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EU-CELAC Innovact Platform: Innovation to Promote Territorial

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EU-CELAC Innovact Platform: Innovation to Promote Territorial Proyecto de la Unión Europea Implementado por: 2nd July 2019 EU-CELAC Innovact Platform: Innovation to promote Territorial Cohesion Mapping Report Border Area Ecuador -Peru EU-CELAC Innovact Platform: Innovation to promote Territorial Cohesion Mapping Report Border Area Ecuador-Peru 2nd July 2019 For any information regarding this document please contact: Elena Mejía Villacís [email protected] Azucena Cortés [email protected] Begoña Sánchez [email protected] Ezekiela Arrizabalaga [email protected] Table of Contents 1 Summary in EN ...................................................................................................................................... 5 2 Resumen en Español .............................................................................................................................. 6 3 The Context of the Ecuador-Peru Border Area ..................................................................................... 7 4 National Level Priorities on each side of the Border ............................................................................ 9 4.1 The ZIFEP within the priorities of the Peruvian national level .................................................................... 9 4.1.1 General approach to border integration policy and Institutional setting ................................................ 9 4.2 The ZIFEP within the priorities of the Ecuador national level ..................................................................... 9 4.2.1 General approach to border integration policy and Institutional setting ................................................ 9 4.3 The border integration policy on the border Ecuador-Peru ....................................................................... 10 5 Value Chain Mapping in the Border Area ........................................................................................... 12 5.1 Value Chain 1: Coffee in Ecuador and Peru ................................................................................................. 13 5.1.1 Key Value Chain Characteristics and Economic Indicators .................................................................... 13 5.1.2 Key Challenges and Barriers to Development ......................................................................................... 14 5.1.3 Opportunities for Cross-Border Collaboration ........................................................................................ 15 5.2 Value Chain 2: Tourism in Ecuador and Peru along the ZIFEP ................................................................. 16 5.2.1 Key Value Chain Characteristics and Economic Indicators .................................................................... 16 5.2.2 Mapping of Key Players in the Value Chain ............................................................................................ 16 5.2.3 Key Challenges and Barriers to Development ......................................................................................... 17 5.2.4 Opportunities for Cross-Border Collaboration ........................................................................................ 18 6 Recommendations for Next Tasks....................................................................................................... 19 6.1 Key stakeholders ........................................................................................................................................... 19 6.2 Political issues ............................................................................................................................................... 19 6.3 Training and capacity building needs .......................................................................................................... 19 6.4 Project management and resources. ........................................................................................................... 20 7 Bibliography ......................................................................................................................................... 21 Contact Details of Interviewees .............................................................................................. 23 Current projects supported by the EU in Ecuador Peru and the border region, and other initiatives ...................................................................................................................................................... 28 Tables Table 1. Summary of technical perceptions on ten value chain with potential for innovation .................................. 12 Table 2. Prioritization of value chain according to developed indicators ................................................................... 13 Table 3. Main coffee products and export by country .................................................................................................. 13 Figures Figure 1 Ecuador-Peru border map ............................................................................................................................... 7 4 1 Summary in EN The border area between Ecuador and Peru, known as Border Integration Zone Ecuador-Perú , henceforth ZIFEP 1 (by its acronym in Spanish), covers an area of 420,000 km 2, along with a 1,500 km border line. Out of the border area, 133,464 km 2 are on the Ecuadorian side corresponding to 47% of the national surface; while on the Peruvian side the surface is 287,000 km2 representing 22% of the total area of the territory of Peru. The border area is very diverse and spans from the coastal zone of the Pacific to the tropical humid Amazon forest. The Peruvian-Ecuadorian border region presents a heterogeneity of ecosystems and great socio-cultural wealth. Its geographical, cultural, economic, social and demographic characteristics have facilitated the integration of neighborhood populations. After only twenty years of peace between Ecuador and Peru, socioeconomic indicators show that the ZIFEP is still among the poorest region for both countries. To improve this reality, a binational programme, the Binational Development Plan of the Peru-Ecuador Border Region 2 and a binational fund have been established. Significant amount of investments of the Binational Development Plan have been directed to support productive value chains. Many initiatives from international cooperation have been lined-up with the aim to promote strategies to support the identified value chains. Despite this positive development, the indicators for main cities of the border area show a lack of economic growth characterised by minimal industrial productivity, decrease of employment and population migration to other major cities. Previous studies indicate well positioned agricultural practices in the area, but at the same time a lack of technology and innovation. In both sides of the border the public and private efforts remain in the productive segment, and not many examples exist of complete value chains, were agricultural products are linked to local industries or entrepreneurship. Instead, many products are transported to other regions as raw materials. INNOVACT project, has conducted a series of consultations with different border-region stakeholders representing the triple helix (public, private and academia) involved on the value chain promotion. This has permitted a better understanding of the state of the art for innovation and technology along the ZIFEP of the value chains. As part of these consultations, ten products/services were selected and latter, deeply discussed with the local governments in Ecuador and Peru (El Oro, Piura, Cajamarca, Loja and Zamora). Coffee and tourism were chosen among all selected sectors, as priority value chains in the framework of INNOVACT due to their binational impact, added value generation and social cohesion. These value chains were latter mapped with a broader range of public and private stakeholders. The analysis shows that coffee is a well-developed crop, accompanied by a rich presence of smallholders, public programmes and larger dealers. Tourism is locally less developed; it presents an interesting arrangement of operators and service providers. Both chains are lacking innovative and cross-border solutions. Tourism is seen by local authorities as the principal means for improving social cohesion in the cross-border region. INNOVACT project, is promoting interactions between the EU regions with two main regions from ZIFEP: Piura-Loja and Cajamarca-Zamora . The project will connect different stakeholders along the coffee and tourism value chains to jointly support technology and innovation and to provoke different interactions, exchange of experiences, etc. as many synergies and complementarities might arise. For instance, Loja and Cajamarca share a common culture around coffee; Piura and Cajamarca are also sharing similar initiatives to support tourism sector in Loja. Ecuador in general terms could benefit from initiatives launched in Perú, as public programmes to support innovation and Perú can also learn from experiences around tourism and coffee culture from Ecuador. Once common concerns are identified, the exchange of experiences with European specialists, will be crucial to change main paradigms towards innovation and transformation of the border territories. This work will be the basis for the draft Action Plan. 1 Zona de Integración Fronteriza Ecuador-Perú (ZIFEP) 2 The Plan was already established resulting from the Comprehensive Border Integration, Development and
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