Santiago, Mar. 27 (EFE) – The Inter-American Development Bank (IDB) on Thursday unveiled BID Cuida, a new initiative aimed at strengthening care systems for dependent populations in Latin America and the Caribbean, with the goal of fostering economic growth and reducing inequality.
The launch took place during the IDB’s annual meetings in Santiago, Chile, which began Wednesday with thematic seminars. From Friday through Sunday, the meetings will include the 65th IDB Board of Governors Assembly and the 39th Assembly of IDB Invest, the bank’s private-sector arm.
IDB President Ilan Goldfajn highlighted the universal need for care: “One thing all families have in common is that there is always someone who needs help.” He emphasized that care work refers not only to support for children and dependent elderly people but also to domestic labor, which “goes far beyond the household and is a vital economic resource.”
Care Work: A Key Economic Driver in Latin America
Diana Rodríguez, the IDB’s Special Advisor on Gender and Diversity, described care services as “the engine of the economy,” enabling all other types of work. She noted that despite its critical role, care work remains largely invisible, informal, and disproportionately performed by women.
If all unpaid and underpaid care work were compensated, it would account for an average of 21% of GDP in Latin America and the Caribbean, according to IDB figures. The sector is plagued by low wages, lack of professional development opportunities, and high levels of informality. Projections indicate that by 2050, the region will require 14 million professional caregivers for the elderly—nearly five times the current number.
The region’s demographic profile is also shifting rapidly. The IDB reports that today, eight million elderly individuals require care, a figure expected to triple by mid-century.
“This is contrary to the image we used to have of a Latin America full of children running around,” Rodríguez said.
BID Cuida’s Vision for Professional, Equitable Care
BID Cuida aims to help countries develop comprehensive care systems that organize services, enforce quality standards, and promote the professionalization and formalization of caregivers. The strategy includes reinforcing institutional frameworks, increasing investment in high-quality services, and creating a more equitable distribution of care responsibilities among genders and sectors.
New mechanisms such as standardized contracts, online caregiver registries, and cooperative-based employment models are being encouraged to promote formality and sustainability in the care sector.
According to the IDB, better care systems generate widespread benefits. Children enjoy improved health and learning outcomes, health systems reduce hospital costs, and businesses see fewer employee absences related to caregiving duties.
A Public-Private Approach to Transforming the Sector
IDB officials stressed that public-private collaboration is crucial to the success of BID Cuida. While the public sector typically finances part of long-term care, most service providers are private. Governments must create conditions that facilitate innovation and entrepreneurship in the care economy.
The IDB already offers technical and financial assistance to governments throughout the region in areas such as regulation, data, caregiver support, and service financing. What’s new is BID Cuida’s broader and more integrated approach.
“Until now, support was more isolated and mainly in the public sector,” Rodríguez explained.
BID Cuida is intentionally designed as a flexible framework—not a top-down, one-size-fits-all model. It responds to the unique demands of each country and does not come with pre-packaged funding. Instead, the IDB will negotiate terms individually with each participating country to ensure alignment with national needs. EFE