Concept in Definition ABC

The Bank Inter-American Development Bank is known worldwide by its acronym IDB and is headquartered in Washington DC. It was founded in 1959 on the initiative of the Organization of American States and its economic resources they come from public and private capital. The main objective of this entity is to promote the social development sustainable development of Latin America and the Caribbean.

Currently, a total of 48 nations are integrated into the IDB. The member countries are divided into two groups: the beneficiary countries of Latin America and the Caribbean and those countries that participate in the financing of the different projects of the entity. The IDB has two branches: the Inter-American Corporation for Investments and the Multilateral Investment Fund.

Fields of action

From its origins this institution it has promoted diverse development policies. Among them, we can highlight the following:

- Investments aimed at improving infrastructure.

- Educational, health and environmental projects.

- Facilitate access to new technologies and innovation.

- Promote technical assistance in strategic sectors.

- Develop programs to reduce poverty rates and social exclusion.

- Promote trade and investment for social purposes.

In short, the IDB promotes the economic and social development of Latin America and the Caribbean through investments in the public and private sectors. To do this, it establishes alliances with local financial institutions in the region.

To promote the projects, the IDB sets up a bidding system

Companies and institutions can request financing from the IDB by presenting projects. In this type of applications, entities present their action plans and after receiving these proposals, the IDB carries out the corresponding resolution of the tender.

One of the IDB's challenges is to improve the economic potential of the large cities of Latin America and the Caribbean

The large cities of the region are in a situation of general crisis. In many of them there are high levels of contamination, serious problems of safety citizen, pockets of poverty, deficiencies in basic infrastructures, etc. Cities that were once a powerful economic engine, today have become impoverished, dangerous spaces with disorderly economic growth.

Photos: Fotolia - Sirikornt / Doomu

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