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The race to become Latin America’s next top development banker

When The 2020 Donald Trump administration engineered the election of National Security Council official Mauricio Claver-Carrone (National Security Council), as President of the Inter-American Development Bank (Inter-American Development Bank) It breaks a gentlemen’s agreement dating back to the bank’s founding in 1959. This argues that the top job should be held by a Latin American, while the United States, the largest shareholder with 30% of the capital, would come in second, with an informal veto. Mr Claver-Carone vowed to change what he described as a ossified institution. Yet his appointment always looked like an accident waiting to happen, especially with Joe Biden in the White House. So it turns out.

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Born and raised in Florida, he knew little about Latin America.exist National Security Council He has repeatedly urged the U.S. to invade Venezuela to topple the dictatorship of Nicolás Maduro, against the cool heads of the Pentagon.exist Inter-American Development Bank He alienated Latin America’s largest shareholder by appointing an unknown from a small country to the top job. He emphasized helping the private sector and trying to stop China. He often sounds like a simple American cheerleader.

He is the agent of his own downfall: Inter-American Development BankIn September, executive directors voted unanimously to fire him after an investigation found he violated the bank’s ethics code by boosting his salary because of an affair with his chief of staff. (He has denied the incident; investigators say he is not cooperating with them.)

He won the job in part because Jair Bolsonaro’s Brazilian government is a Trump ally, but also because Latin American governments have failed to rally behind a plausible alternative. This time around, the region has an early chance to make up, with several well-qualified contenders before the November 11 deadline for nominations. Whoever wins will face two major tasks. The first was to cheer up bank staff who had been demoralized under Claver-Carrone. The second is to win shareholder approval to increase the bank’s overdue capital, allowing it to expand its lending.

Many governments say they favor women.Alicia Bárcena was proposed by Mexican President Andrés Manuel López Obrador United Nations Economic Commission for Latin America, 2008-April. In that piece, she endorsed the failed industrial policies of leftist governments like Ecuador’s Rafael Correa and praised dictatorships in Cuba and Venezuela. Her candidacy stalled and she withdrew on November 9. Mexico has instead proposed central bank deputy governor Gerardo Esquivel.

Laura Chinchilla, the former president of Costa Rica, is widely respected, but it appears that the current president, Rodrigo Chaves, has declined to nominate her.Mr Bolsonaro’s government has proposed the appointment of Ilan Goldfajn, the former head of Brazil’s central bank International Monetary FundLatin America’s top official. But Luiz Inácio Lula da Silva will succeed Mr Bolsonaro on January 1. According to sources, Lula’s people are not opposed to Mr Goldfalkin. But it is unclear how aggressively they will lobby for him.

That could favor Chilean candidate Nicolás Eyzaguirre, a former finance minister and education minister who held Mr Goldfalkin’s position in Chile International Monetary FundHe has the advantage of having worked in a center-left government in his country, which is currently leaning towards the center-left. Another potential candidate is Augusto de la Torre, a former Ecuadorian central bank governor and World Bank economist. Argentina is eager for the job. It is likely to recommend Sergio Massa, who became economy minister in August. A conservative Peronist, he was well connected in Washington.Against him, Argentina will likely become Inter-American Development Bank money. He is not easily replaceable in his current position. But Bello’s sources say he wants to run.

Mr Claver-Carone is right, Inter-American Development Bank Suffer from a degree of cronyism and feathering. But it’s still important for Latin America.Its approximately $14 billion in annual lending is almost as CAF, another development bank.but Inter-American Development Bank Loans can be provided quickly and flexibly, which is important when government financing conditions tighten. It has extensive expertise in advising governments on programs and policies such as tax and spending reforms. The calm, able and politically astute leadership of one of Latin America’s leading institutions will help the region in difficult times. There is a great chance of getting it this time.

Read more from our Latin America columnist Bello:
Lula’s foreign policy ambitions will be affected by circumstances (November 3)
A film about Argentina’s history reveals today’s politics (October 27)
Sergio Massa is the only one standing between Argentina and chaos (October 13)

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