World Bank and IDB partner to drive resilience to natural disasters
The World Bank and the Inter-American Development Bank (IDB) announced in August a groundbreaking four-year partnership designed to enhance the region’s resilience to natural disasters and mitigate political risk.
World Bank president Ajay Banga and IDB president Ilan Goldfajn signed a memorandum of understanding that will boost support for net-zero deforestation efforts in the Amazon, strengthen the Caribbean’s resilience to natural disasters, and bridge the digital-access gap across Latin America and the Caribbean.
In addition, MIGA, the political risk insurance arm of the World Bank, and IDB Invest, the private sector arm of the IDB Group, agreed to collaborate to mitigate political risk in the region. The two agencies will work alongside the World Bank’s International Finance Corporation (IFC) to draw in more private sector investment into the region.
“Our global challenges require a new playbook for the World Bank that will drive impactful development. That mission demands we reimagine partnerships across the board with the private sector, civil society, and other multilateral institutions,” said Banga.
“The World Bank can and must play a central role to coordinate global action, working collaboratively—not competitively—to deliver impact and meaningful change. This partnership and plan between the World Bank and IDB is that ambition in action.”
Goldfajn added: “IDB reform is an opportunity to increase development impact. This partnership with the World Bank marks a pivotal milestone. Together, we are forging ahead with a shared vision, from sustainable bio-economies in the Amazon region to supporting Caribbean resilience and bridging digital divides to reduce access gaps, including in education.
“Our joint commitment is testament to the power of collaborative innovation for Latin America and the Caribbean.”
In the Amazon, the organisations will combine their expertise to support countries in their transition to net-zero deforestation, helping people pursue better livelihoods while preserving the ecosystem—including through innovative financial instruments.
In the Caribbean, the agreement will result in greater support for countries to manage disasters and climate shocks and develop financial protection mechanisms for when catastrophes happen.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
