Inter-American Development Bank Definition

Cite this article as:"Inter-American Development Bank Definition," in The Business Professor, updated March 22, 2019, last accessed October 28, 2020,


Inter-American Development Bank Definition

The Inter-American Development Bank (IDB) was established in 1959 as a cooperative bank to advance the social and economic development of its member countries in the Caribbean and Latin America. It belongs to 47 member countries, which include some European nations and the United States.

A Little More on What is Inter-American Development Bank

The Inter-American Development Bank or IDB helps the Caribbean and Latin American countries to plan development strategies and offers technical help and financing to increase competitiveness, modernize the state, accomplish environmentally sustainable growth economically, fight poverty, and encourage regional integration and free trade.

The bond market is where the funds are raised that the IDB lends to its member countries. The bonds have the backing of the loans the Inter-American Development Bank makes, which carry the promise of capital guaranteed by the non-borrowing members of the bank. The bonds are issued at market rates and rated triple-A. With the triple-A rating, borrowing costs can remain low for the member countries.

Reference for InterAmerican Development Bank

Academic Research on InterAmerican Development Bank

  • Indigenous peoples and sustainable development: the role of the InterAmerican Development Bank, Deruyttere, A. (1997). Inter-American Development Bank. This presentation addresses the role of the Inter-American Development Bank, specifically in the area of socioeconomic advancement of native peoples of Latin America. The paper describes who the indigenous people are and their concerns and issues. The author outlines a strategy. In the presentation, the author gives examples of how the IDB has responded to the command to deal with the needs of native people. The paper also discusses the difficulties of the IDB in promoting sustainable socioeconomic advancement.
  • A review of the use of contingent valuation methods in project analysis at the InterAmerican Development Bank, Ardila, S., Quiroga, R., & Vaughan, W. J. (1998). Inter-American Development Bank. This paper was presented at a workshop at Vanderbilt University in 1998. It covers the decade that has passed including the experiences of the Inter-American Development Bank with the cost-benefit examination of projects to provide sewer service and improve circulating water condition in the Caribbean and Latin America. The author comments on the significant economic analysis problems that have presented themselves and reports on the extent of willingness to pay the involved estimates.
  • Whose civil society? Whose governance? Decisionmaking and practice in the new agenda at the InterAmerican Development Bank and the World Bank, Nelson, P. (2000). Global Governance, 6(4), 405-431. The goals of multilateral development banks regulation and lending involve good modernization of the state and civil society which have at the core issues with effective public sector management, accountability, transparency, public participation in creating and using policy. Governance of the multilateral development banks should also mean decisionmaking and self-governance as an entity. This paper concentrates on the pressure of the World Bank and Inter-American Development Bank between governing processes, implementing them and governance of policies.
  • Multilateral development banks as regionalising actors: the Asian Development Bank and the InterAmerican Development Bank, Bull, B., & Bøa § s, M. (2003). New Political Economy, 8(2), 245-261. There are two assumptions made in recent regionalist literature. The first is the belief that regional integration is a process that is state-led when non-state actors without the proper power to make decisions are considered unimportant. The second assumption is that regions are objectively bound in time and space by history, culture, and geography. Not only states but regions through social practice are constantly in the making. The author acknowledges the challenge mainstream literature has in exploring the role of regional development banks, specifically, the Inter-American Development Bank and the Asian Development Bank.
  • Measuring voting power in an international institution: the United States and the interAmerican development bank, Strand, J. R. (2003). Economics of Governance, 4(1), 19-36. This paper uses a portion of relative voting power to the assertive voting structure of the Inter-American Development Bank, which has internal governance which refers to its members’ votes as an intermediary for relative influence. This paper shows how voting weights are deceitful. The amount of votes belonging to a country in a weighted voting system does not mean that they are able to affect outcomes. The United States has over 30 percent of all the votes. The U.S. holds much more sway over outcomes than what the designers of the institution intended.
  • Lessons Learned in Rural Finance: The Experience of the InterAmerican Development Bank, Wenner, M. D. (2002). Inter-American Development Bank. This paper looks at the lending experience of the Inter-American Development Bank in rural finance and points out the lessons learned. The paper has its basis in evaluation reports, project documents, and interviews. Twenty-seven projects were studied fully. There are significant lessons to be learned from the review of the design of interventions in the future. The aim of this paper is to help policymakers, consultants, academics, and practitioners better understand what the IDB has done in the past with different types of interventions.
  • Enhancing knowledge exchange through communities of practice at the InterAmerican Development Bank, Moreno, A. (2001, October). In Aslib Proceedings (Vol. 53, No. 8, pp. 296-308). MCB UP Ltd. A somewhat new and offhand organizational form has emerged in the last several years at the Inter-American Development Bank. The organization is referred to as Communities of Practice or Bank Networks. It is basically an informal selection of professional workers who have the same goals and interests. They are integrating the structures already established and improving the exchange of knowledge and learning of the organization. This article investigates and assesses the Bank Networks and their activities, structure, and nature.
  • InterAmerican Development Bank, Medina, C., Nuñez, J., & Núñez, J. (2005).
  • The InterAmerican Development Bank and Sub-Sovereign Governments Development, Masci, P. (1999). The Inter-American Development Bank and Sub-Sovereign Governments Development. Inter-American Development Bank. This paper explains the Inter-American Development Bank support for the development of sub-sovereign government in Latin America. The presentation outlines the qualitative and quantitative aspects of the IDB experience and the utilization of risk assessment as it relates to Latin American sub-sovereign governments. There were lessons learned that are detailed in the paper, which have to do with the need of an Inter-American Development Bank strategy, the proportion of risk vs. complexity of a project, creative financing structures, general purpose bonds vs. revenue bonds, and the role of technology.
  • Managing for Development Results at the InterAmerican Development Bank, Echebarría, K. (2011). Inter-American Development Bank. This paper discusses the guiding ideas of results management at the Inter-American Development Bank, which combines a bottom-up and top-down approach. Another guiding idea is to design and use a dashboard tool to control information for vice presidents, managers, and division chiefs. The paper also deals with ways to align management processes with corporate reports. Finally, the paper presents ways to develop reports for learning and accountability, which include an Annual Business Review and Development Effectiveness Overview.

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