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The Multilateral Investment Fund. December 2009. Outline. The Case for MIF Intervention A Clear Focus Going Forward. Latin America faces a high levels of poverty coupled with significant disparities related to inequality in income distribution….
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The Multilateral Investment Fund December 2009
Outline • The Case for MIF Intervention • A Clear Focus • Going Forward
Latin America faces a high levels of poverty coupled with significant disparities related to inequality in income distribution… • 130 million people in the region live on US$2 or less per day • An additional 83 million people struggle on the edge of poverty • The poorest 20% of the population have 2.9% of total income • The richest 20% of the population have 57.1% of total income
… and that poverty is marked by a gender, ethnicity and age bias WOMEN • 11.5% unemployed vs. 7.1% for men (exclude informal work) • 43.2% of women do not have disposable income vs. 21.7% of men • Source: United Nations, Economic Commission for Latin America and the Caribbean. 2008. “Social Panorama of Latin America”. U.N Commission on Women 2005. INDIGENOUS PEOPLE • 10% of the population in Latin America and Caribbean • 60 to 80% are poor • Source: Skoufias, E and Patrinos, H. 2007. World Bank report. Economic Opportunities for Indigenous Peoples in Latin America. YOUTH • 106 million youth in LAC • 22 million do not have access to education or jobs (20.75% of the LAC youth) • Source: United Nations, Economic Commission for Latin America and the Caribbean. 2008. “Social Panorama of Latin America”. URBAN/RURAL • 60% of the poor live in urban areas but the poverty incidence -probability of being poor- is higher in rural areas (56% in rural areas vs. 28% in urban) • Urban population grows at 1.7%; rural decreases by 0.4%/year • Source: World Bank, Urban Development Cluster website, 2009; Fay, Marianna. 2005. “The Urban Poor in Latin America”. The World Bank, Washington, D.C.
Outline • The Case for MIF Intervention • A Clear Focus • Going Forward
A Clear Focus: Access • In Latin America and the Caribbean region, the poor lack many things, but motivation, entrepreneurial drive, and intelligence are not among them • What stops the region’s unemployed, micro-entrepreneurs and SMEs is a lack of ACCESS to key resources for the development of fruitful economic activity • The MIF’s challenge is to level the ‘Access Playing Field’ to empower economic activity, growth and a way out of poverty The MIF seeks to focus on “Equal ACCESS to economic activity”
A central challenge for economic expansion and poverty reduction in the region is Access Opportunity and successful economic activity are largely a function of Access Resources needed for the development of fruitful economic activity Prerequisites Challenges along the way • Access to Basic Services • Access to Finance • Access to Markets • Access to Skills and Capacity
Outline • The Case for MIF Intervention • A Clear Focus • Going Forward
How to focus on ACCESS • Focus on specific areas where we can have the greatest impact • Have expertise • There is a clear need • Sufficient funding is not already provided by other donors • Can leverage knowledge, resources, partners and/or work with the IDB • Be strategic. Each topic will have • Specific goals that define “success” e.g. Rotary Club - eliminating polio • Identified the actors needed to reach the following goal • A knowledge strategy; identify the knowledge products needed to influence those actors • A roadmap of projects that will create the necessary results and knowledge • A dissemination strategy; where, when and how to reach the key actors Focus on Access Access to Basic Services Access to Markets Access to Finance Access to Skills and Capacity Definition of Success Actors Projects Learning & Knowledge Dissemination
Going forward, to maximize MIF´s effectiveness… • The MIF will be focused on Access and … • Impact • Knowledge and Learning • Dissemination
The MIF “Access Lab” - The Next Way Forward • While the MIF has very specific indicators for each project, and is ahead of many, it needs to do more, and Donors are demanding more • An integrative approach – impact / learning / knowledge / dissemination • Developing deeper expertise in key areas • Measuring performance more profoundly • Using innovative research methods • Sharing knowledge more broadly Initial funding for the “Access Lab” to come primarily from the Chinese Fund for Increasing Productivity and Promoting Inclusive Economic Growth, while an adequate use of project and ultimately MIF resources ensures its sustainability
MIF Access Lab - Focus on IMPACT • A multi-pronged approach • Develop MIF impact indicators at 4 specific levels • The MIF as a whole • Each Access Area • Each topic within the Access Areas • Each project • Increase amounts available for Impact Evaluation • Set aside more project funds • Evaluate 25 projects per year vs 7 today • Develop and participate in innovative evaluation and research • International Initiative for Impact Evaluation • MIT Poverty Action Lab Focus on Impact Impact Indicators Impact Evaluation
MIF Access Lab - Focus on KNOWLEDGE and DISSEMINATION • Make clear the MIF´s areas of focus, engage key partners and policymakers and help maximize the MIF´s impact • Develop a dissemination strategy up-front for each access area and topic • Use the convening power of the IDB • Create a “knowledge repository” or “knowledge library” • Take a larger role in the “dissemination component” of MIF projects Focus on Knowledge and Dissemination Dissemination Strategy Knowledge Repository Capture and disseminate knowledge
The MIF “Access Lab” - The Next Way Forward • More Focused MIF – Access • Clear Positioning • Deeper Expertise • More Empowered MIF • Knows its Accomplishments • A key Partner in its Topics • More Influential MIF • A Leader • A Center of Knowledge and Excellence
Corporate Social Responsibility and related topics Access to Basic Services Access to Markets Access to Finance Access to Skills and Capacity Economic inclusion Utilities ‘ CSR Economic inclusion Fair trade, organic, “ethical” markets Base of the Pyramid in the financial sector Economic inclusion Responsible value chain • Transversal topic • Have expertise • There is a clear need • Sufficient funding is not already provided by other donors • Can leverage knowledge, resources, partners and/or work with the IDB • We have to work on • Specific goals that define “success” • Identified the actors needed to reach the goals • A knowledge strategy; identify the knowledge products needed to influence those actors • A roadmap of projects that will create the necessary results and knowledge • A dissemination strategy; where, when and how to reach the key actors CSR Definition of Success Actors Projects Learning & Knowledge Dissemination
Improving the lives of lower income and vulnerable populations through economic inclusion Promotion of CSR among the Region’s private sector Knowledge Learning platform CSR Scorecard Inter-American Conference Social Economic inclusion Social enterprises Environmental Climate change Carbon management
Thank you. Questions?