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IDB’s Development Contribution

Since its foundation in 1959, the IDB has increased its capital eight times to meet development needs of Latin America and the Caribbean.

Since the Eighth General Increase in the Resources of the Bank (IDB -8) in 1994, the IDB has become the main source of development finance for the Latin American and Caribbean. Between 1994 and 2008, the Bank has approved more than $108.6 billion of loans. This makes up more than 50 percent of the total multilateral lending for the region.

The IDB has played a catalytic role in mobilizing international support around bold agendas that include innovative and proven poverty alleviation programs throughout the region.

An example is the conditional cash transfer programs (CCT). These programs  have proven, time and again, to reduce short-term poverty and contribute to important reductions in overall inequality. In addition, they have helped increase the use of education and health services, improve the nutritional status of at-risk poor children and boost school progression, among other outcomes. At the moment, there are 16 CCT programs in Latin America and the Caribbean.

Since 1995, the $1 billion in paid-in capital allowed the IDB to generate $93 billion of loans for development programs and policies. Half of the total was used to fund social programs and more than a third financed the region’s poorest nations.

For example, every $1 million in additional IDB lending has translated into 25,000 students who benefit from better schools and teachers, or 31,000 households that are connected to new or upgraded water supply services.

IDB’s Development Contribution in Key Areas: 1994 to 2008 

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