February 27, 2007
The IDB in Brief
- The Inter-American Development Bank was created in 1959 to help accelerate the economic and social development of its member countries in Latin America and the Caribbean and to promote regional integration.
- The Bank uses its own resources and those it raises on financial markets. In 1994 its authorized capital was increased by $40 billion to $101 billion.
- The Bank has 47 member countries: 28 in the Western Hemisphere, 16 in Europe, as well as Israel, Japan and Korea. The Latin American and Caribbean countries hold half the shares in the institution.
- The IDB's highest authority is its Board of Governors, which meets annually to review Bank operations and make major policy decisions. The Board of Executive Directors (14 principals and 14 alternates) is responsible for the conduct of Bank operations.
- IDB president is elected by the Bank’s governors for a five-year term. President Luis Alberto Moreno, of Colombia, was elected in 2005. His term started on October 1, 2005.
- As of December 31, 2006 the Bank had approved $145 billion in loans and guarantees for projects in such areas as energy, agriculture, transportation and communications, the environment, poverty reduction, public health, economic and social reform, government modernization, urban development, education, science and technology, competitiveness and trade, tourism and small enterprises.
- In 2006 the Bank approved $6.4 billion in loans and guarantees.
- During the year the IDB launched its Opportunities for the Majority initiative, designed to bring the benefits of employment, economic growth, technology and basic services to low-income groups in Latin America and the Caribbean. Priority areas for future IDB support include poverty reduction and social equity enhancement, competitiveness and an enabling business climate, economic reform and modernization of the state, regional integration, private sector growth, alternative energy and environmental protection. Education, small business and microenterprise, and science and technology are also key areas for development.
- The Multilateral Investment Fund (MIF) is an independent fund administered by the IDB. Established in 1993, it plays an essential role in the IDB’s efforts to reduce poverty and promote economic growth through private sector development and investment in Latin America and the Caribbean. At year-end 2006, the MIF’s net approvals exceeded $1.2 billion for 997 projects. Including counterpart funding from its partners, MIF projects have put some $2.2 billion to work.
- The Inter-American Investment Corporation (IIC), an autonomous affiliate of the IDB, provides investments and loans for the establishment, strengthening and modernization of primarily small and medium-sized businesses in Latin America and the Caribbean. In 2006 the IIC approved a record 46 operations for $338 million in 13 countries, including two regional operations. These projects will leverage for additional $173 million from other sources a total investment $511 million.