The Inter-American Development Bank (IDB) is a regional, multilateral development organization. Established in 1959 with 20 members, including the United States and 19 Caribbean and Latin American countries, the IDB’s mission is to “promote and support development of the private sector and capital markets in its Latin American and Caribbean member countries by investing, lending, innovating and leveraging resources.”
IDB lending grew from $294 million in 1961 to $5.3 billion in 2000. Membership has also grown to 46 countries, 26 borrowing countries, and 20 nonborrowing countries. Initially the bank’s lending focused on agriculture and infrastructure projects. Its current lending priorities include “poverty reduction, social equity, modernization, and the environment.”
Within the Inter-American Development Bank, two groups focus on private-sector lending. The Inter-American Investment Corporation (IIC) finances small- and medium-scale private enterprises, while the Multilateral Investment Fund (MIF) promotes investment reforms and supports private-sector investment.
Headquartered in Washington, D.C., the Inter-American Development Bank is largely funded by the United States and supports U.S. political agendas. When the IDB was created, most Latin American countries were controlled by dictators, some of whom were friendly to the United States and others hostile to U.S. interference and economic and domination. The IDB acts as a nongovernmental means of supporting political and economic change in the Caribbean and Latin America.
See also economic development.
Further reading
Inter-American Development Bank website. Available on-line. URL: www.iadb.org.