World Bank and IDB announce alliance to accelerate development in Latin America and the Caribbean

He world bankl and the Inter-American Development Bank (IDB) announced this August 31 an innovative 4-year alliance to drive better results for people in Latin America and the Caribbean. In this way, at the IDB headquarters in Washington, the president of the World Bank, Ajay Banga, and the president of the IDB, Ilan Goldfajn, signed a memorandum of understanding.

Cooperation between the two institutions will focus on several key areas. First, they will come together to support efforts to achieve zero-net-deforestation in the Amazon. They will also work on increasing the resilience of the Caribbean in the face of natural disasters, as well as on reducing the digital divide that affects Latin America and the Caribbean.

MIGA, the World Bank’s political risk insurance agency, and IDB Invest, the private sector arm of the IDB Group, have agreed to collaborate with the goal of mitigating political risk in the region. Both agencies will work in conjunction with the World Bank’s International Finance Corporation (IFC) to encourage greater private sector investment in the region.

“Our global challenges require a new playbook for the World Bank to drive high-impact development. That mission demands that we reimagine partnerships across the board with the private sector, civil society, and other multilateral institutions. The World Bank can and should play a central role in coordinating global action, working collaboratively (and not competitively) to create impact and meaningful change. This partnership and work plan between the World Bank and the Inter-American Development Bank is that ambition in action,” said World Bank President Ajay Banga.

For his part, Ilan Goldfajn, president of the IDB, stressed that this alliance represents a fundamental milestone in the reform of the Multilateral Development Banks (MDB) and highlighted the commitment they share in areas such as sustainable bioeconomies, Caribbean resilience and closing gaps. digital.

In June, Banga and Goldfajn made a joint trip to the region and underlined the importance of deeper collaboration between the two institutions to combat poverty, create jobs and address climate change.

In the Amazon, the experience of both organizations will be used to support countries in their transition to zero net deforestation, maintaining a balance between the livelihoods of people and the preservation of the ecosystem, which includes the use of financial instruments innovative.

In the Caribbean, support to countries for managing disasters and climate crises will be intensified, in addition to developing financial protection mechanisms in catastrophe situations.

The institutions will also promote digital advancement in the region. Through the “Connected Schools for All” initiative, plans will be drawn up to close the digital divide in education, allowing young people to acquire skills aligned with the economy of the future. A pilot program will bring connectivity to underserved areas and open up new Internet access opportunities for more people.