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I. OBJECTIVE 1.1

The Agreement Establishing the Inter-American Development Bank (IDB or Bank) defines the Bank’s purpose as ―to contribute to the acceleration of the process of economic and social development of the regional developing member countries, individually and collectively.‖1 To implement this purpose, the Bank shall, among other aspects ―promote the investment of public and private capital for development purposes‖ and ―encourage private investment in projects, enterprises, and activities contributing to economic development and to supplement investment when private capital is not available on reasonable terms and conditions‖.2 Although the Agreement Establishing the InterAmerican Development Bank became effective in 1959, this mission remains fully relevant today as the Bank implements its ninth capital replenishment.

1.2

The Ninth General Capital Increase in Resources of the IDB (GCI-9) outlines two overarching objectives under the Bank’s new institutional strategy: reducing poverty and inequality and achieving sustainable growth. Alongside these overarching objectives are two strategic goals that are essential to achieve its mission: address the special needs of the less developed and smaller countries and foster development through the private sector.3

1.3

In context of the latter strategic goal of fostering development through the private sector, under GCI-9 the Bank’s Board of Governors mandated the development of a Private Sector Development Strategy (PSDS)4. The objective of the PSDS is to maximize development impact of the IDB’s private sector activities by capitalizing on its comparative advantages in a manner consistent with its institutional goals. Following the mandate laid out in GCI-9, with the objective of maximizing development impact, the PSDS emphasizes an integrated approach accounting for the full range of Bank-supported activities that contribute to development through the private sector including public sector/sovereign-guaranteed operations, as well as private sector/non-sovereign guaranteed operations. As such, the main thrust of the PSDS is to promote development through the private sector and not pursue private sector development per se5. The aim is to increase the development impact of private sector activities as a source of robust and sustainable growth, expand employment, and improve the lives of the poor. The Bank supports these goals with a wide range of activities, including: financing infrastructure projects with private and NSG public owned partners, supporting corporate social responsibility, helping small scale firms and entrepreneurs become more competitive, developing new opportunities to reach poorer segments and increasing social inclusion, among other initiatives. Also mandated under

1

Agreement Establishing the Inter-American Development Bank, Article I, Section 1

2

Ibid, Article I, Section 2(a) (i) and (ii)

3

―Report on the Ninth General Capital Increase in the Resources of the Inter-American Development Bank‖ (AB-2764), May 2010, paragraphs 3.5-3.11.

4

Ibid, paragraph 3.31.

5

Ibid, paragraphs 3.31-3.33.

private sector development strategy: fostering development through the private sector  

this strategy document, which was expanded and edited based on comments received through the two periods of the public consultation process,...

private sector development strategy: fostering development through the private sector  

this strategy document, which was expanded and edited based on comments received through the two periods of the public consultation process,...

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