CGD colleagues raised questions and concerns at the time of the announcement. In weighing his possibly presidency, an especially salient question becomes: can Claver-Carone deliver a general capital increase (GCI)?
CGD Policy Blogs
Not DFC’s Best Kodak Moment: Five Questions About the Development Agency’s First Domestic Investment
DFC’s first domestic DPA loan is an opportunity to have a fresh look at the program and raise a new round of questions for the agency.
We need to move forward—or backward—in what we expect development finance institutions (DFIs) to do in terms of financing private sector development in the world’s poorest countries.
At the end of June, DFC launched the first iteration of its Impact Quotient (IQ) development measurement tool, a new process that will rate a project’s likely results. DFC plans to use IQ at every stage of the investment process—from concept and selection, to implementation and monitoring—to assess the developmental impact of its investments.
For the US to back an American candidate as president disrupts an arrangement that has been fundamental to the bank’s effectiveness as a development institution investing in better lives and livelihoods in its borrowing member countries.
In a surprise move Tuesday, the US Treasury announced its intention to nominate Mauricio Claver-Carone to the presidency of the Inter-American Development Bank (IDB), a role traditionally held by a citizen of a borrowing member country from the region.
The US International Development Finance Corporation (DFC) is considering a change to its current ban on financing projects with a nuclear reactor, a relic holdover policy from its predecessor agency OPIC.
DFC put its foot on the pedal in its second board meeting. It is starting to lay the groundwork for a portfolio that is more skewed towards the difficult markets where its development dollars can have most impact. Over the coming months we also hope to see a portfolio expansion in LICs commensurate with the growth in LMICs.
The DFC has three mandates: (1) deliver development outcomes, (2) support US foreign policy, and (3) don’t lose money by financing only commercially viable projects. DFC’s predecessor agency, the Overseas Private Investment Corporation (OPIC), sometimes struggled to balance these (often conflicting) goals.
The unilateral ultimatum issued by President Donald Trump to the World Health Organization—"reform or else” in 30 days—raises the real possibility of a WHO without funds or governance participation from the United States. What would that mean in practice?