.

GM contributes to the strengthening of the less favored communities in the countries in which it operates through responsible and supportive actions that include the active involvement of the company and its employees and programs with positive social impact. That is how GM Colmotores has been supporting the peace building process in Colombia, by sustaining educational and nutritional programs for thousands of children and young people who live in poverty and marginality. These include the provision of technical training and employment opportunities for young people from Don Bosco Obrero, training and promotion center, some of whom are demobilized former members of illegal arms groups.

In close coordination with the Colombian Government and the U.S. Embassy, we are in the process of creating a garment factory that will manufacture uniforms for employees at the GM plants in Colombia, Ecuador and Venezuela, and for Colombian dealers and suppliers. This project will provide a number of individuals demobilized from the illegal arms groups with an employment alternative that will enable them to live with dignity.

In GM Colmotores, we live our culture of respect and solidarity that we implement, among other initiatives, through the GM volunteer plus international corporate program in which every employee donates time -- free time, not on working hours, and works with more than 5,000 people who live in poverty. This initiative is carried out through 20 nongovernmental organizations for social and humanitarian assistance which also receive economic donations from the GM Foundation in proportion to the number of hours of voluntary service on the part of our employees.

We receive this award today on behalf of GM Colmotores and all of its employees who have decided to serve and work for the country further than their daily jobs. We also receive it with pride in the name of Colombia, a country that we cherish and believe in, and to which we have been committed for 50 years, participating in its economic and social development. We are optimistic and will continue forward investing in Colombia, contributing to the progress of its industry, and generating employment in all stages of the supply, production and distribution process.

As always, we will continue working doggedly as a team with a common goal, to continually improve ourselves and consequently make Colombia a better place one day at a time. Thank you very much. (Applause.)

AMBASSADOR WOOD: Thank you very much, Santiago. And once again, congratulations to all the members of Colmotores, from all the members of the embassy. Under Secretary Sheeran, I am pleased to hand the broadcast back to you. Thank you very much.

UNDER SECRETARY SHEERAN: Well, thank you so much. And thank you, GM Colmotores, and thank you so much for the contribution you've made.

Now moving to Chile. I can remember the moment recently when I was riding in my car and heard the news that the Ivory Billed Woodpecker had been cited and -- a bird that we believed was extinct, and I was so overwhelmed and so filled with gratitude I pulled the car over. And I also remember reading about the work that Goldman has done in Chile and feeling some of that same feeling, that this will be a legacy gift for humanity. The area that is covered, the size of Rhode Island, provides the opportunity for those kinds of miracles to happen and to preserve species and plants and fauna that we do not want to lose as a legacy for our children. So we are so pleased now to welcome Ambassador Craig Kelly, who will join us from Santiago, and also Eduardo Aninat, who is the International Advisor to Goldman Sachs in Santiago to hear directly about this great project. Thank you.

AMBASSADOR KELLY: Madame Under Secretary, thank you. It's a pleasure to join you and our colleagues in Bogot? and Brazilia in this great event. Ever since 1520 when the great explorer Magellan gave the name "Land of Fire" to the southern extreme of our hemisphere, Tierra del Fuego has exerted a strong pull on the world's imagination. Charles Darwin, gazing upon Tierra del Fuego 174 years ago, said "A single glance at the landscape was sufficient to show me how widely different it was from anything I had ever perceived."

Today, Tierra del Fuego remains a unique mix of ecosystems from peat bogs to dense forests to deep blue lakes hidden among towering peaks and glaciers. This is clearly a land worth protecting. By transferring 680,000 of Tierra del Fuego to the Wildlife Conservation Society, Goldman Sachs has made a priceless contribution to the fragile sub-Antarctic environment. Because of the generosity and foresight of Goldman Sachs, Tierra del Fuego's Karukinka region will become a model for conservation, ecotourism and education for Chile and the rest of the world.

The Goldman Sachs donation is also a model of what the private sector can do for the environment. In fact, one of the hallmarks of our successful free trade agreement with Chile is that rapidly growing bilateral commerce is not only good for our economies it is good for the environment. Karukinka is now one of the most dramatic examples of that, and for years into the future Embassy Santiago will be proud to point to Goldman Sachs as a model of corporate responsibility.

