The Inter-American Development Bank (IDB) approved a $250 million loan to support economic recovery in Ecuador, with a focus on strengthening the social protection system, female employment, and labor sectors linked to environmental objectives, also called “green jobs.”
The agency reported that supporting the acceleration of the equal integration of women in the economic sphere is one of the priorities of the operation. As part of this objective, a Action Plan to increase female labor participation, reduce the wage gap and promote female leadership in the country.
Another objective of the loan is to help Ecuador develop an institutional framework to take advantage of the potential for job creation, in the framework of its transition towards a low-carbon and sustainable economy. The project will support the development of a strategy of the Ministry of Labor for the promotion of jobs in sectors linked to the country’s environmental objectives, or green jobs, thus contributing to a sustainable and resilient recovery of the economy. Ecuador is the first country in the region to have this type of institution.
In social protection, the operation will support the expansion of cash transfers for families whose income has been affected by the pandemic. The project includes the implementation of the Nutritional Support Bond (BAN) and the incorporation of eligible BAN beneficiaries to the regular Non-Contributory Monetary Transfers (TMNC) of the Ministry of Economic and Social Inclusion (MIES). In addition, the operation will support the strengthening of the social registry system.
In turn, the loan will support the expansion of the child development services of the MIES to guarantee quality care for children between 0 and 36 months and pregnant women.
In the health sector, the loan will support the implementation of the National Immunization Strategy (ENI), which includes vaccination efforts against COVID-19.
“This new IDB financing acknowledges the efforts made to protect vulnerable populations from the adverse economic effects associated with the pandemic, support the creation of employment with a special focus on gender equity and employment linked to environmental objectives”, he highlighted andhe Minister of Economy and Finance, Simón Cueva. In addition to non-reimbursable technical support resources, parallel co-financing of highly concessional loans from the Japan International Cooperation Agency (JICA) and the French Development Agency (AFD). This demonstrates the continued support of multilateral and bilateral partners for the government’s economic program, the Ministry of Economy and Finance said.
Meanwhile, the IDB commented that in Ecuador, the drop in employment due to the pandemic was especially pronounced in the informal sector and among women. Promoting the recovery of employment, supporting vulnerable populations and working for gender equality are objectives that the IDB Group sets out in its Vision 2025, a roadmap to achieve inclusive and sustainable growth in Latin America and the Caribbean, he assured the body. (I)
Source: Eluniverso
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