The World Bank in Latin America and the Caribbean

Latin America and the Caribbean is a dynamic region, full of opportunities, constantly transforming in the face of adversity. The World Bank partners with governments, the private sector, and civil society for prosperity and economic development. This involves a concerted effort to improve people's lives, through the creation of quality jobs, access to education, health, food security, and resilience to climate change, with the goal of ending poverty on a livable planet.

Amid increasing global economic volatility, countries in the region face the challenge of adapting their economic strategies to meet rising uncertainties. 

According to the World Bank's latest economic report for Latin America and the Caribbean, the regional economy will grow by 2.1 percent in 2025, picking up to 2.4 percent in 2026, making it the lowest-growing region in the world. Low investment, high indebtedness, and a changing external environment pose major obstacles to the region's development. 

Long-term solutions to building resilient economies require the creation of quality jobs. The region's labor market faces the challenge of transforming itself in the face of the development of new technologies, in addition to other challenges such as low productivity, deficiencies in education, and gaps in workers' skills. 

The World Bank works to strengthen the creation of quality jobs, especially for the most hard-to-reach groups, such as women and youth. According to recent data, the labor force participation rate for women in the region is 68%, compared to 93% for men. 

For youth, one of the main challenges to accessing better jobs is linked to gaps in education and skills. According to the latest results of the Programme for International Student Assessment (PISA), implemented by the OECD – three out of four 15-year-olds do not reach basic level in mathematics and one out of two is below the expected average in reading. On average, 15-year-old students in the region are five years behind an average student in OECD countries. Recovery is complex but possible and should be addressed immediately. 

Connectivity is critical to laying the foundation for a prosperous and resilient future. Currently, a lack of digital infrastructure means that around 17 million workers cannot access the benefits of the latest technologies to improve their job prospects and raise wages.

There is also an urgent need to improve countries' resilience to climate events that have already inflicted substantial economic and social losses. Hurricanes, floods, and droughts are becoming more frequent, and it is estimated that by 2050, 17 million people in the region could be forced from their homes. Indeed, about 5.8 million Latin Americans and Caribbeans would be pushed into extreme poverty between now and 2030, due to the impact of climate change, especially a lack of clean drinking water, as well as increased exposure to excessive heat and flooding. Water is an essential resource for prosperity, health, and quality of life in Latin America and the Caribbean. In addition, more than 80 million jobs in the region depend directly or indirectly on water. 

Last Updated: Apr 23, 2025

The World Bank is driving sustainable, resilient, and inclusive growth in Latin America and the Caribbean by strengthening human capital, increasing productivity, supporting adaptation to climate change, and seizing opportunities offered by green industries. To achieve these goals and meet the challenge of creating quality jobs, a concerted effort that combines the strengths of the public and private sectors is critical.

Public policies can create an environment conducive to economic growth and job creation, while a dynamic and competitive private sector can drive productivity, entrepreneurship, innovation, and increased labor demand.

Supporting Countries to Achieve Their Development Goals

The World Bank's analytical work and advisory services support the design of policies and Bank operations in individual countries based on the core data, services, and priorities of the region.

Some recent contributions:

1. Cognizant of the importance of delivering solutions to address the region's learning crisis, The AI Revolution in Education report explores nine key AI-driven innovations in the region. It offers a suite of solutions for teachers, students, parents, and academic institutions and highlights how the integration of technology can transform education and improve learning outcomes.
2. The poorest and most vulnerable households are increasingly at risk as climate shocks and disasters in the region have doubled in the last 30 years. A recently published report presents comprehensive, evidence-based good practices for fostering dialogue and policy making that improve the responsiveness of the region's social protection systems in times of crisis.
3. The pandemic accelerated the digitalization of health services, and leveraging this phenomenon is necessary on all fronts. The World Bank, together with the Pan American Health Organization (PAHO) and the Inter-American Development Bank (IDB), established the Partnership for Primary Health Care, with the objective of mobilizing financing, knowledge, and technical support for the countries of the region to be more assertive in the detection, prevention of diseases, and, most importantly, save lives.
4. The Amazon faces major challenges that threaten its sustainability, including unregulated expansion of land use and environmental crime. In the eight countries that cover it, poverty levels are higher in the Amazon regions than in the rest of the country. The World Bank has launched Amazonia Viva, an initiative that seeks to strengthen efforts and collaboration to protect natural assets, promote inclusive and nature-based economic opportunities, and above all, improve the standard of living of the population in eight countries in the region.