Ever since I arrived in Chile as Ambassador two years ago, I was inspired by the Goldman Sachs story and those who were making it come true. But only when I made my first helicopter visit to this remote area 10 days ago, along with Assistant Secretary McMurray and Dr. Barbara Saavedra of the Wildlife Conservation Society, did I fully comprehend the enormous heritage that Goldman Sachs is offering to Chile and the world. Looking over the southern most glaciated peaks of the Andes, as they surrender themselves into the icy waters of the Drake Passage, you understand you are truly at the end of the world. There is no place like this magic region. And thanks to Goldman Sachs, scientists, students and tourists will be able to preserve and study it forever.

All of our friends at Goldman Sachs and the Wildlife Conservation Society should be very proud of that. And I would like to add to my friend Patricia Cepeda, wife of late Ambassador John O'Leary, you must be very proud today of John's great vision.

Now it is an honor to introduce my friend Eduardo Aninat, former Chilean Minister of Finance and Ambassador to Mexico. Ambassador Aninat is now the head of Goldman Sachs Chile. It is a pleasure for all of us at Embassy Santiago to convey our congratulations through him to all the wonderful people at Goldman Sachs who have realized this great Patagonian dream. Ambassador Aninat.

AMBASSADOR ANINAT: Thank you, Ambassador. (Applause.) It's a pleasure for me to be here representing Goldman Sachs in Chile. I want to salute Under Secretary Sheeran, all of the ambassadors that have been gathered at this important awards ceremony, and all of you ladies and gentlemen attending this important conference.

Goldman Sachs Chile is honored to receive the State Department Award for Corporate Excellence. Goldman Sachs believes in commitment to the global community in which we operate as we heard our chairman a few minutes ago. The lands which today are known as Karukinka in Tierra del Fuego, Chile have significant global importance, and we are pleased that they will be preserved for the benefit of the world and for the people of Chile.

Sustainable development is something we all firmly support and very specially Goldman Sachs support in the way it does its business. We appreciate the very strong support we have received from the government and people of Chile and of the United States of America as well as from the scientific and business communities which are represented on the Karukinka Advisory Council, WCS. We have carried out this work with careful consultation with all relevance stakeholders and society at large.

Thank you again, Ambassador Kelly, for your guidance and for your good support. And once again, I salute you, the Secretary, Under Secretary and appreciative for this important award which we gladly receive today. Thank you very much. (Applause.)

AMBASSADOR KELLY: Madame Under Secretary, Embassy Santiago is very proud to be associated with this great project, and we appreciate participating in today's great event. Thank you. And now back to you.

UNDER SECRETARY SHEERAN: Thank you Embassy Chile, and thanks again Goldman Sachs for this great contribution.

There is so much good that's been said. I would like to quote Secretary Rice, something she said in my swearing in ceremony, in fact, just a little over a year ago. She said, "People want to see the benefits of democracy and freedom and liberty translated into their daily lives." And what really moves me about the winners and about the legacy they leave is that this is prosperity, opportunity and hope being translated into people's lives. This is the international language of hope. It knows no boundaries and it knows no limits. Prosperity knows no limits. It can be spread and it can grow. And I think that's what's being demonstrated here today by these companies.

We are now done with the awards portion of our program. What we have decided to do today is to take advantage of the huge talent in this room. And I look around and I see many leaders not only those from the United States but those from throughout the hemisphere here or transformational business leaders, and to take advantage of you while you're here to have an interactive panel discussion on how we can replicate some of what we've seen here today, some of the elements of it. And the dialogue is entitled, "Advancing Prosperity and Ending Poverty in our Hemisphere."

We know that one of the millennium development goals is to cut extreme poverty in half by 2015 but not to stop there to continue. And we know what can be done. We've seen it done in Chile. We've seen other countries in the hemisphere really being able to make strides doing that. And so we've invited in a group of experts. It will be led by our Assistant Secretary for Western Hemisphere Affairs, Tom Shannon, someone well known to all of you. He will be moderating. And I'll just mention the array of leaders that we have here who will just trigger this conversation. But then we want to be sure most importantly that we involve all of you. Carlos Guimares, who is the Vice President for the private sector of the Inter-American Development Bank will be with us. They're doing such innovative work there to ensure that prosperity knows no boundaries. Dr. Simeon Djankov, who I greatly admire his work in establishing the World Bank's Doing Business Report. If you have not seen this report, it comes out every year and ranks every economy including the United States on dozens of indicators, what I call the infrastructure for prosperity, all those small microeconomic pieces that need to be in place for people to be able to have opportunity and jobs and hope. And Susan Segal the CEO of the Council of the Americas; Ryan Black, our CEO of Sambazon will be on the panel also; and Jaime Ardila the Vice President and CFO of General Motors in Latin America.

