latin america and the caribbean - world...
Embed Size (px)
Resilience to recent global turmoil allowed Latin America and the Caribbean to grow 4–5 percent in fiscal 2012. Growth is projected to slack to 3–4 percent as a result of the slowdown in China, the region’s key trading partner and the engine behind the solid growth and market diversification of the past few years. Even more modest growth is projected in the Caribbean and Central American countries.
Unprecedented growth and economic stability over the past decade pulled some 73 million people in the region out of poverty. In spite of the global financial crisis, the region remained stable.
World Bank Assistance Bank support for Latin America and the Caribbean reached $6.6 billion this fiscal year, of which $6.2 billion came from IBRD and $448 million from IDA, including $202 million in grants. Brazil ($3.2 billion), Mexico ($1.5 billion), and Colombia ($660 million) were the largest borrowers. The sectors of Public Administration, Law, and Justice ($2.0 billion); Transportation ($1.2 billion); and Education ($1.0 billion) received the most funding.
The development agenda in the region needs a stronger focus on increasing productivity, reducing dependence on low valueadded commodity exports, addressing production capacity constraints, modernizing infrastructure, boosting innovation, and making the state more effective. The Bank supports efforts to sustain the region’s economic growth while opening up opportunities for all through programs that increase the
creation of quality jobs and assist people in need through conditional cash transfers, which were pioneered in the region.
Creating opportunitiesTo contribute to the region’s demands for sustainable and socially inclusive growth, the World Bank has upped its strategic support to individual countries in the region.
Conscious of the region’s diverse development needs, the Bank delivers a suite of financial, advisory, and convening services that are tailored to each country. From straight financing of development projects, including sophisticated contingency lines of hazardrelated credit, to indepth development research, the World Bank Group has supported the region’s social and economic agendas to the tune of $14.7 billion in fiscal 2012.
New strategies for Brazil and Bolivia are aligned with the countries’ efforts to create more economic opportunities for the underprivileged and are built on advances of previous partnerships that expanded access to basic services, education, and health to many.
Brazil’s $8 billion Country Partnership Strategy (CPS) 2012–2015 calls for close coordination with its new national extreme poverty eradication program, Brasil sem Miséria (Brazil without Poverty), which focuses on the northeastern states, to improve social and economic opportunities for 16 million of the country’s most vulnerable people. (See http://documents .worldbank.org/curated/en/2011/09/15273914/brazil-country-
lAtin AmericA And the cAribbeAn
LATIN AMERICA AND THE CARIBBEANIBRD AND IDA LENDING BY SECTOR | FISCAL 2012 SHARE OF TOTAL OF $6.6 BILLION
31%Public Administration, Law, and Justice Information and Communications< 1%
Health and OtherSocial Services9%
Energy and Mining< 1%
Industry and Trade5%
Water, Sanitation, andFlood Protection 5% 11% Agriculture, Fishing, and Forestry
LATIN AMERICA AND THE CARIBBEANIBRD AND IDA LENDING BY THEME | FISCAL 2012SHARE OF TOTAL OF $6.6 BILLION
Economic ManagementUrban Development 12%
Trade and Integration < 1%
Financial and PrivateSector Development6%
Environmental and NaturalResources Management16%
Human Development21%Public Sector Governance 13%
Social Protection andRisk Management 12%
Social Development,Gender, and Inclusion 3%
Rule of Law 1%
Rural Development 12%
Photo: Maria fleischmann
partnership-strategy-cps-period-fy2012-2015.) In turn, Bolivia’s CPS will affect the lives of 3 million people, largely from rural areas, and support directly 1 million farmers in the country’s impoverished north.
On the second anniversary of Haiti’s tragic earthquake, a new interim strategy provided $225 million in grants toward the country’s reconstruction efforts. This funding supports the safe return from camps of more than 22,000 displaced persons, improves neighborhoods for 75,000 people, and finances tuition waivers for about 100,000 schoolchildren.
