The Inter-American Development Bank Group (IDB Group) and Japan announced a historic cooperation package totaling $14 billion for Latin America and the Caribbean on August 24, 2026. The agreement expands Japan International Cooperation Agency (JICA) resources to $6.5 billion and introduces new risk-transfer instruments.

The announcement coincided with the Japan-LAC Business Forum 2026 in Tokyo, co-hosted by the IDB Group and Japan’s Ministry of Finance. The event marked 50 years of partnership between the two entities, bringing together more than 1,000 participants and 400 companies from 24 countries.

Financing Structure

The total financing commitment relies on a leveraged structure involving direct resources and co-financing. Key components include:

• JICA Resources: Expanded to $6.5 billion from previous levels.
• Co-financing: Expected to generate approximately $7.5 billion, based on the average of recent years.
• Total Package: Combines to $14 billion in financing for the region.

Strategic Initiatives

The package establishes several new mechanisms to address regional challenges:

• Japan Resilience Initiative: A $30 million non-reimbursable facility within the Japan Special Fund. It supports project preparation in critical minerals, quality infrastructure, agriculture, health, disaster resilience, and the silver economy.
• Risk Transfer: A new instrument using Nippon Export and Investment Insurance (NEXI) loan insurance will cover IDB-guaranteed loans.
• JBIC Agreement: A renewed agreement with the Japan Bank for International Cooperation aims to identify public and private-sector co-financing opportunities.
• Infrastructure Partnership: A new agreement with the Ministry of Land, Infrastructure, Transport and Tourism focuses on resilient infrastructure, drawing on Japan’s expertise in disaster preparedness.

Sector Focus and Trade Context

The cooperation deepens ties in seven high-impact areas: energy security, critical minerals, disaster-risk management, the silver economy, venture capital, digital transformation, and agribusiness.

Bilateral trade between Japan and Latin America has grown significantly over the partnership’s history. According to a new IDB report launched at the forum, trade increased from $7 billion in 1976 to $65 billion in 2025.

What the Numbers Show

The financing model demonstrates a high leverage ratio, with expected co-financing ($7.5 billion) exceeding the direct JICA resource allocation ($6.5 billion). This suggests that the primary value driver for the region is not just the direct aid but the ability of these Japanese instruments to unlock additional private or multilateral capital. Additionally, the expansion of the TADAC trust fund to $1.5 billion makes it JICA’s largest private-sector co-financing fund in the region, signaling a strategic pivot toward private market engagement alongside traditional public sector lending.

The Inter-American Development Bank (IDB) and INTERPOL, the world’s largest international police network, announced a strategic collaboration on Aug. 5, 2026, to enhance security and justice outcomes across Latin America and the Caribbean. The agreement, signed at the Regional Security and Justice Summit in Brasilia, integrates INTERPOL into the Alliance for Security, Justice, and Development’s Rapid Response Task Force. This move aims to provide participating countries with specialized international expertise and operational knowledge to address complex security challenges, with an initial technical cooperation of $100,000 allocated for the first stage of the initiative.

The collaboration marks a new phase in regional operational readiness, with Brazil selected as the first pilot country to assess the model’s replicability across the region. IDB Group President Ilan Goldfajn emphasized the importance of agility in serving member countries during critical times, stating that the partnership is key to offering enhanced security. He noted that building a response to organized crime requires stronger institutions and shared commitment to action, advancing practical solutions to the region's specific security challenges.

Valdecy Urquiza, Secretary General of INTERPOL, highlighted that the task force model has proven effective, noting that INTERPOL recently adopted a similar approach. Urquiza expressed anticipation for working closely with IDB partners to identify which INTERPOL resources could further strengthen the Alliance’s capabilities. This expanded participation will bolster the Alliance’s growing international cooperation network, which currently includes 14 partners.

The Rapid Response Task Force has already demonstrated impact in several countries. In Peru, technical assistance contributed to discussions informing the country’s 2026 National Security Plan. In Jamaica, the Task Force supported efforts to strengthen the operational continuity of the police force amidst natural disasters. In Guatemala, technical cooperation is helping advance cross-border security policies. These examples illustrate the task force’s ability to deliver rapid, specialized technical expertise to respond to urgent security and justice challenges.

Partnership Details

Strategic Context

Launched in 2024, the Alliance for Security, Justice, and Development brings together 23 member countries and 14 strategic partners to strengthen regional cooperation against organized crime. The IDB serves as its technical secretariat. The alliance provides countries with rapid access to specialized technical expertise through initiatives like the Rapid Response Task Force. Additionally, a memorandum of understanding to strengthen cooperation with the Korean National Police Agency (KNPA) will further expand this network. Together, these partnerships aim to transform the Rapid Response Task Force into a unified mechanism bringing together international expertise, rapid technical support, and regional cooperation to help member countries strengthen security and justice institutions.