Developmental Agency Seeks to Boost South American Recycling Efforts

The Fundación Avina, the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB), the Water and Sanitation Division of the IDB and The Coca-Cola Co., with support from the Bill & Melinda Gates Foundation, have launched a regional program to integrate informal waste collectors into the formal recycling market.

According to an MIF release, the goal of the initiative will be to bring together recyclers, consumer products companies, municipalities, educational institutions and civil organizations to discuss proposals and develop action plans for incorporating informal workers into local value chains.

"It is critical to support the transformation of the market and the organization of informal recyclers to improve their economic and social situation,” Nancy Lee, MIF’s general manager, says. “Greater coordination among recyclers, businesses and municipalities will improve the quality of life of people engaged in this business."

The program seeks to improve the socio-economic status of waste collectors, involve the private sector as an active partner in facilitating their access to the formal market, and improve the regulatory framework to facilitate market functions.

"Despite their key role in a new market such as recycling, informal waste collectors and their families remain isolated from society and the economy,” Valdemar de Oliveira Neto, Fundación Avina’s director of continental initiatives, says. “This project will enable us to bring together all stakeholders to create an environment that respects their work, demonstrating that it is not only honorable, but also valuable to society.”

For IDB, 20 years of doing business in the area lead to the conclusion that the merging of these two sectors is important to social and economic progress.

"This program provides us with the opportunity to contribute to the development of sustainable communities in two areas of particular relevance: social and economic inclusion of people living under very adverse conditions, and environmental protection,” Jose Octavio Reyes, president of Coca-Cola Latin America, says. “This program also contributes to our vision of ‘zero waste’ for our packaging, where increased use of recycled materials in our bottles constitutes a central part of this vision."

MIF is providing $4 million in financing to the project, which will complemented initially with $1 million from the IDB Water and Sanitation Division’s AquaFund, $1.4 million from the Fundación Avina, and $2 million from The Coca-Cola Company. The program was launched during the VIII Inter-American Conference on Corporate Social Responsibility, which was hosted by MIF in Asuncion, Paraguay, May 2011.