Media CenterNuevo León Pioneers Innovative Social Investment Bond to Tackle Youth Unemployment

FOR IMMEDIATE RELEASE

CONTACT:
Cesar Delgado
Catholic Relief Services
[email protected]
+526141877589

Monterrey, Nuevo León, Mexico, Aug. 30, 2024 – In a historic move, Catholic Relief Services (CRS) and the government of Nuevo Leon, Mexico today launched a groundbreaking financial mechanism for social investment, the first of its kind for both CRS and Mexico. This pioneering initiative, known as the Social Investment Bond (SIB), aims to significantly reduce youth unemployment in Nuevo Leon by providing essential support to young individuals aged 18 to 24, facilitating their integration into the formal economy.

“This innovative bond is designed to foster sustainable economic growth and social development within the region, ensuring that the youth of Nuevo Leon have the opportunities and resources they need to thrive in the formal job market,” said Beth Collins, Managing Director of Impact Investment at CRS.

The SIB operates on a pay-for-results model, fostering collaboration between the public, private, and social sectors to address social issues with maximum efficiency and transparency.

CRS and YouthBuild Mexico will implement a comprehensive program over 28 months, focusing on training, labor inclusion and support for youth. Upon achieving the agreed-upon results, the State Government will provide financial support to YouthBuild, the implementing foundation.

“Nuevo León reaffirms itself as a leader in innovation. We are pioneers in betting on a mechanism that not only changes lives but also positions our state as a national reference in high-impact social policies,” said Martha Herrera, secretary of Equality and Inclusion.

Carla Fajardo, CRS’ Regional Director for Latin America and the Caribbean, added: “These types of programs are crucial for the development of our youth and for building a more equitable and prosperous society in Latin America. We are committed to generating a positive and sustainable impact on the most vulnerable communities.”

The program provides intensive training to 500 youth, with the goal to ensure that at least 60% of participants secure formal employment. Each milestone will have clearly defined objectives and verification methods, validated by an independent agency and aiming for job retention for nine months.

“Partnering with Nuevo León’s government to launch this program is a tremendous honor for CRS. Generating sustainable growth and youth employment trough through these bonds is a first for both our organization and the country. We are confident that its success will pave the way for expansion across Mexico and Latin America,” Collins said.

CRS has worked with youth in Mexico for years through various programs, collaborating with local partners to provide employment, school re-integration and family support for at-risk youth. While this is the first time CRS is using a SIB to fund the project, the organization has been a leader in impact investing, and leveraging private capital to drive social change.

In her remarks at today’s launch, Collins said “given the largest youth bulge in history, and tremendous challenges young people face, CRS is challenging itself to be bolder and more ambitious in its aspirations to not only combat poverty, injustice and violence through our programs, but to go further and catalyze transformational change to achieve these results at scale.”

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Catholic Relief Services is the official international humanitarian agency of the Catholic community in the United States. The agency alleviates suffering and provides assistance to people in need in more than 100 countries, without regard to race, religion or nationality. CRS’ relief and development work is accomplished through programs of emergency response, HIV, health, agriculture, education, microfinance and peacebuilding. For more information, visit www.crs.org or www.crsespanol.org and follow Catholic Relief Services on social media in English at Facebook, Twitter, Instagram and YouTube; and in Spanish at: Facebook, Twitter and Instagram.

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