Between Influences and Opportunities: The Inter-American Development Bank (IADB) Financing in Colombia During Times of Crisis

Abstract

Colombia has followed a process where security linked to its armed conflict, strategic cooperation with the United States, and financing from the Inter-American Development Bank (IDB) have been closely connected. Countercyclical financing, especially during crises, is essential for vulnerable economies to face these challenges. This research examines how the collaboration between Colombia and the United States, along with the latter's influence on the IDB, has facilitated Colombia's access to countercyclical financing in key crises such as the 2008 financial crisis and the COVID-19 crisis. An eclectic approach is adopted, integrating concepts of securitization and neoliberal development framed within the Global Political Economy (GPE) discipline. This qualitative research employs process tracing as the primary method, complemented by document analysis and semi-structured surveys with key actors. The results show that sustained cooperation between Colombia and the United States, alongside the latter's influence on multilateral institutions, has been a key factor in facilitating Colombia's access to rapid financing. This access has been reinforced by the implementation of a neoliberal model in Colombia, which has enabled the country to address economic crises more effectively.