Introduction to the

Inter-American

Development Bank Group

Relation with

IDB-KOREA and LAC

Inter-American Development Bank Office in Asia

Presented By Minho Yoon, PhD

The 3rd OECD World Forumon Statistics, Knowledge and Policy

October 27-30, 2009

Busan, Korea

• The IDB is the main source of multilateral financing and expertise for

sustainable economic, social and institutional development in Latin

America and the Caribbean(LAC).

• 26 Borrowing member and 22 non-borrowing member countries

• More than $11.2 billion in approved lending, guarantees and grants in 2008

• $12-18 billion will be approvals in 2009

• Backed by a AAA/Aaa rating by both Standard & Poors and Moody’s

IDB is a stable source of external financing for Latin America and the Caribbean

Founded in 1959 :ADB(1966)/AFDB(1964)/EBRD(1991)

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48 Members

Austria

Belgium

Canada

China:2009

Croatia

Denmark

Finland

France

Germany

Israel

Italy

Japan:1976

Korea:2005

Netherlands

Norway

Portugal

Spain

Slovenia

Sweden

Switzerland

UK

USA

Argentina

Bahamas

Barbados

Belize

Bolivia

Brazil

Chile

Colombia

Costa Rica

Dominican Republic

Ecuador

El Salvador

Guatemala

Guyana

Haiti

Honduras

Jamaica

Mexico

Nicaragua

Panama

Paraguay

Peru

Suriname

Trinidad & Tobago

Uruguay

Venezuela

Non-Borrowing Member

Countries (22)

Borrowing Member

Countries (26)

• The IDB provides solutions to development challenges in 26

countries of Latin America and the Caribbean, partnering with

governments, companies and civil society organizations

• The IDB lends money and provides grants. It also offers research,

advice and technical assistance to improve key areas like

education, poverty reduction and agriculture. Our clients range from

central governments to city authorities and small businesses

• The Bank also seeks to take a lead role on cross-border issues like

trade, infrastructure and energy

IDB Provides a Wide Range of Solutions

IDB has the largest exposure in Latin America and

Caribbean of any development bank

• Total IDB Group lending exposure to LAC: $52.1

billion

• Sovereign Guarantee Lending: $48.6 billion to 26

countries

• Non-Sovereign Guarantee (NSG) Lending and

Guarantee Exposure: $3.5 billion

• NSG clients include both private companies and

sub-national entities without a Sovereign

Guarantee

IDB has four Non-Sovereign Guaranteed departments

• Structured and Corporate Finance (SCF): Works with

the larger corporations and financial institutions, as well

as project finance

• Inter-American Investment Corporation (IIC): Targets

small and medium-sized enterprises, primarily through

financial institutions: Founded 1989

• Multilateral Investment Fund (MIF): Targets primarily

micro-entrepreneurs and micro-finance institutions: Founded 1992

• Opportunities for the Majority (OMJ): Promotes

innovative projects aimed at the Bottom of the Pyramid

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The IDB has Two Sister Entities: IIC & MIF

IDB Group

MIFIIC

IDB

IDB-Korea and LAC

• Established in 1995

• Cover the three members of the Bank in Asia:

Japan, Korea and China

• Support Activities of members of IDB Group in Asia

-Promote trade and investment from Asia to LAC,

-Identify financing opportunities for IDB Group,

-Support resource mobilization

-Disseminate opportunities in IDB-financed projects,

-Strengthen strategic alliances between the IDB Group

and Asian member countries and key partners,

-Support the implementation of institutional

commitments particularly with respect to aid alignment,

harmonization and development effectiveness,

-Disseminate IDB group-produced knowledge and

priorities.

Office in Asia

Welcoming a New Member Country:

The Republic of Korea in 2005

• The Republic of Korea formally joined the IDB group on March 16, 2005 as the Bank’s 47th member country and its second Asian member since Japan joined in 1976.

• Korea’s entry brings the IDB not only new resources but new ideas on how to approach development issues, based on the Asian experience of investment in education, science and technology and small business promotion.

