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Eighth Replenishment
The IDB’s Board of Governors increased the Bank’s financial resources in 1994 and shifted its operational priorities in the Eighth Replenishment exercise. It outlined four main priorities for IDB operations--poverty reduction and social equity, environmentally sustainable growth, modernization of the state and regional integration.
These are not new areas for Bank involvement--the previous replenishment had already identified low-income populations, women, microentrepreneurs and environmental management as beneficiaries of particular importance. But with the Eighth Replenishment, the Bank expanded its assistance to the region in those areas.
Poverty Reduction and Social Equity
The Bank has a mandate to devote at least half of its operations and 40 percent of its lending volume to social programs that promote social equity and target the poor. It supports policy reforms that generate growth, employment and other opportunities for low-income groups, backs efforts to increase the coverage and efficiency of social programs and finances projects that channeled to low-income groups, including those in health, education and training, water and sanitation, urban development and housing.
The Bank also finances social investment funds; citizen safety and violence prevention programs, including the prevention of domestic violence; and specific programs that help women, children and youth as well as marginalized ethnic groups.
The Environment
The Bank supports sustainable development by directly financing projects to protect the environment and strengthen natural resource management, and by incorporating environmental components into all its operations.
Environmental projects support environmental health, control of industrial pollution, protection of natural resources, renewable energy, and institutional strengthening. The Bank regularly consults with central and local governments, NGOs and local communities on proposed projects and reviews them to assess their potential environmental and social impact.
Modernization of the State
Bank lending and technical cooperation support state and public sector modernization and decentralization efforts aimed at improving the accountability, effectiveness and efficiency of public entities. Projects may strengthen fiscal and customs administration, modernize legislative and judicial institutions, improve transparency or fight corruption in public procurement.
Regional Integration
The Bank supports regional economic integration and trade liberalization to expand trade and increase competitiveness. It conducts research and training activities on integration and supports the strengthening of integration institutions. It has been providing technical assistance to the Southern Cone Common Market (MERCOSUR), the Central American Common Market, the Caribbean Community (CARICOM) and the Andean Community. It provides loans and technical assistance to the Plan Puebla-Panama and supports the Integration of Regional Infrastructure in South America initiative. It cooperates with other hemispheric organizations in providing technical support for the negotiations leading to a Free Trade Area of the Americas. It also supports inter-regional trade and cooperation initiatives such as those between Latin America and the European Union and Asia.
