ANDEAN RURAL DEVELOPMENT AND AGRICULTURAL COMPETITIVENESS PROGRAM

Program Objectives

The general objective of the Program is the comprehensive and equitable development of the Community’s rural areas, guaranteed subregional food security, and sustainable and competitive development of its agricultural and agroindustrial sectors, all of these for the purpose of improving the quality of life of their inhabitants. 

The Program’s specific objectives are the following:

- Further the development of the Member Countries’ agricultural and agroindustrial production, in order to promote sustainable agriculture as the basis for rural development and to boost exports to the Andean and other world markets.  

- Steadily increase the supply of the subregional market with high-quality agricultural products produced domestically at competitive prices, thus contributing to the subregion’s food security resting on equitable conditions of competition. 

- Contribute to the reduction of rural poverty.

- Generate, adapt and transfer sustainable technologies that are appropriate for the special characteristics of the tropical and Andean regions that predominate in the Community.

- Take economic and sustainable advantage of the biodiversity, while safeguarding natural resources and the environment. 

- Contribute to human, animal and plant health protection.

- Promote specialization of production areas, guaranteeing the right of the subregion’s farmers, indigenous dwellers and small producers to maintain their own ways of organizing production.   

- Promote associative, cooperative and collaborative schemes among agricultural producers. 

- Foster integration among the different links of the agricultural production chains. 

- Make the most of the potential offered by the Andean integration process. 

Implementation of the Program at the subregional level offers the following advantages:  an overall vision in order to ensure balanced development, promotion of joint efforts, exchange of experiences, development of cooperative efforts, and profitable use of economies of scale, among others. 

Description of the Program

The Program’s components are:

Component 1: Andean Rural Development Program (Decision 256)

Action must be taken to support the countries in their rural development efforts.

Objective: Give the rural population mechanisms to improve their living standards and quality of life. 

Results: Formulation and implementation of the Andean Rural Development Program.

Creation of the Andean Rural Development Network.

This component should consider aspects relating to social investment, institutional development and the promotion of associative business schemes (Cooperatives and Community Enterprises, among others). 

Among the activities to be carried out, the following should be considered:  training, production and social services, production and social infrastructure, land tenure, financing, environmental management, and legal framework, among others. 

Component 2: Changing /diversification of agricultural production patterns in the Andean Community

Action is needed to change/diversify the patterns of production and technology in the sectors, agricultural production, or production areas that are facing serious economic problems because of growing links between the Andean economies and the international market. 

Objective: Modernize and change/diversify agricultural production patterns for an appropriate positioning in subregional and international markets. 

Results: Execution of the strategy for the change in/diversification of production patterns. 

Financing scheme for the change in/diversification of production patterns. 

Component 3: Policy harmonization and development of competitiveness by production chains

In order to strengthen productive specialization and complementarity in the subregion, it is necessary to progressively eliminate the main distortions for the most important agricultural chains in the subregional market.  Programs must also be implemented to enhance competitiveness, based on the identification of the specific requirements and key problems of the largest agricultural chains and of other chains that need to reinforce their competitiveness and that are experiencing problems at the subregional level. 

Objectives: Eliminate distortions in the subregional market.

Enhance the competitiveness of priority production chains and promote subregional productive complementarity. 

Results: Adoption of decisions to harmonize trade-sector policies in priority production chains. 

Implementation of competitiveness programs in priority production chains. 

Component 4: Technological Innovation

It is necessary to reinforce agricultural technology development in the Andean Community, insofar as the generating, adaptation and transfer of technology as a basic determinant of competitiveness is concerned. 

Objectives: Reinforce the countries’ capacities to develop biotechnology and manage the associated risks. 

Improve the quality and innocuousness of food products produced in and imported into the Andean Community and facilitate trade in those products. 

Reinforce the Andean Community’s negotiating position in the areas of Biosecurity and Biotechnology.

4.1 Biotechnology and Biosecurity

Result: Adoption of Andean legislation on Biosecurity.

Execution of projects on biotechnology and biosecurity mechanisms at the regional level. 

4.2 Food Innocuousness

Result: Implementation of a regional strategy on food innocuousness.

4.3 Good Agricultural Practices.

Result: Adoption of Good Agricultural Practices with selected products/chains.

4.4 Quality and Traceability Standards

Result: Implementation of a program for the definition, standardization and application of Community quality standards to selected agricultural products.

Component 5: Plant and Animal Health

Actions are needed to improve Andean sanitary and phytosanitary standards and to build up national agricultural health services, in order to increase the production of and facilitate the trade in agricultural products while safeguarding human, animal and plant health. 

Objective: Perfect Andean sanitary and phytosanitary standards and reinforce national agricultural health services, in order to safeguard human, animal and plant health. 

5.1 Perfect Andean sanitary and phytosanitary standards  

5.2 Strengthen and update the capacities of national and Community agricultural health systems.

5.3 Andean Phyto and Zoosanitary Health Information and Monitoring System SAIVECAN.

5.4 Subregional Program for the control and eradication of Foot-and-Mouth Disease in Border Areas.

5.5 Subregional Program for the establishment of areas free from fruit flies.

5.6 Subregional Program for the prevention and control of Cochinilla rosada or pink hibiscus mealy bug.

Result: Perfecting of Andean sanitary and phytosanitary standards.

Strengthening of agricultural health services.

Implementation of joint action programs to control and eradicate pests and diseases that hamper production and limit trade in agricultural products.

Component 6: Management of agricultural and forestry resources

Action is needed to improve the use of agricultural technology for better environmental conservation and the sustainability of agricultural production.  Mechanisms must also be prepared to reduce the vulnerability to and risks of natural disasters through prevention, alleviation, preparation, relief, rehabilitation and reconstructions activities. 

Objective: Promote the use of sustainable agricultural technologies and soil and basin management. 

Prepare mechanisms to reduce vulnerability to and risks of natural disasters in the agricultural sector. 

Result: Implementation of a Community program for appropriate natural resource management, with a view to improving environmental conservation and the sustainability of agricultural production. 

Follow-up and Evaluation

The Andean Agricultural Committee will adopt annual operating plans for the Program’s appropriate follow-up and evaluation that will be submitted to the General Secretariat for its consideration. 

Each year the Committee will evaluate the progress reported based on the reports submitted for that purpose by the General Secretariat and will formulate its recommendations. 

* This text is part of the document Andean Rural Development and Agricultural Competitiveness Program approved by the Ministers of Agriculture at their meeting on July 10, 2004