1. ALIDE in IDB workshop: “Development Banking Efficiency Contributes to Economic Growth”

    During the international workshop carried out by the IDB together with ALIDE, Rommel Acevedo, ALIDE General Secretary stated that development financial institutions not only have a social and institutional role but also an entrepreneurial role.

    During the international workshop “Public Development Banking: A Prospective Vision” that was organized by the Inter American Development Bank (IDB) together with ALIDE in Panama, Rommel Acevedo, ALIDE’s General Secretary stated that in the last decades, development banks have not only turned into efficient entities fighting poverty and inequality by using adequate financial products but also into profitable enterprises, whose economic stability guarantees its social task.

    He said that development banking had achieved the consolidation of its institutional and operating efficiency. The Peruvian economist explained: “The institutional efficiency is related with the capacity for providing access to credit to sectors with a high economic and social priority that are not attended by private banking, and by promoting investments aimed at preserving the environment, generate employment, promote technological innovation and adaptation”.

    With respect to the search of operating and entrepreneurial efficiency, he added that this must be measured by the same channels and methodologies applied to commercial banks and financial intermediaries.

    On the other hand, Kart Focke, head of IDB’s Capital Markets Division, pointed out that these institutions need to have an adequate corporate governance, with qualified personnel (from financial professional), that can withstand by any kind of political influence in order to keep their levels of efficiency.

    IDB-ALIDE Cooperation
    **During the meeting, both IDB and ALIDE showed to be ready to work in a development banking joint agenda that includes, among other points: the evaluation of the impact of public development banks performance, financial and social inclusion; banking; environmental financing; corporate governance; use of electronic media to spread successful experiences, and financial regulation.

    About the workshop
    With ALIDE collaboration, IDB carried out the international workshop “Public Development Banking: A Future Vision”, directed at public banking actors.

    The event addressed the challenges and needs that public development banks shall have in the future. The main topic was “Perspectives on Regional Economy and its Influence on the Banking Sector”, and there were two dialogue tables with high-level experts: “Post-crisis Strengthening of Public Development Banking” and “Financial Inclusion and Banking: the Role of Public Banking in the Commitment to Reduce Inequalities”.

  2. ALIDE acknowledges best financial practices by granting the ALIDE 2010 awards

    One of the innovations in this Latin American contest, which took place in Fortaleza, Brazil, during ALIDE 40th General Assembly, is ALIDE Green Award, which intends to promote a greater commitment of development banking towards environmental projects.

    The climate change is, without doubt, one of the main threats for the growth of Latin American and the Caribbean countries; therefore, one of the greatest challenges of the financial system is to contribute to mitigate the greenhouse effect and stimulate projects designed to maintain the environmental balance.

    This is why, ALIDE, as the regional public development banking representative, looked for the way to encourage their 83 members to start up strategies designed to finance “green” projects, by including the category of ALIDE GREEN AWARD in the 2010 edition of ALIDE Awards.

    This special category, aimed at recognizing financial initiatives to fight and adapt to climate change, has been added to the other three categories, with which ALIDE acknowledges the best financial practices of their member institutions every year. These categories are “Financial Products; Technological Management and Modernization”; and “Information, Technical Assistance and Social Responsibility”.

    Fourteen proposals (from 11 institutions) were submitted in three of the four categories. Four institutions were awarded, and Brazil (with two successful experiences), Mexico and Peru stood out.

      THE WINNERS

    MUNICIPALITIES WITH ACCESS TO BANKING. The Best Financial Product award was granted to Fondo de Aportaciones para la Infraestructura Social (FAIS) of Banco Nacional de Obras y Servicios Públicos (Banobras) of Mexico, aimed at banking the least-developed municipalities by providing technical assistance, direct financing or facilitating the access to private financing resources.

    In Mexico, there are 2,454 municipalities, of which only 25% used bank credit to finance their infrastructure investment; 566 of them were attended by BANOBRAS and 65 by commercial banking at the end of 2006. The coverage was even more deficient in the case of municipalities with a lower level of development. With this program, 1,133 municipalities were attended, covering small and medium-scale municipalities, increasing the coverage by 25% in 2006, and by 41% tday. There are States in which the coverage reached 100%.

    BUSINESS AND CULTURE. On the other hand, in the category “Information, Technical Assistance and Social Responsibility”, two experiences were awarded. One of them is the program called “Socio-cultural and business spaces”; of Banco do Nordeste do Brasil (BNB), that supports the socio-cultural inclusion and entrepreneurship by financing 2,200 projects up to the present day, comprising cultural goods and services production, distribution, spreading and commercialization.

    Social, cultural and business spaces are the Bank’s innovating product that links businesses and cultural activities. It does not only promote economical and social inclusion but also the cultural inclusion of Northeastern population without affecting the environment. BNB boosts the social and cultural development through its cultural centers and by culture-specific credit lines and structured sponsorships.

    The culture-specific credit line finances the implementation, extension, modernization and modification of cultural sector entrepreneurships, by granting credits for investments, investment-associated working capital; and purchase of supplies by providers of the services. Socio-cultural and business spaces have two lines of action: a business line that promotes banking inclusion; and a socio-cultural line, which provides digital, social and cultural inclusion and contributes to the generation of work and income.

    MICRO AND SMALL ENTERPRISES (MSE) TAKE-OFF. The second awarded experience in the category “Information, technical assistance and social responsibility” was “Ventanillas Mypes” (MSE Windows) program from Banco de la Nación de Perú (BN), to provide micro and small enterprises (MSE) in poor areas (where there is no private banking offer) with a greater access to financial services.

    This support is carried out through agreements with financial intermediaries (FI) that attend in localities in which Banco de la Nación (BN) is the only banking offer in the area.

    For this purpose, BN has set the procedures to be followed for operating support in MSE window indicating the activities to be carried out by the FI, the branch managers or unit heads) for loan concession, signature taking, loan disbursement, loan recovery, MSE security custody, accounting procedures, refunds, responsibilities and the final provisions related with MSE loans operation.

    Between 2006 and 2010, this program has benefited more than 190,000 families living in poor areas and has granted a total of 191,179 credits, for approximately US$230 million. Additionally, the number of saving accounts that were opened in agencies where Banco de la Nación is the only bank amounts to 672,844 accounts, with an average annual growth of 22.7%. Something similar is observed for checking accounts.

    GREEN MARCH. Finally, the proposal that won the ALIDE Green category was “Fondo Amazonia” program of Banco Nacional de Desenvolvimento Econômico e Social (BNDES), of Brazil. This initiative intends to minimize gas emissions produced by the Amazon forest deforestation and degradation in this country, and to allocate up to 20% of its resources to monitoring systems in other tropical zones or countries.

    The Fund’s fund-raising mechanism is based on the results obtained in the reduction of gas emissions originated by the deforestation of the Brazilian Amazon. The Norwegian government has offered to donate funds for approximately US$305 million that shall be delivered during the 2009 -2011period.

