the multilateral investment fund

1

The Multilateral Investment FundDecember 2009

MULTILATERAL INVESTMENT FUND http://www.iadb.org/mif - [email protected]

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

INDIGENOUS PEOPLE

WOMEN

YOUTH

URBAN/RURAL

•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.

•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.

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

•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”.


Outline


A Clear Focus

Going Forward


A Clear Focus: Access

• 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”


Resources needed for the development of fruitful 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

Prerequisites

• Access to Basic Services • Access to Finance• Access to Markets• Access to Skills and Capacity

Challenges along the way


Outline


A Clear Focus

Going Forward


• 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

How to focus on ACCESS

Access toBasic Services

Access to Skills and Capacity

Access toMarkets

Access toFinance

Focus on Access

Definition of Success Actors

Learning&

Knowledge Projects Dissemina

tion


Going forward, to maximize MIF´s effectiveness…

The MIF will be focused on Access and …

• Impact• Knowledge and Learning• Dissemination


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

The MIF “Access Lab” - The Next Way Forward

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


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

MIF Access Lab - Focus on IMPACT

Focus on Impact

Impact Indicators

Impact Evaluation


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

MIF Access Lab - Focus on KNOWLEDGE and DISSEMINATION

Focus on Knowledge and Dissemination

DisseminationStrategy

KnowledgeRepository

Capture and disseminateknowledge


• 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

The MIF “Access Lab” - The Next Way Forward


• 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

Corporate Social Responsibility and related topicsAccess to

Basic ServicesAccess to

Skills and CapacityAccess toMarkets

Access toFinance

Definition of Success Actors

Learning&

Knowledge Projects Dissemination

CSR

Economic inclusionUtilities ‘ CSR

Economic inclusionResponsible value chain

Economic inclusion Fair trade, organic, “ethical” markets

Base of the Pyramid in the financial sector


SocialEconomic inclusionSocial enterprises

EnvironmentalClimate change

Carbon management

Knowledge Learning platform

CSR ScorecardInter-American Conference

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

Promotion of CSR among the Region’s private sector


Thank you.Questions?

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