New IDB funds for security, economic development await Latin America, Caribbean

Inter-American Development Bank President Luis Alberto Moreno (left) speaks at the closing session of the bank’s 2012 annual meeting in Montevideo, Uruguay, on March 19. The meeting’s last day saw announcements of funds for citizen security and public sector capacity strengthening in Latin America and the Caribbean. Photo by: Eduardo Lopez / IDB

Several announcements were made at the Inter-American Development Bank’s weeklong board of governors’ annual meeting, which wrapped up Monday (March 19). And among these was the establishment of two new funds.

South Korea’s ministry of strategy and finance signed an agreement with IDB to establish a trust fund that will help improve public sector capacity in Latin America and the Caribbean. Seoul will contribute up to $40 million to the fund.

IDB President Luis Alberto Moreno, meanwhile, announced a special fund — worth more than $300 million, according to Reuters — that will complement the bank’s array of programs for security. This, hopefully, will help lower incidences of crime in the region. Moreno said 350 people are murdered — on average — each day in Latin America and the Caribbean. This accounts for 28 percent of all homicides around the world.

The new fund will be a welcome addition to the bank’s new citizen security operations, which has a potential value of $328 million. IDB’s agreement with the governments of Uruguay and South Korea, and the Celeste Foundation to work on programs that seek to prevent youth violence through sports will also form part of the citizen security program.

In addition to these two new funds, IDB will provide a $150 million loan to a new investment platform it plans to establish with China Eximbank. The investment platform will finance public and private sector projects in the bank’s 26 borrowing member countries in Latin America and the Caribbean.

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About the author

  • Jenny Lei Ravelo

    Jenny Lei Ravelo is a Devex Senior Reporter based in Manila. She covers global health, with a particular focus on the World Health Organization, and other development and humanitarian aid trends in Asia Pacific. Prior to Devex, she wrote for ABS-CBN, one of the largest broadcasting networks in the Philippines, and was a copy editor for various international scientific journals. She received her journalism degree from the University of Santo Tomas.