“The Better Utilization of Investments Leading to Development” Act of 2018, also known as the BUILD Act, passed the House of Representatives passed in late-July, yet is awaiting a full Senate vote before reaching the White House for signature into law.
The BUILD Act would consolidate multiple federal programs into one new Development Finance Corporation (DFC) for greater efficiency. It also aims to promote economic growth in developing economies through U.S. business investment and expands access to increased financing, including loans, allowances and various financial agreements.
Ray W. Washburne, President and Chief Executive Officer of the Overseas Private Investment Corporation (OPIC), issued a statement outlining the BUILD Act’s benefits after the bill was voted out of the Senate Foreign Relations Committee in June.
“A modern ‘DFI’ will advance American global competitiveness by providing the 21st century development finance tools needed to more effectively pursue foreign policy and national security goals,” said Washburne.
“By consolidating and modernizing the various U.S. Government development finance functions, the U.S. will be better prepared to cooperate with allies like the United Kingdom, Germany, and Japan, and compete with countries like China by providing an alternative to state-directed investment in emerging markets.”
Adva Saldinger, associate editor at Devex.com, wrote an opinion piece, “Poor Countries Have an Unlikely Ally Close to the White House” in the New York Times, that highlights the OPIC chief’s viewpoint on why a new U.S. development finance agency is vital.
IGD will continue to keep the Frontier Leader Network up-to-date on the bill’s progress in Congress.