§ 19. Ms McCaffertyTo ask the Secretary of State for International Development what assessment she has made of the extent which the work of the Inter-American Development bank is focused on the relief of poverty. [79122]
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§ Clare ShortSince May 1997, we have been working to increase the poverty focus of the Inter-American Development Bank (IDB). The Bank recognises that poverty remains a persistent problem in Latin America, which is the most unequal region in the world. In February, I co-chaired with IDB's President Iglesias a seminar which took as its starting point the Bank's recent Report entitled "Facing up to Inequality in Latin America". We welcome this as a contribution to raising awareness.
In 1997, the IDB adopted a poverty reduction strategy that charts a broad course for attacking poverty in the region. This calls for the promotion of sustainable and labour-intensive economic growth, investments in human capital and special efforts to reach those groups which are unlikely to benefit from economic growth. Recognising that poverty in the region is principally a rural phenomenon, the Bank adopted a rural poverty reduction strategy in 1998 which emphasises the need to develop national rural poverty reduction strategies, and calls for activities that stimulate participation of beneficiaries including access to land and credit for farmers with productive potential, and non-agricultural employment in micro-enterprises for other rural inhabitants.
During 1998, the Bank approved $3.3 billion for social sector and poverty reduction projects, which represented about 46 per cent. of the year's lending (the highest level ever achieved by the Bank) or 53 per cent. of the total number of projects approved. We believe that the Bank has made a good effort, but that more could be done, particularly on the link between poverty and ethnicity. We are also urging the Bank to commit itself to the International Development Goals on the elimination of poverty.