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Venezuela calls for Andean crusade against poverty
By Daniel Flynn
  
VALENCIA, Venezuela, June 23 (Reuters) - Venezuelan President Hugo Chavez 
urged his Andean neighbors on Saturday to give an ideological core to their 
trade integration efforts by attacking poverty and rejecting neo-liberal 
economic policies. 

Chavez, opening a summit of Andean presidents, injected a distinct political 
tone into the two-day meeting, which agreed economic integration goals, a 
joint anti-drugs strategy and the future creation of a common Andean passport 
for the region. 

"The problem of integration is political, not economic," the outspoken 
paratrooper-turned-president told his colleagues from Colombia, Ecuador, 
Bolivia and Peru who in speeches before him had largely focused on common 
trade and economic goals. 

"Let's not put the cart before the horse. It's the horses of politics that 
pull the carts of economic development," Chavez said, making a plea for a 
shared ideological vision. 

He opened the summit on the eve of the 180th anniversary of the Battle of 
Carabobo, in which Latin America's 19th century nationalist hero Simon 
Bolivar defeated Spanish forces and opened the way for the independence of 
the whole continent. 

"Bolivar was our common Liberator," Colombian president Andres Pastrana told 
the meeting, held at Valencia, near the Carabobo battlefield and 100 miles 
(158 km) west of Caracas. 

But while the other leaders hailed economic advances by the five-nation 
Andean group, whose total internal trade is forecast to surpass a record $6 
billion this year, Venezuela's Chavez questioned this purely economic view. 

"Be careful with the economic currents of neo-liberalism. That's not enough. 
What about poverty?" Chavez asked. He warned his colleagues that poverty was 
a "dangerous, explosive" problem that posed the biggest threat to their 
nations. 

Since his election in 1998 six years after leading a failed coup bid, Chavez 
has often criticized what he calls "savage" neo-liberal capitalism, echoing 
similar views expressed by veteran Cuban President Fidel Castro and Pope John 
Paul II. 

"NEO-LIBERALISM THE ROAD TO HELL" 

"Is neo-liberalism the model for integration? We in Venezuela think not. It's 
the road to hell, a perverse road that favors the (rich) minority and 
excludes the (poor) majority," the Venezuelan leader said. 

He made a point of stressing that his left-leaning, nationalistic government 
was engaged in promoting a peaceful "revolution" in his oil-rich but 
poverty-plagued country. 

Chavez' fiery revolutionary rhetoric jarred with the more measured speeches 
of his colleagues, who preferred to focus on the achievements and challenges 
of the Andean Community which was formed 32 years ago and groups 113 million 
inhabitants. 

Ecuadorean President Gustavo Noboa stressed the importance of forging a 
regional common market by 2005 to be able to successfully compete in the 
U.S.-backed hemisphere-wide Free Trade Area of the Americas (FTAA) proposed 
for the same date. 

"Our Andean Community must be well prepared for the FTAA negotiations," he 
said. 

Colombia's Pastrana hailed an Andean Anti-Drugs Plan agreed at the Valencia 
summit. This aims to coordinate common strategies to eradicate drugs 
cultivation and trafficking, which affects all the Andean nations. 

"This is our own plan," said Pastrana, whose country is already the focus of 
a major U.S.-backed anti-drugs offensive. 

The leaders praised a proposal, also adopted by the summit, to create a 
common Andean passport for citizens of the region to be introduced in 2005. 
"We will assume an Andean identity," Bolivian President Hugo Banzer said. 

>From next year, citizens of the five nations would be able to travel in the 
group using only national identity cards. 

Peru, whose president-elect Alejandro Toledo did not attend, was represented 
by Prime Minister Javier Perez de Cuellar. 

14:47 06-23-01

Peru's President-Elect Heads to U.S
By RICK VECCHIO
.c The Associated Press

  
LIMA, Peru (AP) - President-elect Alejandro Toledo heads Sunday to the United 
States, where he will promote Peru's rebounding democracy and seek emergency 
aid to tide over the financially troubled nation until a long-term recovery 
program can take root. 

Toledo, Peru's first freely elected president of Indian descent, defeated 
former President Alan Garcia in a June 3 runoff election and will take office 
July 28. 

``The purpose of the trip first of all is to tell the world that Peruvians 
have successfully taken back their democracy,'' said Toledo, who arrives in 
New York late Sunday for meetings with international investors and business 
leaders. 

Toledo said he will meet with President Bush and members of Congress on 
Tuesday in Washington before heading to Europe for an eight-day tour. 

The 55-year-old Stanford University-trained economist said he wants to assure 
investors and policy makers that political and legal stability has returned 
to Peru since the fall of ex-President Alberto Fujimori's autocratic regime 
in November. 

As president-elect, Toledo has a mandate to restore faith in Peru's damaged 
democracy, stamp out rampant corruption and resuscitate the country's stalled 
$54 billion economy, which shrank for a fifth straight month in April. 

His main objective for the U.S.-European trip is to draw $400 million in 
``emergency'' aid to help jump-start Peru's stalled economy, said Fernando 
Villaran, a member of Toledo's economic team. 

Villaran said the aid is needed to help fund a broad program of public works 
projects that would provide 400,000 short-term jobs in the first two years of 
Toledo's five-year term to stave off potential social unrest among Peru's 
poor majority. 

Peru would pay $200 million into the program, he said. 

``There are huge social expectations from the population generated around the 
presidential campaign and we must have the capacity to respond very 
quickly,'' Villaran said. 

Toledo campaigned largely on a populist platform, pledging to create 2.5 
million jobs, lower taxes and raise salaries for public workers. But Villaran 
said the effects of a long-term economic recovery plan won't be felt for 
several months. 

About 54 percent of Peru's 26 million people live in poverty and only one 
every two in the labor force has steady work. 

One issue that is sure to confront Toledo when he arrives in the United 
States is the ``terrorist collaboration'' conviction handed down Wednesday in 
a Peruvian court against New York native Lori Berenson, 31. 

Supporters of the former Massachusetts Institute of Technology student hope 
that Toledo will grant her a pardon. 

Berenson was convicted and sentenced to life in 1996 by a secret military 
court, but under pressure from Washington, the conviction was annulled last 
year, leading to her civilian retrial. Most Peruvians believe she is guilty. 

Her parents, who have lobbied intensely for her freedom, have made powerful 
allies on Capitol Hill. 

Rep. Carolyn Maloney, a New York Democrat who serves the Berensons' district, 
has called the retrial ``a public circus.'' Maloney said she plans to 
circulate a letter among her colleagues urging them to pressure Toledo to 
free Berenson. 

Toledo has avoided commenting on Berenson's case, but his spokesman said he 
expects the issue to come up during his U.S. tour. 

AP-NY-06-23-01 1130EDT


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