    The Fund applications include the following areas: 1) public forests and protected areas management; 2) environmental control, monitoring and supervision; 3) sustainable forest management; 4) economic activities developed from the sustainable use of the forest; 5) ecological and economic zoning, territorial planning and land regularization; 6) conservation and sustainable use of biodiversity; and 7) recuperation of deforested areas. In its first year, 2009, the Fund has financed projects for approximately US$40 million.

    The contest was announced on February 1st, 2010, and proposals were evaluated by an independent jury in April. The awards ceremony was carried out during the Institutional Issues Meeting during ALIDE 40th Regular Meeting of the General Assembly, in Fortaleza, Brazil.

  3. Rommel Acevedo reelected as ALIDE General Secretary

    In ALIDE 40th Assembly, the appointed representatives elected by unanimous vote the Peruvian economist, Rommel Acevedo Fernández de Paredes, as ALIDE General Secretary because of his great performances ALIDE activities. Acevedo will hold the position until 2015.

    Rommel Acevedo studied Economy at Universidad Nacional Mayor de San Marcos, Peru, and holds a Master degree in Management (majoring in Development Financial Institutions) from ESAN (Escuela de Administración de Negocios para Graduados). He has been ALIDE General Secretary since 2000 (reelected in 2005) and until 2009 he was General Secretary of the World Federation of Development Financing Institutions (WFDFI).

    Furthermore, he is author of several journalistic papers specialized in finance for development and books about his experience such as: Ensayos sobre banca de fomento y financiación del desarrollo latinoamericano, Liberalización financiera y banca de desarrollo, and Desarrollo, financiamiento y banca.

  4. ALIDE is now ISO 9001:2000 Certified

    ALIDE’s Quality Control System earned ISO 9001:2000 certification from SGS – System & Services Certification England, in accordance with the system used by the United Kingdom Accreditation Service (UKAS).

    The Quality Control System covers ALIDE General Secretariat processes for furnishing products and services to development financing institutions through studies and information, training, project and business promotion, technical advisory services and assistance, and institutional relations, backed by management and financial control, planning, and social communications.

    This important accomplishment is in line with the objective of modernizing and strengthening the Association, in which Nacional Financiera S.N.C. (NAFIN), of Mexico provided valuable collaboration and advisory assistance.

    Quality Policy
    We seek to continuously improve the quality of the services we provide to our member institutions through a commitment to and demand for a culture of quality in the attitude and professional work of our staff at all levels, our approach to our clients for value-added services, leadership in our orientation and close supervision; with excellence as our goal.

    Objectives
    Studies and Information: To possess relevant information and provide it on a well-timed basis in order to handle the development banking system’s coordination and requirements and to conduct studies about development financing.

    Best Practices: To identify the best practices of development banks as a reference for improving their performance.

    Training: To have state-of-the-art training programs that meet the need for the training and specialization of human capital in development banks.

    Technical Assistance: To offer and/or mobilize state-of-the-art technical assistance programs that meet the needs of the Member Institutions for support for their institutional and operational reinforcement efforts.

    Business: To identify projects of common interest to the development banking system in order to create business opportunities.

    Positioning: To develop strategies to support the arrangements made by the region’s development banking system, widely disseminate its position, and reinforce ALIDE’s performance before countries and governments, civil society and international organizations, as the international organization representing that banking system.

    Resources: To have the necessary human, material and financial resources, together with a sound financial operation, in order to carry out a working program that meets the service requirements of the development banking system.

  5. Roberto Smith elected as ALIDE President until 2012

    Parallel to the analysis and debate on critical topics regarding Latin American and Caribbean development, in the ALIDE 40th General Assembly held in Fortaleza (Brazil), the development banks members of ALIDE solved institutional matters such as electing the Board of Directors for the 2010-2012 period, renewing their trust for the team led by Roberto Smith. This last May 14th not only the President of the Banco do Nordeste de Brasil (BNB), Roberto Smith, was again chosen ALIDE President, but also Rodrigo Sánchez Mujica, General Director of FIRA (Funds Instituted in Relation with Agriculture – Banco de México) and Fernando Calloia, President of Banco de la República del Uruguay (BROU), as the two vice-presidents of this international body.

    Additionally, Gustavo Ardila Latiff, President of Banco de Comercio Exterior de Colombia (Bancoldex) and Arthur Rosaria, Executive Director of Corporation for the Development of Curaçao (KORPODEKO) were reelected.

    Mauro Alem, President of Banco de Inversión y Comercio Exterior (BICE), Argentina, and Federico Antún, CEO of Banco Nacional de Vivienda (BNV), Dominican Republic, joined them as directors..

  6. Role of Development Bank Associations in the Twenty-First Century

    It was in January 1968 when the Inter-American Development Bank (IDB) released one of its staff members to establish the first regional association of development banks, the Latin American Association of Development Financing Institutions (ALIDE), in Lima, Peru, in collaboration with the Industrial Bank of Peru, which provided office space and support staff to get ALIDE’s operations started. Ricardo Palma Valderrama from Peru became the first Secretary General of ALIDE and Rubens Vaz da Costa from Brazil, a former president of the Bank of the Northeast of Brazil, became its first President. In 1968, the Inter-American Development Bank considered this creation of an association of development banks in its borrowing member countries an item of the highest priority, because it felt that such an association could critically contribute to raising the quality, competency, and capabilities of these institutions, which were receiving large lines of credit (“global loans”) from the IDB for the financing of small and medium sized projects in their countries. This increase in quality of projects would raise the effectiveness of the global loans of the Inter-American Development Bank (IDB).

    The decade of the 1960s was also the time when economic and social cost/benefit analysis became a standard practice for the appraisal of projects by development banks, as well as for calculating the expected internal rates of return of projects. The IDB considered it important to create a capability in cost/benefit analysis in each development bank and the new development bank association was to provide training in this field for its members.

    Profile of Regional Assocciations

    Latin American Association of Development Financing Institutions
    African Association of Development Finance Institutions
    Association of Development Financing Institution in Asia and the Pacific
    Association of National Development Finance Institutions in Member Countries of the Islamic Development Bank (ADFIMI)
    European Development Finance Institutions (EDFI)

    National Development Bank Associations

    For many years there have existed national development bank associations, mostly in a number of large countries. In Brazil, the Association of Brazilien Development Banks (ABDE) has played an influential and important role. It publishes the highly respected journal “Rumos” every month. In Malaysia, the Association of Development Finance Institutions of Malaysia (ADFIM) has played an important role in training. In Nigeria, the Association of Nigerian Development Finance Institutions (ANDFI) plays a coordinating role among this country’s development banks. In Indonesia the Indonesian Association of Regional Development Banks (IARDB) has provided an important link for the development banks in the numerous large islands. In thePacific, the Association of Development Finance Institutions in the Pacific (ADFIP) links development banks in the various island states of the South Pacific region. The website for ABDE is: www.abde.org.br

    Need for Autonomy and Sustainability

    The early sponsors of the associations were in agreement that they would reduce their support of the associations as more and more support was received from their members and they reached the point where their membership fees would become sufficient to support their operations. There was the need for institution building and capacity building in terms of publications, training, research, studies and advisory services. The membership grew in the 1970’s and the funding reached a point where it was expected to fully support the need for institution and capacity building. Steps were taken to cut the umbilical cord to the main sponsors, but it was hard to relinquish this dependence and support. While the associations had operational autonomy, they only became fully independent when their offices moved out of their original offices in the buildings of their sponsors. This happened first with ALIDE when it constructed its own headquarters building in 1979. ADFIMI relocated from Jeddah to Istanbul in 1987. It then was the case for ADFIAP when it occupied new quarters in 1989. AADFI moved out of the ADB building to a building in 1993.

