IDB launches regional investment network to help Latin America and the Caribbean grow

For Anabel González, the IDB’s Vice President for Countries and Regional Integration, the initiative's value lies in putting that knowledge into practice and creating a more predictable environment for investors.

The Inter-American Development Bank (IDB) has launched a network to help Latin American and Caribbean countries attract more foreign investment, bringing together the government bodies responsible for promoting investment and helping projects move forward.

The Latin America and the Caribbean Investment Promotion and Facilitation Network will give these agencies a regular space to exchange information, learn from each other's experience and strengthen cooperation. Its creation responds to growing demand from IDB member countries that see foreign investment as a way to support economic growth and development.

Helping countries learn from each other

Investment agencies across the region share the task of attracting businesses and helping investors navigate the steps involved in establishing or expanding operations. The network will connect the public entities doing that work, giving them opportunities to share practical lessons and improve their investment promotion strategies.

For Anabel González, the IDB's Vice President for Countries and Regional Integration, the initiative's value lies in putting that knowledge into practice and creating a more predictable environment for investors. She said the network would focus on implementation, with attention to the quality of investment and its contribution to development for people and businesses. That emphasises what investment delivers in the countries receiving it, beyond the amount of money attracted.

Why investment promotion deserves attention

The IDB points to research showing that spending on investment promotion can help attract substantially larger amounts of foreign capital. According to a study cited by the bank, every dollar invested in promotion can generate up to an additional US$56 in foreign direct investment.

The figure describes the potential return identified in the research; it does not establish a guaranteed outcome for every country or promotion campaign. It gives governments a reason to examine how effectively their agencies reach investors and support investment decisions.

Fabrizio Opertti, Manager of the IDB's Productivity, Trade and Innovation Sector, said Latin America and the Caribbean needs more foreign direct investment to meet its development goals. He described the network as a permanent space where countries can exchange good practices, strengthen cooperation, and better use the region's investment opportunities.

A permanent forum with an initial role for the IDB

The IDB's Productivity, Trade and Innovation Sector will serve as the network's technical secretariat during its initial phase, supporting an initiative that forms part of the bank's broader work on productivity, trade, investment and innovation.

For participating government agencies, the platform offers a continuing channel for cooperation, allowing experience gained in one country to inform the work of others facing similar challenges.

The network's success will depend on how those exchanges translate into stronger promotion and facilitation efforts, helping countries attract investment that supports businesses and brings development benefits to their communities.