IDB Cares: A Bold New Initiative to Transform the Care Economy in Latin America

Recognizing the care economy as a fundamental pillar for inclusive growth, IDB President Ilan Goldfajn unveiled the initiative during the Annual Meetings of the IDB and IDB Invest in Chile.

In a significant move to address pressing social and economic challenges across Latin America and the Caribbean, the Inter-American Development Bank (IDB) has launched IDB Cares—a comprehensive, institution-wide initiative aimed at transforming the care economy. The new program is designed to expand access to care services and infrastructure for children, older adults, and people with disabilities while simultaneously driving job creation, promoting gender equality, and accelerating economic growth across the region.

A Timely Response to Demographic Shifts

The launch of IDB Cares comes at a crucial moment. The region is undergoing rapid demographic changes, with projections showing that by 2050, one in four people in Latin America and the Caribbean will be over the age of 60. At the same time, demand for quality care services continues to outpace supply, placing immense pressure on families, particularly women, who often carry the burden of unpaid caregiving responsibilities.

Recognizing the care economy as a fundamental pillar for inclusive growth, IDB President Ilan Goldfajn unveiled the initiative during the Annual Meetings of the IDB and IDB Invest in Chile. “Strategic investments in care services and infrastructure are critical for sustainable economic growth, productivity, and generating opportunities for all in Latin America and the Caribbean,” said Goldfajn. “IDB Cares embodies our commitment to care services and infrastructure to improve the lives of children, older adults, and people with disabilities, as well as promote more balanced distribution of care. Let’s all care about care.”

A Triple-Pillar Strategy for Transformational Impact

The IDB Cares initiative is built on three foundational pillars designed to deliver systemic change:

1. Governance and Financing: This pillar focuses on strengthening the institutional frameworks that support national care systems. By assisting governments in developing comprehensive care policies and securing sustainable financing mechanisms, the IDB aims to build robust infrastructure that can support growing care needs for generations to come.

2. Coverage and Quality of Services: To address the shortage of affordable, high-quality care services, the initiative will increase public and private investment in care facilities, training programs for caregivers, and innovative service delivery models. By improving both access and standards, IDB Cares seeks to ensure that vulnerable populations receive the attention they deserve.

3. Shared Responsibility for Care: One of the most transformative aspects of the initiative is its focus on promoting a more equitable distribution of caregiving duties between men and women, as well as across families, communities, and institutions. This cultural and societal shift is crucial for reducing gender inequality and unlocking women’s full economic potential.

Economic Growth Through Inclusion

The economic benefits of a thriving care economy are substantial. According to the International Monetary Fund (IMF), eliminating barriers to women’s participation in the workforce—many of which are linked to care responsibilities—could increase the region’s GDP by as much as 20 percentage points. More accessible care services would also reduce absenteeism in the workplace and boost employee retention, enhancing productivity and competitiveness in both public and private sectors.

By creating a professionalized, well-compensated care workforce, IDB Cares will also generate significant employment opportunities, especially for women, who represent the majority of paid caregivers. The initiative is expected to help formalize caregiving jobs, provide social protections, and create pathways to entrepreneurship in the care sector.

Catalyzing Innovation and Private-Sector Investment

In addition to supporting public policy reforms, IDB Cares harnesses the power of the private sector through its two specialized arms: IDB Invest and IDB Lab.

• IDB Invest will provide financing for private-sector enterprises, social businesses, and entrepreneurs working to expand care services or build care infrastructure.

• IDB Lab, the Bank’s venture capital and innovation hub, will back startups that are developing cutting-edge solutions to care challenges—such as digital platforms for home-based care, AI-enabled monitoring systems, and mobile apps that connect caregivers with families.

These efforts aim to spur a new wave of innovation in the care economy and position Latin America and the Caribbean as a global leader in care-centered development.

Building on a Strong Track Record

IDB Cares builds on the Bank’s extensive experience in supporting the care economy. Notable past projects include:

• Mexico: Assisting the government in designing and implementing a national care system.

• Uruguay: Supporting reforms to improve care for people with disabilities who require daily assistance.

• Costa Rica: Collaborating on the development of a sustainable, long-term care system for older adults.

A Broader Understanding of Care

The IDB defines care as both paid and unpaid physical and emotional assistance provided to children, older adults, and individuals with disabilities. It also includes domestic work and household management. Importantly, the IDB sees care not just as a private family matter, but as a critical component of national economies that sustains life, enables labor market participation, and enhances overall societal well-being.

With IDB Cares, the Bank is sending a powerful message: care is not a cost—it is an investment. One that can unlock human potential, close gender gaps, and foster inclusive prosperity across the region.

As the initiative takes root, it promises to reshape the future of care in Latin America and the Caribbean—improving lives today while building stronger, more resilient societies for tomorrow.