Launch of second stage of Andean Competitive Program

The signing of the two agreements initiates the second stage in Peru of the Andean Competitiveness Program, PAC, sponsored by the Andean Development Corporation. The first agreement known as the E-Commerce Program is to be executed with the Export Promotion Commission, PROMPEX. The second will promote the cluster of export grapes with the support for the Table Grapes Export Producers Association, PROVID.

"The CAF has assumed the commitment to promote a competitiveness agenda in Peru and the Andean region, as a necessary instrument for achieving sustained economic growth, creating jobs and improving the existing poverty situation," said Germán Jaramillo, CAF representative in Lima. The signing of the initial agreements of the Program was attended by Juan Enrique Pendavis, president of PROMPEX, and Felipe Llona Málaga, president of PROVID, along with representatives from the public and private sectors and international organizations.

The E-Commerce Program promotes the use of e-commerce tools among small and medium-sized Peruvian exporters as an instrument for international business, including expanding the use of the portal www.perumarketplaces.com. Along with the portal’s marketing services, the project provides awareness and training workshops designed to improve knowledge and the use of technological innovations by Peruvian exporters. The courses will be given to entrepreneurs in Lima and eight provincial capitals.

The second project is in the area of Cluster promotion with assistance for the Table Grape Export Producers Association PROVID. The project has five components:

The main objective of this pilot project is to provide tools to improve the competitiveness of exporters of table grapes, and to generate experiences and tangible lessons transferable to the rest of the modern agro-export sector throughout Peru.

Background to the PAC

CAF's commitment to developing a broad program that backs initiatives to improve regional competitiveness began in 2000. The first phase of the Andean Competitive Program, PAC, focused on preparing studies and diagnoses jointly with the Harvard University and, in Peru, with the University of the Pacific. In its first two years, the Program produced technical documents to give an overall view, and explored alternatives in relation to improving the competitiveness of the companies, identification of the obstacles that inhibit competitiveness and discussion of initiatives to counter them. All these documents and general information on the PAC can be found at www.caf.com/pac or at www.competitividadandina.org.

The Program’s second phase began in 2002 with the CAF taking a more proactive role; studies were replaced by pilot projects and by development of alliances between government and private sector to stimulate specific initiatives in the area of competitiveness. This stage covers work in the strategic areas of competitiveness, promotion and development of clusters (economic conglomerates), improvement of the business climate (reducing administrative barriers, etc), innovation and technology, as well as strengthening institutions for competitiveness.

The financing provided by the multilateral lender through the PAC is seed capital that requires commitment and contributions from the beneficiaries. The objective is to act as a catalyzing agent for productive initiatives to help them become self-sustainable.