The Agreement Establishing the Inter-American Development Bank (IDB) is a document that outlines the purpose, structure, and operations of the IDB. The IDB is a multilateral financial institution that was established in 1959 to support economic and social development in Latin America and the Caribbean. The agreement was signed by 19 countries on April 8, 1959, and has since been amended several times to reflect changing circumstances and priorities.
One of the key features of the Agreement is the IDB`s focus on promoting economic and social development in the region. The Bank aims to promote sustainable economic growth, reduce poverty, and improve living conditions by providing financial resources, technical assistance, and knowledge to its member countries. It also works to promote regional integration and cooperation through its various projects and initiatives.
The Agreement establishes the IDB`s governance structure, which consists of a Board of Governors, a Board of Executive Directors, and a President. The Board of Governors is the Bank`s highest decision-making body and consists of one representative from each member country. The Board of Executive Directors is responsible for the Bank`s day-to-day operations and consists of 14 members, including a representative from the United States, who holds the largest voting share.
The Agreement also sets out the IDB`s financial structure, which includes a capital subscription system. Member countries contribute capital to the Bank in proportion to their economic strength, and the Bank uses these resources to provide loans, grants, and technical assistance to member countries. The Bank also raises funds from capital markets through bond issues and other financial instruments.
As a multilateral institution, the IDB operates under a system of shared governance and decision-making. Member countries have a say in the Bank`s operations and policies through their representation on the Board of Governors and Board of Executive Directors. The Bank also consults with a wide range of stakeholders, including civil society organizations, private sector entities, and development partners, to ensure that its activities are aligned with the needs and priorities of the region.
In conclusion, the Agreement Establishing the Inter-American Development Bank is a foundational document that sets out the purpose, structure, and operations of the IDB. The agreement reflects the Bank`s commitment to promoting economic and social development in Latin America and the Caribbean and outlines the governance and financial structures that enable the Bank to fulfill its mandate. As a key driver of regional development, the IDB plays a critical role in supporting sustainable and inclusive growth and reducing poverty in the region.