And following this dialogue, we will have refreshments outside and a celebration of our awardees. So I want to thank you. I want to thank you for joining us. For those of you who can stay and those of you who have come also for the panel, we will start immediately.

Tom Shannon, I think it's over to you now. Please welcome Tom. (Applause.)

ASSISTANT SECRETARY SHANNON: Thank you very much, Josette. We now have an opportunity to reflect a bit on what has happened here today. And if possible, I'd like to call forward those who are going to participate in the panel, Mr. Guimares, Mr. Djankov, Ms. Segal, Mr. Black is staying, and Mr. Ardila.

Anyway, again thank you all very much for your time. As Under Secretary Sheeran noted, there will be a reception following. I think we've got about 35 minutes. The reception is due to start around 1:30. But as I noted, this gives us an opportunity to reflect a bit on what's been said and to engage in interactive dialogue here not only about corporate responsibility but also about what partnership means in the Americas. I was very struck by Ryan Black's statement that he has a triple bottom line. The U.S. Government also has a triple bottom line in the Americas, and that triple bottom line is democracy, prosperity and security. But we recognize that neither of these three can happen without investing in people. And one thing that the private sector has shown through the kinds of activities that have been awarded -- that have received awards today, is just how business and investing in people go together.

I'd like to note that a hundred years ago in 1906, then Secretary of State Elihu Root took the first trip a Secretary of State has ever taken to South America. He went to Brazil to participate in the Pan American Union meeting but then visited each country that he could visit by sea including after Brazil, Chile and Colombia. And in the course of that, he talked about the solidarity of American republics in creating a successful popular government. And after many decades, this hemisphere has been successful in creating popular governments.

But we face an ever larger task today and that's moving from popular governments or democratic governments to democratic states. And what I mean by that is that ultimately for us in a hemisphere that shares values and shares common economic understandings, it's not enough just to be a political citizen. It's not enough just to vote. And we need to understand our democracy not only in terms of government but also in terms of what our state is. And that means that citizenship can not only be political but it also has to be economic and social. And our state has to link democracy and development. It has to show that democracy can deliver the goods, that it can deliver the benefits and services that all our people expect and deserve, and in the course of this underscore that democracy is not a conservative form of government designed to create the privileges of elites but instead is a revolutionary form of government designed to open societies, create mobility, create opportunity and allow people the resources necessary to achieve their full potential and do so in -- while maintaining their human dignity.

And as Secretary Rice noted at a Council of the Americas event earlier this year, whatever our governments might be up to in this region, our people have made their choice. They are creating an alliance of peoples, and our private sector has made a choice. They are integrating markets and exchanging experiences and building a new Americas. And one of the great things about having so many experts in this year here in the panel and in the room, and one of the great things about this interactive dialogue is that we, our governments, can learn a lot from this because ultimately at the end of the day our bilateral relationships, our diplomatic relationships are only a pale reflection of the reality of relationships that exist in this hemisphere between our peoples, between our companies, between our universities, between our NGOs, between our churches and our faith-based institutions. And for this reason it's a real honor for me to be here to lead this, to moderate this discussion. And what we'd like to do is start by asking a few questions of our panelists here, get some initial reactions, but then open this up and hope to hear comments and questions from all of you. And as I said, we've got about until 1:30 at which point the reception will begin.

But if possible, I'd like to begin with Mr. Guimares. The IDB has been doing some very, very important work in private sector development. It has really I think shown itself to be a cutting edge institution in developing a banking -- a multilateral banking relationship with a private sector that is increasingly more dynamic and more important in the region. Sir, maybe you could give us your thoughts on the role of the IDB but also the potential for using multilateral development banks to promote private sector activity especially in small and medium-sized enterprises.

MR. GUIMARES: Thank you very much, Assistant Secretary Shannon. It is a privilege to here today and to have the opportunity to address such a distinguished audience. Let me talk a little bit about growth in the region and trade and maybe a little bit about investment, which is the backdrop of what the IDB has been doing.

The region has experienced, since 2003, one of the most successful growth cycles that the region has seen in probably three decades. The growth of international trade has been one of the key components behind the growth rates within the region, and growth in the world economy and boost in commodity prices and demand for Latin America commodities has really been a key component behind this, especially with the growth in Asia.