• Following the visit of President Moreno, another mission visited the Republic of Korea in December, consisting of the relevant staff of headquarter and the Office.

KOREAN TRUST FUNDS AT THE IDB-IIC

• Korea Poverty Reduction Fund (KPR)

• Knowledge Partnership Korea Fund for

Technology and Innovation (KPK)

• Korea IIC-SME Development Trust Fund(FINPYME)

• Non-reimbursable technical cooperation projects

• Fully untied trust funds. Nationals of all IDB member

countries are eligible to become consultants

• All IDB borrowing member countries are eligible as

beneficiaries

Background

Korea joined the IDB Group in March, 2005

Committed US$ 200 million

Poverty Reduction Fund – US$50 million

Technology and Innovation Fund – US$ 50 million

IIC SME Fund – US$ 40 million

MIF contribution – US$ 60 million

Signed Agreement for Trust Funds-July,2005

www.iadb.org/ar/tec

Project Approvals by Korea Poverty Reduction Fund

Project Approvals by Knowledge Partnership Korea Fund for Technology and Innovation

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Country SectorApproval

DateAmount(In US$)

1DominicaRepublic

Modernization ofthe State

2006.8.8 $98,000

2 Regional Agriculture 2006.12.6 $99,920

Total 2006 2 Projects $197,920

1 Regional Science & Technology 2007.1.8 $27,0002 Costa Rica Science & Technology 2007.1.30 $45,0003 Regional Science & Technology 2007.2.8 $98,8004 Uruguay Science & Technology 2007.2.15 $265,6005 Mexico Science & Technology 2007.6.14 $272,400

Regional Science & Technology 2007.6.25 $74,7121 Regional Trade 2007.8.14 $500,0002 Honduras IT and Telecommunications2007.8.31 $374,8003 Columbia Capital Market 2007.9.11 $99,6504 Honduras IT and Telecommunications2007.11.7 $280,000

5 PanamaPrivate SectorDevelopment

2007.11.16 $500,000

6 Regional Modernization of the State2007.11.29 $116,7127 Regional Science & Technology 2007.11.30 $89,0008 Peru Science & Technology 2007.12.5 $354,600

9 Brazil Modernization of the State2007.12.19 $98,760

Total 2007 15 Projects $3,197,034

1 Columbia Energy 2008.1.16 $500,000

2DominicaRepublic

IT and Telecommunications2008.1.25 $216,000

3 Chile Education 2008.1.29 $56,500

4 JmaicaPrivate SectorDevelopment

2008.2.6 $99,999

5 Panama Science & Technology 2008.3.13 $150,0006 Argentina Agriculture 2008.3.14 $119,8507 Chile IT and Telecommunications2008.3.14 $300,0008 Peru Capital Market 2008.4.14 $145,1599 Peru Social Investment 2008.5.6 $144,000

10 Mexico Agriculture 2008.5.8 $100,00011 Regional Modernization of the State2008.5.8 $70,08012 Argentina Agriculture 2008.5.14 $76,50013 Regional IT and Telecommunications2008.6.19 $110,00014 Peru Science & Technology 2008.6.19 $280,00015 Regional IT and Telecommunications2008.6.27 $500,00016 Regional Education 2008.7.30 $500,00017 Regional Transportation 2008.8.7 $98,500

18DominicaRepublic

Science & Technology 2008.9.17 $360,535

19 Brazil Education 2008.9.19 $496,10720 Panama IT and Telecommunications2008.10.2 $277,00021 Regional Education 2008.10.24 $75,00022 Regional Trade 2008.12.5 $136,000

23 Guatemala Capital Market 2008.12.12 $495,000

Total 2008 23 Projects $5,306,230

2006-2008Total

40 Total Projects $8,701,184

Project Approvals by Korea-IIC SME Development Trust Fund

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Country SectorApproval

DateAmount(In US$)

1 Brazil Mining 2006.6.16 $75,0002 Regional Multisector 2006.6.22 $50,0003 Regional Multisector 2006.7.17 $450,0004 Regional Multisector 2006.7.25 $65,000

