Although much of the Western Hemisphere is experiencing strong economic growth, improving social conditions and increasingly consolidated democratic institutions, there are some persistent threats to US interests in the region and indications of new threats from outside the region. The drug threat to the United States continues to emanate primarily from the Western Hemisphere. The flow of drugs fuels violence in Mexico and contributes to the survival of terrorist groups in Colombia. Populist governments continue to work to undercut US influence in the hemisphere. Finally, we are concerned by increasing Iranian activities in the hemisphere.