Public and private associations are key to getting out of the crisis, says Islamic Development Bank – El Financiero
Success in recovering from the crisis due to the Covid-19 epidemic in Latin America and the Caribbean depends on the efficiency of private public associations (PPPs), as a mechanism to take advantage of the opportunities we see in the region, such as promoting RoundingMauricio Clavier Caron, President of the Inter-American Development Bank (IDB), said of the reorganization of supply chains and digitalization in SMEs.
“Public-private partnership is fundamental, as the world economically will currently be able to overcome the current crisis due to the largest public-private partnership project in modern history, the production of the vaccine. It is the greatest success, and in all issues, whether it is infrastructure or health or digital, it will be the key to success in the public-private partnership.”
To facilitate the linking efforts between the parties to achieve these public-private partnerships, the Islamic Development Bank has established a special unit for this purpose, and in its 2025 vision includes this goal in which it must work with all countries. in making regulations. Transparent and streamlined.
“We have to work with all countries so that their regulatory and legal frameworks are clear, transparent and effective, because when they are, they are the key to success,” he said.
The economy of Latin America and the Caribbean contracted by 7 percent in 2020, according to the International Monetary Fund (IMF), the largest decline in the region in the past 200 years; And even after this crisis, there are opportunities for everyone.
Mexico enjoys a privileged geographical position that can take advantage of the opportunities available in Rounding Because of its proximity to the United States and also due to the digitization by hosting some of the most promising companies in this field.
He noted that through an agreement between the Mexican Business Council (CMN) and IDB Invest, the private sector financing arm of the Islamic Development Bank, they prevented the closure of nearly 5,000 small and medium-sized businesses that have come under pressure from the pandemic.
We will continue to work closely at the federal level and with the states so that he can maintain stability so that he can take off. I am confident that the Mexican economy can take off on the basis of these opportunities, particularly by turning the page on Covid-19.
digital bridge
Claver Caroni said that creating a digital bridge between Miami and Latin America to boost the recovery of the region is one of the goals of the Islamic Development Bank, as it discovers the interest of both companies and investors to land in Florida.
“Whether it’s tech companies from Silicon Valley or institutional investors from New York, they’re moving to Florida, to Miami. There’s a massive influx of interest in Miami and what I’m looking for is for this influx to take the next step and how it can benefit Latin America and the Caribbean,” he noted. To the investors who have never lost out or do not understand investments in Latin America and the Caribbean, today they are looking for opportunities because of their presence in Miami.
Innovation venture capital activity in the region has recorded more than 650 deals with around $17 billion, which is a record. In addition to what has been invested in private capital, these amounts are increasing due to the innovation opportunities that exist in the region.
Latam does not need more fluctuations
The Islamic Development Bank is working with all countries in the region on digital transaction infrastructure so that residents can have greater access to trade, remittances and their transactions inside and outside the country, but using digital currencies as sources, “they are volatile resources,” he speculates. He noted that what the region does not need is more From more volatility and speculation than it has historically been, what you need is stability and certainty.
He realized that the future would be blockchain and cryptocurrency in what schemes to simplify payments, and the Islamic Development Bank has pilot programs with some countries also on digital currencies, such as between central banks themselves to conduct digital transactions, simplifying payments to be more transparent, efficient and more feasible.
“But this scheme is one thing and the resources themselves are another, they have one name or another like bitcoin, they are volatile resources, and there is speculation,” he said.
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