Toward a New Development Model

The Center for Global Development’s Todd Moss recently presented the idea of a fairly dramatic restructuring of U.S. development programs that would, among other things, consolidate the government’s tools to stimulate commercial activity in developing countries in a new U.S. Development Bank. His proposal includes categorizing countries by whether they would be better suited to the trade and investment approach of the U.S. Development Bank or the more traditional foreign aid approach of USAID. While this raises a number of questions, IGD supports the objective of a strategic realignment that prioritizes market-driven solutions and brings us closer to achieving sustainable development outcomes.  

Moss’ proposal emphasizes the need to strengthen coordination across U.S. development agencies, and to provide flexible access to the finance tools that can best leverage private sector participation in development, both of which are components IGD considers essential to a more private sector-led development model. Read the response from IGD’s Senior Director for Policy, Jeri Jensen.

The Obama administration has launched a new Partnership for Growth initiative. Though still nascent, it is an effort to translate into practice the Global Development Policy announced last fall in four pilot countries: Ghana, Tanzania, El Salvador and the Philippines. In these countries the U.S. government intends to devise a strategy that will coordinate programs across multiple agencies in order to improve development outcomes and provide a more transparent mechanism to facilitate business investment.

At the request of USAID, IGD has helped identify companies to participate in “listening calls” to identify barriers to investment and constraints to growth in these countries. It is our hope that these calls result in a process of ongoing consultation to identify opportunities for investment and promote greater alignment between U.S. government priorities and business interests.

A more effective U.S. global development strategy is dependent on bipartisan support in Congress for authorizing and funding successful government programs that deliver real development outcomes. The U.S. government’s development approach needs to be updated and sharpened to better measure impact, target resources to what works, leverage contributions of the private sector and strengthen the capacity of poor countries to meet the needs of their own people. IGD is concerned that the current budget climate threatens the movement toward more effective development.

Through its network of companies in the United States, Africa, South Asia and Europe, IGD seeks to increase business investment in African agriculture and better align U.S. government programs and private sector efforts. At the World Economic Forum on Africa in Cape Town last month, Kristen Dailey (IGD COO and Vice President, AgInvest) participated in discussions about the Southern Agriculture Growth Corridor of Tanzania (SAGCOT), the Obama administration’s Feed the Future program and other initiatives to remove barriers to agricultural development in Africa.

IGD also participated in the Chicago Council on Global Affairs’ Symposium on Global Agriculture and Food Security in Washington, D.C. The “Progress Report on U.S. Leadership in Global Agricultural Development” was released at the event, and attendees explored how support for agricultural development can advance global security, stability and economic prosperity.

IGD continues to collaborate with WEF, Feed the Future, the Chicago Council and TransFarm Africa to advance agricultural development.

On her recent trip to Africa, Secretary Clinton praised Symbion Power and Pike Electric for their investments and announced that Tanzania will be one of the first countries to be part of the administration’s Partnership for Growth initiative. She also pledged a significant Feed the Future investment in Tanzania.

MCC CEO Daniel Yohannes talks about investments from companies like Symbion and Pike, which will help reduce poverty in Tanzania as well as support economic growth in the United States.

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