"37ª REUNIÓN ORDINARIA DE LA ASAMBLEA GENERAL DE ALIDE"
THIRTYSEVENTH REGULAR MEETING OF THE ALIDE GENERAL ASSEMBLY May 24 – 25, Montevideo, Uruguay INCLUSIVE GROWTH: FINANCING, SOCIAL RESPONSIBILITY AND CHALLENGES FOR LATIN AMERICAN DEVELOPMENT BANKING DECLARATION OF MONTEVIDEO We, the representatives of the Latin American and Caribbean development financing institutions, gathered in Montevideo, Uruguay, on May 24 and 25, 2007, at the ThirtySeventh Regular Meeting of the ALIDE General Assembly, declare the following: 1. We reiterate our commitment to fight the existing poverty and social exclusion of large Latin American and Caribbean population groups that are failing to receive the benefits of the region’s growth and development and will not cease our efforts to get our institutions to confront this challenge with concrete action through financial inclusion. 2. We believe that the massifying of access to credit under suitable conditions and with the use of appropriate technology, if possible, constitutes a means with a great potential for getting the lowerincome sectors to share in the fruits of economic development and growth in a global economic context and that, in keeping with our institutions’ social mandate, it is our function and responsibility to develop mechanisms to permit the access of these important social sectors to the formal financial system. 3. We are convinced that it is the duty of the State to create the necessary conditions for and promote the development of financial markets, as well as to intervene in and create when the market fails to do so, development financing institutions to finance the production and social sectors, always complementary to the activities of the private sector. The State should in no way give up this function, inasmuch as it has been proven, particularly in the region’s recent experience, that the market is not always the best alternative for reaching sectors with high social returns, which require longterm financing. 4. We verify the fact that public banks exist in most countries of the world and that these banks frequently have a significant presence in and impact on their respective national banking systems and on the financing of the production and social sectors. For that reason, we call for these institutions to move toward the adoption of corporate governance practices that will protect their management from external intervention. 5. We respect decisions that Latin American countries decide to adopt autonomously regarding their development financing model, inasmuch as we recognize that there is no sole development banking model, but that the latter is chosen in accordance with the needs, level of development and particular situation of each individual country. 6. We reiterate our commitment to promote and support micro, small and mediumsized urban and rural enterprises, because they are one of the most important and rapid alternatives for job creation, poverty alleviation and social inclusion. In this connection, we reaffirm our conviction that it is necessary to broaden the range of resources and to reinforce our financing programs for micro, small and mediumsized enterprise. 7. We express our concern over the negative effects that climate change and global warming produce in the lives of people throughout the world, particularly the most vulnerable population sectors that is, the poorest. In keeping with this, we commit ourselves to be more careful in ensuring that the projects we finance are environmentally friendly, at the same time as we call upon international cooperation organizations and institutions to work jointly to confront this challenge to mankind. 8. We recognize the importance of microfinance institutions as an instrument for enhancing the financial deepening and access of micro and small business to the financial system. For that reason, we assume the commitment to support their strengthening and to provide any assistance they may need on a basis of efficiency and selfsustainability. 9. We are pleased that our Latin American Association, which will celebrate its 40th anniversary this coming January 24, 2008, is firmly established among the development financing institutions as their representative body and their spokesman with international organizations, governments and society, and that it promotes the unity and reinforcement of banks and development financing institutions in order to improve their contribution to economic and social progress and to our countries’ integration, and for that reason commit ourselves to provide all our support to build the Association up as the Regional Forum par excellence for the analysis and debate of issues concerning Latin American development financing and as a suitable mechanism for cooperation and the development of joint Latin American development banking initiatives. 10. Lastly, we express our special appreciation to Banco de la República Oriental del Uruguay, and to the authorities and citizens of Montevideo, for their warm hospitality extended during this ThirtySeventh Regular Meeting of the ALIDE General Assembly. Montevideo, Uruguay, May 25, 2007 2