Wrap-Up on My Trip to Panama and the Dominican Republic

Earlier this week I returned from a trip to Panama and the Dominican Republic where I met with government officials and private sector leaders. My visit focused on enhancing competitiveness and enabling private sector investment.?

As in much of the world, people in Latin America and the Caribbean with average or below-average incomes are facing very difficult economic conditions, including high prices for food and fuel, rising interest rates and climate costs, and a shortage of financing. Boosting competitiveness and enabling private sector investment will be essential to the region’s growth. Even then, investment activity will take time, perhaps many years, to adjust after a decade of low-for-long capital misallocation.?The repeated concern I hear from business is the heavy absorption of global capital by advanced economies. ?

In Panama, I met first with Rafael Sabonge, Minister of Public Works of Panama, along with other public and private sector leaders to discuss efficient and sustainable delivery of public services. I am encouraged by Panama’s progress to implement public-private partnerships. I also had good discussions with Hector Alexander, Minister of Economy and Finance of Panama, on growth policies that enable private capital investment.

President Laurentino Cortizo Cohen and I covered private capital enabling reforms to increase private investment and Panama’s efforts to reduce its fiscal deficit, add to its non-Canal revenue sources, and strengthen the education system.

I also met a wide range of private sector leaders. My conversation with Banco General leadership focused on efforts to expand digitalization. I also had a good discussion with Aimée Sentmat de Grimaldo, CEO of Banistmo, about the range of opportunities and challenges in Panama and Banistmo’s successful advocacy for women and small businesses.?In multiple meetings, I heard Panama’s progress working with FATF on AML-CFT steps and beneficial ownership.

From Panama, I traveled to the Dominican Republic. I met there Sunday evening with public officials, including Roberto álvarez, Minister of Foreign Affairs, and Pável Isa Contreras, Minister of Economy, Planning, and Development. We discussed global challenges, energy, trade, education, Haiti, and upcoming summits.??

In my meeting with President Luis Abinader Corona of the Dominican Republic and his Cabinet, I welcomed the Dominican Republic's solid growth, strong dialogue with the private sector, and active World Bank Group engagement. I was glad to discuss priorities to further strengthen DR’s business environment and competitiveness. President Abinader and I also spoke about the devastating insecurity in Haiti, reforms to improve service delivery, simplification of the tax system, and the costs of climate change adaptation.

The private sector can be a powerful force for development, with the ability to create jobs, add skills, reduce inequality, and encourage entrepreneurship. In Latin America and the Caribbean, as elsewhere, IFC and MIGA are collaborating with financial institutions to accelerate inclusive growth.

In an interview with EFE, I spoke of the recovery from COVID, but also highlighted educational setbacks, trade barriers, high debt levels, rising interest rates, and climate change, all areas where the World Bank Group is working to help people cope and advance.

Regionally, more trade and logistics sector investments could add jobs, improve living standards, and reduce migration rates. It’s worth noting that both Panama and Dominican Republic are key players in the region’s trade and logistics sectors, and I hope to see further progress to enable private capital and attract investment.

Coverage of the trip (links in Spanish)

La Prensa: World Bank President visit Panama

En Segundos: Cortizo received visit from World Bank Group President

Capital Financiero: Cortizo met David Malpass, World Bank President

7 días: The World Bank disbursed 49.8 billion dollars to Latin America and the Caribbean; comes to meet with Luis Abinader

El día: For first time, a World Bank president visits RD