Strategic alliances

In 2023, the World Bank and Inter-American Development Bank initiated an innovative partnership to maximize impact and achieve better outcomes for people in the region. The goal is to deepen collaboration to help fight poverty, create jobs, and address climate change challenges. Initially, the two organizations will work in three priority areas:

• In the Amazon, they will combine their expertise to support countries in their transition to net zero deforestation, helping its inhabitants, mostly indigenous peoples, improve their livelihoods while preserving the ecosystem, through innovative financial instruments. Initiatives such as Amazonia Viva and Amazonia Siempre will contribute to this goal.
• In the Caribbean, collaboration will focus on supporting disaster risk management and climate shocks, as well as developing mechanisms for financial protection against catastrophes.
• Promoting digital development in the region, with collaboration to boost digital infrastructure and connectivity to accelerate socio-economic advancement. The IDB and the World Bank are coordinating activities to connect 3.5 million students and train more than 265,000 teachers in digital skills. The two institutions plan an additional investment of US$400 million over the next two years to support this agenda.

Last Updated: Apr 23, 2025

In fiscal year 2024, the World Bank approved $9.7 billion for 52 operations in the region, including $9.4 billion in IBRD commitments and $269 million in IDA commitments. We signed 14 Reimbursable Advisory Services agreements with five countries for a total of US$13.2 million.

Recent results with financial support from the World Bank include:

● Access to jobs efficiently is a priority for the region. In Brazil, a new project supports the extension of metro Line 2 in the city of São Paulo. The new 8.4-kilometer route will reduce mobility challenges for residents in areas further away from the city, who will benefit from more direct forms of transport to access jobs and basic services. A similar project in Ecuador already saves 67,000 tons of CO2 emissions and makes it easier for residents on the outskirts of the city to connect with the more than 780,000 jobs downtown.

● In the last decade, nearly 13 million people across the region have benefited from 48 World Bank-supported education projects. In Costa Rica, a new initiative seeks to strengthen the literacy, digital skills, and employability skills of students in public schools and colleges.  In total, one million students are expected to benefit from improvements in their learning, impacting 90,000 teachers and education system officials as well. 

● In Guyana, projects totaling $99 million are tackling inequalities at all levels of education to meet new and growing labor market demands. So far, more than 6,000 secondary students have benefited, and more than 1,000 teachers have been trained.

● In Peru, structural reforms are supported aimed at closing the productivity gap and promoting the creation of formal and better-paid jobs. A US$500 million program seeks to strengthen fiscal management, reduce territorial inequalities and promote adaptation to climate change, especially in the agricultural sector. The programme also supports the country's innovation, digital transformation and competitiveness, contributing to Peru's progress towards OECD membership.

● In Haiti, the Sustainable Rural and Small-Town Water and Sanitation Project program increased access to drinking water for more than 565,000 people in rural and small cities by constructing, rehabilitating, and expanding drinking water supply systems. It also provided more than 31,000 people with access to improved sanitation facilities. Through the World Bank's response to the August 2021 earthquake, DINEPA also benefited from the project by providing financial support for the rehabilitation of 12 piped water systems and 8 water points.

● In the Dominican Republic, a $190 million project aims to improve the quality of public health service provision, especially for maternal and neonatal care, and to strengthen health and social assistance systems. 

In Argentina, the project Fostering Better Jobs with Integrated Training and Employment Programs reached 400,000 young people, women, and adults over 45 years of age, improving their opportunities for job placement. In addition, more than 2,000 municipal employment office employees were trained and the Argentina Occupations Observatory was established to analyze and monitor the labor market.

● In Jamaica, our emergency response and risk reduction projects have benefited 57% of the population since 2016, improving resilience and preparedness for natural disasters and other emergencies. 

● Chile received the first global World Bank loan to promote green hydrogen (in Spanish) and support climate change mitigation efforts. The project seeks to incentivize investment in green hydrogen projects in Chile, enabling the launch of a new industry that will generate green jobs and local value chains, promote decarbonization in hard-to-abate sectors, and increase the competitiveness of local industries, including mining, heavy and long-haul transport,  and agriculture.

Last Updated: Apr 23, 2025