Today, Latin America is a key component of China's imports, supplying in many cases maybe up to 60 percent of China's imports, such as in the case of soybeans and other products. We at the IDB have been always strong supporters of the regional trade agenda not only as a mechanisms for competitiveness and innovation but also to anchor the very important economic reforms which the region is going through.

In terms of investment, and here I think the role of the IDB is key, investment levels in the region have grown up and at this point are close to 22 percent of GDP, which is higher than what we have seen over the last 10 years but certainly smaller than what it was many years ago. And within this context, if for the regions to support growth rates of 5 to 6 percent, the level of investment have to grow to maybe 24 to 27 percent of GDP. And within this context, infrastructure is probably one of the key areas of investment in the region in terms of position the region in a very much more competitive position, vis-?-vis the world economy, whereas many countries in Latin America are investing around one-and-a-half percent of GDP in infrastructure in some countries. And some notable exceptions such as Chile and Colombia, the amounts to be invested in order to have sustainable growth and to be at the level where the Asian tigers are today would be 4 to 6 percent of GDP. And these amounts are extremely large and are amounts which cannot be provided by the public sector alone. This is an areas where at the IDB we are very focused on not only supporting the government to create mechanisms to programs such as public-private partnerships to incentivate private investment in infrastructure as well as to work with the governments in putting together programs and regulatory frameworks to support private capital.

So we, at this point, are very enthusiastic with what we see in the region in terms of growth and trade and growth and investment. The private sector has a key role to play. Over 80 percent of economic activity in the region is funded by the private sector. So our role as a development institution is really to work with the public and the private sector sides to create an environment which is conducive to investment.

ASSISTANT SECRETARY SHANNON: Thank you very much. Our second panelist, Mr. Djankov, works for the World Bank, and he produces the annual Doing Business Report as Under Secretary Sheeran noted. Sir, maybe you could speak to us about competitiveness in the region.

MR. DJANKOV: Thank you. Over the last year there has been rapid growth of reform initiatives in Latin America as well as actually in some other regions in the world, Africa, Eastern Europe, more so than anytime else in the previous decade or even 15 years.

Our report, Doing Business Report, that was mentioned before, every year looks at reforms but make it easier for businesses to operate, primarily local businesses, and asks the questions what governments are doing in order to make it even easier for such businesses to prosper.

Many of the reforms that we've seen over the last in countries like Guatemala, for example, or Peru, two of the top ten reformers in Doing Business over the last year, have been assisted very actively by various U.S. programs. For example, as you well know, the free trade agreements and the negotiations around the free trade agreements with the U.S. have helped a lot of these reforms that wouldn't have happened otherwise.

Some of the sub-national work that we are doing in regions in Mexico and Brazil, recently in Colombia, have also been helped by work by the Millennium Challenge Account, by the State Department, USAID. So there is many countries in Latin America currently where there is a movement towards competitiveness helped to a large extent by the realization that we're not competing just with each other, we're now competing with Eastern Europe, we're competing with China. This is a truly global market.

So many new reforms and businesses certainly are benefiting from those. But what's useful to mention is that it's not just businesses that benefit from such reforms that benefit the business environment, it's also that if businesses expand they create more jobs. And one of the big issues in Latin America and indeed in most developing countries has been the large share of informality. People who do not have formal jobs who are excluded from economic growth, excluded from economic opportunities. And these kinds of reforms are associated with me moving people from the informal sector to the formal sector, and their assets, their property from being informal - not registered anywhere - to formal.

And finally, let me conclude with this point. It's not just for businesses and it's not just actually job creation, it's also about democracy. Think of how you vote. Think of how elections work. You need to go and show basically where you live, so some proof of residency or some proof of work. Well, if you're informal, you don't have proof of work, and if your assets are informal as well, you actually don't live anywhere. So suddenly you're excluded from the democratic process. You cannot vote. So if you ask the question why is it that so many people in Latin America do not vote? Well, one of the reason is they can't because they're informal, both their assets and their work.

So these type of reforms that help businesses also have this latch unexpected in some sense effect where they bring democracy to a higher level or these elections to a higher level and more competitive than they were before. So it's in two areas, not only global competitiveness in terms of more economic growth and more economic opportunities, but also more competitiveness in terms of democracy. Thank you.

