All eyes on private sector at IDB annual meetings

Inter-American Development Bank President Luis Alberto Moreno delivers opening remarks during the 2014 IDB annual meetings held in Brazil. Photo by: IDB

The Inter-American Development Bank’s board of governors just wrapped up its annual meetings in Bahia, Brazil, among other issues discussing how the institution can do a better job of lending to the private sector.

While the details that emerged were limited, the bank announced that the IDB and the Inter-American Investment Corp. had agreed  “to move forward with the analysis of a consolidation of all their private sector operations in the IIC and to study the future capital requirements of such a reform.”

This move aims to maximize efficiencies by aligning the bank’s lending to businesses, and would create a much larger pool of funds, likely modeled on the World Bank’s International Finance Corp. — and with the potential for broader impact.

The IDB board’s newly elected chair, Brazilian Minister of Planning and Budget Management Miriam Belchior, said in an official statement that “the time has come to take a fundamental step in terms of the IDB group’s work with the private sector.”

The board approved a series of smaller steps toward that fundamental step “including the hiring of independent experts to advise the IDB Group on different aspects of the reform,” the statement added.

Other private sector news that came out of the meetings included the announcement that Canada had formalized its membership of the IIC, and the launch of a social media platform created in partnership with Visa, Google, Alibaba and DHL to facilitate trade, especially exports from the region, by connecting small businesses to potential partners, useful information and — naturally — financing opportunities.

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See more:

How IDB’s private sector lending reform will play out
IDB's growing focus on partnerships
What IDB's new eligibility framework means for partners

About the author

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    Paul Stephens

    Paul Stephens is a Devex staff writer based in Washington, D.C. His coverage focuses on Latin America and World Bank affairs, as well as Washington's global development scene. As a multimedia journalist, editor and producer, Paul has contributed to the Los Angeles Times, Washington Monthly, CBS Evening News, GlobalPost and the United Nations magazine, among other outlets. He's won a grant from the Pulitzer Center on Crisis Reporting for a 5-month, in-depth reporting project in Yemen after two stints in Georgia - one as a Peace Corps volunteer and another as a communications coordinator for the U.S. Agency for International Development.