Statement by H.E. Luis Caputo - On behalf of Argentina, Bolivia, Chile, Paraguay, Peru, and Uruguay - Development Committee (110th Meeting)

Jul 19, 2026

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Statement by H.E. Luis Caputo, Minister of Economy of Argentina, speaking on behalf of Argentina, Bolivia, Chile, Paraguay, Peru, and Uruguay at the 110th Meeting of the Development Committee on October 25, 2024. The statement describes a global “soft landing” outlook alongside persistent development gaps faced by developing nations, especially in Latin America, and highlights constraints such as high interest rates, limited fiscal space, productivity decline, low capital accumulation, and investment weakness. It calls for an expanded World Bank Group role, support for middle-income strategies, attention to borrowing costs, and careful monitoring of IBRD lending capacity while prioritizing development impact.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages5

Reading Time13 min

Development Committee Statement

Economic context and development challenges

World Bank Group role and Latin America focus

Strategy for middle-income countries and private capital

Borrowing costs and IBRD pricing

IBRD lending capacity, restoration measures, and voting power

Food security and regional vulnerability

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committeeof the Boards of Governors of the Bank and the Fundon theTransfer of Real Resources to Developing Countries) ## ONE HUNDRED AND TENTH MEETINGWASHINGTON,DC-OCTOBER 25,2024 DC/S/2024-0045 October 25,2024 ## Statement by H.E.Luis CaputoMinister of Economy Argentina On behalf of Argentina,Bolivia,Chile,Paraguay,Peru,and Uruguay # Statement by H.E.Luis CaputoMinister of Economy Argentina On behalf of Argentina,Bolivia,Chile,Paraguay,Peru,and Uruguay 110ᵗMeeting of the Development Committee ### October 25,2024 # Washington,DC We are at a pivotal moment,with the global economy giving apparent signs of resilience,with modestbut steady growth and slowly declining inflation,suggesting the world is nearing a 'soft landing'afteryears of economic turbulence.However,most developing nations face a different reality,as growthrates largely remain below pre-pandemic levels and are insufficient to achieve key development goals. The challenges we face are profound,with a quarter of developing economies still reeling from thepandemic's impact,and the majority expected to grow more slowly than in the previous decade.Thissituation is compounded by high global interest rates,which exert pressure on already limited fiscalspace,hindering investments to propel economic growth. There are glimmers of hope,with some economies demonstrating resilience and persistent growth.Butgrowth rates remain too slow for progress,and this is particularly the case in Latin America,constrainedby structural challenges,notably declining productivity,low capital accumulation,and weakenedprivate sector investment,in the context of more frequent and extreme weather events and intra-regionalmigration.In this context,the World Bank Group(WBG)has a pivotal role to play,as its financial andtechnical support is vital to enable us to tackle these challenges and address the need for difficult reformsto avoid becoming stuck on this slower path of recovery and growth. With Latin America being home to 40%of the planet's biodiversity,and holding key potential for theglobal energy transition,it is crucial for the WBG not only to continue,but to expand its activities inthe region,as part of its efforts to renew its relevance in supporting Middle-Income Countries (MICs)and High-Income Countries(HICs).Relevance means not only being a preferred development partner,but also participating in increasingly ambitious,high-impact projects that enhance the WGB's portfolio,are fully aligned with its vision and significantly contribute to the fulfillment of its mission.We see thisapproach as an integral part of a results-oriented,impact-driven,and future-ready WBG.In this spirit,we look forward for an expanded and strengthened WBG engagement with our countries. We acknowledge and appreciate the DC Paper as a comprehensive and balanced account of thedeliberations,agreements and achievements that have emerged since the Spring Meetings.Thedocument reflects that excellent work has been done to make progress on many fronts at the same time.Nevertheless,some of these issues deserve a more in-depth consideration and discussion. It tends to be overlooked that over 60%of the world's extreme poor live in MICs,and that one of thebiggest hidden challenges in the fight against poverty lies in tackling the significant inequalities withinthese countries.Therefore,we strongly support the decision to develop a WBG strategy for MICs.Weexpect this strategy to include actions to boost productivity,support energy access and transition,forestry,and nutrition,promote nascent industries and entrepreneurship,innovation,and employment, diversify economies,encourage trade and investment,and enhance governance and institutions withoutneglecting human capital development.Hence,we also envision a stronger role for IFC and MIGA asan effective mobilizer of private capital.We look fo

FAQs

What economic situation does the statement describe for the global economy and developing countries?

It notes signs of global resilience with modest growth and slowly declining inflation, suggesting a potential “soft landing.” However, most developing nations still face slower growth that is insufficient for meeting development goals.

Why does the statement emphasize the World Bank Group’s expanded engagement in Latin America?

It argues Latin America needs support to address structural constraints such as declining productivity and low capital accumulation, and it highlights the region’s biodiversity and energy transition potential. The statement links this to a results-oriented, impact-driven, future-ready approach.

Which priorities are raised regarding the World Bank Group’s support for middle-income countries?

The statement strongly supports developing a WBG strategy for middle-income countries, expecting actions to boost productivity, improve energy access and transition, address forestry and nutrition, foster industries and entrepreneurship, and strengthen governance and institutions without neglecting human capital development.

Jul 19, 2026

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