Multilateral development banks (MDBs) are in a stronger position than others to respond to the crisis. Leading the group, the World Bank successfully completed a $42bn fund raising among its 185 member countries in 2007; and the Corporación Andina de Fomento (CAF) - whose full members, the governments of Bolivia, Colombia, Ecuador, Peru and Venezuela, have 87% of the bank's shares - successfully doubled its authorised capital to $10bn in 2007. On the other hand, the Caribbean Development Bank (CDB), the Central American Bank for Economic Integration (CABEI) and the Inter-American Development Bank (IADB) are all examining the possibility of a capital increase.
Nick Rischbieth, president of the CABEI, says he would like to increase its capital by 150% to $5bn. But, he adds, because it is difficult, in the midst of a global downturn, to raise funds from the bank's permanent shareholders (Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica) and even from the bank's non-regional members (which include Argentina, Mexico and Colombia), he wants to find new shareholders. "There are a number of countries that have signalled an interest in joining the bank. Brazil, I can tell you, is one of them. [South] Korea is another," says Mr Rischbieth.