Ilan Goldfajn, President of the Inter-American Development Bank, Shares His Vision for Latin America
On February 14, the Georgetown Americas Institute (GAI) hosted a conversation with Ilan Goldfajn to discuss his vision for the Inter-American Development Bank (IDB) and his assessment of the economic challenges and opportunities Latin America and the Caribbean face today.
The year 2022 was a convoluted one for Latin America. Rising inflation and slowing growth challenged the region’s economic outlook while profound debates emerged around what role multilateral institutions should play in this new and challenging scenario. In that context, GAI hosted a conversation with Ilan Goldfajn, who began his five-year term at the head of the bank in December 2022, to reflect on what his priorities will be in this complex environment. GAI Founding Director Alejandro Werner served as moderator, with introductory remarks from GAI Managing Director Denisse Yanovich.
New Needs and Demands
Citizens in Latin America and the Caribbean are frustrated with the status quo and demand improved public services and a more just and equal society. Goldfajn explained that there is a sense that growth is stagnant. A new “lost decade” of negligible economic growth, similar to what the region experienced in the 1980s, is a possible threat, and citizens have openly expressed their concerns.
Establishing a set of priorities is key for the IDB. Goldfajn explained that social development is his top priority, followed by infrastructure development and climate adaptation and mitigation projects. The bank’s core mandate to address social issues, such as health and education, will be the guiding framework for this strategy.
“I entered the bank saying that if everything is a priority, we will lose focus. That is why we need to set up priorities, and we are working toward a strategy for the next five years. We will need to make choices.” - Ilan Goldfajn
Bringing in the Private Sector
“You have to rethink the role of multilateral organizations to provide global public goods and not just national goods, which is what we were originally set up to do.” -Ilan Goldfajn
This prioritization strategy will also require a reimagination of the traditional role of institutions such as the IDB. Public-private partnerships (PPPs) are one example of the initiatives that the bank can support. Both Goldfajn and Werner concurred that catalyzing private sector investments must be a priority to promote regional development.
“When I was working in the government of Mexico, the IDB was very useful to help us set up the law that allowed PPPs, which brought in rising investments. Now this has become a prevalent practice in Latin America.” -Alejandro Werner
Democracy in the Region
Goldfajn also explained that the IDB must ensure that countries benefiting from loans act in accordance with the Bank’s core values, although this may reduce institutional agility. The IDB, he argued, must be both agile and staunch in defending its values.
“We need to promote institutions that look for cooperation and moderation. I hope to be a leader that promotes conversations and bridges between countries, interests, and voices.” -Ilan Goldfajn