 |
| Enrique
V. Iglesias, IDB president (left), and Mario Baldassarri,
chairman of the Board of Governors of the IDB
and deputy economy minister of Italy, at the meeting’s
close.
(Photo by Wilie Heinz) |
|
Milan,
Italy -The IDB governors today concluded three days
of plenary sessions in which they voiced guarded optimism
on the region's prospects for resuming economic growth
and urged moving forward with its agenda for poverty
reduction.
In his closing remarks, IDB President Enrique V. Iglesias
reviewed the highlights of the meeting and summarized
the statements made by the governors on the region's
economic situation and Bank policies. He noted that
a number of governors from Latin America urged that
the Bank increase the flexibility of its financial
instruments to better support sector reforms in the
region.
The meeting this year, which was attended by over
3,500 persons, also included a series of seminars
and other events. The Annual Meeting of the Board
of Governors of the Inter-American Investment Corporation
is held concurrently with that of the IDB.
In their statements, the governors called for a strong
IDB role in helping Latin America and the Caribbean
build economic momentum, deepen its reforms and attack
the region's serious social problems.
A number of governors emphasized that poverty reduction
must continue to be the Bank's principal aim, with
some pointing out that each country must address the
problem in light of local conditions.
Other governors highlighted the role of the private
sector as the engine of development, and urged the
IDB to strengthen its support for small- and medium-size
enterprises while at the same time continuing its
support for large firms.
A number of governors urged that the IDB simplify
its institutional structure in support of the private
sector. At present, the IDB's private sector activities
are carried out through its Private Sector Department,
the Multilateral Investment Fund and the Inter-American
Investment Corporation. Several IDB governors expressed
their support for the MIF, while the governors of
the IIC discussed a proposal for a working group that
would examine how private sector operations of the
IDB Group be consolidated and strengthened. Some governors
noted the role private enterprise plays in improving
social conditions through job creation.
Many of the governors noted the need to strengthen
mechanisms to improve the effectiveness of the Bank's
lending programs, including the development of better
results indicators. Earlier during the meeting, IDB
Executive Vice President Dennis Flannery presented
to the Committee of the Board of Governors a progress
report describing measures the Bank is taking to reform
its practices and tools in order to ensure that the
results of country strategies and operations can be
better evaluated after their implementation.
Governors also called on the Bank to develop new financial
instruments, including anti-cyclical instruments that
will make it possible to provide more support to countries
in times of greatest need. They noted that Argentina
had to make payments on its debt at a time when it
was not receiving new loans. A major factor contributing
to the region's sharp economic cycles are low levels
of domestic saving and exports.
Other governors recognized the importance of IDB emergency
loans, while others stressed said that the Bank should
not lose sight of its long-term priorities.
In their statements, a number of governors urged renewed
efforts to fight corruption, improve transparency
and improve the effectiveness of procurement of goods
and services. Other governors emphasized the need
to strengthen the dialogue with civil society groups
and engage local communities in planning and carrying
out development projects.
Seminars
and signing ceremonies
Seminars held at this years Annual Meeting examined
financing private sector development, using new information
technologies to strengthen democracy, best practices
for social inclusion of marginalized groups, globalization
and the challenge of equitable development, implementing
employment policies under fiscal restraints, rural
development, Mercosur, public utilities in urban areas
and the Washington Consensus.
Presentations were given by the governors of Argentina,
Brazil, Colombia, Ecuador, and Peru on the social
and economic situations of their countries and prospects
for the future.
Among the operations signed during the meeting were
a $1.25 billion emergency loan to Colombia to support
the social safety net and a $210 million loan to Mexico
to finance community education in poor communities.
Other loans signed will support an emergency water
supply program in Bolivia, health sector development
in Costa Rica, and pension reform in the Dominican
Republic.
In addition, the heads of Italy's Economy and Finance
Ministry, the Milan Chamber of Commerce/PROMOS and
the IDB signed a memorandum of understanding for the
future establishment of an Italian Agency for Latin
America (IALA) to strengthen cooperation between the
Italian private sector and member countries of the
IDB.
A memorandum of understanding to promote the exchange
of knowledge and experiences related to public utility
services was signed Tuesday by the mayor of Milan,
the IDB president, the governor of the Prefecture
of Okinawa and mayors and senior officials of a group
of Latin American cities.
The Board of Governors is the IDB's top policymaking
body. Its members include finance and economy ministers,
central bank presidents, and other senior government
officials. The governors represent the IDB's 46 member
countries, which include 28 in the Western Hemisphere,
16 in Europe, as well as Israel and Japan.
Next year's meetings of the Boards of Governors of
the IDB and the IIC will be held in Lima, Peru, March
29-31. In 2005 the meetings will be held in Japan
April 6-12.
