Inter-American Development Bank IADB

a regional credit institution of the Organization of American States (OAS).

The IADB was created in 1960 for the purpose of financing various development programs in Latin America. Its members in 1973 were the United States, Canada (from May 1972), and 22 Latin American countries, with the exception of Cuba and Guyana. Its headquarters are in Washington. The authorized capital of the IADB was originally set at $1 billion, including $850 million as a capital fund of regular resources and $150 million as a capital fund for special operations. In 1972 the authorized capital totaled nearly $10 billion, including $5.6 billion in the fund of regular resources and $4.1 billion in the fund for special operations.

The United States plays the dominant role in the IADB. In 1972 the US share in the fund of regular resources was 38.7 percent, and its share in the fund for special operations was 71 percent. Argentina and Brazil each subscribed 11.8 percent to the fund of regular resources and 6 percent to the fund for special operations; Mexico paid 7 percent and 3.6 percent, respectively; Venezuela paid 6.1 and 3.0 percent; Chile and Colombia each paid 3.1 and 1.5 percent; and Peru paid 1.65 and 0.8 percent.

The board of governors, elected for five years, is the directing body of the IADB. Each country has 135 votes on the board plus one vote for each of its shares. Such a system ensures the predominant position of the United States in voting. An executive board of nine directors is responsible for the conduct of operations of the IADB.

As of Jan. 1, 1973, the IADB had awarded 719 credits totaling $5,441,000,000. Almost half of this sum was received by three countries: Brazil (23 percent), Argentina (13 percent), and Mexico (13 percent). The fund of regular resources accounted for 40 percent of the credits, the remaining 60 percent coming from special operations. In early 1973 the IADB had provided loans totaling $1,137,000,000 to 16 countries. The United States, the Federal Republic of Germany, and Japan are the chief creditors. Since 1962 the IADB has been authorized to manage the US-backed Alliance for Progress program. The IADB has also been assigned control of the Social Progress Trust Fund. As of Jan. 1, 1973, 116 credits totaling $494 million at annual interest rates of 2-3.5 percent for terms up to 30 years had been provided from this fund.