The International Finance Corporation (IFC), of the group world Bankview nearby positions with the main priorities of the elected president of Colombiathe leftist Gustavo Petro, and will continue with his financial support as long as his government understands the value of the private sector in achieving those goals.
This was announced this Thursday by the vice president of the IFC for Europe, Latin America and the Caribbean, Alfonso Garcia Morain an interview with Efe in Ecuador, where he arrived after previously visiting Mexico and Colombia.
Garcia Mora considered that Colombia’s new administration shares with the IFC and the World Bank Group the concern for Eradicate poverty and achieve greater shared prosperity, as well as greater inclusion, better productivity and adaptation to climate change.
“These three elements (inclusion, productivity and climate change) have been embraced by the new administration of Colombia and are three strategic objectives for us in the region,” said García Mora.
“With which, we will clearly continue to support and help in any way possible under the premise, of course, that we always expect it to be so, that it be understood the value that the private sector has to play in that equation,” he added.
INCLUSION IS “KEY”
Of those priorities, García Mora pointed out that “inclusion is key”recalling that “Latin America is the most unequal region in the worldwhich is paradoxical because it is a region with years of democratic experience and active policies to prevent it from being the most unequal”.
“Therefore, policies that go in this direction, logically they are aligned with our objective. Another thing is that the policies have to be carried out consistently so that they are stable in the medium and long term“, he warned.
The IFC Vice President also indicated the importance of a government understands that it does not have the capacity to cover all the investment needs of a countrywhich is also not economically efficient”, and that it is positive that the private sector is responsible for part of it, within a conceptual framework of “cascade effect”.
EFFICIENT PUBLIC SPENDING
Thus, he advocated public-private partnerships (PPPs) for those investment opportunities where “you have to break entry barriers because they are new markets“, with “schemes where you can really put the two financing together and with the corresponding characteristics.
“At the end of the waterfall is that which the private sector cannot finance and cannot be financed through PPPs and that the public sector considers that it should do for whatever reasons. Let’s let the public sector do that,” said García Mora.
“If we really follow a conceptual framework like that, we will generate and advance thousands of kilometers, because the public budget is limited, and there is no fiscal spaceespecially now after the covid-19 crisis“, he added.
García-Mora, whose institution is the main international development organization dedicated to the private sector in emerging markets, aimed to “be efficient and allocate public resources to what is really essential and that only the public sector can do it, and let the private sector play its part”.