The Kachimayu River Valley: Conflict of interests
As one of the surrounding ecosystems of Cusco, the Kachimayu River Valley is especially affected by this social imbalance and faces enor-mous ecological problems as a result of the pressure of contradictory interests. The ecological dependence of the urban population on the primary products motivates the rural population to overuse their ground. At the same time the economic and social deprivation of the rural areas drives the younger generations in particular towards the urban conglo-meration which leads to a progressive disturbance of the socio-demo-graphic equilibrium. This haphazard growing of new peri-urban commu-nities produces negative effects on both social and ecological levels. The resulting external costs have to be covered eventually by the society as a whole. Such collective mismanagement results in a sub-optimal situation not only ecologically but also economically because the society is not functioning according to its collective pareto-optimum (Frey, Staehelin-Witt; 1991).