Joint IFIs Declaration for the Seventh Summit of the Americas
World Bank Group, IDB and CAF Join Forces to Protect Social Gains in Latin America and the Caribbean
Multilateral Development Organizations Pledge Efforts and Resources to Encourage Inclusive Economic Growth
Panama City, Panama
Under the framework of the Seventh Summit of the Americas, to be held in Panama City on April 10 and 11, the main international financial institutions of the region, the World Bank Group (WBG), the Inter-American Development Bank (IDB) and CAF – Development Bank of Latin America, commit ourselves to support the efforts of governments in the region aimed at preserving and expanding the economic and social gains of the last decade.
Mindful that the external factors that contributed to such gains have changed, and that it will be up to each country to establish the best path to move forward, the IDB, CAF and the WBG put our financial resources, knowledge and convening power at their disposal. In financial terms alone, our three institutions plan to provide more than US$35 billion to Latin America and the Caribbean in our fiscal years 2015: US$12.5 billion from the IDB, US$12 billion from CAF, and US$11 billion from the WBG.
Within our respective institutional mandates, we intend to respond to the central theme of this Summit: “Prosperity with Equity: The Challenge of Cooperation in the Americas.” We seek the cooperation and complementarity of our actions, as well as strategies to maximize the impact of our resources and the creation of the appropriate conditions to attract greater financial flows for the development of the region.
In the last decade, Latin America and the Caribbean showed the greatest advances in terms of equity of any region in the world. Between 2003 and 2012, extreme poverty was reduced by half, the middle class grew by more than 50 percent; and inequality dropped. However, the job is not finished. In order to consolidate these gains and keep advancing the inclusion agenda, we will continue to coordinate and complement our financial and technical support, including the advancement of South-South cooperation, the search for transformational solutions, and novel financial instruments.
At the same time, and in order to achieve a more robust and long term growth in a less favorable environment, we will continue to support countries in their efforts to increase economic productivity. To close the competitiveness gaps, regional countries seek to invest in human capital, infrastructure and innovation, among others.
The combination of macroeconomic stability, prudent fiscal policies, resilient financial systems and a growing number of efficient social programs, demonstrates that the region is at a very different point in its development than before, and in a strong position to deal with the new challenges.
Resuming economic growth is a crucial factor if we are to guarantee and expand recent social gains. It is equally important to provide benefits to create more just societies, ones that improve gender equality, access to food, housing, running water and sanitation among low income individuals, as well as quality health care, education and jobs.
We are ready to support countries in the region to respond adequately to these new challenges, offering them tailor-made solutions. This includes supporting their efforts to protect the poor and vulnerable by expanding social security networks and making existing social programs more effective.
We will also support initiatives aimed at finding sub-regional responses to shared challenges. For example, through the Caribbean Growth Forum, a joint IDB-WB initiative, we intend to find new ideas and share experiences that can be used to boost economic growth in the Caribbean.
Finally, and in view of the dramatic challenge posed by crime and violence to the development of countries in the region, we support a comprehensive response to complement traditional safety efforts through education, prevention programs, and civic participation, as well as a better use of information for more effective social and policing activities. To this end, we will continue to cooperate and to use technical assistance funds and our convening power to stimulate dialogue and share successful experiences.