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Publications by Inter-American Development Bank
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    Inter-American Development Bank Quarterly Business Review: Third Quarter 2024

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    The 2024 third quarter edition of the Quarterly Business Review (QBR) provides management with a status of the Bank\u27s performance. The QBR reports on outputs, lending program priorities and organizational indicators on a quarterly basis to allow management to monitor progress in achieving corporate results. This periodic monitoring supports evidence-based decision making and allows for timely identification of deviations from targets and enables effective implementation of measures to address them. Also, the QBR provides an overview of the IDB\u27s performance on sovereign-guaranteed outputs and lending program priorities. It identifies trend deviations from IDB portfolio targets to support Bank management efforts to identify and implement corrective measures. This edition compiles data for the third quarter of 2024

    Enablers and Bottlenecks to Upgrading Along the Medical Device Global Value Chain in Costa Rica

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    The medical device sector is a critical driver of Costa Rica\u27s economic development, accounting for 37 percent of total exports as of 2022. This paper analyzes the main enablers and bottlenecks in upgrading along the medical device global value chain into higher value-added segments. The mixed-method approach we use includes documentary analysis, 15 interviews with key stakeholders, and descriptive statistics of different datasets. Results indicate five enablers for upgrading: (i) a strategic location and economic, political, and social stability, education, human talent, and a favorable investment climate allowed companies to establish in Costa Rica; (ii) a shift in the strategy of the investment attraction agency toward supply chain helped identify key suppliers; (iii) the development of specialized skills and talent needed by the industry helped manufacturing more complex devices; (iv) productive development programs helped linkages emerge between multinational enterprises of medical devices and domestic firms; and (v) the existence of specialized skills enabled companies to consider Costa Rica for research and product development processes. The sector also faces three main bottlenecks that hinder its ability to continue upgrading: (i) cultural barriers and informality that restrict backward linkages; (ii) persistent skills shortages, and more bilingual graduates in science, technology, engineering and mathematics are needed; and (iii) lack of incentives that limit the ability to deepen research and development

    AI and Education: Building the Future Through Digital Transformation

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    For decades, technology has been promoted as a solution to educational challenges in Latin America and the Caribbean, with early enthusiasm suggesting that digital tools could revolutionize access and learnings. However, real-world implementation has revealed mixed results, with a lack of pedagogical integration and infrastructure hindering their impact. As artificial intelligence (AI) emerges as the next frontier in education, the digital transformation of education presents both opportunities and risks. This tension raises an urgent question: can AI become the transformative force it promises to be, or will it face the same challenges that have hindered previous technological innovations? The answer will depend not only on technological advancements, but also on the quality of research, critical evaluation, and the thoughtful implementation and monitoring of policies accompanying AIs integration in education. By synthesizing lessons from previous experiences and addressing the emerging uncertainties surrounding AIs role in education, this study offers policymakers practical, evidence-based recommendations. It presents a framework to guide the effective integration of technology in education, providing a structured approach to setting objectives, articulating a theory of change, and identifying the key components needed for successful program implementation. Ultimately, the goal is to ensure that AI and other digital technologies are not integrated for their own sake, but are deployed in ways that lead to measurable improvements in educational quality, equity, and efficiency across the region

    Cognitive Behavioural Therapy for Gender-based Violence Prevention: Evidence from a Randomized Trial in Mexico

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    Cognitive behavioral therapy (CBT) has become a powerful and effective tool to deal with violence in many at-risk areas in the world. However, its use for gender-based violence (GBV) and dating violence, although promising, has been limited and used as a response service for survivors, rather than for prevention. To understand to what extent such interventions can help provide tools and skills to young people in their impressionable years to produce behavioral changes that prevent GBV, we carried out such an intervention among high school students in the municipality of Ecatepec in Mexico. We assessed the intervention with a randomized control trial. We introduce the novelty of collecting objective measures from automated neuropsychological tests to explore whether CBT might be functioning through the development of subjects\u27 executive functions. Results from this intervention fail to show any clear change in self-reported violence. They do show, however, impacts on executive functions related to violence, such as emotional recognition and inhibitory control skills

    Infrascope 2023/24: Measuring the Enabling Environment for Public-Private Partnerships in Infrastructure in Latin America and the Caribbean

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    The Infrascope index is a benchmarking tool that evaluates the capacity of countries to implement sustainable, impact-driven and efficient public-private partnerships (PPPs) in key infrastructure sectors, principally transport, energy, water and sanitation, solid waste management, and social infrastructure. It aims to help policymakers identify the challenges to private-sector participation in infrastructure that, if overcome, could unlock the power of PPPs and support the broader development agenda. The Infrascope index has been published since 2009. The 2023/24 edition covers 26 countries in Latin America and the Caribbean. The analysis and content cover the period from August to December 2023

    Research Insights: Do the Incentives Provided to Current Teachers Affect Future Cohorts?