ASSISTANT SECRETARY SHANNON: Thank you very much. It's worth noting that the points made by Mr. Guimares and Mr. Djankov have also been recognized by the democratically leaders of this hemisphere at the 2004 extraordinary Summit of the Americas in Monterrey, Mexico. Part of the plan of action agreed to by all the leaders was first to triple the amount of credit available to small and medium-sized enterprises through the IDB and other institutions, but also to reduce the amount of time and costs to start businesses, recognizing that what we want to do is reduce the size of the informal economy and increase the size of the formal economy and actually bring people into the economy as citizens.

Our next panelist is Susan Segal, the CEO of the Council of the Americas. Many of you know Susan. She's been dedicated to this hemisphere for all of her professional life and has done a spectacular job at the Council of the Americas. And Susan, I was wondering if you could draw on your experience and talk about innovation in the private sector in the Americas.

MS. SEGAL: Thank you very much, Tom. That's a subject that is near and dear to me because I think that innovation comes from entrepreneurship and entrepreneurship and the ability for people large and small, grocery store owners to large businesses, to be able to take an idea, start a business, and built a business is critical to economic growth and to innovation.

One of the most important things, however, Tom, when you think about innovation in Latin America is for governments to create the environment in which entrepreneurs can flourish. And I think that in many ways has been lacking despite an educational rate of about 87 percent in Latin American and frankly a spirit of entrepreneurship that exists. And I would put the recommendations and what you need to create that environment into five buckets. We talked about two of them already.

One of them is lowering the bureaucracy to open businesses. We talk a lot about it, but still in a country like Brazil, it takes 150 days or more to open a business. That has to change if you want to have a fluid environment for entrepreneurs. The second one is predictability, rule of law, property rights and allowing entrepreneurs to understand what their rights are and the rights of individuals are. I keep harping on this because it costs more money to close a business in Latin America and, therefore, people don't open businesses because it costs too much to close them. And these are really critical issues if you're going to create innovation.

The fourth is infrastructure, which I'm not going to talk about. And the last point is really technological innovation and scientific research. There are very little patents, ideas, creativity. The number of patents created in a country like Chile is half the size of that which is about 1,200 -- sorry, articles on physics, is about 1,203 which is half the number of articles written, for example, in a country like Singapore. So we need more attention to primary education in science, math, computers technology, et cetera, to create an environment where entrepreneurship and entrepreneurs can flourish because at the end of the day, it's that spirit that's going to create innovation. Thank you.

ASSISTANT SECRETARY SHANNON: Thank you very much, Susan. And I want to thank Ryan Black for staying. In many ways, he has the -- I won't say the most difficult task, but the most challenging task talking about corporate social responsibility. But before I ask him to speak, for those of you who haven't read his bio, it's important to note two things. First, I mean, aside from being a very successful businessman, he was also a first-rate football player. He played for the national rank at University of Colorado Buffalos and in fact was drafted by and signed by the Minnesota Vikings. It is a good thing for Brazil and for the United States that he decided that business was a more long lasting career than professional football. But also, for me at least, he's a surfer and he discovered his business opportunity in Brazil during a surfing trip. And I grew up in San Diego, California, and did a little bit of surfing myself and I think it's wonderful when you can combine surfing and business. (Laughter.)

But Ryan, I think you have really identified a way in which business in the private sector becomes a driver of transformational change through corporate social responsibility and through your idea of three bottom lines. But we would certainly appreciate further comment on that.

MR. BLACK: Thank you very much. Thanks for the kind words. We're going to go from macro down to real micro here. But in our world, you know, we saw -- I did go to college in -- not only the University of Colorado, but that's Boulder for those of you who don't know. It's a very liberal kind of green place, so I got my first taste of natural foods and organics and things like that growing up, so I'm kind of groomed for this. But what I learned was that growing up you started to see these companies who were making a lot of money, doing a lot of positive things for shareholders and then kind of getting to the end of the road and going, well, this isn't really good enough. We've got to give back so we're going to take some of these profits that we have and then we're going to give back.

And then it seemed that there was another generation that was kind of after that of the Ben and Jerry's of the world or people like Anita Roddick of the Body Shop who started saying, well, let's integrate it into our business principle so that as we sell products it automatically kind of gives back. And so at Sambazon we just, you know, we didn't really know any better so we started this business with our principles basically saying, okay, we're going to start from day one like this and we're going to build it in and engineer the process, the business model like this, so that with every sale it's not a question of, well, we have profit at the end and we give it back. It's actually already engrained in every step of the value chain.

