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(51-1) 442-2400 ext. 216      mzamora@alide.org

MAIN TOPIC:

Technological disruption, financial intermediation and development financing: challenges in an age of changes

The countries of Latin America and the Caribbean are currently undergoing an economic, political and social situation fraught with a number of difficulties, resulting in part from external circumstances and the very nature of their production structures, which depend heavily on raw materials. Even so, the region has the opportunity to alter the course of its development to favor a more inclusive model with more sustainable investment and consumption patterns in the framework of a historical stage of accelerated technological changes. These technological changes, commonly known as the fourth industrial revolution, are causing disruption in almost all industries and countries by modifying business models and creating a series of challenges and opportunities the region’s countries need to take advantage of for the good of their development.

In order to be able to move toward this objective, the region requires the participation of the various stakeholders committed to development and particularly to investment resources. It is in this area that development banks have a broad field for operation, with major challenges to be met by developing innovative instruments and programs in keeping with the needs of the people, projects and territories they are mandated to serve.

Where is the development of the international economy headed and on what foundations? What role do investments play in innovation, infrastructure and the development of human capital? What should the States and other local actors do? Is the present technological revolution the result of action by the market or, rather, of an initial impetus provided by the State? How important are the development financing institutions and how should they act in the current circumstances?

Topic I:

Latin American and Caribbean technological change and economic transformation: the action of the development banking system in support of the region’s change in production.

The end purpose of the development and transformation policies of the region’s economies is to improve the people’s wellbeing. The new technologies can result in improvements in the living standards of some population sectors, while depressing those of others, restricting their possibilities for sharing in the benefits of structural change if they lack the means, capacities and, as a result, opportunities for doing so. In this context, the following questions arise: What types of technology should be prioritized and incorporated? Which key sectors should be reinforced? How can the development of the domestic market be brought into balance with its integration with global markets? Are there any predetermined recipes for achieving development or are they, instead, the result of successful experiences? How can private financial resources be mobilized to supplement public investment? What role are development financing institutions called upon to play and what are they doing to further this process?

Topic II:

Intelligent infrastructure for the improvement of Latin American and Caribbean productivity and competitiveness: New roles for the development banking system.

Investment in national infrastructure, in addition to creating employment in the short term, will help to modernize and enhance the efficiency of different sectors, resulting in improvements in the productivity and competitiveness of the countries and boosting their economic growth. This new infrastructure cannot be expected to operate in traditional ways, but by creating a network that will interlink physical objects via the Internet. This type of infrastructure is defined as being the “Internet of Things,” meaning specialized hardware that will make connectivity to the Internet possible so that its remote operation can be programmed in terms of specific events --such as, that project structures show given behavior in accordance with the climate and the frequency of use, among other elements.

This is the type of infrastructure being built in the world today and Latin America and the Caribbean, together with their development financing institutions, should place this among their priority aims. What are the infrastructure situation and needs in Latin America and the Caribbean? How much can investment in infrastructure improve the region’s productivity and competitiveness? What role does intelligent infrastructure or the “Internet of Things” play in this investment flow needed by the countries of Latin America and the Caribbean? What good practices can be found in this field today that the region could adapt? How are development financing institutions oriented toward financing this type of infrastructure incorporating these in their everyday activities?

Topic III:

Digital technological innovation at the service of financial and social inclusion: Opportunities for development banks and the bankarization process.

The new communication and information technologies have constituted an important underpinning for the development of financial products that, operated through digital platforms, make is possible to massify loans, target support more accurately, provide service in real time and at a low cost, offer a series of services --training, information, loan, technical assistance and guarantees--, provide timely services for interconnecting clients, independently of the distance involved, and interconnect clients so that they can do business with each other. In other words, clients are linked up not only with the bank, but also among themselves, as they accede to financings and do business. Business models, known as Fintech, have even emerged in the financial area that do without the presence of financial institutions to interconnect lenders or investors with those requiring financing.

How are digital technologies changing banking practices and just how applicable are they in development banks? What innovative practices have been developed and how can our institutions assimilate them? How can development financing institutions use this technological disruption and these business models to facilitate financial and social inclusion by employing Internet platforms and permitting access to them via different mobile devices?

Special Topic 1:

The role of a public bank: can it be a profitable and efficient bank and play a social role at the same time? Conditions for success.

Special Topic 2:

Challenges and opportunities to scale up private investments to achieve the Sustainable Development Goals (SDGs) and the commitments under the Paris Agreement

INFORMATION
Marlene Zamora Terán
Chief, Conferences Unit

Telephone: (51-1) 442-2400 ext. 216 | Facsimile: (51-1) 442-8105
E-mail: mzamora@alide.org | www.alide.org
PLACE AND DATE OF THE MEETING
The Forty-seventh Ordinary Meeting of the ALIDE General Assembly will be held in Santiago, Chile, from Wednesday May 31 to Friday June 2, 2017.

The venue of the meeting will be at the Convention Center of the Marriott-Santiago Hotel, located on Kennedy Avenue 5741, Las Condes, Santiago, Chile.
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