Seville, Spain, July 2. The United Nations Development Programme (UNDP) in Latin America and the Caribbean (LAC) and a broad coalition of development actors—including multilateral organizations, national and local governments, development banks, private sector leaders, and civil society— launched today the LAC Facility for Financing Resilient Human Development at the margins of the Fourth International Conference on Financing for Development (FfD4).  

In Latin America and the Caribbean, crises have become structural, exposing deep vulnerabilities despite decades of progress in human development and poverty reduction. One in three people could fall back into poverty after a single shock, yet investment in resilience remains critically low. With a projected annual financing gap of $650 billion through 2030, the region is still far from meeting its most urgent development needs. 

“UNDP’s Regional Director for Latin America and the Caribbean, Michelle Muschett, emphasized that “It’s not enough to mobilize more resources — we must mobilize better resources, with greater impact, efficiency, and sustainability. The problem isn’t a lack of capital — it’s a lack of alignment and access,” she stated. 

“In a region where overlapping crises and increasing uncertainty contrast with an enormous potential for sustainable development, financing must become a transformative lever to build resilience and close the persistent structural gaps,” she added. “With an active ecosystem of impact-oriented investors, public innovation, and reform-ready institutions, the region is ready to lead the next era of financing for development, and the Facility is the platform to seize it”. 

The creation of this facility marks a decisive step toward a more resilient, inclusive, and sustainable region. By mobilizing purpose-driven investment, co-creating impactful solutions, and strengthening institutional capacity, UNDP reaffirms its commitment to a people-centered development approach that leaves no one behind. 

Building on UNDP’s longstanding presence across the region and global leadership in development finance—including through the Climate Promise, Integrated National Financing Frameworks (INFFs), and SDG Investor Maps—the Facility is structured around three pillars: 

• Country-Led Platforms: Empowering governments to articulate priorities, present bankable projects, and engage in South-South cooperation.
• Unlocking Investment: Deploying innovative instruments—from thematic bonds and blended finance to parametric insurance—aligned with resilience-building in infrastructure, services, and the real economy.
• Knowledge and Collaboration: Fostering a regional network of policymakers, investors, and experts to close the gap between policy ambition and financing execution. 

With the strong backing of regional and global actors—governments, multilateral development banks, private investors, and civil society—the Facility lays the foundation for a new financial compact to finance resilience in the region and offers a dynamic suite of tools and services to shift the region from vulnerability to investment-readiness. These include pre-investment and structuring support to enhance bankability; thematic and green bonds to attract sustainability-aligned capital; blended finance mechanisms to de-risk private investment in underserved areas; insurance instruments to reduce disaster response costs, among others.  

From green bonds in Bolivia and electrified public transport in Paraguay, to climate insurance in Colombia and women-led small and medium enterprises (SMEs) financing in Ecuador and the Dominican Republic, the Facility is already delivering tangible results. These initiatives demonstrate the power of strategic financial design to unlock inclusive, sustainable development at scale. 

About UNDP: UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and the planet. 

Learn more at undp.org or follow at @UNDP. 

Media Contact:  

Vanessa Hidalgo, vanessa.hidalgo@undp.org | +1 646 338 9462