Presented by Conrad N. Hilton Foundation
The Inter-American Development Bank has been led by men since its establishment 63 years ago. The ouster of Mauricio Claver-Carone last week following an ethics probe concerning a romantic relationship with a subordinate — here are the deets on that, ICYMI — could pave the way for a woman to take charge.
It’s also a chance to return the bank’s presidency to someone from the Latin American region, as per an unwritten rule that was broken only when the former Trump administration put forth Claver-Carone for the job. An election will be held within the next two months. Whoever takes over will be responsible for the 48-member bank, which includes 26 borrowing countries in Latin America and the Caribbean. It approved $23.4 billion in financing last year.
• Two women are said to be leading contenders: Mexico’s Alicia Bárcena, former head of ECLAC, the United Nations commission charged with promoting economic and social development in Latin America and the Caribbean; and former Costa Rican President Laura Chinchilla, Larry Luxner reports for Devex.
• Bárcera’s ECLAC experience means she will have some knowledge of country priorities and relevant officials. I interviewed her years ago about SDG progress in the region.
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• Chinchilla was her country’s candidate for IDB chief in 2020, but she dropped her bid after Claver-Carone got the nomination. In an interview with The Costa Rica News at the time, she called IDB “the region’s most important financing companion” and added that “to guarantee the IDB that we need in the future, it is essential to have people with a vision of effective leadership and far from any politicization.”
• The challenge two years ago was that there were plenty of qualified candidates but no agreement on one — so Claver-Carone ended up with the role, according to Mark Feierstein, a former National Security Council senior director for Western Hemisphere affairs. “He was not fit for the job. The lesson here is obvious: you need someone who’s qualified and who comes from the region that relies on the bank.”
• The Biden administration has indicated that the next president should come from the region and that the U.S. does not intend to nominate an American candidate, Larry reports. Feierstein suggests that regardless of who is selected, “it’ll put the bank back at the center of discussion on development for the region.”
Read more: IDB may get first woman chief following ouster of Trump nominee (Pro)
+ With a Devex Pro membership, you can also learn about IDB’s top contractors in 2021 as well as get access to exclusive data-driven analysis, and funding insights and opportunities. Get these perks and more by signing up to a 15-day free trial.
No light at the end of this tunnel
By all accounts, food insecurity is bad and only getting worse. That includes my colleague Shabtai Gold’s latest piece on IMF projections that the global food price shock is at least on par with the devastating crisis of 2007-08.
IMF warns that 48 vulnerable countries are seeing import bills climb by about $9 billion over this year and next. In response, the IMF board approved a new emergency financing window that enables countries to borrow funds to support balance-of-payment issues arising from the shocks, both for imports and exports. Low-income countries will get concessional rates.
Shabtai also spoke with Madhur Gautam, lead agriculture economist at the World Bank, and his colleague Julian Lampietti, a practice manager for agriculture and food, who say that food systems are unstable and vulnerable. Translation: even small shocks could cause immense harm.
Read: IMF scrambles to east worst food price shock in more than a decade
World Bank: ‘We’re nowhere near out of the woods’ on food price crisis (Pro)
+ For the inside track on how agriculture, nutrition, sustainability, and more intersect to remake the global food system, sign up for Devex Dish, our free, must-read Wednesday newsletter.
Making the grade
Dedicated readers of this newsletter are familiar with the debate over whether the U.S. International Development Finance Corporation is living up to its mandate. Is the agency focused enough on development? Is it getting pulled in too many directions by politics and congressional dictates?
Many of those questions are unresolved, but the government watchdog for the agency says it is largely complying with the requirements laid out in the Better Utilization of Investments Leading to Development, or BUILD, Act — the bill which created DFC.
The DFC Office of Inspector General said the agency has “made significant progress implementing provisions of the BUILD Act” despite organizational challenges, a change in presidential administration, and budget process delays that hindered its spending and hiring.
Read: Government watchdog says DFC largely meeting legislative mandate
On SDGs, what’s the private sector good for?
Last month I told you I was wondering what the private sector has done with its seat at the table on the Sustainable Development Goals. My colleague Stephanie Beasley found some answers.
Your next job?
Director, Financing for Sustainable Development Office
United Nations Department of Economic and Social Affairs
New York, U.S.
For the first time in 30 years, there has been regression “across the board” on human development — and it isn’t due to a lack of available funding, but rather, a lack of coordination and will, Marcos Neto, director of the Sustainable Finance Hub at the United Nations Development Programme, said at an event hosted by the Charities Aid Foundation.
Part of the problem is that the private sector hasn’t stepped up to help achieve the SDGs. The financing gap for the SDGs stands around $4 trillion a year, he said, and at the same time, global wealth increased by 20% during the COVID-19 pandemic and stands at $430 trillion.
“The SDGs is 1.1% of global wealth. It is nothing,” Neto said. He called for more alignment between private sector, philanthropic, and government funding so that the money flows to the right regions and is used to better address climate change.
Related: Does global development have an SDG talent gap?
What we’re reading
Up to 40% of World Bank's climate-related spending can't be accounted for, according to an Oxfam research. [The Guardian]
Why donors are backing a global push for digital public infrastructure. [Devex]
A go-to guide on grants at the Bill & Melinda Gates Foundation. [Devex Pro]
About the author
Adva Saldinger@AdvaSal
Adva Saldinger is a Senior Reporter at Devex where she covers development finance, as well as U.S. foreign aid policy. Adva explores the role the private sector and private capital play in development and authors the weekly Devex Invested newsletter bringing the latest news on the role of business and finance in addressing global challenges. A journalist with more than 10 years of experience, she has worked at several newspapers in the U.S. and lived in both Ghana and South Africa.
