By Christopher Mason
GV Correspondent

OTTAWA--The political crisis unfolding in Honduras is crucial to Latin America's stability, and could well determine whether the region continues to strengthen or instead takes a step back to undemocratic tendencies common in the 1980s, José Miguel Insulza, secretary general of the Organization of American States (OAS) said at a conference in Ottawa Monday.

"What happened in Honduras could have been avoided and it could happen again," Insulza said. "If we do not show those who oppose the rule of law that there is a different way we risk losing everything."

Insulza participated in a discussion led by Paul Durand, Canadian ambassador to the OAS from 2001-2006 and ambassador to Costa Rica and Honduras between 1992-1995. The event was organized by the Canadian Foundation for the Americas (FOCAL).

Honduras has jumped to the forefront of Latin American policy and development discussions following the ouster in June of President Manuel Zelaya by the country's military. There has been renewed pressure put on brokering a solution before Honduras holds presidential elections scheduled in November.

Insulza's message in Ottawa was that debates about Zelaya's policies and attempt at altering the country's constitution should take a backseat to restoring the rule of law by allowing the return to the country of a democratically elected president.

"We demand the immediate, unconditional and safe return of Zelaya to office," Insulza said, stressing that must happen before November's scheduled elections.

Honduras, and the ensuing conversations about democracy and institution building, will be among the leading topics at an upcoming e-conference, the Inter-American Forum on Governance, co-hosted by the OAS, the Centre for International Governance Innovation (CIGI) and the Canadian International Council (CIC).

The forum begins Sept. 29 and unfolds in four three-day sessions spread through mid-November. The forum begins with a look at strengthening and sustaining democratic institutions, and then follows with sessions examining Haiti and overall security in the region, energy and the environment and lastly human rights in the Americas.

Governance Village (GV) will continue to explore the forum themes ahead of the opening. Those wishing to participate in the conference can do so on the forum's main page.

GV has previously looked at the first two forum themes. On the third session, running between Oct. 27-29, the forum will examine efforts to establish sustainable and affordable sources of energy while also addressing growing environmental concerns.

Rising oil prices and growing instability in many traditional sources of energy have sent countries looking elsewhere for their energy, such as the Canadian oil sands or Venezuela's oil supplies.

The forum will examine that trend, while also discussing ways of reducing the cost of obtaining energy, as some countries within the Americas spend 50 percent of their GDP on energy. Such large energy costs seriously curtail efforts on other fronts, such as health, social and overall economic growth.

What role the OAS can play in such efforts will help determine its future in the region. Many countries, including the United States, have asked the OAS to play the leading role in brokering a peaceful solution to the Honduran political crisis.

How it manages the crisis may well prove to be a bell weather for the OAS' effectiveness in establishing stability, growth and common approaches throughout the Americas, and what role it can play in future regional challenges. 

 
Despite weak enforcement mechanisms (" The amount of pressure the OAS can apply comes to one: suspension," Insulza said), the OAS has aspirations of someday representing Latin America in ways similar to the European Union, which would stretch far beyond encouraging the growth of democratic institutions to fields such as trade, political alliances and human rights agreements.

But Insulza recognized that the organization, and the region, have a long way to go before reaching that standard.

"We are the other region in the world [after the EU], but we have a long way to go on human rights and democratic institution building, among others, before we can take the next step," he told the audience Monday.

Insulza was asked for his thoughts on Canada's role in brokering a deal to resolve the Honduran crisis. Canada has a significant role in Honduras, as the Central American country's second largest foreign investor and the largest recipient of Canadian foreign aid in Central America.

It will also be a test of Canada's newly revamped foreign policy, which lists Honduras as among 20 priority recipients of Canadian foreign aid.

Insulza did not address criticisms of Canada's policy, which has urged Zelaya to return to Honduras only when it is safe to do so, but he said Canada has been supportive of the OAS' role in negotiating a solution.

"Canada was in favour of the decision of the council [to suspend Honduras from the OAS]," Insulza said. "We have had the full support of the Canadian government."

Where there is hope is that the region has improved its track record in holding democratic elections, which takes it away from previous decades. But now the region has moved on to tackling the challenge of building the types of democratic institutions that ensure stable and sustainable economies and social systems continue for years to come.

"The problem of Latin America is not elections," Insulza said. "The problem of Latin America is institutions."