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The IFC sees close points with Petro and hopes that it has the private sector



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Quito, Aug 4 (EFE).- The International Finance Corporation (IFC), of the World Bank Group, sees positions close to the main priorities of the president-elect of Colombia, the leftist Gustavo Petro, and will continue with its financial support as long as his Government understand the value of the private sector in achieving those goals.

This was announced this Thursday by the IFC’s vice president for Europe, Latin America and the Caribbean, Alfonso García Mora, in an interview with Efe in Ecuador, where he arrived after previously visiting Mexico and Colombia.

García Mora considered that the new administration of Colombia shares with the IFC and the World Bank Group the concern to eradicate poverty and achieve greater shared prosperity, as well as greater inclusion, better productivity and adaptation to climate change.

“These three elements (inclusion, productivity and climate change) have been embraced by the new Colombian administration and are three strategic objectives for us in the region,” said García Mora.

“With which, we will clearly continue to support and help in the greatest possible way under the premise, of course, that we always hope that this is the case, that the value that the private sector has to play in that equation is understood,” he added.


Of these priorities, García Mora pointed out that “inclusion is key”, recalling that “Latin America is the region with the greatest inequality in the world, which is paradoxical because it is a region with years of democratic experience and active policies to prevent be the most unequal.

“Therefore, policies that go in this direction are logically aligned with our objective. Another thing is that the policies have to be carried out consistently so that they are stable in the medium and long term,” he warned.

The vice president of the IFC also indicated the importance of a government understanding that it does not have the capacity to cover all the investment needs of a country, which is also not economically efficient,” and that it is positive that the private sector is in charge of a part, within a conceptual framework of “cascade effect”.


Thus, he advocated public-private partnerships (PPPs) for those investment opportunities where “entry barriers must be broken because they are new markets”, with “schemes where the two financings can really be put together and with the corresponding characteristics” .

“At the end of the cascade is what the private sector cannot finance nor can it be financed through PPPs and that the public sector considers it should do for whatever reason. Let the public sector do that,” said García Mora .

“If we really follow a conceptual framework like that, we will generate and advance thousands of kilometers, because the public budget is limited, and there is no fiscal space, especially now after the covid-19 crisis,” he added.

García-Mora, whose institution is the main international development organization dedicated to the private sector in emerging markets, aimed to “be efficient and allocate public resources to what is really fundamental and that only the public sector can do, and let the private sector plays its role”.

(c) EFE Agency




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