5 Paraguay Agri-business 2006.12.1 $48,000

Total 2006 5 Projects $688,000

1 El Salvador General Manufacturing 2007.1.30 $70,0002 Nicaragua Textile 2007.4.5 $20,0003 Venezuela Local Capital Markets 2007.4.9 $147,0004 Peru Local Capital Markets 2007.4.18 $82,9505 Panama Energy 2007.4.20 $88,0006 Argentina Local Capital Markets 2007.5.8 $52,0007 Paraguay Legal 2007.5.30 $10,0008 Regional Multisector 2007.6.8 $50,000

9CaribbeanCountries

Multisector 2007.8.9 $75,000

10 Regional Multisector 2007.8.15 $60,000

11CentralAmerica

Energy 2007.9.14 $170,000

12 Ecuador Wood Product 2007.12.10 $85,00013 Regional Multisector 2007.12.12 $160,000

14 Regional Multisector 2007.12.12 $425,000

Total 2007 14 Projects $1,494,950

1 Columbia Energy 2008.1.29 $45,0002 Regional Multisector 2008.2.1 $80,0003 Jamaica Multisector 2008.5.21 $40,0004 Regional Multisector 2008.7.17 $495,0005 Chile Energy 2008.8.6 $81,5006 Columbia Energy 2008.8.6 $25,0007 Regional Multisector 2008.9.15 $85,0008 Regional Multisector 2008.12.2 $350,0009 Regional Multisector 2008.12.2 $320,000

10 Regional Multisector 2008.12.18 $500,000

Total 2008 10 Projects $2,021,500

2006-2008Total

29 Total Projects $4,204,450

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Korea and IDB Strengthening Relations in 2009

Korean Exports to Latin America and Caribbean

Exports to LAC countries increased by 29% from 2007 to 2008

No change to Top 6 LAC export countries who represent 76% & 83%

Exports to LAC countries increasingly important to Korea as exports to LAC

countries growing faster than growth of overall exports

Rank Country 2007

% of Total

LAC % of Total Rank Country 2008

% of Total

LAC % of Total

Increase /

Decrease

1 Mexico 7,482 29% 2.02% 1 Mexico 9,089 27% 2.15% 21%

2 Brazil 3,487 14% 0.94% 2 Panama 6,463 19% 1.53% 85%

3 Panama 3,145 12% 0.85% 3 Brazil 5,925 18% 1.40% 88%

4 Chile 3,115 12% 0.84% 4 Chile 3,031 9% 0.72% -3%

5 Bahamas 1,308 5% 0.35% 5 Bahamas 2,069 6% 0.49% 58%

6 Colombia 1,121 4% 0.30% 6 Colombia 1,090 3% 0.26% -3%

7 Venezuela 1,233 5% 0.33% 7 Bermuda 789 2% 0.19% N/ A

8 Argent ina 489 2% 0.13% 8 Venezuela 728 2% 0.17% -41%

9 Peru 466 2% 0.13% 9 Peru 720 2% 0.17% 55%

10 Ecuador 429 2% 0.12% 10 Ecuador 626 2% 0.15% 46%

22,275 86% 6.00% 30,530 92% 7.23% 37.06%

25,781 100% 6.95% 33,267 100% 7.88% 29.04%

371,000 100.00% 422,000 100.00% 13.75%Total Global Exports Total Global Exports

Top Ten LAC Korean Export Countries (millions)

Total Top 10

Total LAC Exports

Total Top 10

Total LAC Exports

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www.iadb.org/

www.iadb.org/mif

www.iic.int/

www.iadb.org/asia

More Information ?

Business Information in Office in Asia

Inter-American Development Bank

Office in Asia

Fukoku Semei Building 16F

2-2-2 Uchisaiwaicho, Chiyoda-Ku

Tokyo, 100-0011 Japan

Tel : 81-3-3591-0461

Fax: 81-3-3591-0641

Business Research and Information Consultant

Contact: Min-Ho Yoon

E-mail: minhoy@iadb.org

http://www.iadb.org/asia