1. The Presidents of Bolivia, Colombia, Ecuador, Peru and Venezuela meeting in Lima on the occasion of the Sixteenth Andean Council of Presidents expressed their conviction that the Andean Community is an appropriate instrument for promoting integration, democracy and development, strengthening subregional solidarity and reducing the existing development differences between the Member Countries. Therefore, they exchanged points of view on international relations and, especially, on aspects associated with democratic governance and stability, social cohesion, the fight against the world drug problem, and physical integration and development.

2. As a result of their dialog, the Presidents arrived at the following conclusions:

3. We consider that the Andean Community can play a relevant role in international relations promoting a new democratic order based on multilateralism, stimulating the establishment of a new collective consensus for accelerating the regional integration processes with due respect to the asymmetries existing in international trade and investment agreements, and favoring the development and strengthening of social cohesion as essential conditions for the consolidation of democracy.

4. We highlight the importance of the present process of convergence between the Andean Community, MERCOSUR and Chile for establishing the South American Community of Nations, as a significant step in this political project of balanced development, and consequentially the Andean Community is perceived as an articulating element between South America, Central America, Mexico and the Caribbean, faithful to the Bolivarian mandate of promoting Latin American and Caribbean integration.

5. We ratify the importance of accelerating the Andean agenda to strengthen the expanded market between the Member Countries and between them and MERCOSUR, as one of the appropriate means for advancing in our integration, increasing the capacity to maximize benefits in the fields of productivity, competitiveness, economic complementation and trade, and for improving the capacity to promote social cohesion and the Andean presence in the international scene.

6. We reaffirm the conviction of continuing strengthening our democratic, participatory and inclusive schemes for guaranteeing the rights of citizens, and promoting social justice and the respect for the independence of the state powers and human rights.

7. We believe in the essential importance of citizen participation and the control of public affairs, and in the respect for the cultural diversity of our peoples, the transparency in the government function, and therefore, the frontal struggle against any form of corruption.

8. We appeal to the entire political and social constituents for expanding national dialog and consensus to strengthen our democracies within a framework of respect for the rule of law.

9. We highlight the importance of the media in the process of strengthening our democracies through the responsible exercise of the freedom of press.

12. Social cohesion is a primary objective of our countries to which our process should contribute so that by overcoming extreme poverty, exclusion and social inequality, it would be possible to reduce the regional disparities of our countries.

13. We ratify the reference to mixed farming and rural aspects in the San Francisco de Quito Minutes, that reaffirm the importance of this sector in the Andean subregion, privileging a social and economic perspective in favor of the most vulnerable population. We recommend that the necessary programs be implemented to allow the comprehensive development of the sector, improving its profitability, productivity and competitiveness and guaranteeing the access to food for the population of the Member Countries.

14. We welcome the progress made by the Andean Health Organization – Hipólito Unanue Convention in funding the "Malaria Control in Border Areas of the Andean Region: A Community Approach" project, which will allow to reduce the incidence of malaria by 50% in border areas of the subregion in the coming 5 years.

15. We expresses our appreciation for the offer of the Government of the Bolivarian Republic of Venezuela to give immediate and free care to the Andean country patients with eyesight disorders.

16. Concerned with the weakened application of the principle of shared responsibility, we emphasize the need to strengthen international dialog and cooperation reflected in the improvement of the living standards of the populations in the production areas and improved market access for products of their area of origin. To that effect, we reaffirm the importance of promoting an intensification of economic development and social inclusion in the affected areas through a balanced, comprehensive and sustainable approach in the fight against the world drug problem.

17. We reiterate our deep concern for the perverse effects of the world drug problem on the social exclusion of our nationals to education, work, public health and citizen security, as well as for its generation of violence, pollution and deforestation, among other offenses associated with its production and traffic, and at the same time we reject its serious consequences on the welfare, stability and peace of our nations.

18. We consider that on the basis of the principle of shared responsibility and respect for the laws of each country, a balanced and multilateral approach should be maintained to confront such situation. In the same way, among other measures, the social structure should be regenerated, the confidence between the State and the affected population should be strengthened, and the conditions for guaranteeing economic sustainability should be established.

19. We express our satisfaction for the upgrading of the Andean community policies to fight against such adversity reflected on the adoption of the "Andean Integral and Sustainable Development Alternative Strategy", and the coming into effect of the "Andean Regulations for the Control of Chemicals used in the illicit manufacture of narcotics and psychotropic substances" with a view to revising and updating the world program against drugs that will take place in 2008.

20. It is necessary to intensify the national, Andean and South American synergy for constructing the IIRSA Hubs among other initiatives, for which infrastructure investments among the participant countries should be synchronized.

21. In view of the existing restrictions in public budgets for infrastructure investments of the countries in the region, we will look for alternatives aimed at strengthening the capacity of the governments to build the works required for the physical integration of South America through the joint participation of the financial institutions and multilateral development agencies of the region. Emphasis will be put on analyzing specific local experiences and international experiences on the best practices for public-private partnerships in infrastructure projects.

22. For establishing Integration and Development Hubs and not only corridors, it is an essential requirement to promote the comprehensive development of the areas of influence of each group of IIRSA identified projects, analyzing them with the participation of the concerned communities. It is also necessary to put a greater emphasis on the development of services allowing the effective use of such Hubs.

23. The regional development capacities will be increased through an appeal to the regions of each country within the area of influence in the different national, binational, subregional integration hubs and those of IIRSA with the purpose of enriching the identification of activities and possibilities in each hub, their development visions and the requirements for achieving them. Likewise, the community institutionality should be strengthened to support the border regions through programs accompanying local and regional investment projects.

24. We value a joint approach to the knowledge and management of the resources of the territory, implying the formulation of a consensus vision on the topic that should be translated into the design and execution of Andean policies for the big ecosystems shared by our countries, within the perspective of the sustainable management of our biodiversity.

25. Aware of the important energy potential of the oil, coal and gas deposits, and the water, eolian and solar sources and others in our countries, and their vital importance for modern development, particularly in the processes of Andean and South American integration, we consider the convenience of formulating an Andean energy agenda within the context of South American integration, taking into account the existing different binational agreements. Such agenda could be aimed at preparing agreement for cooperation on production, processing, transport and commercialization projects, and actions for the best development of such resources and the benefit of our populations.

26. With respect to the convenience of formulating an Andean energy agenda for the benefit of the populations, we take note of the proposal of the Bolivarian Republic of Venezuela for designing actions on the matter, and of the idea of agreeing on the creation of PetroAndina by the countries that so decide it. Such proposals will be submitted to the consideration of the Energy Ministers of the Member Countries.

27. We reaffirm our interest in strengthening regional integration encouraging the establishment of energy interconnection projects in South America, taking into account the existing agreements and commercial schemes of our countries.