The United States needs a bigger and better development finance institution. The Overseas Private Investment Corporation (OPIC) is an overperforming federal agency, but is currently far too small and outdated to fulfill its mandate of catalyzing private investment in strategic emerging and frontier markets. We’ve been pushing for years to modernize US development finance, while the timing for a new agency is ideal right now. The bipartisan BUILD Act creating a new US International Development Finance Corporation (USIDFC) was introduced in both houses a few months back and the administration has signaled support.
CGD Policy Blogs
Last week, CGD hosted the US Agency for International Development (USAID) for the first public presentation of the agency’s new “Journey to Self-Reliance” metrics. Launched by USAID Administrator Mark Green, the Journey to Self-Reliance is a new strategic approach that aims to more systematically orient the agency’s programming toward building countries’ capacity to address their own development challenges.
The four main recommendations of the Redesign Consensus: A Plan for US Assistance are to empower USAID as the lead independent aid agency, to create a full-fledged development finance institution, to establish a global development and humanitarian strategy, and to upgrade systems to better manage personnel, procurement, information, and evidence. This proposal concretely advances the dialogue between Congress, the administration, and civil society on reforming the US development architecture. It captures the main conclusions of a series of robust discussions among a diverse group of leaders, experts, and practitioners—and it represents a bold and comprehensive vision for a more coherent and modern development architecture.
In Congress, support for aid is often bipartisan, and the seriousness and quality of thinking about aid reform is often very high. Case in point on both fronts is new legislation introduced by US Senators Bob Corker (R-Tenn.) and Chris Coons (D-Del.) that would create the architecture and principles for a policy review and assessment of US contributions to multilateral institutions.
The upcoming USAID-led Evidence Day on September 28 at the Ronald Reagan Building (part of Global Innovation Week) provides a perfect opportunity for Administrator Green to spell out his plans to prioritize the role of evidence at USAID. In a new CGD Note, Advancing the Evidence Agenda at USAID, Amanda Glassman and I offer some suggestions.
The very same week that USAID and the Department of State submitted a joint redesign plan to the Office of Management and Budget, the coauthors of four recent reform proposals packed the CGD stage for a timely debate. Fragmentation, inclusive economic growth, humanitarian assistance and fragile states, global health, and country graduation were a few of the big questions that panel members grappled with as they authored their reports.
Clear and rigorous evidence on the contributions of US global health programs is more important than ever, as the White House and lawmakers discuss and debate budgets and the future of US support to global health. Such information aids policymakers who must prioritize support to effective public health programs.
With Hurricane Irma now pushing a devastating path through the Caribbean, USAID is gearing up to do what it does best. Its Disaster Assistance Response Teams (DARTs) do amazing work—deploying rapidly in the wake of natural hazards like hurricanes and often bringing the logistical might of the US military with them. These teams go in big and fast to save lives, distribute food, set up emergency shelter, and prevent secondary impacts like disease outbreaks. But then things begin to falter.
After months of speculation, we are finally getting some clarity on the broad outlines—and internal debates—of development policy under the Trump administration. Here are five main takeaways from hearings with Secretary of State Rex Tillerson and USAID administrator nominee Mark Green:
The UK election has shown again that electorates can throw up unexpected results, with long-standing poll leads evaporating in a matter of weeks. The British public seem uninspired by any single leader but there was little sign of descending into nationalism and populism. The only party that stood on a platform of dismantling the aid budget—UKIP—suffered a heavy defeat. Here we propose two ambitions for the government which emerges.