MercoPress. South Atlantic News Agency

Chilean leader calls for more flexible OAS

Chile's socialist president has called for a radical overhaul of the Organisation of American States, saying the most important regional organisation in the Americas must be “faster, more responsive and more flexible”.

In an interview with the Financial Times, Ricardo Lagos also urged the US to develop more active diplomacy in the region.

His comments come just over a week before a fiercely contested election for the post of OAS secretary-general pits a Chilean frontrunner against a rival candidate backed by Washington. The OAS represents 34 states and traditionally has been close to Washington.

Chile's candidate, José Miguel Insulza, is backed by the bigger South American countries including Brazil, as well as some smaller Caribbean states whose numbers could determine the outcome.

The US, however, is supporting Francisco Flores, the rightwing former president of El Salvador, whose government was one of the few in the region to send troops to support the allied occupation of Iraq. Canada favours Luis Derbez, the Mexican foreign minister.

Critics say that Washington is losing an opportunity to build an alliance with Chile, a country whose economic success, pro-market policies and political stability make it a model for regional development at a time when radical populists, such as Venezuela's President Hugo Chávez, are gaining ground.

"The US position risks aggravating polarisation in the region," said Michael Shifter, of the Inter-American Dialogue, a Washington-based policy forum. "It is the last thing that we need."

Chile's economy grew 6.1 per cent in 2004. With the recent currency appreciation, per capita income has risen to more than $5,000 (?3,800, £2,600).

Mr Lagos, now in the final year of a six-year term, is anxious to make the OAS a more effective forum for policy debate. "When something likes Iraq crops up there are telephone conversations all the time but wouldn't it be better to sit down and discuss the issues, even if there are differences?

"Why don't we discuss the Doha trade round there or what we should do in Haiti?"

Santiago has been close to the US on a number of issues and in 2003 was the first South American capital to sign a bilateral free trade agreement. However, in 2003 Chile like Mexico made itself unpopular in some sectors of the US establishment when it opposed the invasion of Iraq. At the time, both countries were temporary members of the United Nations Security Council.

Each member of the OAS has one vote in the election of a new secretary-general. If no candidate scores an absolute majority, the leading two contenders will fight a second