The World Bank's Board of Executive Directors has approved financing to support Colombia in promoting equitable and sustainable development. The funding aims to enhance fiscal policies, social inclusion for vulnerable groups, and climate change mitigation efforts.
Colombia faces significant challenges related to inequality and social exclusion, particularly impacting women, indigenous communities, Afro-Colombians, and migrants. The country is also committed to achieving ambitious climate goals by 2050.
To address these issues, the World Bank has sanctioned a US$700 million reform program focusing on three main areas:
1. More equitable fiscal policies and environmental protection: This involves better targeting of social programs and reducing fossil fuel subsidies to foster a greener economy.
2. Support for vulnerable groups: This seeks to improve access to resources, credit, and services for vulnerable populations while promoting financial inclusion.
3. Climate action: This encourages environmental protection measures, clean energy production, and private investment in green projects.
“This financing reaffirms our support for Colombia in its fight against inequality and towards environmentally sustainable development that ensures equal opportunities for all. It also seeks to foster a productive sector that supports policies oriented towards a greener and more resilient economic transformation,” said Mark Thomas, World Bank Director for Colombia, Mexico, and Venezuela.
This loan is the second in a series supporting a reform program aimed at fostering inclusive, sustainable development aligned with Colombia's National Development Plan for 2022-2026. The Ministry of Finance and Public Credit along with the National Planning Department will handle the technical coordination and implementation of this loan.