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The Multilateral Investment Fund. December 2009. Outline. The Case for MIF Intervention A Clear Focus Going Forward. Latin America faces a high levels of poverty coupled with significant disparities related to inequality in income distribution….

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Outline
Outline

  • The Case for MIF Intervention

  • A Clear Focus

  • Going Forward


Latin America faces a high levels of poverty coupled with significant disparities related to inequality in income distribution…

  • 130 million people in the region live on US$2 or less per day

  • An additional 83 million people struggle on the edge of poverty

  • The poorest 20% of the population have 2.9% of total income

  • The richest 20% of the population have 57.1% of total income


… and that poverty is marked by a gender, ethnicity and age bias

WOMEN

  • 11.5% unemployed vs. 7.1% for men (exclude informal work)

  • 43.2% of women do not have disposable income vs. 21.7% of men

  • Source: United Nations, Economic Commission for Latin America and the Caribbean. 2008. “Social Panorama of Latin America”. U.N Commission on Women 2005.

INDIGENOUS PEOPLE

  • 10% of the population in Latin America and Caribbean

  • 60 to 80% are poor

  • Source: Skoufias, E and Patrinos, H. 2007. World Bank report. Economic Opportunities for Indigenous Peoples in Latin America.

YOUTH

  • 106 million youth in LAC

  • 22 million do not have access to education or jobs (20.75% of the LAC youth)

  • Source: United Nations, Economic Commission for Latin America and the Caribbean. 2008. “Social Panorama of Latin America”.

URBAN/RURAL

  • 60% of the poor live in urban areas but the poverty incidence -probability of being poor- is higher in rural areas (56% in rural areas vs. 28% in urban)

  • Urban population grows at 1.7%; rural decreases by 0.4%/year

  • Source: World Bank, Urban Development Cluster website, 2009; Fay, Marianna. 2005. “The Urban Poor in Latin America”. The World Bank, Washington, D.C.


Outline1
Outline age bias

  • The Case for MIF Intervention

  • A Clear Focus

  • Going Forward


A Clear Focus: Access age bias

  • In Latin America and the Caribbean region, the poor lack many things, but motivation, entrepreneurial drive, and intelligence are not among them

    • What stops the region’s unemployed, micro-entrepreneurs and SMEs is a lack of ACCESS to key resources for the development of fruitful economic activity

  • The MIF’s challenge is to level the ‘Access Playing Field’ to empower economic activity, growth and a way out of poverty

  • The MIF seeks to focus on “Equal ACCESS to economic activity”


    A central challenge for economic expansion and poverty reduction in the region is Access

    Opportunity and successful economic activity are largely a function of Access

    Resources needed for the development of fruitful economic activity

    Prerequisites

    Challenges along the way

    • Access to Basic Services

    • Access to Finance

    • Access to Markets

    • Access to Skills and Capacity


    Outline2
    Outline reduction in the region is Access

    • The Case for MIF Intervention

    • A Clear Focus

    • Going Forward


    How to focus on ACCESS reduction in the region is Access

    • Focus on specific areas where we can have the greatest impact

      • Have expertise

      • There is a clear need

      • Sufficient funding is not already provided by other donors

      • Can leverage knowledge, resources, partners and/or work with the IDB

    • Be strategic. Each topic will have

      • Specific goals that define “success” e.g. Rotary Club - eliminating polio

      • Identified the actors needed to reach the following goal

      • A knowledge strategy; identify the knowledge products needed to influence those actors

      • A roadmap of projects that will create the necessary results and knowledge

      • A dissemination strategy; where, when and how to reach the key actors

    Focus on Access

    Access to

    Basic Services

    Access to

    Markets

    Access to

    Finance

    Access to

    Skills and Capacity

    Definition of Success

    Actors

    Projects

    Learning

    &

    Knowledge

    Dissemination


    Going forward, to maximize MIF´s effectiveness… reduction in the region is Access

    • The MIF will be focused on Access and …

      • Impact

      • Knowledge and Learning

      • Dissemination


    The MIF “Access Lab” - The Next Way Forward reduction in the region is Access

    • While the MIF has very specific indicators for each project, and is ahead of many, it needs to do more, and Donors are demanding more

      • An integrative approach – impact / learning / knowledge / dissemination

      • Developing deeper expertise in key areas

      • Measuring performance more profoundly

      • Using innovative research methods

      • Sharing knowledge more broadly

    Initial funding for the “Access Lab” to come primarily from the Chinese Fund for Increasing Productivity and Promoting Inclusive Economic Growth, while an adequate use of project and ultimately MIF resources ensures its sustainability


    MIF Access Lab - Focus on IMPACT reduction in the region is Access

    • A multi-pronged approach

      • Develop MIF impact indicators at 4 specific levels

        • The MIF as a whole

        • Each Access Area

        • Each topic within the Access Areas

        • Each project

      • Increase amounts available for Impact Evaluation

        • Set aside more project funds

        • Evaluate 25 projects per year vs 7 today

        • Develop and participate in innovative evaluation and research

          • International Initiative for Impact Evaluation

          • MIT Poverty Action Lab

    Focus on Impact

    Impact

    Indicators

    Impact

    Evaluation


    MIF Access Lab - Focus on KNOWLEDGE and DISSEMINATION reduction in the region is Access

    • Make clear the MIF´s areas of focus, engage key partners and policymakers and help maximize the MIF´s impact

      • Develop a dissemination strategy up-front for each access area and topic

      • Use the convening power of the IDB

      • Create a “knowledge repository” or “knowledge library”

      • Take a larger role in the “dissemination component” of MIF projects

    Focus on Knowledge and Dissemination

    Dissemination

    Strategy

    Knowledge

    Repository

    Capture and disseminate

    knowledge


    The MIF “Access Lab” - The Next Way Forward reduction in the region is Access

    • More Focused MIF – Access

      • Clear Positioning

      • Deeper Expertise

    • More Empowered MIF

      • Knows its Accomplishments

      • A key Partner in its Topics

    • More Influential MIF

      • A Leader

      • A Center of Knowledge and Excellence


    Corporate Social Responsibility and related topics reduction in the region is Access

    Access to

    Basic Services

    Access to

    Markets

    Access to

    Finance

    Access to

    Skills and Capacity

    Economic inclusion

    Utilities ‘ CSR

    Economic inclusion

    Fair trade, organic, “ethical” markets

    Base of the Pyramid in the financial sector

    Economic inclusion

    Responsible value chain

    • Transversal topic

      • Have expertise

      • There is a clear need

      • Sufficient funding is not already provided by other donors

      • Can leverage knowledge, resources, partners and/or work with the IDB

    • We have to work on

      • Specific goals that define “success”

      • Identified the actors needed to reach the goals

      • A knowledge strategy; identify the knowledge products needed to influence those actors

      • A roadmap of projects that will create the necessary results and knowledge

      • A dissemination strategy; where, when and how to reach the key actors

    CSR

    Definition of Success

    Actors

    Projects

    Learning

    &

    Knowledge

    Dissemination


    Improving the lives of lower income and vulnerable populations through economic inclusion

    Promotion of CSR among the Region’s private sector

    Knowledge

    Learning platform

    CSR Scorecard

    Inter-American Conference

    Social

    Economic inclusion

    Social enterprises

    Environmental

    Climate change

    Carbon management


    Thank you. populations through economic inclusion

    Questions?


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