The World Bank Supports Colombia’s Sustainable and Inclusive Development
The World Bank Board of Directors approved financing today to support Colombia’s efforts to promote more equitable fiscal policies, the productive and social inclusion of vulnerable groups, and the inclusive and sustainable development of the private sector.
The US$ 750 million loan will support several policies to achieve more inclusive, sustainable and resilient development in a context of climate change, with a focus on reducing entrenched inequalities that prevent people from accessing opportunities.
“Today the World Bank ratifies its support for Colombia through this US$ 750 million financing of the Program for the Development of Equitable and Sustainable Policies, in recognition of the country’s efforts to overcome the injustices and exclusion that have generated high levels of inequality and to advance the peace process in the country. This is in addition to efforts for environmentally sustainable development and productive transformation based on knowledge, as per the 2022-2026 National Development Plan,” said Colombia’s Finance Minister Ricardo Bonilla González.
The policy program supported by this loan is structured around three pillars. The first supports measures to increase tax revenue and achieve a more equitable distribution of the tax burden, as well as measures that promote the decarbonization of the entire economy. The second pillar promotes the productive and social inclusion of vulnerable groups such as women, immigrants and indigenous and Afro-Colombian populations. The objective is to promote their access to basic goods and services such as education, land, care services and those for victims of gender violence, among others. The third pillar supports initiatives to favor inclusive and sustainable development of the private sector by promoting access to financial services to groups that are currently excluded and underserved. This pillar also seeks to increase private sector collaboration to achieve climate objectives.
“This program supports measures aimed at closing inequality gaps in the productive capacity of the most vulnerable and excluded groups in society, generating more opportunities for all,” said Mark Thomas, director of the World Bank for Colombia, Mexico and Venezuela. “It also promotes a productive sector that supports the implementation of policies for the transition to a greener, more resilient economy,” he said.
The Ministry of Finance and Public Credit and the National Planning Department will be responsible for the technical coordination and implementation of this loan. This Development Policy Financing (DPL) is a financial instrument that provides direct disbursement to countries for budget support.