Promoting Green and Inclusive Growth in Latin America
Schoolgirls in a street of La Candelaria in Bogotá. © Stéphane Ledoux, AFD
In the Latin America and the Caribbean region, AFD financed €1.074 billion in projects and programs in 2011, focusing on sustainable urban development and environmental preservation. AFD partners with other development banks (notably the Inter-American Development Bank) to co-fund projects, and participates in discussions about development with institutions such as the United Nations Economic Commission for Latin America and the Caribbean.
► Financing Sustainable Urban Development and Social Cohesion [+]
Latin America has been slow to develop its infrastructure compared to other emerging regions. The South American continent is the world’s most urbanized region: AFD’s mandate to support green and inclusive economic growth therefore assumes its full meaning in Latin American cities.
Local, central and federal governments are attempting to fill their urban mass transportation deficit – a priority problem. The solution will come from a strategy that combines urban development efforts with those that promote social cohesion. AFD meets this stringent requirement with a compre-hensive approach to urban development.
For example, AFD financed the Santo Domingo metro system in the Dominican Republic, launched a program to strategize about urban development in Medellín, Colombia, and funded sustainable transportation projects in Curitiba, Brazil. To achieve these solutions, AFD mobilizes French partners – city and regional governments, companies and others – to contribute their expertise and technical assistance.
► Fighting Climate Change and Protecting the Environment [+]
Latin America’s natural capital has been depleted by intensified agricultural production, urbanization and industrial production. In response, national and local governments have formulated policies that combine natural resource protection with exploitation.
In addition, Latin American countries contribute widely to international talks on global challenges, especially climate change. AFD seeks to help these countries in their economic development and infrastructure projects, while emphasizing the projects’ sustainability goals. AFD’s support for a comprehensive water management project in Colombia provides a good example of this effort. Colombia enjoys abundant water resources in some parts of the country, but not others. The lack of water near urban areas creates conflict between water consumers. The poor quality of the water supplied aggravates the situation.
To help solve this problem, AFD provided general budget support to Colombia to bolster its Water Plan for 2014. In particular, AFD will help the country create a clear sectoral framework, vital for the success of all future investments in water-related projects.
The aid plan combines several tools: the general budget support, co-financed by the Andean Development Corporation (Corporación Andina de Fomento, or CAF), a Latin American development bank; key indicators for monitoring and executing a comprehensive water management policy; and technical assistance and cooperation via the participation of French watershed and water-supply management agencies.