Uruguay and the World Bank Group Promote Sustainable Economic Development
Washington – The World Bank Group (WBG) Board of Executive Directors today approved the 2023-2027 Country Partnership Framework (CPF) with Uruguay. The CPF focuses mainly on the climate change adaptation of the economy and increased fiscal resilience.
“At the onset of the pandemic, the WBG became a partner in confronting the health emergency and providing financial support to the country. Now that we have transitioned to a phase of economic recovery and the consolidation of structural reforms proposed by the government, the WBG is once again present, addressing new challenges in public policy in areas as diverse as the environment, health and the defense of competition,” said Uruguay Finance Minister Azucena Arbeleche. “Together with the WBG, we are confident that we will advance down the path of innovation and transformation, particularly in the development of new financial products,” she said.
“Uruguay is an example of innovation in areas in which the world faces enormous challenges, such as green growth, climate change adaptation and sustainable food production,” said Jordan Schwartz, World Bank director for Argentina, Paraguay and Uruguay. “The major challenge for a country with Uruguay’s level of development is to consolidate its institutional strengths and develop its human capital with education and skills so that economic growth benefits all Uruguayans,” he said.
The WBG will support Uruguay in its efforts to achieve a green economy and increase its capacity to adapt to climate change, mitigating risks and reducing the impact on fiscal accounts. To this end, it will support the transition towards an agroecological production system that guarantees national and international recognition of Uruguayan products and the implementation of the second energy transition towards green hydrogen and electric transportation.
The WBG will also support the country in areas related to health and the defense of competition.
The International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC, a WBG institution that supports the private sector) and the Multilateral Investment Guarantee Agency (MIGA, a WBG entity that offers political risk insurance to investors) will work together to implement this strategy and support the country’s development.
“The IFC will continue to support private-sector development in Uruguay, which plays a pivotal role in building a more sustainable, competitive and inclusive country,” said David Tinel, IFC’s regional manager for the Southern Cone. “To this end, we will seek to catalyze investments that improve the quality and resilience of public services and key industries for decarbonization, in addition to sharing our knowledge and helping to establish international standards,” he said.
The WBG portfolio commitment totals US$ 693.5 million. It consists of $127.5 million in IBRD-financed investment projects in the education, agriculture and e-government sectors, US$ 539 million in a MIGA guarantee to the financial sector, and US$ 27 million from IFC to support the private sector.