The region has a significant adaptation finance and investment gap ranging from $18 to $51 billion annually. Taking action now could reduce the vulnerabilities of businesses, increase the resilience of human and natural systems, and bring several additional benefits.
A recent study by IDB Invest and FinDev Canada analyzes survey data from over 1,000 firms across seven Caribbean countries in 2020, finding that investing in new or improved products, services, processes, methods, or distribution channels drives productivity and financial performance and can also make companies more resilient in the face of crisis.
Access to universal and meaningful broadband internet is a must for boosting economic growth and reducing the digital divide in Latin America and the Caribbean. It can also boost access to finance for the most excluded segment of the credit market: micro, small, and medium-sized enterprises (MSMEs). A recent study supported by IDB and IDB Invest analyzed the effects of broadband expansion on the credit market in Peru, finding that smaller firms with limited credit histories benefited the most.
Investing and financing are the first steps on the road to sustainability. In sustainable development, knowledge and experience are needed too.
The lack of tax revenues to develop infrastructure in Latin America and the Caribbean has given rise to public-private partnerships (PPPs) as an option for developing strategic infrastructure projects. In this context, IDB Invest is prepared to support countries in the region.