Transformations, Ruptures, and Continuities in the Inter-American Development Bank’s Policy from 1980 to the Present

Abstract

This chapter shows that, although the IADBs mandate remained unchanged over the course of more than fifty years from its launch, the Banks lending policies in the region changed over time, consistent with the prevailing policy framework in developed countries region especially the World Bank Latin American countries played a bigger role in the IADBs decision-making process from the very moment the regional bank was created. However, donor countries enforced IADB policy guidelines, with a varying degree of conflict over the different periods.In terms of the IADB?s transformation, we establish that the institution underwent a transition phase, which began in the 1980s, marking a move away from a developmental role associated with state-led industrialization processes. The IADB became a supporter of liberalization and deregulation policies in the 1990s, an orientation that remained almost unchanged until the 2008‒9 global crisis, during which the institution played an important countercyclical role and noticeably increased its total loans. With more competition from national and other regional development banks (RDB), starting in 2010, while maintaining market-friendly fundamentals, the IADB lending policy focused heavily on the development of physical infrastructure in the region, seeking to boost competitiveness to promote free trade, and the transformation of economies towards more environmentally sustainable models.