A New Era at the Inter-American Development Bank: Six Recommendations for the New President

26 Pages Posted: 14 Apr 2015

See all articles by Nancy Birdsall

Nancy Birdsall

Center for Global Development

Pedro de Mello

Independent

Guillermo Chapman

Independent

Claudio R. Contador

National School of Insurance Foundation (Funenseg)

Roque Benjamin Fernandez

Universidad del CEMA

Pablo E. Guidotti

Universidad Torcuato Di Tella

Angel Gurria

Organization for Economic Co-Operation and Development (OECD)

Ricardo Hausmann

Harvard University - Harvard Kennedy School (HKS)

Ruth de Krivoy

Independent; Government of Venezuela - Central Bank of Venezuela

Guillermo Le Fort

University of Chile; Facultad Economia y Negocios UCH

Liliana Rojas-Suarez

Center for Global Development

Ernesto Talvi

Centro de Estudios de la Realidad Economica y Social (CERES)

Roberto Zahler

Independent

Date Written: January 1, 2006

Abstract

How should the Inter-American Development Bank (IDB) respond to the challenges of the new century? As recently as the early 1990s, governments and policymakers in Latin America and the Caribbean relied on the IDB and other multilateral institutions not only as important sources of finance but also for ideas and technical assistance in designing economic policies. Partly as a result of this advice, many countries implemented wide-ranging market-oriented reforms to accelerate their integration into the world economy. But the perception grew that the agenda advised by Washington and the multilaterals did not represent the interests of the region. The failure of the reforms to fully satisfy expectations for more rapid growth and poverty reduction heightened tensions. Meanwhile, countries developed stronger local economic expertise, vastly improving the quality of the domestic policy debate.

As a result, the market for the IDB’s services has changed dramatically. Rapid growth in private capital flows has made its financial resources less important than in the past. And political leaders are increasingly articulating their own vision on how to bring about inclusive growth in Latin America and the Caribbean, thereby reducing their need for advice from Washington. Yet the region is struggling with complex economic challenges that cannot adequately be addressed by individual nations or regional groupings, such as the Organization of American States. And there is no shortage of problems to be solved. The IDB’s mission of promoting inclusive growth is closely aligned with the region’s most pressing needs.

The selection of a new president to lead the IDB presents an opportunity for the institution to reassess its role and reshape its products and services to better address current challenges. In response to this opportunity, the Latin American Shadow Financial Regulatory Committee (CLAAF) and the Center for Global Development prepared this report for Luis Alberto Moreno, the new president of the IDB. This Report lays out key challenges facing the institution, explains how the Bank is uniquely poised to address them, and offers six recommendations for the new president to consider as he launches what can and should be a new era at the IDB.

Keywords: Inter-American Development Bank

Suggested Citation

Birdsall, Nancy and de Mello, Pedro and Chapman, Guillermo and Contador, Claudio R. and Fernandez, Roque Benjamin and Guidotti, Pablo E. and Gurria, Angel and Hausmann, Ricardo and de Krivoy, Ruth and Le Fort, Guillermo and Rojas-Suarez, Liliana and Talvi, Ernesto and Zahler, Roberto, A New Era at the Inter-American Development Bank: Six Recommendations for the New President (January 1, 2006). Center for Global Development Working Paper. Available at SSRN: https://ssrn.com/abstract=2560977 or http://dx.doi.org/10.2139/ssrn.2560977

Nancy Birdsall

Center for Global Development ( email )

2055 L St. NW
5th floor
Washington, DC 20036
United States
202-416-0700 (Phone)

Pedro De Mello

Independent

Guillermo Chapman

Independent

Claudio R. Contador

National School of Insurance Foundation (Funenseg) ( email )

Brazil

Roque Benjamin Fernandez

Universidad del CEMA ( email )

1054 Buenos Aires
Argentina

HOME PAGE: http://www.cema.edu.ar/u/rbf/

Pablo E. Guidotti

Universidad Torcuato Di Tella

Minones 2159
C1428ATG Buenos Aires, 1428
Argentina

Angel Gurria

Organization for Economic Co-Operation and Development (OECD) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Ricardo Hausmann

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Mailbox 34
Cambridge, MA 02138
United States
617-496-3740 (Phone)
617-496-8753 (Fax)

HOME PAGE: http://www.hks.harvard.edu/about/faculty-staff-directory/ricardo-hausmann

Ruth De Krivoy

Independent ( email )

No Address Available

Government of Venezuela - Central Bank of Venezuela ( email )

Apartado 2017, Carmelite
Caracas, 1010
Venezuela

Guillermo Le Fort

University of Chile ( email )

Pío Nono Nº1, Providencia
Santiago, R. Metropolitana 7520421
Chile

Facultad Economia y Negocios UCH ( email )

Diagonal Paraguay 257
Santiago
Chile

Liliana Rojas-Suarez (Contact Author)

Center for Global Development ( email )

2055 L St. NW
5th floor
Washington, DC 20036
United States

Ernesto Talvi

Centro de Estudios de la Realidad Economica y Social (CERES) ( email )

Antonio Costa 3476
11300 Montevideo
Uruguay
(5982)628-7703 / 628 76 44 (Phone)
(5982)622-0526 (Fax)

Roberto Zahler

Independent ( email )

No Address Available
Chile

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