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The Software of Integration—Regulations and Policy Frameworks

The IDB helps carry out policy reforms, regulatory upgrades, institutional improvements and capacity development.

This is the software of regional integration and it is needed to facilitate the movement of goods, services, capital, people and technology across borders. The Bank aims to promote better integration of countries and their private operators into the global and regional economies.

Why investing in regulatory integration?

Despite the radical transformation of the trade and integration architecture that has occurred over the last two decades, Latin America and the Caribbean do not fully capture their share of global trade and investment. The region is missing the opportunity to diversify markets and products. The countries of Latin America and the Caribbean pay excessive transaction costs when doing business across borders and gains are not distributed equitably.

Improving regulatory integration includes

  • Better implementing trade agreements
  • Promoting more exports and attracting investments
  • Facilitating customs modernization
  • Expanding private finance to reduce vulnerability to sudden shocks

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