Washington DC, 1 September 2023 (TDI): A landmark partnership has been forged between the World Bank and the Inter-American Development Bank (IDB) to maximize development impact in Latin America and the Caribbean.

This four-year collaboration, formalized by a memorandum of understanding signed by the President of the World Bank, Ajay Banga, and the President of IDB, Ilan Goldfajn, aims to bolster support for net-zero-deforestation efforts in the Amazon.

In addition, it aims to fortify the Caribbean’s resilience to natural disasters and bridge the digital-access divide across the region.

In a joint effort to mitigate political risk in the region, MIGA, the World Bank’s political-risk insurance arm, and IDB Invest, the private-sector arm of the IDB Group, have agreed to work together.

They will work alongside the World Bank’s International Finance Corporation (IFC) to attract more private-sector investment.

Ajay Banga, President of the World Bank, emphasized the need for a new playbook that drives impactful development through reimagined partnerships with the private sector, civil society, and other multilateral institutions.

On his part, President Ilan Goldfajn highlighted the partnership as a pivotal milestone in increasing development impact.

In June, both counterparts visited the region for the first time, underlining the need for deeper collaboration between the two institutions to combat poverty, create jobs, and address climate change.

The partnership will leverage the expertise of both organizations to support countries in transitioning to net-zero-deforestation, aiding individuals in pursuing better livelihoods while preserving the ecosystem, including using innovative financial instruments.

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In the Caribbean, the collaboration will result in enhanced support for countries to manage disasters and climate shocks and develop financial protection mechanisms for when catastrophes occur.

The two organizations have also committed to acting together to promote regional digital development.

The action plan proposes that through this collaboration, digital infrastructure and connectivity can be effectively scaled up to accelerate socioeconomic development.

Through the Connected Schools for All initiative, the World Bank and the IDB will develop plans to close the digital gap in education, ensuring young people have the skills needed for tomorrow’s economy.

An innovative pilot program will bring connectivity to underserved areas of the region, helping more people gain access to the internet and unlocking new opportunities.