AFD in Latin America and the Caribbean
Directors: Jean-Pierre CLING, Stéphane LAGRÉE, Mireille RAZAFINDRAKOTO & François ROUBAUD
Contact AFD: Véronique Sauvat, Research Department
Public policies usually misunderstand, and tend to neglect or have a negative perception of the informal sector. These works present a "state of the art" of the economic research carried out in this field, covering Asia, Africa, Latin America and written by authors from very different areas. The key message is the following: main features of informal economy are quite similar between developing countries, including precarious employments, low income and poor working conditions. Yet, considering the fact that informal economy is going to last, even in emerging countries, building supportive policies is a major development challenge.
In 2012, AFD’s activity in Latin America saw a remarkable increase due to the extension and overall development of its commitments to support green and inclusive growth. The outlook for 2013 is also promising. What are the highlights of 2012? What can we expect in 2013?
More partnerships and more commitments in 2012
This year, there has been a marked increase in France’s support – via AFD – for the implementation of policies to protect the environment and fight against climate change, as well as for inclusive, job-creating urban policies. France’s commitments via AFD have reached EUR 970m.
AFD’s presence and visibility in the region have been scaled up through the strengthening of partnerships with the Inter-American Development Bank (IDB), Andean Development Corporation (CAF) and Brazilian Development Bank BNDES, as well as through the organization of events bringing stakeholders together, such as the “Cities and Climate Change” Summit in Bogota in November 2012.
In terms of commitments, 2012 has mainly been a Brazilian year with four projects approved for an amount totaling EUR 713m. These new projects will support the State of Rio’s urban mobility policy (USD 394.5m) and the State of Minas Gerais’ multi-year action plan (EUR 300m). They will also develop power generation and distribution in the State of Rio Grande do Sul via two non-sovereign loans for USD 87.5m and USD 59.1m.
This year has also been marked by the approval of the Regional Intervention Framework for Latin America, which sets out our two priority areas for operations in Latin America: support for policies to fight against climate change and for inclusive urban policies.
What is the outlook for 2013?
The operational outlook is promising:
- The start-up of our activity in Peru
- The expected increase in commitments in the Caribbean
- The continuation of our activity in Brazil, Colombia, Mexico and the Dominican Republic, in line with the areas defined in the Regional Intervention Framework.
AFD is extending its field of activity to Peru
On 15 November, the French President, François Hollande, announced the extension of AFD’s field of competence to Peru in a joint declaration with the President of the Republic of Peru, Ollanta Humala.
Following two decades marked by an economic crisis and a conflict opposing the Government and armed groups, since the early 2000s Peru has been experiencing strong economic growth (+6% in 2012) in a pacified environment. With some 30 million inhabitants and substantial natural wealth, the country today needs to address major challenges: reduce poverty and inequalities, improve the rate of school enrollment and access to healthcare, build infrastructure, which is currently seriously lacking, develop cities, etc.
AFD will be helping the country to address several of the challenges, in line with its strategy in Latin America.
Caribbean: Rediscovering the challenges and opportunities for sustainable development
Commitments in the Caribbean will be scaled up via the allocation of two credit lines, one for EUR 50m to the Caribbean Development Bank and one to CAF (EUR 100m). The Regional Intervention Framework for the Caribbean, which will be submitted to AFD’s Board of Directors in the first half of 2013, will set out the opportunities and constraints for its operations in this region.
The conference “Comparing Views on the Caribbean”, to be held at AFD’s headquarters on 17 January, will look at the development trajectories of countries in the region, with a focus on the challenges and opportunities for sustainable development.
To find out more about AFD’s commitments in the region, consult the Strategic Intervention Framework (SIF) for Latin America
A Report on International and Domestic Climate Change Politics in China, Brazil, Ethiopia and Tuvalu
David HELD, Eva-Maria NAG & Charles ROGER (LSE Global Governance)
CONTACT: Fabio GRAZI Research Department, AFD
Climate change has become the most important global issue of our time and now occupies a key place on the global governance agenda. Recent attempts to create a concrete framework for mitigation have fallen short. However, large developing countries, such as China and Brazil, are now widely considered to be the vanguard of climate change policymaking, taking actions that are comparable to anything being done by Annex 1 states. The emergence of new climate leaders warrants a study of the trends in their domestic policies and policymaking.
This report evaluates the approaches of four significant developing and emerging economies to climate change governance, describing both the evolution of institution building and policymaking processes, and analysing the political and economic drivers of change.