We're also very fortunate to have found such an amazing product that we could do this with. And it's not really I believe -- in my humble opinion here -- it's not really about, you know, pointing fingers or saying ones bad or one's good or anything like that. It's more about the transition process of everybody kind of starting to go this way and there's definitely a shift in consciousness what they kind of asked me this week about with micro credit and things like that and prepare myself. And you can see all over the world, we've been involved with lots of different entrepreneurs who are sharing the same types of projects and there's all kinds of exciting things going on in micro credit all over the world where people are lending or banks are lending, you know, women who sell fruit India, you know, five bucks a day that they can keep like a pocketbook of and give the money back and it's making dramatic changes just at a very small level so it's an exciting time.

ASSISTANT SECRETARY SHANNON: Thank you very much. Our last panelist Jaime Ardila is the Vice President and Chief Financial Officer for General Motors and Jaime Ardila, thank you very much for being with us and again, congratulations to General Motors for its award.

GM is a company that has been in Latin America for a long time and has had a profound effect throughout the region. And any of us who have lived in the region know that it's either GM or Volkswagen. But maybe you could give us kind of your thoughts and insights into the role that -- especially large corporations like General Motors can play in driving social and economic change in the region.

MR. ARDILA: Well, thanks for the award once again and thank you for the question, Assistant Secretary.

In General Motors what we try to do in corporate social responsibility, aside from obviously abiding by the law and by the corporate principles, is we try to focus our efforts in those areas where we think we can make the greatest difference. And in particular environmental protection and location I think are two areas where we think we can make a difference. On location in particular I think most of the independent studies show that there is a significant return in investment especially secondary education and the development of technical skills. So we draw on the experience that GM has worldwide in location and its vast resources on technical skills to support education problems.

Just to give a couple of examples for Colombia, for instance, we have three programs aimed at coverage of education, quality of education and the development of entrepreneurial spirit there. On the coverage program we work with an entity called Dividend for Colombia which is basically the local chapter of United Way, which is well known in the U.S. We've built two schools for about 2,000 children, mostly in displaced areas where poverty is high. And we have people that have migrated to this area because they've been displaced by the guerilla war. The quality program is primarily aimed at improving the way that schools are managed. Basically public schools -- we're currently working with about 2200 public schools there to improve everything going from the administration of the school to the academic program to the relations that a school has with a community. We believe that we may be impacting favorably about 13,000 students with these programs.

And the last one that might be worth mentioning is one that is known to a lot of people, Junior Achievement. The Junior Achievement program we've been supporting for about three years now. And what that does is we bring students from public schools to the plants, to the General Motor's plant, teach them there things like our global manufacturing system, the basics of our global manufacturing system, the basics of management techniques and try to motivate them to become entrepreneurs. So those are three areas where we think we've made some difference. And we've got environmental protection also as one key area.

Just to mention briefly, we recently changed the sealant that we use in our paint shop, in our (inaudible) system, from a chromium-based to a fluorine-based. By doing that we've reduced significantly the amount of heavy metal that goes into the water disposal, the water discharges. So those are the types of things where we think we can make a difference and are proud to be able to work on those. Thanks.

ASSISTANT SECRETARY SHANNON: Well, Jaime, thank you very much. Now we have an opportunity over the next 10 to 15 minutes to listen to all of you, to your questions and your comments and we certainly encourage you to ask questions to the panelists or to share your own experiences. We're very lucky today to have Kathy Barclay with us from Chile. I've known Kathy for quite some time. But aside from the tremendous work she's done in Chile and the tremendous work that she's done with Goldman Sachs and the award that was received, she's also currently the head of the Association of American Chambers of Commerce of Latin America and I think brings with her a lot of experience and a lot of vision. So, Kathy, I'm wondering if I could impose on you to start either with your comments or questions.

MS. BARCLAY: Well, I think -- first of all, I think it's wonderful that you're organizing this panel today and highlighting what the good news is in Latin America. I think that's extraordinarily important. I think the panelists have mentioned very important areas that need to be done, things that need to be achieved. But I also think we should look at some more of the successes. I think the trade policy of the U.S. in the region has been extraordinarily successful and extraordinarily successful in many of the areas that the panelists have discussed.

Obviously the case I know the best is Chile, but just in three years the trade is up 130 percent and that's not just the big U.S. companies that are benefiting, it's going most directions. It's mutually beneficial. It's helping the entrepreneur. It's building the opportunities for the entrepreneur. It's giving people the tools with which to operate and create their own businesses and their own opportunities to educate their children, et cetera, and the opportunities to build the infrastructure, et cetera, in the region, so that kind of policy continuing throughout the region hopefully. It's been successful in Mexico, Central America and the Dominican Republic, hopefully in the near future, in Peru and Colombia and some of the other Andean countries which we're really hoping for.

