External Topic Model - Argentina Supports World Bank’s Capital Increase

BUENOS AIRES, November 5, 2009. Closing a four-day visit to Argentina, the World Bank Vice-president for Latin America and the Caribbean, Pamela Cox, expressed the multilateral institution’s support for the Argentine government’s efforts in social areas and investments in public works and infrastructure, as a way to strengthen the country’s prospects in the post global economic crisis scenario.

After a meeting with Cristina Fernandez de Kirchner, the head of state of Argentina made clear her support for a capital increase of multilateral development organizations active in the region, among them the World Bank (WB), that would allow them to continue providing the financial resources needed by Latin American countries to consolidate their economic recovery after being impacted by the global financial crisis.

“Multilateral development banking institutions –both regional organizations and the World Bank – have contributed resources that were vital in alleviating the impact of a crisis that came from abroad. It is critical that these efforts continue in time, and it is therefore imperative that they be adequately capitalized,” said President Fernandez de Kirchner.

Between July 2008 and June 2009 the World Bank committed US$15 billion in lending to Latin America and the Caribbean -almost tripling its volume of funding to the region. More than 40 percent of the International Bank for Reconstruction and Development’s (IBRD) resources – the WB facility devoted to medium income countries– were assigned to Latin America and the Caribbean. A similar level of cooperation is expected this year.

The World Bank’s Cox emphasized the effort undertaken by Argentina to build an institutional architecture that is more in line with the realities of today’s world, underlining that “Argentina’s role in the G-20 has been key in elevating the voice of Latin America at the global level. It is acknowledging the 21^st century’s new reality, where emerging economies are no longer part of the problem, on the contrary, they are part of the solution to problems that affect everyone, from a financial crisis that they did not cause, to climate change.”

Cox, accompanied by Pedro Alba, World Bank Director for Argentina, Chile, Paraguay and Uruguay, also met Finance Minister Amado Boudou; Infrastructure Minister Julio de Vido and Health Minister Juan Luis Manzur; as well as Governors José Luis Gioja and Daniel Scioli.

As part of her trip, Cox also visited projects financed by the World Bank in the provinces of San Juan and Buenos Aires.

In San Juan, Cox and Governor Gioja looked at developing a World Bank program in the province aimed at promoting social inclusion. She also visited projects within the Additional Financing Small Farmer Development Project (PROINDER, in Spanish)[1] and the Argentina Rural Education Improvement Project (PROMER, in Spanish)[2].

In Buenos Aires province, she met Governor Scioli to assess the implementation of the Bank’s projects in the province and visit the Infrastructure Project for the Province of Buenos Aires, which, through a two-stage World Bank financing program of US$470 million, will contribute towards improving the provision of public service infrastructure in the province, promoting an increase in social equity through the improvement of infrastructure services.

The World Bank has a portfolio of 33 operations in Argentina, totaling US$5.5 billion, in the social, infrastructure, environment and economic development areas. As a global development institution, the World Bank offers a wide array of programs, innovative financing and knowledge exchange, all adapted to Argentina’s priority needs.

For more information on the World Bank’s work in Argentina, please visit: www.bancomundial.org.ar

[1] The PROINDER supports the improvement of the productive and organizational capacity of poor rural communities and the strengthening of the national and provincial rural development policies. The Bank supports the program through a US$75 million investment loan, granting a US$ 45 million renewal to enable the extension of the program to cover 72,000 households, from the 30,000 originally contemplated.

[2] The PROMER, financed with a US$ 150 million World Bank loan, supports the national government’s policy for rural education school materials, a priority area in the government’s educational policy that seeks to generate equal opportunities for all Argentines. The PROMER finances adequate training for rural teachers, school material and equipment supplies for students and teachers, and the improvement of rural school facilities.

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Argentina Supports World Bank’s Capital Increase