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Resilience to recent global turmoil allowed Latin America and the Carib-

bean to grow 45 percent in scal 2012. Growth is projected to slack to 34

percent as a result o the slowdown in China, the regions key trading part-

ner and the engine behind the solid growth and market diversication othe past ew years. Even more modest growth is projected in the Caribbean

and Central American countries.

Unprecedented growth and economic stability over the past decade

pulled some 73 million people in the region out o poverty. In spite o the

global nancial crisis, the region remained stable.

Wrd Bak Assisac

Bank support or Latin America and the Caribbean reached $6.6 billion

this scal year, o which $6.2 billion came rom IBRD and $448 million rom

IDA, including $202 million in grants. Brazil ($3.2 billion), Mexico ($1.5 bil-

lion), and Colombia ($660 million) were the largest borrowers. The sectors

o Public Administration, Law, and Justice ($2.0 billion); Transportation

($1.2 billion); and Education ($1.0 billion) received the most unding.The development agenda in the region needs a stronger ocus on in-

creasing productivity, reducing dependence on low value-added com-

modity exports, addressing production capacity constraints, modernizing

inrastructure, boosting innovation, and making the state more eective.

The Bank supports eorts to sustain the regions economic growth while

opening up opportunities or all through programs that increase the

creation o quality jobs and assist people in need through conditional cash

transers, which were pioneered in the region.

Craig oppriisTo contribute to the regions demands or sustainable and socially inclusive

growth, the World Bank has upped its strategic support to individual coun

tries in the region.

Conscious o the regions diverse development needs, the Bank delivers

a suite o nancial, advisory, and convening services that are tailored to

each country. From straight nancing o development projects, including

sophisticated contingency lines o hazard-related credit, to in-depth de

velopment research, the World Bank Group has supported the regions

social and economic agendas to the tune o $14.7 billion in scal 2012.

New strategies or Brazil and Bolivia are aligned with the countries e

orts to create more economic opportunities or the underprivileged and

are built on advances o previous partnerships that expanded access to

basic services, education, and health to many.Brazils $8 billion Country Partnership Strategy (CPS) 20122015 calls o

close coordination with its new national extreme poverty eradication

program, Brasil sem Misria (Brazil without Poverty), which ocuses on the

northeastern states, to improve social and economic opportunities or 16

million o the countrys most vulnerable people. (See hp://cm

.wr.r/cr//2011/09/15273914/rz-cry-

lAtin AmericA And the cAribbeAn

FIGURE 2.7

LATIN AMERICA AND THE CARIBBEAN

IBRD AND IDA LENDING BY SECTOR | FISCAL 2012SHARE OF TOTAL OF $6.6 BILLION

Transportation 19%

31%

Public Administration, Law,and Justice Information and Communications< 1%

Education16%

Health and OtherSocial Services9%

Finance4%

Energy and Mining< 1%

Industry and Trade5%

Water, Sanitation, and

Flood Protection 5% 11% Agriculture, Fishing, and Forestry

FIGURE 2.8

LATIN AMERICA AND THE CARIBBEAN

IBRD AND IDA LENDING BY THEME | FISCAL 2012SHARE OF TOTAL OF $6.6 BILLION

Economic ManagementUrban Development 12%

Trade and Integration < 1%

4%

Financial and PrivateSector Development6%

Environmental and NaturalResources Management16%

Human Development21%Public Sector Governance 13%

Social Protection andRisk Management 12%

Social Development,Gender, and Inclusion 3%

Rule of Law 1%

Rural Development 12%

Ph: Mr fchm

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prrhp-ry-cp-pr-y2012-2015.) In turn, Bolivias CPS will

aect the lives o 3 million people, largely rom rural areas, and support

directly 1 million armers in the countrys impoverished north.

On the second anniversary o Haitis tragic earthquake, a new interim

strategy provided $225 million in grants toward the countrys reconstruc-

tion eorts. This unding supports the sae return rom camps o more than

22,000 displaced persons, improves neighborhoods or 75,000 people, and

nances tuition waivers or about 100,000 schoolchildren.

Children continued to top the Banks human development agenda.

