Multilateral Aid Review summary - Inter-American Development Bank (IADB)

IADB lends to countries across Latin America and the Caribbean on concessional and near market terms. It focuses on economic growth, climate change and sustainable cities.  IADB committed $15.9bn in loans in 2009, similar in volume to the World Bank in the region.

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Contribution to UK development objectives	Weak
	_	The region has pockets of serious poverty but does not match with DFID’s focus on regions with higher poverty levels.
	_	Almost all members are middle income countries.
	+	Strong focus on wealth creation through infrastructure and regional integration.
	+	Expanding operations addressing poverty and climate change.
	+	Highly innovative on social welfare issues like conditional cash transfers.
	_	Challenges remain to incorporate gender equality, especially in the harder to reach areas such as major infrastructure projects such as power and roads.
	+	IADB works effectively in response to natural disasters, particularly in Haiti following the earthquake.
Organisational strengths	Satisfactory
	+	Administrative budgets have been controlled as volume of operations expanded.
	+	Loan charges linked to administrative costs encouraging borrowers’ pressure on management to seek further savings.
	_	Weaknesses in HR policies and practices and need to improve decentralisation.
	_	No evidence of emphasis on securing cost effectiveness in the design of development projects.
	+	Good financial management systems and risk management.
	+	Very strong partnerships with governments. Commitment to Paris targets, including incorporating these into internal development effectiveness and results monitoring.
	_	Some donors reported the need for more collaboration.
	+	The Bank is introducing a presumption of disclosure and has an informative website.
Capacity for positive change	Likely
	+	Major reform initiatives in progress, particularly on improvement to strategic focus. Some operational reforms already undertaken and results beginning to be achieved.
	_	Past reforms under pressure from shareholders – uncertain whether bank will introduce future reforms itself.