    The external debt crisis of 1982 had a strong negative effect on the finances of the member institutions of the associations. Membership dues remained outstanding and it became difficult to maintain previously achieved operational levels.

    Members also sent fewer of their staff to training activities, which increased the costs per participant. Particularly in the case of AADFI, a large number of members failed to pay dues and AADFI became again more dependent on the support from the African Development Bank, UNDP, EDI and other sponsors. Even ALIDE and ADFIAP, the larger associations in terms of staff, had to restructure and downsize their operations. In the process they had to trim their publications, training and research activities. This paralleled restructuring and diversification trends in their member institutions.

    With the external debt crisis of 1982, the justification for development banks was called into question. They have substantially changed during the intervening eighteen years, from 1982 to 2000. They have reaffirmed their importance as agents of development financing and shown, particularly during the Asian financial crisis, that they can be relied upon to provide sounder development financing than their competitors in the banking sector. In this new world of finance, with an new financial architecture emerging, the services to be provided by the associations have also changed.

    Need for a Strong and Clear Image

    An important study of the first fifty years of development banking (Kapur/Lewis/Webb) concludes that the aspect in which development banks have least fulfilled their functions was to build their profile with the public and to make the importance of their role generally known and understood. That profile had been defined by their governments for them when there was still development planning and every developing country had a five-year plan. Development banks have now stepped out from under their governments’ umbrellas and they had to create and project their image themselves to the public and stand in the open during good weather and bad.

    Today this open environment requires an effective use of the media and of the internet. Publications, videos, compact disks and websites are needed to project the image, mission and functions of development banks. The regional development bank associations can fill the new needs and where they need to collaborate under the umbrella of the World Federation of Development Financing Institutions (WFDFI) to achieve this objective. To have a strong voice at the regional level, but also to have a clear voice at the international level, is becoming vital for surviving in the Twenty-First Century. This is the different role they have to assume for assuring the success of private and public development banks in the financing of development in the future.

    Delivery of Services

    This does not preclude the delivery of service that the development bank associations have been offering to members in the past. The members of the associations continue much in need of the range of services and assistance that the associations can provide. This assistance includes training, publications, research, studies, regional meetings, workshops, financial intermediation and advisory services. There is a consensus that the majority of development banks should diversify their operations adjusting them to the new business opportunities and necessities to strengthen their competitive position and to generate profits with the support of the training and technical advise coming from their associations and the World Federation. Development banks also need to act more as catalysts to coordinate member activities to achieve larger scale, greater scope and better quality. Networking and the building of partnership relations becomes a requirement in the Twenty-First Century.

    In this new world, relationships have also changed. The requirements are now for global-, regional- and sub-regional partnerships that contribute a degree of synergy and create wider public participation and participation at the grass roots level. This implies that association membership cannot be limited any more to those who can afford and are willing to pay annual membership fees. The constituency and membership needs to include all development banks. Those who can least afford to pay need the services most. This means that the associations need to finance their operations out of fees and charges for their services. Fees would not only be charged to their members, but also to all non-members making use of these services. Associations will need to operate in response to public and market needs. Like private businesses, or consulting firms, they need to assure themselves that revenues will cover their operating costs and yield additional funds for expanding and improving future services.

    Annex

    List of Presidents and Secretaries General of Development Bank Associations from 1968 to 2008

    Presidents of ALIDE

    • Rubens Vaz da Costa, Brazil, 1968-1969
    • Ignacio Copete-Lizarralde, Colombia, 1969-1973
    • Eduardo Gómez Tamayo, Venezuela, 1973-1974
    • Ernesto Rohrmoser García, Costa Rica, 1974-1977
    • Karlos Rischbieter, Brazil, 1977-1978
    • Tomás A. Pastoriza, Dominican Republic, 1978-1980
    • Igidio Ianella, Argentina, 1980-1981
    • Adolfo Nass, Venezuela, 1981-1983
    • Camillo Calazans de Magelhaes, Brazil, 1983-1986
    • Gustavo Petricioli, Mexico, 1986-1987
    • José Salaverry Llosa, Peru, 1987-1988
    • Ricardo Avellaneda, Argentina,1988-1989
    • Frederich E. Bergés, Dominican Republic, 1989-1990
    • Jesús Villamizar Angulo, Colombia, 1990-1992
    • Oscar Espinoza Villareal, Mexico, 1992-1994
    • Hindenburgo C. Pereira-Dinitz, Brazil, 1994-1995
    • Rodolfo Anibal Frigeri, Argentina, 1995-1996
    • Marcos R. Pessoa Duarte, Brazil, 1996-97
    • Noel Lezama Martínez, Venezuela, 1997-1999
    • César Rodríguez Battle, Uruguay, 1999
    • Carlos Sales Gutiérrez, México, 2000
    • Gonzalo Rivas Gómez, Chile, 2001-2003
    • William Hayden Quintero, Costa Rica, 2003
    • Mario Laborín, México, 2004-2006
    • Nicolla Angelucci, El Salvador, 2006-2008
    • Luis Rebolledo, Peru, 2008-2009
    • Roberto Smith, Brasil, 2009

    Chairmen of AADFI

    • August Daubrey, Ivory Coast, 1975-1976
    • René Amichia, Ivory Coast, 1977-1985
    • John Bentum-Williams, Ghana, 1985-1988
    • Alhaji Abubakar Abdulkadir, Nigeria, 1989
    • Mohammed Aissaoui, Marocco, 1989-1991
    • Alhaji S. Y. Kasimu, Nigeria, 1995-1997
    • Gershom M. B. Mumba, Zambia, 1998-2003
    • Remis Omotoso, Nigeria, Nigeria, 2003-2006
    • Mvuleni Geoffrey Qhena, South Africa, 2007

    Chairmen of ADFIAP

    • H. F. G. Lembruggen, Malaysia, 1976
    • Vicente R. Jayme, Philippines, 1976-1986
    • John Fletcher, Australia, 1986-1989
    • Suresh S. Nadkarni, India, 1989-1992
    • Chang-Dal Kim, Korea, 1992-1995
    • Aswin Kongsiri, Thailand, 1996-1998
    • Saleh Ghazali, Malaysia, 1998
    • Isoa Kaloumaira, 2003
    • Anothai Techamontrikul, Thailand, 2003-2004
    • Jesus P. Tambunting, Philippines, 2004-2007
    • Fuimaono Falefa Lima, Samoa, 2007

