Laura Alfaro Named IDB Chief Economist to Lead Region’s Economic Strategy Shift

Alfaro officially assumed her new role on June 1, 2025, following a competitive global search process.

The Inter-American Development Bank (IDB) has appointed internationally recognized economist and public policy expert Laura Alfaro as its new Chief Economist and Economic Counselor, marking a pivotal leadership change as the institution intensifies its focus on evidence-based policy and development impact across Latin America and the Caribbean (LAC).

Alfaro officially assumed her new role on June 1, 2025, following a competitive global search process. She succeeds Eric Parrado, who now leads operations for IDB Invest across Central America, Mexico, Panama, the Dominican Republic, and Haiti.

The appointment is part of a broader transformation at the IDB, which is accelerating efforts to leverage research and data to support inclusive growth, fiscal sustainability, and digital transformation under its new institutional strategy IDBImpact+.

A Strategic Appointment for a Transformative Agenda

IDB President Ilan Goldfajn welcomed Alfaro’s appointment as a major step in enhancing the Bank’s intellectual leadership. “We are very happy with Laura’s appointment, which coincides with the implementation phase of IDBImpact+, a new chapter for our research department at the IDB Group,” said Goldfajn. “Research and knowledge are at the center of our strategy—we strive to shape the public debate and embed research with our operations to concretely serve the region.”

Alfaro will now lead the IDB’s Research Department, one of the region’s most influential sources of economic analysis and development policy guidance. Her mandate includes helping IDB member countries address challenges such as sluggish productivity, limited fiscal space, persistent inequality, climate vulnerability, and emerging technologies like artificial intelligence.

She will also be charged with advancing the Bank’s goal to make research a “public good”—a tool accessible not only to governments and policymakers but also to private sector stakeholders and civil society.

Alfaro’s Vision: From Data to Impact

In her first statement as Chief Economist, Alfaro underscored her commitment to turning research into actionable policies.

“It is an honor and a great joy to join the Inter-American Development Bank as Chief Economist and Economic Counselor,” she said. “Knowledge only makes sense when it becomes impact. Today, more than ever, our region needs bold ideas, rigorous analysis, and genuine collaboration to turn data into decisions that improve lives.”

She emphasized the urgency of addressing the region’s economic crossroads, including the opportunity to harness demographic shifts, technological change, and regional integration to stimulate sustainable growth.

A Distinguished Career Spanning Academia and Public Policy

A dual citizen of Costa Rica and the United States, Alfaro brings to the IDB a formidable blend of academic, policy, and international economic experience. Prior to joining the Bank, she was the Warren Alpert Professor of Business Administration at Harvard Business School (HBS), where she taught global economics and conducted research on capital flows, sovereign debt, and global supply chains.

Alfaro’s academic credentials include a Ph.D. in Economics from UCLA, and undergraduate degrees from the Universidad de Costa Rica and the Pontificia Universidad Católica de Chile. Her research is widely published in top-tier journals, and she is co-editor of both the Journal of International Economics and the World Bank Research Observer.

From 2010 to 2012, Alfaro served as Costa Rica’s Minister of National Planning and Economic Policy, where she led initiatives to improve fiscal management, strengthen economic competitiveness, and integrate policy planning with evidence-based metrics.

She currently serves as Vice-President of the Latin American and Caribbean Economic Association (LACEA), and is a Faculty Research Associate at both the National Bureau of Economic Research (NBER) and the Center for Economic and Policy Research (CEPR).

A New Era for the IDB Research Department

Under Alfaro’s leadership, the IDB Research Department will help operationalize IDBImpact+, the Bank’s new institutional vision to integrate economics, impact evaluation, and operational design. Key themes include:

• Boosting regional productivity and competitiveness

• Enhancing public sector efficiency and fiscal sustainability

• Supporting private sector-led growth and innovation

• Leveraging digital technologies, AI, and automation

• Advancing financial inclusion and resilience

• Promoting sustainable energy and climate action

• Reducing poverty and inequality through inclusive policies

The department will also work to expand the IDB’s flagship research outputs, such as the Development in the Americas (DIA) report series, and deepen partnerships with national governments, academic institutions, and global think tanks.

Looking Forward

As the IDB turns its attention to the region’s post-pandemic recovery, debt management challenges, and digital future, Alfaro’s appointment signals a commitment to rigorous, solution-oriented economics.

Her experience navigating the nexus of academia, global markets, and national policy positions her uniquely to help the Bank—and its member countries—craft data-driven policies that can translate into real progress.