IDB officials have staunchly defended the realignment policy launched last year and the restructuring of the bank it entailed. The reform, which has also won approval from governments and private sector representatives, has involved a major restructuring of the bank staff, including the retirement or buy out of about 250. Up to 200 positions will be filled by the end of the year.
The profile of the bank is changing, towards a more business-oriented approach, and more staff are being sent to boost country offices. Octaviano Canuto, IDB’s vice president for countries, told Emerging Markets that “all countries at the [Miami] meeting have expressed satisfaction with the results [of the realignment].”
He said that projects in the pipeline for this year are worth between $9 billion and $10 billion this year, following an increase in approvals worth $8.9 billion this year, up from $6.7 billion in 2006. “We have initiated a new cycle in the last quarter of last year, and projects can be approved within four months,” he said.
Canuto added: “This is an opportunity in a generation to pick up the best and the most talented. We are still at the beginning, and there is no rush to complete the process,” he said. The IDB has been criticised for disempowering country offices. But Canuto insisted: “There has not been empowerment issue, there has been a redefinition of tasks to set priorities with each country.
“There is actual empowering, as the country rep is now free of the day-to-day bureaucratic routine to dialogue with the government and the private sector.”There is concern that country representatives do not take part in the annual meeting. “The technical staff does not take part in the governors’ meetings”, Jose Carlos Miranda, executive director for Brazil and Surinam, said.
“Some of the dissatisfaction that was expressed has a lot to do with the loss of power and prestige. We badly needed technicians from the financial sector, we had an upgrade here,” he said. “There have been some radical changes, but on the whole, the realignment is going quite well. The philosophy is good.”
Senior IDB officals dismissed criticisms as the result of a lack of understanding. Manuel Rapoport, the IDB’s finance vice president, said: “It is more an outcry of things that need to be done, there is always a better way to do things. The grass is always greener on the other side.” Jaime Chavez Almendares, director of Cabei, the Central American investment bank, supported the reform. “It’s a good step to break with the bureaucracy out of Washington. The IDB had long been a static institution in terms of people. Now you see new blood coming to the area. They will be asking for more power,” he said.
Julio Silva, executive director at the Santa Cruz Chamber of commerce in Bolivia said he has so far failed no notice any change, but is adamant that the reform is going in the right direction. “Pay more attention to the situation on the ground. This is what we need,” he said.