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US International Development Finance Corporation (formerly OPIC)
The United States International Development Finance Corporation (DFC) is the US government’s new full-service development finance institution, mobilizing private capital to address development challenges and advance US foreign policy priorities. From the new institution's inception, CGD analysis of its structure, guidelines, and investment opportunities equips policymakers with evidence and ideas to make the most of the new institution's increased portfolio cap, equity authority, and transparency requirements. This latest work builds on a long history of CGD analysis aimed at strengthening US development finance tools, which helped inform the blueprint of DFC.
We also invite you to explore CGD's DFI Dashboard, an interactive tool allows users to compare the lending practices and policy frameworks of 9 development finance institutions.
The future of development policy is in development finance. Developing countries need aid less and less as their incomes rise and economies grow. What they need now is private investment and finance. US development policy, however, has failed to bring its development finance tools in line with this reality. Related US efforts have not been deployed in an efficient or strategic manner because authorities are outdated, staff resources are insufficient, and tools are dispersed across multiple agencies.
Other players are doing more. Well-established European development finance institutions (DFIs) are providing integrated services for businesses, and these services cover debt and equity financing, risk mitigation, and technical assistance. Moreover, emerging-market actors — including China, India, Brazil, and Malaysia — have dramatically increased financing activities in developing regions such as Latin America and Sub-Saharan Africa.