Implementation of the Mandates of the IV Summit of the Americas

1. Inter-American Development Bank Implementation of the Mandates of the IV Summit of the Americas XLV Meeting of the Summit Implementation Review Group Thursday, March 29, 2007

2. Inter-American Development Bank (IDB) • This presentation provides information on recent activities undertaken by the IDB in 7 specific areas as set forth in the Mar del Plata Declaration and Plan of Action. The 7 areas are: • Natural disasters • Remittances • Training the labor force • Micro, small and medium enterprises • Improving the business climate for investment • Infrastructure • Private sector investment JSWG – Implementation of the Mandates of the IV Summit of the Americas

3. Inter-American Development Bank (IDB) Growth with Employment (Declaration Mandate 11: Disaster Risk Management) • National Initiatives • Disaster risk management was included in the programming processes of • 12 countries in 2006 • Two loan projects and 13 technical cooperation operations were approved • in 2006 • Regional Initiatives • Region-wide Disaster Network meeting in Washington, DC • Two sub-regional disaster policy events took place in Barbados and Bolivia • Two disaster finance events at IDB’s 2006 Annual Meeting in Brazil and • with the Caribbean Development Bank in Barbados, June 2006 • Disaster Risk Management was featured at the Sustainable Energy and • Climate Change Initiative (SECCI) conference in November 2006 • (continued…) JSWG – Implementation of the Mandates of the IV Summit of the Americas

4. Inter-American Development Bank Growth with Employment (Declaration Mandate 11: Disaster Risk Management) • Policy and Financial Instruments • IDB approved the establishment of the Disaster Prevention Fund (DPF) and • Multidonor Disaster Prevention Trust Fund • IDB Management approved the draft Disaster Risk Management (DRM) policy • Next Steps • Implement the Disaster Risk Management Action Plan in the programming • processes of additional countries • Seek Board approval for DRM Policy during second trimester of 2007 • Finance projects with non-reimbursable financing of the DPF and the Multidonor • Trust Fund • Prepare a white paper on the IDB’s role in risk transfer • Organize one hemispheric and at least two sub-regional meetings in 2007 JSWG – Implementation of the Mandates of the IV Summit of the Americas

5. Inter-American Development Bank Jobs to Fight Poverty (Declaration Mandate 28: Remittances) • Regional Initiatives • Multilateral Investment Fund (MIF) approved a project to assist Latin American • and Caribbean central banks to adopt general principles for remittances services • MIF approved 11 additional remittances projects through a joint facility with the • International Fund for Agricultural Development (IFAD) • MIF has hosted 5 conferences on various topics germane to remittances • Next Steps • Conduct studies and organize events on remittances in Mexico, Haiti, and • between Spain and Latin America • Support a US$10 million facility established by IFAD to finance projects to cut the • cost of making money transfers to rural areas • Collaborate on remittance-related issues with the Microfinance International • Corporation (MFIC), the Asian Development Bank, the World Bank, and the • Consultative Group to Assist the Poor (CGAP) JSWG – Implementation of the Mandates of the IV Summit of the Americas

6. Inter-American Development Bank Training the Labor Force (Declaration Mandates 40 & 44: Employment and Labor Markets) • National Initiatives • Comprehensive labor market loans to Mexico, Panama, Peru and the Dom. Rep. • TC grants to support labor capacity in Central America and the Dominican • Republic, youth training and quality employment creation in Colombia • First comprehensive evaluation of the effectiveness and gender impact of a public • employment service in Mexico • Regional Initiatives • Emphasis on links between education, training and competitiveness • Evaluation of Bank-financed labor market programs • Next Steps • “Enterprise Compact for the Majority” part of the Opportunities for the Majority • Initiative will support greater human capital investment and expand the Bank’s • labor markets, employment, and competitiveness program • New labor markets analysis for Paraguay; gender impact analysis in Chile • TC grants to support labor market and training programs in Honduras, Nicaragua JSWG – Implementation of the Mandates of the IV Summit of the Americas

7. Inter-American Development Bank Micro-, Small- and Medium-Sized Enterprises as an Engine for Growth (Declaration Mandate 54: MSMEs) • Regional and National Initiatives • The IDB Group (IDB, Inter-American Investment Corporation (IIC), and MIF) • approved 209 operations related to MSMEs, for approximately US$1.8 billion in • 2006 • Projects foster microfinance development by enhancing MSME access to • technology, business opportunities, services and financing • Next Steps • Channel additional resources to MSMEs through the recently launched • Opportunities for the Majority Initiative • Continue with IDB’s knowledge dissemination strategy (through research, the • annual Forum on Microenterprise) and seek new innovative mechanisms to • promote regional development JSWG – Implementation of the Mandates of the IV Summit of the Americas

8. Inter-American Development Bank Framework for Creating Decent Work (Declaration Mandate 55: Improving the Business Climate) • National Initiatives • Belize and the Province of San Juan (Argentina) joined the IDB’s Business Climate Initiative (BCI) • Diagnostic studies for Barbados, Belize, Brazil and with a new focus on the sub- • national level in large countries, the Province of San Juan (Argentina) • Completion, in partnership with the World Bank, of the Business Enterprises • Economic Performances Surveys (BEEPS) for eight countries • Next Steps • Three new projects entered the BCI pipeline: Argentina, the Dominican Republic, • Honduras and El Salvador • Argentina – implementation of the prioritized actions from the BCI Action Plan, • Peer Review of the Antitrust Law, Institutions and Policies • Dominican Republic – update the business incorporation law, update firm registry • system • Honduras – Government Agenda for Private Sector Development • El Salvador – improve access for SMEs to government procurement JSWG – Implementation of the Mandates of the IV Summit of the Americas

9. Inter-American Development Bank Growth with Employment (Plan of Action Mandate 40: Infrastructure Development) • Regional Initiatives • Establishment of the Infrastructure Fund (InfraFund) in 2006 with US$20 million • catalyst for project preparation • US$2.344 billion in infrastructure projects and US$1.5 million in technical • assistance operations approved by the Bank between May 2006-January 2007 • Launch of the Sustainable Energy and Climate Change Initiative (SECCI) in 2006 • to find sound energy options • Creation of a new cluster of activities focused on promoting clean energy markets • (MIF) • Non-lending activities to advise public policy: numerous technical studies and best • practice papers, conferences, seminars and forums • Next Steps • Direct US$12 billion towards infrastructure programs during the next five years JSWG – Implementation of the Mandates of the IV Summit of the Americas

10. Inter-American Development Bank Growth with Employment (Plan of Action Mandate 44: Private Sector Investment) • Regional Initiatives • IDB Group approved US$1.384 billion in 2006 to non-sovereign clients, financing • more than US$5 billion in investments in the region • New clients including public companies in the infrastructure sector and private • entities in all sectors of the economy • Increase in IDB’s lending limits per project • Adoption of Local currency Framework • Support to companies to restructure their debt • Creation of the InfraFund • Next Steps • Strengthen IDB’s non-sovereign guarantee lending program • Enhance work with private sector with the establishment of a new IDB Vice- • Presidency for Private Sector and Non-Sovereign Guaranteed Operations (VPSP) JSWG – Implementation of the Mandates of the IV Summit of the Americas