Andean Community Decision 621 of 2005: Establishment of the Rural Development and Agricultural Productivity Fund

Decision 621, adopted on July 16, 2005, by the Commission of the Andean Community in an expanded meeting with the Ministers of Agriculture, establishes the Rural Development and Agricultural Productivity Fund to promote comprehensive and equitable rural development in member countries, contribute to food security and strengthen the agricultural sector. The Decision provides that fund resources be allocated to productive projects, preferably those of community interest, aimed at improving the efficiency, sustainability and profitability of production units. It establishes initial funding of USD 610,926.12 from unspent resources of previous Andean agricultural cooperation programs. The General Secretariat is instructed to seek non-reimbursable resources and donations from international technical cooperation. The Commission, meeting with the Ministers of Agriculture, is responsible for approving the annual budget and resource allocations upon a proposal from the Andean Agricultural Committee. The General Secretariat administers the fund under the applicable regulations and must submit progress reports and financial statements every six months. Member countries may make voluntary contributions but are not required to commit national budget resources. The Decision establishes the regional financing mechanism but does not itself set out all application, evaluation and project selection procedures, which were subsequently developed through Decision 708 of 2008. For PAESA purposes, it is directly relevant as a regional financing mechanism supporting rural development and agricultural productivity.