    Chairmen of ADFIMI

    • Rajab Salim As-Saad, Jordan, 1986-1993
    • Tahir Abbas, Pakistan, 1993-1994
    • Hayati Ozkan, Turkey, 1995-1998
    • Safa Ocak, Turkey, 1999
    • Sudi Apak, Turkey, 1999-2000
    • Orhan Güleç, Turkey, 2000- 2001
    • Mehmet Emin Ozcan, Turkey, 2006, Malaysia, 2001-2004
    • Muhammad Rashid Zahir, 2004-2006
    • Mehmet Emin Ozcan, Turkey, 2006

    Chairmen of EDFI

    • Loet Mennes, Netherlands, 1992-1994
    • Sven Riskaer, Denmark, 1995
    • Joaquín de la Infiesta, Spain, 1996
    • Rainer von Othegraven, Germany, 1997
    • Philippe Wilmès, Belgium, 1998
    • Antoine Pouillieute, France, 1999
    • Olle Arefalk, 2003
    • R. Michael Barth, 2003 – 2004
    • Winfried Polte, 2003-2005
    • Richard Laing, Unite Kingdom, 2005-2007
    • Remedios Romeo, Spain, 2007

    Secretaries General of Development Bank Associations

    ALIDE

    • Ricardo Palma Valderrama, Perú, 1968-1978
    • José Andrés Bellido, Perú, 1978-1979
    • Carlos Garatea Yori, Perú 1979-1999
    • Rommel Acevedo, Perú, 1999

    AADFI

    • George Aithnard, Togo, 1975-1980
    • Pierre William, Senegal, 1981-1983
    • Sedozan J. C. Apithy, Cameroon, 1984-1987
    • G. Henry Andrews, Liberria, 1987-1988
    • Pierre William, Senegal, 1988-1989
    • Mohammed Ould Cheikh-Sidia, Mauritania, 1990-1993
    • John A. Hammonds, Ghana, 1993-1996
    • Magatte Wade, Senegal, 1997-2003
    • Joseph Alfred Amihere, 2003

    ADFIAP

    • Orlando P. Peña, Philippines, 1976-2004
    • Octavio B. Peralta, Philippines, 2005

    ADFIMI

    • Abdelaziz Kuntoadji, Indonesia, 1986
    • Aydemir Koc, Turkey, 1987-1996
    • Orhan Sagci, Turkey, 1997-2006
    • Nuri Birtek, 2006

    EDFI (“Representatives”)

    • Hans Meier Ewert, Germany, 1992-1996
    • Frans Baneke, Netherlands, 1997-1998
    • Sean Magee, United Kingdom, 1999 – 2004
    • Jan Rixen, Belgium, 2004
  7. 2004 Annual Meeting of Board of Governors; Inter-American Development Bank

    LIMA, PERU
    AB-2296
    CII/AB-907
    29 March 2004
    STATEMENT BY
    MR. ENRIQUE V. IGLESIAS,

    PRESIDENT OF THE INTER-AMERICAN DEVELOPMENT BANK AND
    CHAIRMAN OF THE BOARD OF EXECUTIVE DIRECTORS OF THE
    INTER-AMERICAN INVESTMENT CORPORATION,
    AT THE INAUGURAL SESSION OF THE
    ANNUAL MEETING OF THE BOARDS OF GOVERNORS

    Let me begin by conveying my sincere gratitude to the Government of Peru for its kind invitation to stage this Forty-fifth Annual Meeting of the Board of Governors of the Inter- American Development Bank and Nineteenth Annual Meeting of the Board of Governors of the Inter-American Investment Corporation in Lima. We return to Lima thirty-three years since we last held an Annual Meeting in Peru, a country with which the Bank has been closely associated since its very beginning. Its first loan was to Peru, in 1961, for a water and sanitation project in Arequipa, the country’s second largest city. That first operation in a way defined the institution’s vocation for social development and its commitment to expanding the frontiers of development banking. It seems fitting today to invoke the memory of Felipe Herrera, that bold visionary who, as the Bank’s first president, set our institution on its course to help combat poverty and enhance social equity across the region. As one of the founding members of the Bank, Peru has been an active participant in the life of our institution for decades and an inspiration to all of us as it has risen to challenges, essayed solutions, and shared its ideals. As the eminent Peruvian historian Jorge Basadre once reminded us, “just as the fundamental law of economics is not accumulation but rather the use of material goods to satisfy the needs of humankind, the fundamental law of culture is not to amass knowledge but rather to adapt knowledge to human beings so they can fully realize their destiny.” The Bank’s core mission is to work with and alongside its borrowing member countries to help all the region’s people fulfill their destiny. Sadly, large segments of our population have become disillusioned at the slow pace of progress in improving social and economic conditions in our countries and are even questioning whether we have chosen the right path towards greater social justice. Let me offer some thoughts on where we are and how we may move forward.

    I. Rekindling economic growth
    After five years of sluggish economies and worsening social conditions in most Latin American and Caribbean countries, the region stands poised to enter a new and, hopefully, sustainable chapter in its growth, with prospects for improved quality of life for its people. Since we gathered a year ago in Milan, the clouds of political and economic uncertainty have lifted and the region’s growth prospects are distinctly more promising, by virtue of a combination of external and domestic factors. On the external front, the expansion of the advanced economies along with robust growth of China’s economy have helped boost trade flows and raised the prices of commodities that contribute the most to the region’s trade balance. Meanwhile, U.S. interest rates are at a forty-five-year low, a significant benefit to a heavily indebted region. Funding flows and foreign direct investment which had plummeted in recent years are picking up. The steep devaluation of the dollar, in which the region transacts so much of its business, has made Latin America and the Caribbean far more competitive in world nondollar markets. All of these developments are pushing up growth rates across the region, albeit with some differences depending on countries’ individual circumstances. Just as important have been country decisions to hold fast to fiscal discipline during the downswing of the cycle, at no small sacrifice, and to opt for prudent management of monetary policy. The steep devaluations that followed in some countries are also making the region’s economies more competitive in the global marketplace. In light of these gains, forecasters are predicting roughly 4 percent economic growth for the region in 2004, a vast improvement over the previous five-year average that barely reached 1.3 percent. Welcome as this turnaround may be, we cannot be complacent. Externally driven improvements in an economy are rarely long-lived, as the region’s history, and world history generally, can attest. Sooner or later we can expect to see adjustments in the industrialized economies, particularly the United States, which could affect the global business cycle, interest rates, and commodity prices and trigger currency realignments. The ensuing impact on the region’s economies will be determined by the nature and timing of the adjustments and, above all, on the degree of policy coordination among the advanced economies. How, then, should we handle the current upswing in the region’s business cycle? Very carefully, when projecting into the long term, and building on the favorable situation in the years immediately ahead in order to solidify economic reforms that have worked well, revisit and reconfigure any that have fallen short, and gear up for reforms still needed in order to enhance economic efficiency and thereby deliver greater social benefits to the collective. With all this in mind, I would like to draw your attention to three issues that are relevant across the board, even with due regard to the particularities of individual countries. First, managing the economic recovery so as to make economies more resilient to shifts in the business cycle. Second, increasing the social dividends of economic growth to reverse the social deterioration of recent years, and heightening the social returns to economic policies. Third, bolstering countries’ negotiating capacity both individually and collectively in preparation for major international negotiations on the horizon.

