The final settlement was built on a series of agreements, including a treaty on commerce and navigation and a binational peace fund for border integration, designed to compensate difficult political concessions with investments to stimulate growth and improve living conditions in an area impoverished by years of conflict. The Peru-Ecuador border region is severely underdeveloped and contains some of the poorest populations in both countries. Lack of access to clean water, sanitation and proper solid waste management are serious problems in urban areas. Basic infrastructure is practically non-existent in rural regions. Infant and maternal mortality and child malnutrition rates are high.
Local governments are weak and unable to meet the needs of the average citizen.
Improvements to these socio-economic conditions are key to achieving stability. The presidents of both countries were initially criticized for their controversial stand on achieving peace and, while public opinion is slowly changing, citizens are expecting to see concrete benefits from the peace settlement. This activity is aimed at improving socio-economic conditions of communities along the border between Peru and Ecuador and facilitating border integration. Since the peace settlement, the two governments have been working together to gain international donors financial commitment to this program. At this meeting, plans will be discussed for convening a formal donors meeting for the border program later in the year.