Working together to consolidate those gains I think is very, very important. And thanks to the State Department for highlighting all the good business and opportunities that business is doing around the region.

UNDER SECRETARY SHANNON: Well, thank you, Kathy. And you're absolutely right, there are lots of good news stories in this hemisphere and one of the things we're trying to do is get them out there because they're oftentimes lost in the rhetoric. But we're determined to kind of push the rhetoric aside and focus on getting down to work and highlighting this.

Anyone else like to make a question or a comment? Ambassador Barco.

AMBASSADOR BARCO: I think discussions such as the one we're having today but also choosing these examples of enterprises that are working globally and many times nationally. I was able to participate in a meeting that the IDB organized on Friday about social corporate responsibility. And it's very interesting to see in Latin America all the different programs that enterprises are carrying out. And I just wanted to highlight today, I was very impressed by the social responsibility, which is worldwide, such as the one that has to do with Chile and the one in the Amazon.

But in Colombia what has turned out also to be very interesting is that many of the businesses are not only responding to the immediate community but to the country as a whole and to our problem of the conflict and the conflict resolution and reintegrating these 40,000 people. And so an example such as the one that has been highlighted today of General Motors and we have other examples of other companies is really fundamental because it shows that we will be able to progress as the civil society but the private and the public sector work together on such a challenging issue. So I welcome very much these examples that we've seen today and the kind of responsibility the private sector is also assuming with such a difficult challenge such as the one of trying to bring greater peace to Colombia. Thank you.

ASSISTANT SECRETARY SHANNON: Thank you very much. And actually it's worth kind of pausing for a moment here and thinking about this because, as many of you know, the paramilitary group, AUC, was declared by the United States to be a foreign terrorist organization and is viewed such by the United States. And what has happened in Colombia, the effort of the Uribe administration to demobilize and reintegrate into society this organization, is really the first time a terrorist organization has been demobilized and reintegrated into a society. And what we learn from this experience is going to have profound use not only in securing peace in Colombia but also in dealing with this phenomenon elsewhere in the world. And what's really remarkable is not just that governments are engaged in this but that the private sector is and that companies like General Motors are.

It really does show not only a degree of imagination and creativity, but a degree of commitment to a country and to a society which is remarkable. Do we have any other -- I'm sorry, there's one in the back.

QUESTION: I just had a question for the panel. I know they mentioned some of the investment in secondary education and I also notice that it's very important to also develop primary education for -- especially for technology firms -- for science and math. And there's a severe constraint for the developing countries on investing in public education. And I've heard a lot of academics and other business community leaders say that it's just not in our interest. And so it's really -- I just had a question is it -- can we somehow create a regime such that it would be in the interest or do we need to really re-look and say, you know, should we be focused more on altruism as well and advancing corporate social responsibility? Thank you.

ASSISTANT SECRETRY SHANNON: Thank you for the question. I'll turn it over to whoever on the panel would like to address it and it can be more than one.

MS. SEGAL: Well, I think that there seems to be a consensus around Latin America that education, primary and secondary education, really has to be addressed in Latin America. The percentage of GDP that's actually spent on education, primary education in Latin American, severely lags many other parts of the world. And also the curriculum is not a curriculum that is based on science, math, technology and that has to be changed.

I think there are a number -- I mean, it's really country by country -- but there are a number of structural reforms that have to take place in education in terms of, and this goes back to some labor union issues with teachers and other issues, but there are structural reforms that have to take place in the educational system in terms of the quality of teachers, the curriculum. And I think that part of it is the role of the state, but I also think part of it is -- does boil down to corporate social responsibility. And there is always a role for the private sector, particularly in technology and the private sector's willingness to donate computers, to ensure that there is broadband access to schools, that there's the right kind of teaching going on.

And I think going back to kind of corporate social responsibility and innovation, there are a number of U.S. companies and others that have really taken it upon themselves and have done a lot and will probably do more. But there are also a number of fundaciones -- foundations -- that have sprung up all over Latin America that are trying to focus on primary education. But I think both the state and, frankly, the private sector have a major role to play and this is probably one of the single biggest hurdles that Latin America has to deal with when dealing with competitiveness, global competitiveness. Thank you.

