Ratifying CAF-Brazil shared vision on advancing regional integration, sustainable economic development, and social inclusion

The delegation of CAF—development bank of Latin America and the Caribbean—, led by Executive President Sergio Díaz-Granados, visited Brazil on August 28–29. On the two-day trip, they met with a number of authorities to reinforce the ties between the bank and the South American nation and to advance new joint actions as a way to underpin sustainable and inclusive economic recovery.

Vinimos a ratificar nuestra visión compartida con el gobierno de Brasil de apostar a una integración regional efectiva y real, a través del incremento de la conectividad, el comercio y el bienestar de las personas. Para eso, identificamos en conjunto proyectos orientados a promover la superación de las desigualdades mediante un desarrollo inclusivo y sostenible. Regresamos con una hoja de ruta clara y ambiciosa enfocada en tales aspiraciones. Ella permitirá, además, abordar desafíos como la lucha contra el cambio climático, el desarrollo de instrumentos financieros innovadores, la inclusión étnico racial y el crecimiento del aporte del turismo al PIB

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"We came here to ratify the vision we share with the Brazilian government to underpin effective and real regional integration, through improved connectivity, trade, and people's well-being. To that end, we are jointly identifying projects aimed at overcoming inequalities through inclusive and sustainable development. We come back with a clear and ambitious roadmap focusing on such aspirations. This will help us address challenges such as the fight against climate change, the design of innovative financial instruments, ethnic-racial inclusion, and the growth of tourism's contribution to GDP," said Díaz-Granados.

On the 28th, they held meetings with Brazil's Vice President and Development, Trade, and Industry Minister Geraldo Alckmin, Racial Equality Minister Anielle Franco, Science and Technology Minister Luciana Santos, and Embratur President Marcelo Freixo. Representing CAF, joining the Executive President, were Strategic Programming VP Christian Asinelli, Infrastructure and Digital Transformation Manager Antonio Silveira, Human Development Manager Pablo Bartol, CAF representative in Brazil Estefanía Laterza, and executives Lina Mondragón and Pablo Gentili.

Jointly with Alckmin, the group analyzed ways to promote intra-regional trade and boost emerging industries such as biofuels and renewable energies. Emphasis was also placed on the need to improve infrastructure and connectivity planning for more effective and efficient regional integration. Ideas were also exchanged ahead of the meeting of CAF's Board of Directors, to be held in December in Rio de Janeiro, as well as the bank's capitalization, which will help expand its impact throughout the region.

Together with Minister Anielle Franco, they discussed different options for collaboration to advance ethnic-racial inclusion in Brazil and in the Latin American and the Caribbean region as a whole. CAF put forward the various tools and lines of action in line with the gender, inclusion, and diversity strategy of the Brazilian government.

Topics discussed with Science and Technology Minister Luciana Santos included the challenges of transformation and digital inclusion, and initiatives to promote Brazil's internationalization and integration strategy through a South-South collaboration and cooperation.

Lastly, at the meeting with Marcelo Freixo, the delegations discussed ideas on how to boost the tourism sector with a focus on rethinking cultural and historical roots with an ethnic-racial approach emphasizing Brazil's own cultural diversity, as well as an assessment of the sector's role in economic recovery after the Covid-19 pandemic and future joint activities based on the participation of CAF member countries in the main international tourism exhibitions.

On August 29, meetings took place in Rio de Janeiro with the president of the National Bank for Economic and Social Development (BNDES), Aloísio Mercadante, Rio de Janeiro Mayor Eduardo Paes, and executives from the Innovation and Research Fund (FINEP).

During the working breakfast with BNDES president Aloísio Mercadante, the group considered collaboration alternatives to design innovative financing instruments for the region's infrastructure, using as an example the funding mechanism for Brazilian exports to Argentina in the automotive parts and food sectors. They also agreed to organize joint events in the context of CAF's Board meeting in December.

Then they both shared the panel on the role of development banks and its impact in Latin America as part of the Latimpacto meeting "Impact Minds: standing together." This event brings together and connects people and leaders who channel capital towards Latin America and the Caribbean for impactful investments.

During his remarks, CAF's Executive President noted three major challenges facing our region: growth, inequality, and the consequences of climate change. Emphasizing the issue of inequality, he added that we must urgently ensure primary education in every corner of our region. As our 2022 EDR concludes, he said, these inequalities in our region are inherited.

He noted that the only way to tackle these challenges is by joining forces and sharing experiences at events like Latimpacto. He invited attendees to channel funds through CAF to attain the SDGs and the NDCs and biodiversity protection in the region.

Then, the CAF delegation transferred to Rio de Janeiro Mayor's Office for a working lunch with Mayor Eduardo Paes. During the meeting, they explored possibilities for the bank to join in funding projects that help advance sustainable mobility, healthcare infrastructure, and improve conditions in informal settlements with a focus on gender, equality, social inclusion, and job creation for the youth.

In line with the meeting held in Brasilia with the Science and Technology Ministry, the CAF delegation met with FINEP executives, with a view to discussing ways in which both organizations can help bolster science and technology, fostering innovation and training in Brazil and the region. Emphasis was made on the significant of advancing the digital transformation of sub-national and local governments, as well as program implementation through universities, and the opportunity to combine technical and financial efforts to foster innovation in instruments such as guarantees and local currency funding.