The Inter-American Development Bank has approved a USD40 million loan to Panama, complemented by a local contribution of USD3 million, to implement an ambitious program financial inclusion and indigenous entrepreneurship in the country’s 12 indigenous regions.
The plan places priority on the demands of indigenous peoples and the interventions of the economic pillar that are all contained in the National Plan for Integrated Development of Indigenous Peoples (PNDIPI in Spanish), which was approved by the government of Panama after a lengthy period of consultation with Panamanian indigenous leaders.
Panama is home to seven indigenous peoples (the Ngäbe, Guna, Emberá, Wounaan, Buglé, Naso-tjerdi and Bri-bri) with a total of 574,353 people, or 14.7% of the country’s population. An advanced system of recognition of indigenous autonomy has allowed for a strengthening of traditional rule for these peoples: each one has its own government, with highly representative structures and robust social capital. Still, the poverty rate is high at 79.6% and there are major gaps in access to basic services and financial services and in development indicators for indigenous peoples as compared to non-indigenous ones.
This program will address business initiatives proposed by companies or organizations run by indigenous people, helping to boost their revenue by widening access to financial services, building productive infrastructure in indigenous districts and territories so as to promote the inclusion of these businesses in the value chain, and providing non-financial services such as training and continuing technical assistance, accompanied by pre-investment.
Original source: IDB
Published on 20 May 2019
