IFC ADVISORY SERVICES IN LATIN AMERICA AND THE CARIBBEAN
Country Donors:
Promoting Competitive Markets in
Latin America and the Caribbean
In Latin America and the Caribbean (LAC), informality is an important challenge faced by entrepreneurs, particularly the
smallest. Approximately 41 percent of transactions within the region are informal1. Informality is as widespread as in
Africa, even though LAC has nearly four times higher per capita income. The complex processes for opening a new
business are key factors that encourage most businesses in LAC to stay informal.
Investment Climate Advisory Services
The Investment Climate Advisory Services of the World Bank Group (IC) helps governments implement reforms to
improve their business environment, open up markets (national, sub-national, sectoral) to private investment, and
encourage and retain investment, thus fostering competitive markets, growth and job creation. Projects are financed by
the World Bank Group (IFC, MIGA, and the World Bank) and over fifteen donor partners, including in LAC the Canadian
International Development Agency, Societe de Financement de l'Exportation et de l'Internationalization des Entreprises
Walloones, the Ministry of Foreign Affairs of the Netherlands, the Norwegian Ministry of Foreign Affairs, the Spanish Fund
for Latin America and the Caribbean, the Swiss Cooperation - SECO, and the UK Department for International
Development.
The IC program aims to contribute to improve competitiveness in the region by strengthening and streamlining business
regulation procedures. The program is active in countries that suffer from a difficult investment environment. By improving
the business environment, IC sets the stage to facilitate future foreign and local investment in a country.
IC works in partnership with governments, private sector, business organizations and public institutions to carry out
investment climate reforms across Latin America and the Caribbean. These efforts contribute to reduce high levels of
informality and support private sector development across the Region.
IFC implements projects that streamline regulatory procedures at the request of a municipality, sub-national or national
governments. Political will is critical to achieve successful and sustainable results.
Creating Opportunity in Challenging Markets
Thanks to these reforms, citizens will be able to open
English Speaking Caribbean
businesses more easily, as well as trade more efficiently with
other countries.
Most of the English Speaking Caribbean countries are small
economies burdened by expensive logistics for provision of
goods and services, scarce technical resources, dependence on
imported goods, relatively high costs of infrastructure and
transportation, and a narrow base of exports.
IFC, in partnership with the Canadian International
Development Agency (CIDA), is working with governments and
the private sector to improve the investment climate of the
region. Offering tailored advisory services, IFC supports reforms
to improve the regulatory environment for doing business and
reduce red tape.
Size and Measurement of the Informal Economy in 110 Countries around the World, Friedrich Schneider, Australia, 2002 .
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IFC ADVISORY SERVICES IN LATIN AMERICA AND THE CARIBBEAN
INVESTMENT CLIMATE
Our Products in Brief
 Business Operations aims to help
client countries reduce unnecessary
compliance costs associated with
normal business operations by
streamlining licenses/permits and
business inspections. It includes
construction permits, inspections, and
licensing, all relevant in LAC at the
national and municipal level. These
projects are implemented in: Bolivia,
Brazil, Colombia, Ecuador, Honduras,
Guatemala, Mexico, Nicaragua, Peru,
Paraguay, and the Caribbean.
 Investment Policy and Promotion
seeks to help clients establish an
effective legal policy, an institutional
framework for investment and to
market the improving new business
environment to win investment. IC is
currently implementing a project in
this area in Brazil and Haiti
 Sub-National
Doing
Business
assesses business regulations and
their enforcement within a particular
country or region. Domestic and
international benchmarking fosters
 Doing Business Reform Advisory
provides technical assistance to
governments on identification and
implementation of reforms in the ten
areas covered by the Doing Business
Report: starting a business, getting a
construction
permit,
employing
workers, registering property, getting
credit, protecting investors, paying
taxes,
trading
across
borders,
enforcing contracts and closing a
business.
competition for reform. This
product is being implemented in
Colombia and Mexico.
 Trade Logistics reduces total
time and cost to trade in
developing countries by building
capacity to improve efficiency in
customs and technical control
agencies. IC is currently working in
this area in Colombia and will
implement projects in Honduras,
Peru and a regional project in the
Caribbean.
Supporting Private Sector Potential in Haiti
IFC is helping companies and government agencies retain and attract investors. This
includes improving the regulatory framework for special economic zones and
supporting the Haitian government’s plans to decentralize zones outside of Port-auPrince. IFC’s support is aimed to:
 Special economic zones: An increase in output of existing manufacturing
companies by $60 million, and in formal jobs (around 2,000) by project completion
in 2012.
 Investment generation initiative: create 3,750 new jobs, facilitate $150 million in
investments (including new ones and expansions), and a cost saving for private
sector of about $5 million along the first three years after implementation of
reforms suggested.
Improving Business Environment - Results up to Fiscal Year 10 (2004 - 2010)
 Investment Climate Advisory Services is working in 13 countries in the region helping
county clients implement reforms at a national and subnational level.
 Supported 26 municipalities across the
Region streamline procedures for issuing
operating licenses and construction permits.
 As of the end of FY10, more than 204,000
licenses have been issued in the
municipalities in which IC has finished
business entry and construction permit
reforms over the past five years.
In partnership with:
Contact:
Alvaro Quijandría
Regional Business
Line Manager
[email protected]
ifc.org/lac