Partnership will boost innovation and unlock opportunities across Latin America and the Caribbean
WASHINGTON, August 31, 2023 ― The World Bank and the Inter-American Development Bank (IDB) today announced a groundbreaking four-year partnership to drive stronger results for people in Latin America and the Caribbean.
At IDB headquarters in Washington, World Bank President Ajay Banga and IDB President Ilan Goldfajn signed a memorandum of understanding that will boost support for net-zero-deforestation efforts in the Amazon, strengthen the Caribbean’s resilience to natural disasters, and bridge the digital-access gap, across Latin America and the Caribbean.
In addition, MIGA, the political-risk insurance arm of the World Bank, and IDB Invest, the private-sector arm of the IDB Group, agreed to collaborate to mitigate political risk in the region. The two agencies will work alongside the World Bank’s International Finance Corporation (IFC) to draw in more private sector investment into the region.
“Our global challenges require a new playbook for the World Bank that will drive impactful development. That mission demands we reimagine partnerships across the board with the private sector, civil society, and other multilateral institutions. The World Bank can and must play a central role to coordinate global action, working collaboratively – not competitively – to deliver impact and meaningful change. This partnership and workplan between the World Bank and Inter-American Development Bank is that ambition in action,” said World Bank President Ajay Banga.
“MDB reform is an opportunity to increase development impact. This partnership with the World Bank marks a pivotal milestone,” said IDB President Ilan Goldfajn. “Together, we are forging ahead with a shared vision, from sustainable bio-economies in the Amazon region to supporting Caribbean resilience and bridging digital divides reducing access gaps including in education. Our joint commitment is a testament to the power of collaborative innovation for Latin America and the Caribbean”.
In June, Banga and Goldfajn visited the region together, the first trip of its kind, and emphasized the need for both institutions to deepen their collaboration to help fight poverty, create jobs, and address climate change.
In the Amazon, the organizations will combine their expertise to support countries in their transition to net-zero-deforestation, helping people pursue better livelihoods while preserving the ecosystem—including through innovative financial instruments.
In the Caribbean, the agreement will result in greater support for countries to manage disasters and climate shocks and develop financial protection mechanisms for when catastrophes happen.
The organizations also committed to act together to promote digital development in the region. The action plan proposes that through this collaboration digital infrastructure and connectivity can be effectively scaled up to contribute to accelerate socioeconomic development. Through the Connected Schools for All initiative, the World Bank and the IDB will develop plans to close the digital gap in education, ensuring young people have the skills needed for tomorrow’s economy. An innovative pilot program will bring connectivity to underserved areas of the region, helping more people gain access to the internet, unlocking new opportunities.
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