CONFERENCE

Financial Products and Poverty reduction

in Latin America and the Caribbean

Washington, D.C., September 30 & October 1st, 2004

Conference Room B232 ? 2nd Floor

 

The ?Financial Products and Poverty Reduction in Latin America and the Caribbean? was held on September 30th and October 1st at the Bank?s headquarters in Washington, D.C. The conference covered the following topics: Debtor enhancement policies, Deposit Insurance, Entrepreneurship, Savings, Insurance and Macroeconomic Stability. The conference sessions brought together key regional actors and experts in both the financial and social sectors from inside and outside the Bank.   

This conference was the culmination of the ?Financial Activities and Products and Poverty Reduction? project that has been developed by the Poverty and Inequality Unit and the Division of Infrastructure and Finance of the Inter-American Development Bank over the past two years with the objective of augmenting the understanding of the relationship between financial markets and the reduction of poverty in Latin America and the Caribbean. The project has been developed with the academic leadership of professor Robert Townsend of the University of Chicago, who drafted the conceptual document of the project which promotes policy decisions based on research as well as research based on policy decisions.

The focus of the conference was on the identification of priorities for action. That is, once we know what are the relevant constraints for the use of financial instruments by low-income households, an effort should be made to identify which constraints are more restrictive and should be considered as priority areas for action. Finally, a key question addressed in the conference relates to the role of the Bank and how our organization digests the findings about the links between the financial sector and poverty reduction and implement the appropriate recommendations in its projects in order to increase the opportunities available to the poor in a way that does not damage the stability of the financial sector. The closing panel dealt with these ?operational? topics and with the challenge of how the set of policies that would emerge from the debate could be part of the Bank?s response and enable poor households to reap the short and long-term benefits of increased access to financial services while building a solid and stable financial sector that spurs economic growth.

• AGENDA
• PRESENTATIONS & PAPERS

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The project ?Financial Products and Poverty Reduction? is an SDS/IADB project jointly sponsored by the Poverty and Inequality Unit and the Infrastructure and Financial Markets Division of the Sustainable Development Department (SDS).

Project Team:

Coleaders:        Cesar Bouillon (SDS/POV), Luis Tejerina(SDS/POV), Edgardo Demaestri (RE1/FI1)

Consultants:      Robert Townsend, University of Chicago, Mauro Alem, IDB, Loic Sadoulet, Université Libre de Bruxelles, David Walker, Canada Deposit Insurance Corporation, Facundo Martin, University of Maryland, Stefan Dercon, Oxford University, Jorge Rodrigues Mesa, Ohio State University, Sergio Urzua, University of Chicago, Sam Schulhofer-Wohl, University of Chicago.

Administrative support: Paola Self (SDS/POV), Aura Oradei (SDS/POV)