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    Attracting, developing, and retaining effective teachers is essential for improving education outcomes, yet making the teaching profession appealing to talented youth remains challenging. Providing information about reforms that enhance the appeal of a teaching career to high school students can positively impact enrollment in higher education and the choice of an education major. This evidence suggests that career incentives and information can shape not only the current teaching workforce but also future cohorts

    Enhancing Fiscal Resilience: Medium-Term Frameworks for Managing Emerging Risks

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    Climate change poses significant well-known risks to fiscal sustainability in Latin America and the Caribbean, such as annual losses of up to 1.7 percent of GDP due to extreme weather events, the devaluation of carbon-intensive assets caused by the transition to a low-carbon economy, and the loss of fiscal revenues linked to fossil fuels. This study describes how governments can integrate green medium-term fiscal frameworks (MTFFs) into their fiscal planning to mitigate these risks. Green MTFFs combine effective carbon pricing, sustainable reforms, and strategic investments in green infrastructure. They are not only a technical tool but an imperative approach to avoid fiscal decisions that undermine growth and stability in the region. They also expose certain shortcomings, such as lack of reliable data, institutional fragmentation, and fiscal space constraints

    2024 Partnership Report: Partnering for Impact

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    In 2024, the IDB launched a transformation centered on three major reforms: a new institutional strategy, a redesigned business model for IDB Invest, and a more scalable and catalytic approach for IDB Lab. These efforts focus on three core goals: reducing poverty and inequality, tackling climate change, and driving sustainable growth in Latin America and the Caribbean. Building on this foundation, the 2024 Partnership Report highlights key collaborations with IDB partners aimed at addressing global challenges, accelerating development, and improving lives across the region and beyond

    NFTree: Replication Guide for the Development of Financing Mechanisms for the Conservation of High Ecological Value Ecosystems

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    NFTree creates incentives to protect ecosystems of high ecological value and strengthens territorial resilience by integrating companies, communities, and key stakeholders under an innovative financing model. Through decentralized community management structures and natural asset tokenization (a process that digitally converts ecological value into verifiable assets), it turns ecosystem stewards into direct protagonists, ensuring transparency, traceability, and placing both people and ecosystems at the core of sustainable development. This publication provides a clear replication guide to consolidate a sustainable financing system that ensures long-term conservation. Based on Fundación Futuro\u27s experience in the Andean Chocó and other successful conservation models, it offers a strategic framework to integrate stakeholders, implement digital tools, and develop governance and financing mechanisms that make ecological and social regeneration viable. The goal is to share experience and inspire replication in other contexts and regions. The publication shares key lessons and insights from Fundación Futuro and Grupo Futuro\u27s journey, aiming to inspire adaptation and replication in diverse contexts and regions

    A Global Assessment of Building Codes: Current Status and Evolving Needs to Promote Resilient, Green and Inclusive Buildings

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    The quality of the built environment is fundamental to the functioning, health, and sustainability of societies and economies. Rapid population growth and urbanization are expected to increase the proportion of people living in cities to nearly 70 percent by 2050. This means that a significant portion of global building stock that will exist in 2050 is yet to be constructed (UN, 2019). Much of this growth will occur in African, Asian, and Latin American cities, presenting both opportunities and challenges. Enhanced building codes and compliance mechanisms are essential tools to address the impacts of natural disasters, urbanization, and the need for accessible buildings. Modern building codes, finely tuned to local contexts, can create vibrant and resilient urban landscapes that stand the test of time. Additionally, the increasing frequency and severity of tropical cyclones, floods, extreme heat and other climate-related events, demand comprehensive design provisions in building codes to mitigate damage and ensure habitability. Improved building codes can reduce risks for new construction and play a crucial role in ensuring the safety and adaptive reuse of existing structures. This approach enhances the resilience of the built environment and ensures that cities are safe, healthy, and sustainable for future generations. This report assesses the technical content of building codes for selected countries and related code implementation mechanisms. It considers three priority areas: structural safety and resilience, green buildings, and universal accessibility. It aims to support a wide range of actors involved in building regulatory policy and code development, including policy makers, government agencies at national and local level, technical professionals, academics, and development partners

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