CAF contributes to regional integration

(Buenos Aires, August 2, 2010). During the Mercosur Summit in Argentina, CAF President & CEO Enrique García signed a memorandum of understanding with the foreign ministers of member countries, to explore joint programs and deepen the synergy between the two organizations, as a contribution to development, poverty reduction and the building of more equitable societies in the region.

"For CAF the search for cooperation mechanisms with bodies such as Mercosur is fundamental, García said, because it facilitates expansion of capacities and exploitation of opportunities which generate human development projects, leading to higher living standards, stronger social and productive structures in the region, and public policies which contribute to social inclusion."

The areas for joint work include integration infrastructure, productive integration and development of competitiveness, sustainable human development and social cohesion, border integration and institutional strengthening.

With the objective of coordinating actions with other regional organizations, García met with Unasur Secretary General Néstor Kirchner to identify more effective ways of supporting areas that have priority for Latin American countries, particularly in relation to the integration infrastructure, energy and social agendas. They also agreed to speed up the start of the Unasur-Haiti Fund.

� Funds for cross-border projects

CAF granted funds to the Center for Political, Economic and Social Studies (CEPES) for a project to analyze binational issues between Argentina and Uruguay and develop proposals for public policies aimed at collaborating on strengthening ties between the two countries, especially in border areas.

The project will make an exhaustive and up-to-date analysis of Argentine-Uruguay relations with identification of challenges and potential for strengthening integration between the two countries and preparation of proposals and recommendations to deepen cross-border integration.

García said, "these funds are executed under the Support Program for Cross-Border Development and Integration (PADIF), a CAF initiative, with the objective of backing a strategic binational agenda between the neighboring countries through decisive support for border issues between the two nations.

Through PADIF, CAF is sponsoring over 25 initiatives for design and implementation of plans for cross-border development and integration, and creation of Cross-Border Integration Zones (ZIF), as well as the subregional policies of the countries of Unasur, the Andean Community (CAN), and Mercosur countries.

These initiatives are being implemented with non-reimbursable technical cooperation funds from the Cross-Border Cooperation and Integration Fund (COPIF), which was set up in 2008 to identify, prepare and execute high impact projects which promote sustainable human development in the border regions of CAF member countries, and which strengthen cooperation, dialogue, mutual confidence and bilateral and multilateral border integration.