The Inter-American Development Bank (IDB) approved a $250 million loan to support economic recovery in Ecuador, focusing on strengthening the social protection system, female employment, and labor sectors linked to environmental objectives, also called "green jobs."
Supporting the equal integration of women in the economy is one of the operation's priorities. The project will implement an Action Plan to increase female labor participation, reduce the salary gap, and promote female leadership in the country.
Another objective is to help Ecuador develop an institutional framework to take advantage of the potential for job creation within its transition to a low-carbon and sustainable economy. The project will support the development of a strategy by the Ministry of Labor to promote jobs in sectors linked to the country's environmental objectives, or green jobs, thus contributing to a sustainable and resilient recovery of the economy. Ecuador is the first country in the region to have this type of institutionality.
In social protection, the operation will support the expansion of cash transfers for families whose income has been affected by the pandemic. The project includes the implementation of the Nutritional Support Bond (BAN, for its denomination in Spanish) and the incorporation of eligible BAN beneficiaries into the regular Non-Contributory Monetary Transfers (TMNC) of the Ministry of Economic and Social Inclusion (MIES). In addition, the operation will support the strengthening of the social registry system.
The loan will support the expansion of MIES child development services to guarantee quality care for children between 0 and 36 months and pregnant women.
In the health sector, the loan will support the implementation of the National Immunization Strategy, which includes vaccination efforts against COVID-19.
In Ecuador, the drop in employment due to the pandemic was especially pronounced in the informal sector and among women. These measures seek to reduce poverty and promote social equity. The IDB loan seeks to benefit recipients with eligible bonuses and pensions from MIES. It also aims to improve the coverage of the TMNC among the most vulnerable populations, mainly among the 30% of the people with the lowest income.
Promoting the recovery of employment, supporting vulnerable populations, and working for gender equality are objectives that the IDB Group sets out in its Vision 2025, a roadmap to achieve inclusive and sustainable growth in Latin America and the Caribbean.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.