    A. Managing the economic recovery
    I would like to outline four policy areas that are of particular importance at this juncture.

    1. Strengthening public finances
    Public finances have come under considerable stress over the last five years. Public revenues as a share of GDP have held more or less steady in a range of 24 to 26 percent but governments have had great difficulty trimming current expenditure, on account of interest on the debt plus other inflexible public expenditures. Current account fiscal deficits rose from less than 2 percent of GDP in 1997 to close to 5 percent by 2002 in the region’s seven largest economies. The brunt of the adjustment was borne by public investment expenditure, which in 2002 was lower than interest payments. Given the already deficient state of economic and social infrastructure in the region, this situation is not sustainable. The breathing space that may be provided by a period of moderate growth must be used to improve tax administration, modernize the structure of taxes and make public expenditure more efficient. There is no doubt that credible public finances are important for stability in the short run and essential to underpin growth in the medium term and beyond. Governments throughout our region are looking for ways of reversing the decline in public investment, given the adverse implications of this trend for long-term growth prospects and the countries’ ability to achieve their development objectives. In a bid to augment investment some countries are laying the groundwork for public-private partnerships as a means of tapping private-sector financial and other resources to improve the scale, quality, and sustainability of infrastructure investment for the provision of public services. The IDB is contributing to this encouraging development through a number of initiatives, among them a study with the International Monetary Fund and the World Bank on a new methodology for treating investment expenditure in formulating macroeconomic program goals.

    2. Reducing public debt and enhancing the debt profile
    Latin America and the Caribbean today are struggling under a very heavy debt load. Much of this burden reflects the weight of external borrowings and the effect of exchangerate fluctuations. Devaluations of the real exchange rate in recent years contributed to a rapid rise in the average debt-to-GDP ratio for the region from 37 percent in 1997 to 51 percent in 2002. Debt service has become such a heavy charge on government revenues that many countries are now giving priority to public debt management to shield themselves against the risks that the speed and dynamism of global financial markets can create. Latin American and
    Caribbean countries are especially vulnerable to volatility in interest rates, exchange rates, and commodity prices, and their financial authorities are continually seeking ways of spreading the risks to which public budgets and the economy overall are exposed. Despite the U.S. Federal Reserve System’s declared patience, interest rates are likely to climb as that country’s economy picks up. Experience shows that a 200 basis points rise in U.S. interest rates translates into a 500 basis points increase in the cost of external financing for Latin America and the Caribbean. In today’s circumstances, governments could face significant fiscal adjustment to meet the increased cost of debt servicing, a move that could choke economic growth. A clear priority is to seize the opportunities created by the current low interest-rate environment to try to extend debt maturity profiles and bring the debt-to- GDP ratio to a sustainable level. Prudent external debt management that capitalizes on these opportunities is the countries’ best and straightest course.

    3. Bolstering financial systems
    Financial intermediation appears to be stalled in many countries. Since 1998, banking system credit to the private sector has fallen by 20 percent in real terms in the region’s seven largest economies, even though banks are liquid and interest rates stable. The problem is not one of constraints on the supply side; we seem to be caught in the grip of weak demand from the real economy and risk aversion on the part of lenders. Demand should pick up as businesses see new opportunities in a growing economy and find it necessary to begin investing again. Regulators have to be on their guard, therefore, to prevent the recurrence of the kind of euphoria that in past upswings resulted in the accumulation of bad debt and currency mismatches. In the past that unwelcome mixture has sparked banking crises that carried a high fiscal cost, and was one factor behind the buildup of debt. The region has done a great deal to strengthen and enforce prudential regulations for financial activity but, in many countries, regulatory systems are still too weak and there is insufficient legal protection for creditors. Countries need to finish creating a strong regulatory and oversight framework for vibrant financial institutions in order to reduce the risks to fiscal and overall economic health in the years ahead.

    4. Fostering a friendly business climate
    Sustained economic growth at a healthy rate will require a much higher level of investment than we have managed in Latin America and the Caribbean in recent years. Investment is at its lowest level in a decade, some 20 percent below the 1997 peak. Macroeconomic stability will provide the needed framework for sustained growth, but that will not be enough. A host of institutional and related reforms are necessary to regain the confidence of investors. Too often in recent years has one country or another changed the ground rules unilaterally, triggering uncertainty among investors about what might happen elsewhere in the region. What is needed today, in contrast to the sweeping reforms of the early 1990s, is a more selective effort to gain credibility and thus build firmly on everything the countries have accomplished to date. In order to train the spotlight on this goal, late last year the Bank invited officials, private investors and academics from most of our member countries to participate in a Public-Private Summit to exchange ideas on the business climate and the way forward. The Bank used that very visible opportunity to launch its ‘business climate initiative’ that is an open invitation to each country to work with the Bank to remove specific impediments to higher investment in its economy.

    B. Improving the social dividends of growth
    When our economies grow slowly or not at all, there is a high social cost borne disproportionately by the poor. The political cost in lost momentum for reform is also high. Since 1998 a majority of Latin American and Caribbean society has been losing confidence
    in the possibility of improvements in quality of life in an open, market-friendly economy. This is not surprising in face of the growing inequality of the distribution of income, deteriorating social infrastructure, rising unemployment, and the reversal of a decade-long
    trend of reductions in the share of the population living in poverty. In 2003 there were 20 million more poor people in our region than in 1997. Accordingly, at this threshold to a period of renewed growth our countries have to pay as much attention to the distribution of the social dividend as to building macroeconomic stability and a propitious investment climate, by adopting public policies that help create jobs and opportunities for the poor. Let me mention here some policy priorities to that end.

    1. The labor market
    Affording remunerative employment to the largest number of people of working age is the principal means of sharing the fruits of economic progress. Our economies have been underperforming and, in fact, the stubbornly high level of unemployment is one of the major sources of discontent with economic reforms in Latin America and the Caribbean. Last year, unemployment in the region averaged a record 10.7 percent; in several countries the unemployment rate topped 15 percent. Although labor legislation typically seeks to protect workers from the insecurity caused by swings in the economy, it generally has the perverse effect of discouraging permanent employment in the formal economy, and is especially a barrier to young people and women. One imperative is to remove these disincentives and build effective information, training and surveillance systems to encourage flexibility in labor markets.

