Peace opens path to development and regional unity

(Caracas, October 16, 1998).– “A fundamental step toward achieving final peace between Peru and Ecuador, and a step toward continental integration,” was how CAF President & CEO Enrique García described the decision of the congresses of the two countries to approve by a large majority the procedure proposed by the Guarantee Countries of the Rio de Janeiro Protocol on the border conflict between these nations.

Extremely pleased with the decision adopted by two country members of the financial institution he heads, García recognized that in border integration achievements are usually slow because of the need to seek points of unity, which in most cases requires a special political effort by the nations involved.

"Obviously it is a very difficult task which requires setting aside individual postures and overcoming short-term problems which obstruct the progress of binational integration. But these efforts in the long-term lead to success, as demonstrated by the formation of the world’s modern economic spaces, the European Union, where innumerable difficulties had to be overcome."

I have no doubt – he added – that the effort made in this respect by both countries is a new and pragmatic step to achieving peace, which, once finalized, will strengthen trade and investment flows, provision of services, trade in goods and movement of people, with direct benefits for the inhabitants of the region, as demonstrated by the dynamic border cooperation which exists between other CAF member nations."

The CAF chief added that, as part of the world processes of globalization, opening and competitiveness, the Corporation has been implementing – for six years – a broad and ambitious action plan to support the development of physical infrastructure and border integration between its shareholder countries, considering that an adequate provision of infrastructure is a fundamental step toward creating an expanded economic space with larger and more competitive markets for products and services, and attractive to investors.

In this context, he said that "according to conversations with Peruvian and Ecuadorian authorities, the time had now arrived for CAF to support and manage an investment fund for the border area affected – which will also receive funds from other multilateral organizations, governments and the private sector – for projects which contribute to the sustainable development of the area, a necessary bridge for moving toward more extensive regional unity."