The ability of Washington to influence regional events is weakening. The existing paradigm does not envision a region in which trade and investment are integrating states and the presence of many extra-hemispheric interests has grown dramatically. Nations have stronger economies today. The region as a whole is becoming a relatively stable market in the global economy, and the United States faces strong and growing economic competition for the first time since 1945. Latin American governments are cultivating investment, as well as political and security relationships, with the European Union, Japan, China and others.
External actors present a new counterbalance to the weight of U.S. influence in the hemisphere.
Multilateral and Bilateral Focus. While bilateral arrangements are important, multinational plans, procedures and institutions are a necessity. The commonality of most major issues, transnational threats, limited national response capabilities, and even many domestic problems challenge governments, including the United States, to overcome their traditional hesitation to cooperate with neighbors. Anti-drug programs provide an example of prolonged bilateral efforts that have not achieved U.S. security interests. A multinational anti-drug initiative, sponsored by the United States, and adopted at the Santiago Summit suggests a commitment finally to move in a more effective direction.