    2. Social expenditure
    It may surprise many of you to hear that in Latin America and the Caribbean during the last decade governments increased social expenditure, in real terms, by about 58 percent per capita. However, the results have been disappointing. Throughout much of the 1990s a sizable share of this increase was funneled to restructuring social security systems. Had those structural reforms been postponed the burden on the public finances could only have been more onerous. We must recognize, however, that social security benefits formal-sector workers, to the exclusion of the majority of the poor who toil in the informal economy. One encouraging development in recent years is the concerted effort made in many countries to protect public spending for education and health, even in times of tight budgets. However, it is imperative to get better value for money as we move forward. Let me underscore three dimensions to improving the quality of social spending outcomes:
    Higher efficiency of expenditure;
    1. Focus on greater social inclusion; and
    2. Encouraging greater participation by citizens.
    3. Efficiency of expenditure
    All of our countries subscribed to the Millennium Development Goals (MDGs) at the United Nations Millennium Summit in September 2000 and reiterated their commitment at the Summit of the Americas in Quebec City the following year. These goals set many
    measurable targets, for example for reducing poverty, lowering infant and maternal mortality and containing HIV/AIDS. These targets are at once a stiff challenge and a yardstick against which to measure progress toward greater efficiency in social expenditure.
    In this era of fiscal restraint it is incumbent on each country to make sure that every outlay has a clear purpose and to check its progress systematically. Of course, each country should challenge itself to do even better than the MDGs—for example, most of us should be aiming to achieve higher coverage and quality in secondary and tertiary education since we long ago achieved universal primary education. One milestone on this path was last November’s Declaration of Brasilia, in which a number of heads of state, ministers, and civil society representatives pledged to push for attainment of the MDGs. This is a significant step forward on the way toward 2015 which is the target year for achieving the Millennium Goals. Enhanced efficiency of social expenditure must go hand in hand with efforts to achieve greater progressivity, targeting society’s most disadvantaged. Today, as we again look to a period of growth, we have to seize the opportunity to build robust social protection systems that will work in good times and, more importantly, when times are bad. There are flagship social protection programs in some of our countries that hopefully will inspire others to develop similar operations tailored to their own circumstances. The common purpose is to protect benefits for society’s poorest and lay the groundwork for breaking the links that are bequeathing poverty from one generation of a family to the next.
    Social inclusion Inequality in income distribution in Latin America and the Caribbean is part and parcel of social exclusion, particularly exclusion on the basis of ethnicity and race. Indigenous and Afro-Latin populations are, as a group, the least educated, the most afflicted by disease and malnutrition, the poorest of the poor. Targeting spending is a proven way of addressing social exclusion, but much more important is the political leadership to spark changes in attitudes, enact legislation and put it into practice, and develop intelligent positive-discrimination schemes to give voice to these and other historically excluded segments of the population such as persons with disabilities. These are the building blocks of social change which is, in turn, the foundation for lasting improvements in quality of life as sought with the Millennium Development Goals.

    Citizen participation
    The social dividend accruing from higher economic growth will also be greatly enhanced to the extent that citizens partner with government to help decide on and chart the course ahead. The ethos of the benevolent State should steadily give way to more active participation of the citizenry in decision-making. We must use the resources of society at large to make inroads against poverty and social exclusion. Corporate citizens could play an especially important role here, not merely out of a sense of charity or philanthropy but because it is good business.

    C. International trade negotiations
    Let me turn to a topical issue of transcendental importance for opportunities for economic growth, job creation, social progress, and improved political relationships in the years immediately ahead: the regional, hemispheric, and global trade negotiations that are
    currently engaging the attention of all our countries. Trade liberalization is one of the cornerstones of the structural changes at work in Latin American and Caribbean economies. At first, in the late 1980s and early 1990s, many countries unilaterally lowered tariff and other barriers to trade. Today the effort is dominated by negotiations in regional, hemispheric, and global forums, including landmark
    arrangements between countries at distinctly different levels of development. These simultaneous negotiations severely test the capacity of many countries, especially the smaller nations, to protect and advance their interests. The global Doha Development Round and the Free Trade Area of the Americas (FTAA) initiative have been at center stage over the last year. Both processes have lost some momentum over differences of opinion on such issues as trade in agricultural goods and other topics. Since most developing countries—a number of them in our region—have a comparative advantage in agricultural production, rationalizing agricultural trade is a unique opportunity for them to reap the economic benefits of trade liberalization. This issue may well finally have to be resolved at the global level in World Trade Organization negotiation forums. What I would like to stress here is that even with the impasse in agricultural trade talks there is room for progress and gains in the FTAA process. The key is to have a clear,
    common agenda and work step by step toward the ultimate objective, with due regard always to the particular interests of the different parties to the arrangement. Negotiations are continuing between subregional groups and the United States, including the Central American Free Trade Agreement (CAFTA). Bilateral arrangements between the United States and subregional groupings in Latin America and the Caribbean are not, however, a substitute for a full FTAA. The FTAA is a process rather than an event. As such, it is a regional public good that opens opportunities for cooperation in areas beyond immediate trade liberalization. For example, the atmosphere of cooperation created by trade negotiations has unleashed a major physical-integration effort for investment in regional infrastructure in South America (the IIRSA) and from Mexico to Panama (the Puebla-Panama Plan). As countries engage one another, deeper forms of cooperation and benefits will emerge that will anchor the region’s structural reform and enhance the quality of its institutions. The Bank has been closely involved, along with the Organization of American States and the United Nations Economic Commission for Latin America and the Caribbean, in the secretariat function of the FTAA negotiations. Equally important, the Bank has been assisting countries in building capacity to undertake hemispheric and global negotiations and offering technical support to help with the difficult task of implementing the corresponding changes in domestic legislation and institutions.
    More important yet is the critical support the Bank has been providing to some countries to enhance their ability to compete for business, including planning for an expanded, high-quality integration infrastructure. What needs to be stressed here is that the true challenge of this process is to translate development promise into real investment, exports, economic growth, jobs, and poverty
    reduction—in short, into quality-of-life improvements. The negotiation phase, difficult as it may seem, is only the beginning. As you know, the Bank has developed a set of initiatives such as the competitiveness program, funding for integration infrastructure, and loans to support fiscal and customs system reforms, to help countries through the painful transition and equip them to compete in a global economy without the benefit of preferential arrangements. The Bank’s Charter mandates our institution to work for the development of the borrowing member countries collectively. At the present juncture this calls for scaled-up efforts to deploy regional public goods to further the cause of integration. Our vocation to promoting integration is perhaps the most vivid proof that we are “more than a bank.” It therefore is very gratifying to report that the Board of Executive Directors recently approved
    special arrangements for funding a work program of regional public goods.

