The Islamic Development Bank elects Ilan Goldfein as its new President - 11/20/2022

Ilan Goldfajn, who led the Central Bank of Brazil in government Michel Tamer (MDB)It was Sunday (20) elected the new President of the Inter-American Development Bank (IDB).🇧🇷 He will be the first Brazilian to head the foundation that finances development projects on the continent and is headquartered in Washington.

The result is also a victory for the Minister of Economy, Paolo Guedeswho nominated Ilan. After the election of Luis Inácio Lula da Silva, he was there Lobbying against the Brazilian by the Workers’ Party, who wanted to suggest another name. Nevertheless, Ilan was elected in the first round to the Board of Governors, which includes representatives of the countries that make up the bank, with votes representing 80% of the entity’s capital. He took office on December 19.

Central bank chief between 2016 and 2019, Ilan, 56, is now the Western Hemisphere Director of the International Monetary Fund (IMF), a position he left to run for election to the Islamic Development Bank.

Born in Israel to Brazilian parents, he holds a degree in economics from the Federal University of Rio de Janeiro, and a Ph.D. from the Massachusetts Institute of Technology (MIT) in the United States.

He was running against four other candidates: Argentine Cecilia Todesca bukosecretary for international economic relations in the country’s chancellery; Mexican Gerardo Esquivel, one of the directors of the country’s central bank; Chilean Nicolás Isaguirre, former Minister of Economy; and Gerard Johnson of Trinidad and Tobago, a former Islamic Development Bank official.

The election of the Brazilian after the government was facilitated Albert Fernandez He abandoned Todesca Bocco’s candidacy in the final stage and decided to support Ilan, who had already secured support from the United States.

Since the USA, Brazil and Argentina own most of the bank’s shares (30% for the former and 11.4% for each of the latter), the way was opened for the Brazilian.

GUIDES He toured with mainland officials in Washington last month, During the annual meetings of the International Monetary Fund and the World Bank, trying to drum up support for the Brazilian. The candidates were questioned on the 12th, and it was Ilan who made the best impression.

The nomination was threatened, however, when Jair Bolsonaro (PL) He lost the elections, because the Labor Party worked to postpone the elections of the Islamic Development Bank and put a name other than the one nominated by the president.

Former Labor Finance Minister Guido Mantega even sent an email to US Treasury Secretary Janet relentsWhere he asked to postpone the elections for a period of 45 to 60 days. However, the elections were not postponed, but the choice of Ilan was threatened, since the authorities did not want to risk alienating the next president of Brazil.

However, on Thursday (17) butter He resigned from his position in the transitional team of Lula’s governmentwhich again gave impetus to the former head of the Central Bank of the Islamic Development Bank.

On Sunday, Yelin congratulated Ilan on his victory and said the Islamic Development Bank plays a vital role in promoting the economic, social and environmental well-being of Latin America and the Caribbean.

“The United States looks forward to working with President Goldfajn to implement the set of reforms laid out by the shareholders to promote sustainable, inclusive, and resilient development; private sector-led growth; climate ambition; and increase the institutional effectiveness of the Islamic Development Bank,” he said in a statement.

The Economy Ministry said in a note that it was celebrating Ilan’s election and that the result was achieved after a campaign led by the ministry.

He explained, “The Brazilian candidate reached a large majority, bypassing the criteria for the percentage of the bank’s voting capital and regional support, which allowed the elections to be concluded in the first round.”

For the portfolio led by Guedes, the candidate’s victory is an acknowledgment of the platform that Brazil has provided for the bank to prioritize three central axes. It is a physical and digital infrastructure, while mobilizing private resources and creating opportunities for regional integration; fight poverty, inequality and food insecurity; climate change and biodiversity.

As mentioned before bindingin Ilan’s priorities displayed in the bank selection process were also in line with Lula’s They included fighting hunger, promoting cooperation between countries, promoting growth with social inclusion, diversity and environmental conservation.

For Ottaviano Canotto, Vice President of the World Bank and Islamic Development Bank and Executive Director of the International Monetary Fund and World Bank, the choice was right.

“Ilan has the personal characteristics and profile of a great person to run an institution like this,” he says, praising Brazil’s focus on clean energy, food security, increased regional cooperation, and conservation of natural resources.

“The challenge will be to seek some capital raises, to increase the volume of what the bank does.”

The Islamic Development Bank was established 63 years ago The largest and oldest regional multilateral development bank in the world It finances economic, social and institutional development projects in Latin America and the Caribbean. It has 48 member states and its headquarters are in Washington (USA).

In November 2022, the Islamic Development Bank expects approximately US$30 billion (R$160 billion) for projects being prepared or implemented in Brazil. Among them, programs to boost bioeconomy businesses in the Amazon, education expansion in Florianópolis (SC), road investments in the state of São Paulo, sustainable livestock in Mato Grosso, as well as a series of federal actions.

Sunday’s elections bring to an end a turbulent period that began with the arrival of Mauricio Claver Carone To office, in 2020. Accused Dealing with the subordinateThe American was unanimously removed from office in September.

In the year of Claver-Carone’s election, there was a strong desire for the countries that make up the Bank to elect a Brazilian. A number of names have been discussed, such as Marcos Troyjo (now on the Brics bench); Rodrigo Xavier Carlos da Costa (formerly BNDES) and Martha Cellier (former Secretary of the Partnerships and Investments Programme), but to no avail.

Brazil withdrew from having a candidate after a direct request from the then President of the United States, Donald TrumpTo Jair Bolsonaro for the country’s support for Claver-Carone, who was then Director for Western Hemisphere Affairs on the White House National Security Council. However, the United States’ turbulent period ended before he completed his five-year term.

In a recent interview with bindingClaver-Carone, to the dismay of Paulo Guedes, stated that the country had made a bad choice in supporting his removal and that Now he will not find support for choosing the right name.

IDB (Inter-American Development Bank)

Founded in 1959

Its resources come from the 48 member states and its funding comes from financial markets, among other sources.

The voting power is proportional to the subscribed capital of the state

The United States is the country with the highest voting power in the institution, 30%,

Brazil and Argentina hold 11.4% each

Each member state appoints a governor, usually the minister of finance or economy

$23.4 billion is the value of the Bank’s project financing portfolio in 2021

Member States

Germany, Argentina, Austria, Bahamas, Barbados, Belgium, Belize, Bolivia, Brazil, Canada, Chile, China, Colombia, Costa Rica, Croatia, Denmark, El Salvador, Ecuador, Slovenia, Spain, United States, Finland, France, Guatemala, Guyana, Haiti, Honduras, Israel, Italy, Jamaica, Japan, Mexico, Nicaragua, Norway, Netherlands, Panama, Paraguay, Peru, Portugal, United Kingdom, Republic of Korea, Dominican Republic, Sweden, Switzerland, Suriname, Trinidad and Tobago, Uruguay and Venezuela