Building bridges in a divided world

We are experiencing a period of intense, profound change on the international stage, as the strategic alliances and institutions that have guided the world for the last half-century are being called into question. Conflicts that once seemed resolved are being reignited and leaders coming to power now will shape the world order for decades to come.

Against this backdrop, while some are rushing to build walls, we in the EU are building bridges. We are reaffirming our commitment to an international order based on democratic values, human rights, mutual respect and win-win partnerships. This was the EU’s message at this month’s summit with the Community of Latin American and Caribbean States.

Members of this transatlantic community have come a long way together and, in Santa Marta, Colombia — Latin America’s oldest city — we strengthened our bond. The reasons for doing so were obvious. We know that, together, we can ensure a safer, more democratic world and promote fairer, more sustainable development for our societies.

Together, the EU, Latin America and the Caribbean represent more than 1 billion people, 14 percent of the world’s population, and 21 percent of global gross domestic product. We account for a third of all UN members and share one of the world’s strongest alliances, rooted in a common history, shared values, some of the densest trade networks in the world and — above all — a will to move forward together. By strengthening this partnership, we can go from amplifying to multiplying our impact on the emerging international order.

We are reaffirming our commitment to an international order based on democratic values, human rights and mutual respect

Nadia Calvino

The European Investment Bank is playing a key role in strengthening this relationship. Throughout our 45 years of work in Latin America and the Caribbean, we have built enduring relationships of trust, financing more than 350 high-impact projects to boost economic growth, raise living standards and strengthen communities.

These investments are supporting major energy, transport and telecommunications infrastructure projects, improving climate change adaptation and resilience, supporting small and medium-sized enterprises and micro-enterprises, and promoting female entrepreneurship. We have helped fund microloans for women in Brazil; a green hydrogen platform in Chile; electrical interconnections in Colombia, Panama and Costa Rica; and the construction of sustainable transport networks such as the metros in Bogota, Quito and Sao Paulo.

By the end of this year, we will have reached a record level of financing in the region, with the final figure exceeding $3 billion. That includes contracts just signed in Santa Marta for solar energy in Colombia and water sanitation in Ecuador — projects that will benefit more than 2.5 million people. We have also announced a new $1.15 billion program to support electricity interconnections in Central America.

The EU and the European Investment Bank’s commitments to multilateralism and the green transition are stronger than ever

Nadia Calvino

In parallel with the Santa Marta summit, the European Investment Bank is playing an active part at the concurrent UN Climate Change Conference, COP30, in Brazil, further consolidating its role as a climate bank. The recent losses and catastrophic damage inflicted by Hurricane Melissa in the Caribbean demonstrate the urgency of investing more in prevention and adaptation. And that is what we are doing: 70 percent of our investments in Latin America and the Caribbean are allocated to climate action.

At a time when many countries and political leaders are taking steps back and looking inward, the EU and the European Investment Bank’s commitments to multilateralism and the green transition are stronger than ever. These are challenges that we can solve only if we work together. That is why our discussions in Santa Marta also focused on strengthening cooperation with the other multilateral development banks active in the region, especially the Development Bank of Latin America and the Caribbean and the Inter-American Development Bank.

Such multilateral partnerships are essential to achieving our shared goals. If we continue to move forward in the spirit of partnership that was on display in Santa Marta, reinforcing our alliances and strengthening our friendships, I am convinced that shaping the international order for the better is well within our reach.

• Nadia Calvino is President of the European Investment Bank.

Copyright: Project Syndicate