Background:  With 8 percent rate of unemployment and over 40 percent rate of underemployment, over one third of the Ecuadorian population lives below the poverty line and almost two thirds of the northern border population. High poverty levels and the lack of economic opportunity cause many in the northern and southern regions to turn to illicit activities.  Further compounding the problem is the fact that these regions border coca and cocaine producing regions in Colombia and Peru.  Strategies to fight the narco-economy must enhance the licit economy in the northern and southern regions through increased employment and income, matched with improved governance and municipal services.

Objective:  The objective of the LBD program is to increase income and employment for families along Ecuador’s northern and southern borders by supporting the expansion of private enterprises that will rapidly generate income and employment, and by strengthening local private producer groups and associations.

Activity description: The project will quickly create new and more lucrative opportunities for families to develop businesses or get permanent jobs within the legal sectors of the local economy.  The project will provide assistance packages (technical expertise, training, and small grants) to stimulate investments in agribusinesses and non-agricultural anchor firms (hubs) and their networks of suppliers and suppliers (spokes).  Partners must demonstrate the commitment and potential to generate significant increases in income and employment. For example, the LBD project will work with cacao producers to increase productivity and improve quality to international standards, which can increase farmers’ income by at least 200% as farmers assisted by Pronorte demonstrated.  Other value chains/crops will be assisted as well such as coffee, bamboo, heart palm, corn and non-agricultural sectors such as eco-tourism and services.