Draw a straight west-east line through the island of Hispaniola and you have the extreme contrasts of hell-on-earth Port-au-Prince in Haiti on the west and beach paradise Punta Cana on the eastern side in the Dominican Republic. At a time when the gang governance in Haiti continues to escalate, in Punta Cana a turning point for Latin American and Caribbean sustainable growth was announced during the IDB Governors’ Assembly and IDB Invest meetings from 6 to 10 March 2024.
48 IDB member countries met in Punta Cana under the leadership of Brazilian economist Ian Goldfajn, president of the IDB since December 2022.
Goldfajn got the approval for what he describes as three simultaneous changes to make the IDB a more impactful institution for Latin America and the Caribbean. Goldfajn understands that Latin America and the Caribbean have the capacities and the resources to make a dent for the better in today’s world, and the announced changes at the IDB will contribute to getting things to happen.
Goldfajn announced via X:
“We did it! Our Board of Governors made history! By adopting a new institutional strategy for the Group, approving a new business model and doubling of the capital for IDB Invest, as well as a more scalable and catalytic business model with more capital for IDB Lab. We are significantly enhancing our impact and scale. This is an inflection point for the IDB Group, and also for the region. With the right reforms and investments the region can be a central part of the solution for global challenges like clean energy, biodiversity and food security. With these three transformational changes the IDB can play a more powerful role and ignite a development turning point.”
The IDB Governors and IDB Invest agreed on new institutional strategy, laying out priorities for 2024-2030. IDB Invest will now have a new business model and an increased US$3.5 billion capital is approved. IDB Lab gets US$400 million more in resources and a more scalable and catalytic business model is approved.
Goldfajn explained in his opening remarks at the IDB meetings that the changes allow for greater investment power to support private sector growth. The IDB gets strong support from the region to increase its capacity by US$112 billion and the IDB Lab gets a tripling of its resources.
Goldfajn highlighted that the region has immense biodiversity, minerals, renewable energy, food production capacities to contribute to challenges of poverty, inequality and climate change solutions around the world.
“Today the world needs Latin America and the Caribbean,” he said insisting the region can be an important part of the solution to climate change.
Goldfajn called the meeting historic, one that changes the IDB Group and potentially the region.
Also speaking at the opening of the work sessions, Dominican President Luis Abinader highlighted the country is working to be the logistics hub of the region.
Vice President Raquel Peña stated: “In the Caribbean, we are ready to play a more predominant role in the current economic context and continue to strengthen the ties that foster the investment in supply chains in the diversification of export markets and development of micro and small business.”
Minister of Hacienda of the Dominican Republic Jochi Vicente was appointed the pro tempore president of the IDB governors’ meetings.
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11 March 2024