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Huella: Measuring the impact of development projects
Full text linkHUELLA, an innovative methodology developed by the Inter-American Development Bank (IDB), represents a paradigm shift in evaluating development project impacts. By integrating advanced tools such as satellite imagery and leveraging a quasi-experimental design, HUELLA offers precise and scalable assessments of the cumulative effects of multiple projects at granular, subnational levels. HUELLA focuses on the impact that IDB projects have in the locations where they are implemented. It systematically compares communities that receive IDB financing against similar ones that did not, evaluating whether IDB interventions make a lasting difference. The methodology overcomes traditional evaluation limitations by providing near real-time insights and incorporating non-traditional indicators like environmental and economic growth outcomes, enabling a more comprehensive impact analysis. Applications in Mexico and Costa Rica demonstrate its effectiveness, revealing positive outcomes such as economic growth and reduced crime rates, with no significant increase in pollution levels. However, the results underscore the importance of sustainably managing environmental trade-offs. By complementing traditional evaluation frameworks, HUELLA enhances evidence-based decision-making, transparency, and stakeholder trust, establishing itself as a transformative tool in development impact assessment. The methodologys scalability and adaptability position it as a cornerstone of IDBs long-term strategy to drive informed, impactful community development
Competition and Market Power in the Latin American Banking Sector
Full text linkThe functioning of the banking sector is key for economic growth. In this paper, we first gather banks\u27 balance sheet monthly regulatory information in a consistent manner for seven Latin American countries. Second, we estimate lending markups and deposits markdowns in each country over time. Third, with the estimated markups and markdowns in the different countries we study how they relate with banks\u27 profitability, the cost of credit, credit risk and credit supply. Finally, we explore whether there are differences in markups on lending rates and markdowns on deposit rates between international and domestic banks
Research Insights: Do Children Benefit from Personal Laptops in the Long Run?
Full text linkThe OLPC program, designed by a team at the MIT Media Lab, aimed to improve educational outcomes among low-income primary students around the world by providing affordable personal laptops. The government of Peru launched its national OLPC program in 2009 targeting the nations most impoverished regions. Improving learning outcomes was a critical goal considering that only 14% of second grade primary students met the national mathematics standard and 23% did so for reading in 2009. While similar initiatives were implemented worldwide, their long-term impacts remain underexplored. This study focuses on 531 public, multigrade, rural primary schools, assessing the program\u27s impact on academic achievement and grade progression through 2019
Peril and Promise: Tackling Climate Change in Latin America and the Caribbean
Full text linkClimate change presents both a critical threat and a unique opportunity for progress in Latin America and the Caribbean. This book delves into this dual reality, showing that climate action is fundamentally development action, as it helps countries achieve crucial development goals in the short to medium term. Reaching net zero is feasible, brings tangible economic benefits, and hinges particularly on agriculture, forestry, and other land uses. Successful climate action will also require widespread public support, grounded in a shared perception that policies are fair and effective. This volume can serve as a resource for governments, the private sector, and citizens in their quest to navigate these perils while seizing the promise that climate action can offer
Chile’s Techno-Creative Landscape: Art Exhibition
No full textThis document presents "Chiles Techno-Creative Landscape", an art exhibition that celebrates Chilean innovation and creativity, highlighting the country\u27s contributions at the intersection of art, technology, and sustainability. Supported and co-curated by the Center for the Technological Revolution in Creative Industries (CRTIC) and presented in conjunction with the Annual Meeting of the Inter-American Development Bank (IDB) in Chile, the exhibition redefines landscapes and intangible heritage as technological and cultural constructs rather than merely physical environments. Through this lens, it encourages us to explore the transformative potential of emerging technologies in shaping our societies and invites us to reimagine our relationship with both the natural and digital worlds
Dialogue with a Gender Perspective: Guide for Cases in the Consultation Phase
Full text linkThe purpose of this guide is to incorporate a gender perspective in the dispute resolution processes managed by MICI with respect to environmental and social grievances related to development projects financed by the IDB Group. It seeks to avoid the generation, deepening or perpetuation of pre-existing gender gaps and divisions in compliance with the principle of action without harm
The Lives of Intersex People: Socio-Economic and Health Disparities in Mexico
Full text linkThis paper reports socioeconomic and health outcomes for individuals born with sex variations (i.e., intersex individuals) in Mexico based on large nationally representative survey data collected between 2021 and 2022 (N44,189). The sample includes 608 intersex respondents, corresponding to a weighted estimate of approximately 1.6% of individuals aged 1564 years, i.e., almost 1.3 million intersex people. The main empirical analysis documents substantial negative outcomes for intersex individuals. There are significant disparities in mental, physical, and sexual health between intersex respondents and the endosex population, including higher rates of bullying during childhood (26% vs. 15% for endosex male and female individuals), harassment and violence in adulthood (20% vs. 10% for endosex male individuals), and mental health issues (46% vs. 34% for endosex male individuals). Additionally, intersex individuals have lower educational levels and are more likely to experience workplace rejection, exclusion, and discrimination and to face substantial barriers in healthcare environments
Reviving Joint Liability Contracts: Asymmetric Joint Liability Loans and Moral Hazard
Full text linkJoint liability loans are used in various settings, including business partnerships, agricultural cooperatives, and real estate investment. Most notably, they have been central to the microfinance model since the 1970s. Despite early promises, recent evidence suggests that joint liability has not consistently reduced loan defaults or operational costs. As a result, microfinance institutions (MFIs) worldwide are increasingly shifting toward individual liability contracts. A key limitation of traditional joint liability loans lies in their symmetric contract structure, which often leads to coordination failures and free-riding: while peers can enforce repayment, they may jointly default or shirk monitoring responsibilities. We propose that introducing asymmetry in joint liability contracts, by designating one group member as a lead borrower with preferential interest rates, can enhance peer monitoring and reduce moral hazard. We extend an existing theoretical model of ex-ante moral hazard (investment behavior) to the scenario of hazard (strategic default) and evaluate both frameworks through a lab-in-the-field experiment with microfinance clients in urban Bolivia. Our experimental results show that asymmetric contracts significantly increase peer monitoring by 17-20% in both moral hazard scenarios. These findings suggest that asymmetric group lending contracts offer a promising path to reviving joint liability in microfinance
The Robotics Revolution: Technology, Trends, and Impact in 2024
Full text linkEmerging technologies, such as artificial intelligence (AI), machine learning, advanced sensors, and Internet of Things (IoT) connectivity, are driving advancements that make robots more adaptable, autonomous, and capable of solving increasingly complex challenges. The report delves into various types of robots, their applications, and the rapid adoption of robotics across diverse industries. It also highlights how collaborative robots and humanoid robots are reshaping workplaces by enhancing productivity and human robot collaboration. In addition, we discuss the role of drones as a growing force in aerial robotics, revolutionizing multiple sectors with their versatility and efficiency
Building an Optimal Education Workforce
Full text linkEnsuring efficient distribution of educational personnel is key to improving the quality and equity of the education system. This technical note presents a conceptual framework for implementing an Optimal Functional Staffing plana process that enables estimation and management of the appropriate number of educational personnel in each school, avoiding both shortages and surpluses in allocation. Additionally, it discusses the necessary conditions for implementation, emphasizing the importance of having an institutionalized process supported by reliable data and a trained technical team. The processes addressed in this note are fundamental for designing a human resources management and monitoring system that optimizes the analysis of educational personnel demand and supply