From rhetoric to results

A senior IDB official explains how the Bank will help carry out the goals of the Quebec Summit

By Charo Quesada

Carlos Jarque is the new manager of the IDB's Sustainable Development Department. A Mexican national who holds a doctorate in economics, Jarque was minister of social development in the Ernesto Zedillo administration. He also served as secretary of integration for the Mexican National Development Plan, president of Mexico’s National Institute of Statistics, Geography, and Information Technology and president of the government’s Interministerial Committee on Public Finance.

IDBAmérica: In your view, what purpose do events like the Quebec Summit serve?

These summits are important because they help us to build links among the members of the hemispheric community. They also allow us to take stock of the current situation and sketch out a vision for the future of the region as a whole. Specifically, the Quebec Summit defined the principal areas of action for development and made it possible for us to identify opportunities or greater and more effective cooperation. It also yielded a solid set of political mandates for the region, for example in the area of democracy.

IDBAmérica: How does the agenda of this summit relate to that of the IDB?

The summit’s agenda and the IDB’s mandates dovetail perfectly, and the priority areas defined in Quebec match programs that are being offered by the IDB. In fact, because the IDB has participated in the summit process we’ve seen the agenda of these meetings gradually converge with the Bank’s own institutional strategies, and this has made it possible to find more areas for collaboration.

IDBAmérica: The action plan of the Quebec Summit sets a busy agenda for the next four years. Signing the Free Trade Agreement of the Americas (FTAA) by 2005 would seem to be more than enough of a goal, but the region must also focus on consolidating democracy, modernizing the state, stabilizing finances, reducing poverty and inequity, combating violence, improving education, protecting human rights, and preserving the environment. Are these realistic objectives or just wishes?

Without a doubt, the development agenda is daunting. It is important not to approach the situation as if we were dealing with a set of independent issues. The objectives are clear, but interrelated. With more democracy, there will be more participation, the public will be more demanding, and people will ask for more accountability, which in turn requires sounder institutions. This will lead to a greater capacity for economic management, to social programs that are better designed and more firmly rooted in the community, and to an integration process that will unlock the region’s productive potential and lead to a better quality of life, especially for the poorest of the poor. This effort will have to be made on many different fronts.

IDBAmérica: Which issues are a priority both for the Bank and the region?

At the Quebec Summit the IDB made a number of preliminary proposals for strategic programs that responded to the policy statement and the action plan signed by the participating heads of state. The programs cover the areas of governance and modernization of the state, regional integration, equity and human development, environment, and sustainable development. All these areas are consistent with the Bank’s mandate under its most recent financial replenishment. The proposals also addressed the issues of connectivity and technological development, which were highlighted specifically at the summit. All these proposed programs will be in addition to the Bank’s traditional operations.

IDBAmérica: What is the Bank doing in the area of governance?

The Bank is carrying out a broad range of activities to strengthen democratic governance. These range from modernization of government agencies to working with the public to create a civic consciousness that is more attuned to our present circumstances.

We are also helping to reform and modernize judicial systems. As part of the summit's agenda we will be helping to create a program to analyze some recent examples of these reforms in order to identify and exchange best practices. Also, we have made a commitment to link up all of the hemisphere’s parliaments with the Global Legal Information Network (GLIN) by 2003 to permit an exchange of judicial information and a more extensive legal foundation.

Unfortunately, we are the world's second most violent region, with murder rates that are twice the global average. That is why violence prevention is also a priority area for the Bank, and one that we are addressing through programs for public participation and civic coexistence.

IDBAmérica: What is the state of the environment and what can be done?

As in other parts of the world, the balance for the region is disturbing. Despite our best efforts, there are clear-cut trends toward increasing deforestation, erosion, and water pollution. In some countries, these environmental costs are equivalent to 10 percent of GDP. In 30 years, the figure could be as high as 30 percent. The Bank will continue to apply ecological safeguards to all of its projects. We are working to instill a more firmly rooted ecological culture in all national development strategies, by promoting dialogue with regional authorities and incorporating environmental concerns into the planning and investment process. We have financed a number of environmental projects with very encouraging results. These experiences should be replicated, and that is why at Quebec we presented a variety of programs with a focus on sustainable development.

The Bank is also committed to natural disaster mitigation and to reducing the region's vulnerability in this respect. In the 1990s, an estimated 10 percent of Latin America’s population (around 40 million people) was affected in some way by natural disasters. The cumulative cost of damages during this period exceeded $20 billion. That is why this is one of the Bank's top priorities, and why we have approved financial support for risk reduction and post-disaster reconstruction.

IDBAmérica: In the midst of all these reforms, we find that a vast segment of the population has been left behind. What place do equity and human development have in the regional agendas?

They are critical. In fact, all of the programs I’ve described fundamentally seek to improve people’s quality of life. Some 40 percent of the region’s population lives on less than two dollars a day. Moreover, the population of Latin America and the Caribbean is expected to keep increasing until it stabilizes around the year 2040. By then, there will be around 670 million people in the region–30 percent more than there are today. To meet this challenge, we will have to increase resources, infrastructure, and services by 30 percent, while simultaneously addressing existing shortfalls.

Our task at the Bank is not only to quantify these challenges, but to see how we can add to specific programs so that equal opportunity truly exists for everyone, in order that the place where a child is born does not determine his prospects in life.

The social agenda is our top priority. That is why the Bank is promoting integrated programs for poverty reduction and the creation of social safety nets. During the summit the IDB also proposed programs to improve education (with an emphasis on teacher training), prevent the spread of AIDS, safeguard the well-being of the elderly, reduce youth unemployment, and support the development of indigenous and Afro-Latin American communities.

IDBAmérica: Finally, how is the Bank addressing the technological revolution that has made information and communications the focal point of development worldwide?

This is a very important area because we have an enormous digital divide relative to other regions in the world. Only two percent of our population has Internet access, whereas in the United States the level is above 40 percent. The few of us that do have access are concentrated in a higher social stratum, a situation that further magnifies the inequities.

At the Quebec Summit the Bank proposed programs to promote connectivity, improve the regulatory environment affecting technology and prepare the labor force for access to these new technologies. We will be working with governments to help find a better legal framework and a better basis for fostering the growth of information and communications.

We have specific programs such as one supporting rural telecenters. The computer and communications technology required for these centers can now be installed for $20,000 to $50,000, making it possible for very remote communities to have access to information. The Internet can help these communities to get better services in the areas of education and health and to develop business opportunities, in addition to fostering recreational and political communication. There is a highly successful program that began in the favelas (shantytowns) of Rio de Janeiro and is now being replicated in other countries. Young people in low-income areas are trained to operate computers and at the same time learn about civic values, productive opportunities, peaceful coexistence, and the rejection of violence. This experience is being used to make information technology accessible to everyone, particularly the underprivileged.

The agenda presented by the IDB in Quebec was the result of work by many departments and it showed that the Bank has taken a proactive stance in supporting the kind of integration and regional cooperation that will benefit all of our countries.

Date posted: June 2001