MR. ARDILA: Let me just add a successful example to this just to complement what Susan just said. I think one of the most important things which is happening in Latin America is an increase in the awareness, the awareness of improving the business climate, the awareness of the importance of primary education, the awareness of the responsibility of the private sector in contributing to this. And the example, there was an effort to start high quality primary education started in Mexico called Mano Amiga. And this effort started in Mexico many, many years ago and is spreading throughout the region. And there was a foundation created called the World Education Development Fund whose purpose was only to raise funds within the private sector to support this effort.

I was at the fundraiser, the annual fundraiser they did in New York two years in a row, and I have never seen more chairmen of Mexican companies together in one single event, together with 10 or 15 chairmen of U.S. companies, all private sector entities obviously, supporting a cause as important as this. So I think there is an increasing awareness of the need to support primary education. I see an enormous engagement of the private sector in doing this in a quality way and a consistent way throughout the region. So I think these are examples of very good news along the sides of your question.

ASSISTANT SECRETARY SHANNON: Thank you very much. Yes.

QUESTION: Hello, my name is Isabel Hogg (ph), (inaudible) American Development Bank. I have two questions; one for Mr. Black. There are plenty of other fruits, of course, that are less known in this country except for a?a?. What is your next fruit? (Laughter.) What is your next development?

MR. BLACK: It's a secret.

QUESTION: That's my first question. And my second question to GM, obviously it's great that you're changing certain ingredients to make more friendly -- environmentally friendly products and so forth. But of course the next big challenge is what are the hurdles to introducing environmentally friendly cars in this country? Is it a demand issue? Is it something that you should be doing more or is it a government issue?

MR. BLACK: It is true that there are over 200 edible fruits in the Amazon rainforest and many of them are very delicious. There are also a lot of other very cool products that are sustainable products. It was kind of our dream from the beginning to do it all. But what we recognize with a?a?, the fruit that we primarily work with, is that it had the opportunity to kind of be the first mainstream eco product. We have a lot of handicrafts or fruits that, you know, each one of those would take what we've done with a?a?, just focusing on that. So we decided to really focus on a?a? and once we get more distribution, more awareness and things like that then we have a large portfolio of tasty Amazon fruits to bring out.

MR. ARDILA: Let me say on the second question and thank you for the question.

First, on environmental protection, particularly in the Latin American countries, which are the ones that I know best, very often GM standards are actually higher than what local legislation demands. And very often the main difficulty for us to sort of raise the level of environmental protection that we provide is that the local laws actually do not go in line with what we're trying to achieve.

The U.S. cases I know a lot less, but I can say two things. One, we were trying to increase the number of vehicles that go 30 miles per gallon or more and we have more than any other company in the U.S. And secondly, we are working very hard on what we think would be a long term definitive solution to the issue of emissions which is fuel sales, particularly our work in hydrogen, I think, is well recognized by the U.S. Government. And to answer your question very specifically, I think it's got to be a partnership between the government and the companies. It would be very difficult for the companies to introduce that kind of technology if there isn't a distribution system for hydrogen for which we're not responsible. But obviously it wouldn't make sense to have the distribution system if we're not working on the technology. I think it's got to be a partnership.

ASSISTANT SECRETARY SHANNON: Thank you very much. We're just about to lose our digital -- our DVC capability. But Jim Michaels wants to make a final comment or question.

MR. MICHAELS: This is just a wonderful event and I appreciate the opportunity to be here. Everything I've heard today confirms the impression I have had that there are lots of incentives for reform that are operating in the international community: The Doing Business report, the Millennium Challenge Account, so many things that are going on. And Latin America is responding very positively to those incentives and we are seeing, since 2003, this remarkable resurgence of growth.

At the same time, my impression is that this is not widely known. And I wonder if the panelists have some thoughts about how we can help to make this a long lasting virtuous circle of improved incentives, improved response, improved awareness of the opportunities that are being created in the hemisphere. Thank you.

ASSISTANT SECRETARY SHANNON: Thank you, Jim. We are going to have to conclude unfortunately, but I think this is a great topic of conversation during the reception -- (laughter) -- and our panelists will be there. I want to thank all of the panelists. I want to thank all of you for being here today. I want to thank Secretary of State Rice and Under Secretary of State Sheeran and all of our other participants. This has been a very, very useful event. But the bottom line is this is a great hemisphere. The Americas are great. There're a lot of positive stories and we're going to tell them. Thank you very much. (Applause.)