IGD was founded in Seattle in 2003 by William H. Gates Sr., former U.S. Senator Daniel J. Evans, former EPA Administrator William D. Ruckelshaus, Global Partnerships CEO William H. Clapp, and former Chairman of the Joint Chiefs of Staff General John Shalikashvili.

Prompted by their desire to help restore America’s leadership in the world, the inaugural group held meetings with global development experts and other like-minded individuals. The group of business and civic leaders concluded that poverty is at the root of many of the world’s greatest challenges and that its dramatic reduction is one of the most important steps we can take to create a better future. They agreed that addressing the inequity of a world where almost half the population lives in poverty is a critical factor in ensuring the future prosperity and security of us all.

IGD recognized that lasting poverty reduction would only be achieved with significant private investment to spur growth and enable people living in poor countries to move up the economic ladder. In order for this to happen, governments must create environments where private enterprise can thrive, through open political and economic systems and rule of law, and investments in human development and job creation.

IGD recruited corporate leaders across the United States to join its network and bring the voice of business to global development issues. In 2006 IGD hosted a National Summit co-chaired by former Secretaries of State Madeleine K. Albright and Colin L. Powell. The Summit brought together business and government leaders to discuss the role of the private sector in solving global poverty. President George W. Bush gave a foreign policy speech at the Summit, emphasizing the power of trade to promote global development.

In 2007 IGD was formalized into a 501(c)(3) nonprofit organization and developed a strategic plan focused on promoting effective policies aimed at poverty reduction and advancing private sector solutions that expand economic opportunities for people in poor countries.