In the Face of Major Challenges, Let Us Keep Building Solutions

That is why this edition of Visions for Development places this topic at its core. We are interested not only in highlighting the importance of the meeting, as well as our work in this field, but also in acknowledging the obstacles we collectively face. I have no doubt that today’s challenges are among the most complex the world has seen in decades. To start with, on the climate front, temperatures continue to rise, even as renewable energy sources emerge. On the geopolitical front, tensions abound, with spillover effects in trade and security.

There is a kind of disconnection in the multilateral system, expressed in the emergence of blocs and the difficulty of reaching consensus. Alongside this, there is a dramatic decline –there is no other word for it– in development aid, which translates into reduced financial flows from the North to the South.

Faced with this reality, we have two options: dwell on complaints or recognize the problems and design new ways to tackle them, while acknowledging the scale of the task. I choose the latter, and for this reason, the following pages present a series of viable alternatives that we wish to highlight as contributions to an ongoing discussion.

In particular, I want to emphasize the use of innovative financial mechanisms aimed at combining efforts and amplifying impact. To this, we add the goal of scaling up successful models and leveraging underused channels.

For example, we know that Latin America and the Caribbean need USD 400 billion in financing for biodiversity and the urgent need to sustain ecosystems on which nearly 60% of their economies depend. Even if some of this funding is secured, the challenge then becomes how to deploy it effectively.

We believe local governments are part of the solution. Our region has 33 countries but 18,400 local governments –including municipalities, departments, and states. This is a crucial link in the journey toward development.

It is also essential to involve the private sector more, as it brings innovation and agility to break through bottlenecks. We know that regional economies face significant fiscal constraints. Therefore, we must learn how to better connect with sovereign wealth funds, which mobilize large amounts of capital globally and could help finance projects that allow us to advance sustainably.

As in other similar moments, what matters now is understanding that Latin America and the Caribbean are part of the solution to challenges that affect everyone on this planet. While we remain realistic about what is happening in the world, we also hold onto our optimism and the belief that we can build consensus-based solutions grounded in common sense.

That message –and many others– can be found in this publication, where we highlight regional progress in various areas and reflect on CAF’s efforts. Ultimately, what drives us is the well-being of the 650 million Latin American and Caribbean people who study and work tirelessly to turn their dreams of a better future into reality –sooner rather than later.