    II. Strengthening the Bank and the Corporation
    Over the past year we took action to further strengthen our institution and increase its capacity to work closely with the borrowing member countries in their quest for greater social justice. Let me enumerate a few highlights:
    A new Capital Adequacy Policy and associated procedure for fixing a standard lending rate are now in place. This enables the Bank to align its risk management methods and procedures more closely with current international banking practice. You, the shareholders, have every reason to be proud that, thanks to your unswerving commitment to the Bank’s financial soundness, our institution can now offer its borrowers stable loan charges that are lower than those of its comparator multilateral development banks.
    Following receipt of the final report of the External Review Group that had been appointed by the Board of the IIC, with the goal of spurring private-sector economic activity, the IDB’s and IIC’s Management and Boards of Executive Directors directed much attention to articulating a vision for the institutions’ work in that sphere. While there still are many questions about the benefits of a merger
    between the IIC and the Bank’s private sector window, the Corporation adopted a short-term action plan and is already seeing improvements in process efficiency and financial performance. In the Declaration of Nuevo León adopted earlier this year, heads of state called on the Bank to triple its lending to small and medium-sized businesses and microenterprises. We readily accept this challenge and expect the Corporation to play a pivotal role, along with the MIF, in ensuring that we succeed in the very important work of raising productivity and competitiveness in this sector that is central in the fight against poverty. As a follow-on to my commitment in Milan last year regarding the imperative of aligning internal corporate governance of the Bank with the tighter legislation that several of our member countries had recently enacted, including the Sarbanes-Oxley Act in the United States, Management recently forwarded to the Board of Executive Directors a set of broad recommendations covering such areas as
    corporate governance structure—principally the creation of a separate Audit Committee; relationship with external auditors and their responsibilities; and enhanced disclosure in financial reporting. In the course of the past year we adopted a staff rule to protect whistleblowers, established a fully independent Office of Institutional Integrity, adopted a Code of Ethics for members of the IDB and IIC

    Boards of Executive Directors and the MIF Donors Committee, and made substantial progress in amending the Code that applies to staff. The procurement of goods and services is a central activity in our line of business and also a potential space for corrupt behavior. Last year we hired consultants to assess our procurement rules and practices, both for our projects and for Bank procurement. We recently received the final report on Bank procurement and expect to receive shortly the report on procurement in Bank-funded operations. Both reports will make recommendations aimed at ensuring that we work by ‘best practices.’ This subject is on the work agenda of Management and the Board for the months ahead.

    Another of our commitments in Milan was to launch a process of civil society consultation to frame a new Information Disclosure Policy. I am pleased to inform the Governors that the policy was approved last November. Progress is also being made on a proposal to renew the Independent Investigation Mechanism to align it to best practices in our comparators.

    III. The regional political scene:
    The leadership challenge It is vital that we continue strengthening and renewing the Bank so it can continue to be an active, reliable partner of its borrowing member countries as they strive to consolidate growth and distribute its social dividends. In my address to the inaugural session of the 1999 Annual Meeting in Paris, I underlined the importance of bolstering our democracies in order to harmonize economic achievements with social dividends. Although I touched on this theme in subsequent Annual Meetings, I feel compelled to return to it once again because it is so critical if we are to be successful in advancing our economies and societies.
    Political developments in the region are creating a mixture of hope and concern. That democracy is becoming firmly rooted in the region’s major countries is a promising sign, as is the democratic renewal of governments in countries that barely a decade ago were caught up in wrenching political-military strife. Yet another positive sign is that some countries in the region, which are trying to manage severe socioeconomic tensions and heed increasingly insistent calls for change, have been able to absorb and democratically process these tensions and demands, amidst a widespread perception that the public has little tolerance for nondemocratic solutions. These are encouraging signs indeed. On the other hand, political difficulties in some countries in the region today or in the
    recent past are cause for concern. The media and the citizenry in those parts of the region would appear to have an image of political instability etched in their minds. Though all the empirical evidence suggests that the people of Latin America and the Caribbean back the liberal democratic system as an invaluable asset, it also shows many of them to be thoroughly disenchanted with how democracy is working and with governments’ inability to improve the day-to-day lives of citizens and give them hope for a better
    tomorrow. In some cases discontent reached the extreme of cutting short a presidential term, and there has been more than one episode of civic upheaval. But every case shows that the previous complementarity between political and economic liberalization agendas is suffering the effects of the malaise of over five years of economic recession. Whereas the fruits of more stable economies and reined-in inflation were shared across a broad spectrum of the population, reform and liberalization policies did not always achieve their objective of distributing equitably their costs and benefits. When public policies are captured by private interests, small groups or coalitions typically carry off the lion’s share of the benefits, leaving the masses to shoulder the costs. Disillusioned though some in Latin America and the Caribbean may be with how the democratic system is performing, the majority still backs that system. What, then, are the roots of this worrisome political instability that plagues some countries in our region? One factor, certainly, is how gaping social disparities or unethical behavior in the high echelons of government and the corporate world is eroding the credibility of institutions and the political leadership, but this cannot be the whole explanation. Expert analysts of the region’s political scene are warning us of the need for the political leadership to pay attention to the political system and its workings. In some
    countries the instability is fueled by the fragmentation of political parties, which are facing the challenge of changing or disappearing. The expert consensus is that democracy needs solid, institutionalized political parties driven by a long-range vision, ideas, and agendas. The agenda to renew the party system, now being pursued, and to reconfigure the electoral system, calls for serious reflection on the part of political leaders. Overall, it would appear that the electoral and political system is not, in all cases, appropriately aligned with the requirement of modern, participatory democracies to build consensus and forge agreements on policy priorities and on institutional, political, and economic reforms that have such a significant impact on the workings of society in the long run.

    As the issues of institutions and politics have moved onto the development agenda, the Bank has been working with the Organization of American States, the United Nations Development Programme, and other agencies on research and outlining suggestions to
    improve the working of our democratic political system. The fruits of this work have been shared with the member countries in the form of publications, seminars, and conferences. In light of the many ways in which public policies can be captured by private interests it is essential for the Bank to assess ex ante who stands to benefit from the reforms that it is supporting and build in mechanisms to ensure a broader distribution of the anticipated benefits. This means identifying and mitigating those risks that could keep public policies from addressing general societal interests and ensuring that the fruits of progress are equitably shared. I believe that this is a fitting note on which to conclude my remarks to you today. If our countries are to seize the opportunities now opening up, it is vital that they move quickly to surmount the most serious instability problems and dispel political uncertainty. Though
    growth will come from hard work and sustained savings, investments, and technical change in the broadest sense, it also will depend on the international climate and the depth of our region’s integration, by way of trade and investment, into an increasingly interdependent, competitive world. In the long run, the region’s advancement will depend on the ability of its leaders to build sturdy, rule-of-law institutions which endow the economy with resilience to shocks and fairly distribute the benefits and costs of growth. That is the best and only course for enduring peace, stability, and progress in our region.

  8. ALIDE gives recognition to good practices in DFIs

    ALIDE Awards in Recognition to Good practives in Development Financial Instituions were granted during ALIDE 39th Meeting of the General Assembly that took place in Curaçao, Netherland Antilles, Antillas Holandesas, on May 19 and 20, 2009. The objective of these awards is to identify and distinguish the best practices and innovations in products and services Latin America and the Caribbean development banking, to acknowledge and highlight the work done by these institutions for the economic and social development of the countries in the region.

