The Inter-American Development Bank and Poverty Reduction: An Overview

Overview of how lending and non-lending activities of the Inter-American Development Bank can contribute to reducing poverty in Latin America and the Caribbean, and also offers suggestions for future actions that the Bank can take in this area. The first half of the document provides the empirical and analytical backdrop from which the IDB’s performance in contributing to poverty reduction can be assessed. An initial discussion of poverty trends in the 1990s establishes that despite moderate improvements, poverty remains a persistent problem in the region, and that income inequality has failed to decline. Given that economic growth alone is not enough, a summary is presented of the array of directed policy actions that can help to reduce poverty. The second half of the document appraises the many ways in which the IDB can foster poverty reduction in Latin America and the Caribbean. The document concludes by looking forward to areas that merit increased attention and can improve the Bank’s ability to succeed in reducing poverty in the region. [author]