The Inter-American Development Bank (IADB), based in Washington DC, supports economic and social development in Latin America and the Caribbean. It is the largest single source of multilateral funding in the region. The UK's shareholding is less than 1%.
In addition to lending money and providing grants, the IADB offers expert advice in key areas including education, climate change and poverty reduction. The bank also works on regional issues like trade, roads and energy which can involve several countries in the same project.
The IADB is implementing a major reform programme – the "Better Bank Agenda". The UK's multilateral aid review recognised that this will lead the IADB to becoming a stronger organisation. It will help the bank deliver major benefits to poor communities, and to address the environmental and climate change challenges in the region.
On 12 January 2010, an earthquake of 7.0 magnitude struck Haiti about 10 miles south-west of the capital Port-au-Prince. It is now believed over 200,000 people were killed. It is estimated that the cost of rebuilding Haiti's homes, schools, roads and other infrastructure could soar to nearly $14 billion (USD). When viewed in relation to the size of the country’s population and economy, this is likely to make the earthquake the most destructive natural disaster of modern times.
After the earthquake, the IADB redirected $50 million (USD) from existing operations to emergency relief and provided an additional $3 million (USD) to help the country recover from this disaster. The bank has remained operational in Haiti even though its office was badly damaged. Staff on the ground are working closely with the Haitian authorities and other organisations to distribute emergency aid, reconstruct houses and roads and help to get local businesses back on their feet.
In June 2009, the IADB provided $511 million (USD) in debt relief to Haiti. Since then the IADB has alleviated all of Haiti's outstanding debt, a total relief package of $479 million (USD). The bank will also provide some $2 billion in grants over the next decade to support the country’s efforts to recover from the earthquake.
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More than 180,000 buildings collapsed across Haiti during the 2010 earthquake. Picture: Ed Hawkesworth/DFID