IDB President Enrique V. Iglesias, in his speech inaugurating the assembly, identified the priorities as promotion of social reform, sustainable growth, modernization of the state, and regional integration.

"Democratic systems need to be entrenched without delay so that countries can heed the ethical imperative of citizens’ rights and the technical and political imperatives of economic progress, with special attention to reducing poverty and inequality," Iglesias said.

"The countries of the region will find the Bank ─ as benefits a true development partner ─ a pool of technical and financial resources and institutional linkages to help them rise to this challenge."

In the past six years the IDB has been the main source of multilateral financing for Latin America and the Caribbean. Last year it approved $9.46 billion in loans to the region for projects. Of that amount, 42 percent was dedicated to social sectors, such as education, health and sanitation.

In a videotaped message to the meeting, which continues until March 29, President Clinton reflected on the work of the IDB during the past four decades.

"The Bank not only helps bring this hemisphere together; it brings real change and real results to its citizens every single day, helping us all to build a future of promise and prosperity across the Americas.

"No country that is committed to lifting its people out of poverty should have to choose between paying its debt and educating its children."

Clinton said that he will work with his government to assure that the IDB fully participates in the program to reduce the debt of Heavily Indebted Poor Countries (HIPC).

"No country that is committed to lifting its people out of poverty should have to choose between paying its debt and educating its children," he said.

Also participating in the opening ceremony were Honduran President Carlos Roberto Flores and Guatemalan President Alfonso Portillo; Barbados Prime Minister Owen Arthur; the secretary general of the Organization of American States, César Gaviria, and the executive secretary of the Economic Commission for Latin America and the Caribbean, José Antonio Ocampo.

The Bank governors unanimously elected U.S. Treasury Secretary Lawrence H. Summers as chairman. He replaces Frence’s Finance Minister Laurent Fabius, who was represented at the ceremony by the secretary of state for foreign trade, François Huwart.

Summers stressed the role of international financial institutions in making sure that globalization does not provoke economic insecurity and local disintegration.

"For all these reasons, international institutions that can help to promote more rapid and inclusive growth within countries ─ and a more stable flow of capital between them ─ may be the most effective and cost-effective investment that we can make in forward defense of America’s core interests. And among the international financial institutions, the IDB continues to make a crucial contribution," Summers said.

Iglesias proposed that the Bank concentrate its efforts during the new decade in four fundamental areas for progress in the region:

Social sector reform. Although the IDB pioneered the financing of social programs, Iglesias noted with concern the persistence of a large gap between rich and poor in the region. To help close this gap, the Bank will work to develop human resources, improve the quality of life in cities, increase the productivity of those working in the informal economy, and create social protection networks to mitigate the impact of crises on the most vulnerable social groups.

High quality growth. Macroeconomic stability is a necessary but not sufficient condition in improving social conditions. Among other initiatives, the Bank seeks to help countries increase their competitiveness and improve the functioning of markets to mobilize capital and labor more efficiently.

Modernization of the state. The IDB will help countries deepen their reforms to strengthen their public sector institutions and make them more efficient. One of the mechanisms will be the fight against corruption through the introduction of mechanisms that will increase transparency in public administration in general, in areas such as state procurement and contracts.

Regional integration. The Bank will continue to support the process of economic and commercial integration in the region as well as emphasize regional activities and projects.

The Annual Meeting of the IDB was preceded by a series of seminars on subjects such as the use of new information and telecommunications technologies for economic and social development of the region, the prevention of natural disasters, the formulation of a macroeconomic strategy with capability to respond to social problems, capital flows, access of small and medium-size business to credit, the relationship of politics to governability, and development of rural economies and investing in youth.

For more information on the Annual Meeting visit the IDB’s website at www.iadb.org.