Cluster Development Programs in Latin America and the Caribbean: Lessons from the Experience of the Inter-American Development Bank

National and local governments, international organizations and donors are increasingly using the instrument of cluster development programs (CDP) to promote economic development. This paper builds on the recent experiences of the Inter-American Development Bank (IDB) in financing and executing cluster development programs, explores their conceptual approach and actual practice, and learns some preliminary lessons. This preliminary review remarks that CDP offer remarkable development potential, provided that they are consistent with the whole system of private sector development policy support. They represent an important opportunity to remedy the coordination failures that constantly hinder the process of economic development.