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IDB creates new institution for private sector operations

Cindy Arnson

Cynthia Arnson, Director of the Latin American Program, is quoted on the Inter-American Development Bank’s consolidation of private sector operations.

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The agency said it expects IIC to originate new loans; although IDB will transfer administrative supervision of its nonsovereign-guaranteed loan portfolio to IIC, the portfolio will likely remain on IDB’s balance sheet.

IDB’s consolidation of private sector operations makes a lot of sense, said Cynthia Arnson, director of the Latin American program at the Woodrow Wilson International Center for Scholars, since public-private partnerships are “a big new focus of development financing.”

“It’s important to go beyond government-backed loan guarantees to private companies and give different actors a stake in long-term outcomes,” Arnson told Devex.

Arnson cautioned, though, that the real question now is whether small and midsize enterprises will be on equal footing with large or multinational corporations so that they don’t become another example of what many have referred to as “corporate welfare.”

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About the Author

Cindy Arnson

Cynthia J. Arnson

Distinguished Fellow, Latin America Program
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Latin America Program

The Wilson Center’s prestigious Latin America Program provides non-partisan expertise to a broad community of decision makers in the United States and Latin America on critical policy issues facing the Hemisphere. The Program provides insightful and actionable research for policymakers, private sector leaders, journalists, and public intellectuals in the United States and Latin America. To bridge the gap between scholarship and policy action, it fosters new inquiry, sponsors high-level public and private meetings among multiple stakeholders, and explores policy options to improve outcomes for citizens throughout the Americas. Drawing on the Wilson Center’s strength as the nation’s key non-partisan policy forum, the Program serves as a trusted source of analysis and a vital point of contact between the worlds of scholarship and action.  Read more