Children continued to top the Bank’s human development agenda. Five million mothers, and children from birth to age 6, benefited from programs developed throughout Latin America under the Early Childhood Initiative: An Investment for Life. After two years of operation, the initiative has approved $400 million worth of projects, doubling the initial projected funding, and surpassed the original total commitment of $300 million for the period 2010–13.
In fiscal 2012, several countries took out lines of credit as insurance against unforeseen economic circumstances and the risk of natural disasters. El Salvador activated a $50 million line of financing after massive flooding left thousands of Salvadorians homeless and caused widespread damage.
Improving Citizen SecurityCrime and violence are key development challenges throughout Latin America and the Caribbean. In parts of the region, this scourge has taken a steep toll on people and local economies. In Central America, for instance, 14,257 lives are claimed annually by crime—an average of 40 people per day—costing countries up to 8 percent of their GDP.
ChileColombiaCosta RicaDominicaDominican Republic
Antigua and BarbudaArgentinaBelizePlurinational State of Bolivia Brazil
Trinidad and TobagoUruguayRepública Bolivariana de Venezuela
PeruSt. Kitts and NevisSt. LuciaSt. Vincent and the Grenadines Suriname
EcuadorEl SalvadorGrenada Guatemala Guyana Haiti
CountRies eligible foR WoRld bank boRRoWing
latin aMeRiCa and tHe CaRibbean Regional snaPsHot
Total population 0.6 billion
Population growth 1.1%
Life expectancy at birth 74 years
Infant mortality per 1,000 live births 18
Female youth literacy 97%
Number of people living with HIV/AIDS 1.7 million
2011 GNI per capita $8,544
GDP per capita index (2000 = 100) 128
note: Life expectancy at birth, infant mortality rate per 1,000 live births, and female youth literacy are for 2010; other indicators are for 2011 from the World Development Indicators database. HIV/AIDS data are from the 2012 UNAIDS report, “Together We Will End AIDS.”
total fisCal 2012 total fisCal 2012
New commitments DisbursementsIBRD $6,181 million IBRD $6,726 millionIDA $448 million IDA $342 million
Portfolio of projects under implementation as of June 30, 2012: $33.2 billion
lAtIn AMeRICA AnD tHe CARIBBeAn ReSultS HIGHlIGHtS
• The Rio Grande do Norte Rural Poverty Reduction Project in brazil has helped 90,000 poor rural families, created 12,000 jobs, provided 53,000 families with access to water, and more than tripled the agricultural productivity of beneficiaries of joint water and productive investments. The project also created 2,100 community associations, which are improving the relationship between poor communities and state and local authorities. (See http://go.worldbank.org/3VC16uY3R0.)
• In Honduras—one of the most vulnerable countries in the world to natural disasters—the Natural Disaster Mitigation Project helped improve the country’s capacity for managing disaster risk and reduced local disaster vulnerability in participating municipalities. The project improved the flood early warning systems for four of the main watersheds destroyed by Hurricane Mitch and helped complete structural mitigation measures in 58 municipalities, benefiting more than 500,000 people. (See http://go .worldbank.org/CkkYM2Ydt0.)
The impact of crime and violence is so profound that experts fear development can be set back many years as a consequence.
This year, for the first time in the region, a CPS approved by the Board included a pillar on citizen security. The new CPS for Honduras, the country with the highest murder rate in the world, will support, among other things, the distribution of violenceprevention toolkits in at least 200 schools, as well as the implementation of a comprehensive security plan in at least 10 municipalities in the country’s center, north, and east regions. It will also help build institutional capacity against money laundering and an improved database for crime and violence. (See http://documents.world bank.org/curated/en/2011/11/15506299/honduras-country- partnership-strategy-period-fy2012-2014.)
The Bank has also contributed to addressing this issue by providing technical assistance to SICA (Central America Integration System) in developing the prevention pillar of the Central America Citizen Security Strategy and by convening key players from the private and public sectors to generate practical responses to the region’s increasingly lax security. (See http://worldbank.org/lac.)
IBRD 34945R3AUGUST 2012
for 2012 Annual Report locator maps