    This Contest second Edition has recognized as good practices en la Financial Products Category to Agroamigo: Rural Microcredit Program, from Banco do Nordeste de Brasil. The objective of this program is to contribute in the development of family agriculture in the areas of activity of the Bank, by granting rural microcredits, oriented and accompanied, in a sustainable manner, and promoting the increase in the income and the improvement of the life quality of recipient families. This program is important because from the Bank’s experience in microcredits in urban areas, it develops a methodology to adapt it to the rural environment, base don the principles of orientation towards credit, accessibility through the credit advisor, presence in all the northeastern region and credit sustainability. This Program, created in 2005, has performed 567 thousand operations to February 2009. This amount is equivalent to US$245 million, covering 1,317 municipalities through 158 branches of the Bank. In this same category the Productive Chains Program, from Nacional Financiera S.N.C. (NAFIN), Mexico was presented an award. The objective of this program is to offer cash on accounts receivable to suppliers, carrying out electronic factoring operations.

    The Program was developed under a modern mechanism supported on an Internet platform for the institution’s products and services reach the businesses massively at a low cost, in order to reactivate credit in the Mexican economy. As a result of the program, only in the last year 1.2 million enterprises have been benefited and operative costs have been reduced, as more than 90% of the volume of operations is carried out via Internet. The relationship with financial intermediaries has changed as paper transactions have disappeared; alliances have been entered with large public and private corporations, developing their value chains. With this initiative, the factoring market is attended in more than 60%, from the previous 2%.

    In the category Management and Technologic Modernization, the winner was the Institutional Enhancing Program, from Federación de Cajas de Crédito y de Bancos de los Trabajadores (FEDECRÉDITO), from El Salvador. The objective of this program is to modernize and implement a self sustainable financial management and operative financial system integrating under the same platform and the same management principles and standards all the entities belonging to FEDECREDITO system. The use of the proposed schemes to improve the administrative and financial management of these institutions have made it possible to increase, in the 2003-2008 period, the deposits captured from US$43.6 million to US$189.1 million, the loan portfolio from US$233.7 million to US$568.8 million, the number of associates from 423 mil to 590 mil, and the net worth from US$71.4 million to US$145.5.

    Finally, in the category Information, Technical Assistance and Social Responsibility, the award went to Estratégia Negocial de Desenvolvimento Regional Sustentável – DRS, (Regional Development Business Strategy) from Banco do Brasil; through which the Bank wants to promote sustainable, inclusive and participative job and income generation, taking into account the local social, environmental, institutional, political and cultural characteristics. This will be economically viable, socially fair, environmentally correct, and will consider cultural diversity. This strategy represents an evolution in the Bank’s standing point as an agent of the development of the country as it has incorporated social, environmental and cultural variables in its investment decisions, and its business vision goes beyond the economic aspects. In order to implement this strategy, the Bank has developed a methodology based on the following stages: customer aware raising and training, identification of the productive activity to be developed, creation of DRS teams, preparation of the business plan, analysis, implementation, monitoring and evaluation. Since the application of this strategy, 4,681 DRS business plans have been developed in 4,800 municipalities, with 1.210.743 involved in more than 100 different productive activities.

  9. BOARD OF DIRECTORS MEETING: Roberto Smith assumes ALIDE Presidency

    The CXX Board of Directors’ Meeting took place in Medellin, Colombia, on March 30, took place on the occasion of the participation of the members of ALIDE’s Board of Directors in the Annual BID meeting.

    The agenda included the presentation of the advances of ALIDE 39th Meeting of the General Assembly to be carried out in Curaçao. ALIDE 2009 – 2010 Work Plan was also approved. This Plan will be submitted to the General Assembly.

    As the Presidency of the Association became vacant, after Dr. Luis Rebolledo from Peru left the Presidency of Corporación Financiera de Desarrollo (COFIDE), the Board of Directors appointed Dr. Roberto Smith as ALIDE President from Banco Nordeste do Brasil. Dr. Smith will hold the position until May 2010.

    Additionally, the other vacancy in the position of Director left by Lic Oscar Pineda, President of Crédito Hipotecario Nacional de Guatemala, and according to ALIDE By-Laws, the Board of Directors completed the number of members by incorporating Eco. Fernando Calloia, President of Banco de la República Oriental del Uruguay (BROU) and Arch. Joaquín Gerónimo, General Manager of Banco Nacional de Fomento de la Vivienda y la Producción (BNV) from the Dominican Republic, as Directors.

    PRESIDENT:
    Roberto Smith
    President
    Banco do Nordeste do Brasil (BNB)
    Fortaleza, Ceará, Brasil

    VICE PRESIDENTS:
    Rodrigo Sánchez Mújica
    General Director
    Fideicomisos Instituidos en Relación con la Agricultura (FIRA) – Banco de Mexico
    Mexico D.F., Mexico

    Carlos Álvarez Voullième
    Executive Vice-president
    Corporación de Fomento de la Producción (CORFO)
    Santiago, Chile

    DIRECTORES:
    Gustavo Ardila Latiff
    President
    Banco de Comercio Exterior de Colombia S.A. (BANCOLDEX)
    Bogotá D.C., Colombia

    Arthur B. Rosaria
    Executive Director
    Corporation for the Development of Curaçao (KORPODEKO)
    Curaçao, Netherlands Antilles

    Fernando Calloia Raffo
    President
    Banco de la República Oriental del Uruguay (BROU)
    Montevideo, Uruguay

    Joaquín Gerónimo
    General Manager
    Banco Nacional de Fomento de la Vivienda y la Producción (BNV)
    Santo Domingo, Dominican Republic

  10. E-LEARNING ALIDE receives international award

    ALIDE at distance training program, E-Learning ALIDE, received the international award of the Contest Associations Make a Better World, granted by ASAE & The Center for Association Leadership from the United States of America.

    This award started in 2002 to acknowledge successful programs undertaken by associations promoting beneficial impacts in the society and the world’s economies. E-Learning ALIDE participated with a group of projects put forward by the world associations and was the only winner in the category “developing countries”. The honorary mentions went to: (a) Azerbaijan Turkey Historical Research Foundation (ATAF), from Baku, Azerbaijan, with the Project: “Joint action for the regional peace as a model to the social and economic integration in Eurasia” and (b) Indonesian Institute for Corporate Directorship (IICD), from Jakarta, Indonesia, with the project: “Socialization of the best practices in good corporate governance and direction to implement the best practices in corporate governance.

    The award was presented at the ASAE & the Center of Association Leadership Annual Meeting & Exposition that took place at the Metro Toronto Convention Center, in Toronto, Canada, from August 15 to 18, 2009, And was received by Rommel Acevedo, ALIDE General Secretary and Economist Jorge Montesinos, Chief of the Training and Cooperation Program and responsible for the project, traveled to Canada. This distinction was given by Mrs. Velma R. Hart, President of ASAE and Robin Lokerman, President of The Center of Association Leadership.