Five million mothers, and children rom birth to age 6, beneted rom pro-

grams developed throughout Latin America under the Early Childhood

Initiative: An Investment or Lie. Ater two years o operation, the initiative

has approved $400 million worth o projects, doubling the initial projected

unding, and surpassed the original total commitment o $300 million or

the period 201013.

In scal 2012, several countries took out lines o credit as insurance

against unoreseen economic circumstances and the risk o natural disas-

ters. El Salvador activated a $50 million line o nancing ater massive

fooding let thousands o Salvadorians homeless and caused widespread

damage.

Imprvig Ciiz Scriy

Crime and violence are key development challenges throughout Latin

America and the Caribbean. In parts o the region, this scourge has taken a

steep toll on people and local economies. In Central America, or instance,

14,257 lives are claimed annually by crimean average o 40 people per

daycosting countries up to 8 percent o their GDP.

Chile

Colombia

Costa Rica

Dominica

DominicanRepublic

Antigua andBarbuda

Argentina

Belize

Plurinational Stateo Bolivia

Brazil

Trinidad andTobago

Uruguay

RepblicaBolivariana deVenezuela

Honduras

Jamaica

Mexico

Nicaragua

Panama

Paraguay

Peru

St. Kitts andNevis

St. Lucia

St. Vincent andthe Grenadines

Suriname

Ecuador

El Salvador

Grenada

Guatemala

Guyana

Haiti

CountRies eligible foR WoRld bank boRRoWing

latin aMeRiCa and tHe CaRibbean Regional snaPsHot

Total population 0.6 billion

Population growth 1.1%

Lie expectancy at birth 74 years

Inant mortality per 1,000 live births 18

Female youth literacy 97%

Number o people living with HIV/AIDS 1.7 million

2011 GNI per capita $8,544

GDP per capita index (2000 = 100) 128

n: Lie expectancy at birth, inant mortality rate per 1,000 live births, and emale youthliteracy are or 2010; other indicators are or 2011 rom the World Development Indicatorsdatabase. HIV/AIDS data are rom the 2012 UNAIDS report, Together We Will End AIDS.

total fisCal 2012 total fisCal 2012

New commitments Disbursements

IBRD $6,181 million IBRD $6,726 million

IDA $448 million IDA $342 million

Portolio o projects under implementation as o June 30, 2012: $33.2 billion

lAtIn AMeRICA AnD tHe CARIBBeAn ReSultS

HIGHlIGHtS

The Rio Grande do Norte Rural Poverty Reduction Project in

brz has helped 90,000 poor rural amilies, created 12,000 jobs,

provided 53,000 amilies with access to water, and more than

tripled the agricultural productivity o beneciaries o joint water

and productive investments. The project also created 2,100 com-

munity associations, which are improving the relationship be-

tween poor communities and state and local authorities. (See

hp://.wr.r/3VC16uY3R0.)

In Hrone o the most vulnerable countries in the

world to natural disastersthe Natural Disaster Mitigation Project

helped improve the countrys capacity or managing disaster risk

and reduced local disaster vulnerability in participating munici-

palities. The project improved the food early warning systems

or our o the main watersheds destroyed by Hurricane Mitch and

helped complete structural mitigation measures in 58 munici-

palities, beneting more than 500,000 people. (See hp://

.wr.r/CkkYM2Ydt0 .)

The impact o crime and violence is so proound that experts ear de

velopment can be set back many years as a consequence.

This year, or the rst time in the region, a CPS approved by the Board

included a pillar on citizen security. The new CPS or Honduras, the country

with the highest murder rate in the world, will support, among other

things, the distribution o violence-prevention toolkits in at least 200

schools, as well as the implementation o a comprehensive security plan in

at least 10 municipalities in the countrys center, north, and east regions. I

will also help build institutional capacity against money laundering and an

improved database or crime and violence. (See hp://cm.wr

.r/cr//2011/11/15506299/hr-cry

prrhp-ry-pr-y2012-2014.)

The Bank has also contributed to addressing this issue by providing

technical assistance to SICA (Central America Integration System) in devel

oping the prevention pillar o the Central America Citizen Security Strategy

and by convening key players rom the private and public sectors to gen

erate practical responses to the regions increasingly lax security. (Seehp://wr.r/c.)