The Inter-American Development Bank (IDB), established in 1959 to support the process of economic and social development in Latin America and the Caribbean, is the main source of multilateral financing in the region.
In the framework of its Opportunities for the Majority Initiative (OMJ), the IDB promotes and finances market-based, sustainable business models that engage businesses, local governments and communities in the development and delivery of quality products and services for the majority of the population of the region, with the purpose of improving the quality of life of low-income communities.
In September 2007, the WBCSD-SNV Alliance for Inclusive Business signed a memorandum of understanding (MOU) with the IDB in view of catalyzing, executing and scaling up inclusive business opportunities. The IDB has most notably financed a number of Alliance ventures in Peru and Ecuador. More recently, at the WBCSD annual meeting in Washington, D.C. in October 2009, the IDB, SNV, the WBCSD and its Regional Network partners were joined by Latin American companies to meet with Steven Puig, the IDB’s Vice-President for the Private Sector as well as members of the IDB’s OMJ Initiative team. The discussions highlighted the IDB’s financing packages available for inclusive business activities, lessons learned from the 3-year WBCSD-SNV Alliance, cooperation opportunities in providing business input to IDB’s flagship events, and the plans for taking forward the WBCSD’s Latin American Inclusive Business Leaders Network.
The OMJ Initiative has recently begun holding business roundtables in several Latin American cities, in an effort to encourage private sector participation in underserved markets and showcase the work being done already in this field. “We hope that after each roundtable participants can draw inspiration and go back to their organizations with fresh ideas on how to venture into this space," explains Luiz Ros, Manager of the OMJ Initiative.
In 2008, a first roundtable was held in San Salvador, El Salvador, in collaboration with FUNDEMAS and FUSADES. And two more are coming up this month. The first is taking place today, 10 December, in Panama City, Panama. Panamanian organizations, including the local Chamber of Commerce and SumaRSE, the WBCSD’s Regional Network partner, have identified some 80 high-level business representatives interested in finding out how their companies can start developing inclusive business models. Thereafter, a roundtable will take place on 14 December in Buenos Aires, Argentina (see agenda). Again, the event will be hosed in collaboration with local organizations, most notably BCSD Argentina (CEADS).
Furthermore, the IDB recently launched MajorityMarkets.org, a clearinghouse where people and organizations may find inspiration, guidance, and practical advice from others who are already finding success serving low-income communities in Latin America and the Caribbean. The site allows viewers to learn more about business models that are finding success in Latin America and beyond, and interact with IDB staff, financial institutions, NGOs, and others whose support is key to getting projects off the ground.
MajorityMarkets.org exists to:
- Build a community of donors, researchers, practitioners, investors, entrepreneurs, local governments and other key audiences involved in majority markets and promote online collaboration and share knowledge around these important issues
- Provide a marketplace for organizations that want to engage in low-income markets, particularly for those seeking finance or providing it
- Create a highly-interactive online presence that serves as a platform to promote profitable business models serving low-income communities in the region
As Luiz Ros puts it, "Let the conversation begin."
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