Viewpoint: The new US DFI deserves the development community’s support. Here’s why.
By Conor Savoy
Right now, there are budding entrepreneurs and innovators in developing countries with ideas that could help lift their communities out of poverty, improve health and education outcomes, and create sustainable economic development. They may be focused on how to raise smaller holder farmers’ income, or creating a ride-hailing app that ensures a safe taxi ride, or developing software that makes it easier for business to comply with local tax regulations.
But, too often, enterprising individuals and start-ups lack access to the capital needed to develop their concepts further or to take them to scale. Mobilizing capital to support these innovations and achieve the broader Sustainable Development Goals is a critical challenge for the international development community in the next decade. That is why donors everywhere need to examine their existing financial instruments and approaches to determine whether they are properly positioned and resourced to support this movement.
The United States, as the world’s largest donor, is no exception. It is also stepping up to the plate. The proposed new development finance institution included in the President’s FY2019 budget request and legislation introduced in the House and Senate is potentially game-changing for U.S. development finance and would help better mobilize private capital for development outcomes.
Photo courtesy of Isriya Paireepairit.