News Highlights
Experts analyze quality of public institutions in Latin America
Weak institutions slow accumulation and distribution of wealth
Presentations by 14 IDB Governors, a seminar on the need to strengthen public institutions and two ceremonies for signing contracts for IDB operations marked the second day of the Annual Meeting.
In today’s seminar, speakers noted that the quality of public institutions in the countries of Latin America and the Caribbean does not correspond to the region’s level of income. In relation to their income, Asian countries have much stronger and more autonomous States, supported by top quality bureaucracies, according to speakers.
“The quality of public administration and institutions is an important factor that up until recently has been ignored in efforts to advance development in the region,” said Antonio Vives, manager of the IDB’s Sustainable Development Department. “But it is essential to ensure equity and competitiveness,” he said. “Without strong institutions, the possibilities for accumulating and distributing wealth are seriously limited,” he said.
Institutional capacity was a key factor in making possible a dynamic and equitable growth for some Asian countries. Good State management, with competent public officials, sheltered from the vicissitudes of governmental changes, ensured the necessary stability, participants said.
According to an IDB report, “The Politics of Policies,” Brazil and Chile—although following very different models—are examples of good government in the region, said Vives. “They demonstrate that, as in so many critical areas of development, there is no one road to achieving results.”
Vives noted the pioneering role played by Brazil in professionalizing its civil service, which features “the most complete and consolidated merit system in the region,” he said. “This level of institutionalization is fundamental to give continuity to the State,” he concluded.
Other events of the day
Participants at the meeting’s third plenary session were addressed by 14 IDB Governors, who presented statements on their countries’ views of development in the region and policies of the Bank.
Presenting addresses today were the governors for Finland, Chile, Switzerland, Haiti, Bolivia, Honduras, the Dominican Republic, Portugal, the Netherlands, Panama, Belgium, the United Kingdom, Austria, Suriname, Peru and Israel.
Also in today’s plenary, the Governors of the Inter-American Investment Corporation were presented with the institution’s annual report.
In addition, a statement of intent was signed that reaffirmed the agreement between the Government of the United Kingdom, the IDB, and the World Bank Group to cooperate in programs designed reduce poverty and inequality in Latina America.
Also signed was the contract for an IDB operation for Ecuador that will finance a natural disaster early warning system. The IDB loan, for $5 million, Hill reduce the vulnerability of areas threatened by the Cotopaxi and Tungurahua volcanos.
An agreement for a technical cooperation grant for $351,400 to Colombia was signed that will help to improve business management for some 200 microentrepreneurs in that country’s port city of Cartagena.
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