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CGD Policy Blogs

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Seven Steps to Supercharge OPIC, America’s Unsung Development Hero

This is a joint post with Ben Leo, former CGD research fellow and now Policy Director at ONE.

The Overseas Private Investment Corporation is the best US development agency you’ve probably never heard of. Known as OPIC, it’s often mistakenly confused with the oil cartel. But if you care about promoting economic opportunity around the world, then OPIC should be on your radar. And with a few changes, the Government could make OPIC a whole lot more impactful.

Launched in 1971, OPIC leverages public money to create market opportunities and crowd-in private capital by providing insurance, loans, and seed capital for new private equity funds. Over four decades, OPIC has helped to generate nearly $200 billion in new investment, enabling US investors to enter new markets and building a private sector in support of US policy objectives. The bonus of OPIC is not only that it works, but that it comes at no cost to US taxpayers. In fact, for 34 years in a row, OPIC has generated profits and contributed funds into the US Treasury (the FY2012 budget expects a $188 million contribution).

Haiti: Three Years After the Quake and Not Much Has Changed

January 12 will mark the third anniversary of the tragic Haiti earthquake that killed over 220,000 people, displaced millions, and flattened much of Port au Prince. Damage and losses estimated at $7.8 billion exceeded Haiti’s entire GDP at the time. The country received unprecedented support in response: more than $9 billion has been disbursed to Haiti in public and private funding since 2010. Private donations alone reached $3 billion, much of it from individuals donating small sums via text messages to the Red Cross and other charities. Official donors tripled their assistance from 2009; in 2010 aid flows were 400 percent of the Haitian government’s domestic revenue.

What’s in a Pilot? A View from South Africa’s National Health Insurance (NHI)

This is a joint post with Rachel Silverman.

Last week, I attended a conference on South Africa’s national health insurance (NHI), which was hosted in Pretoria by the Human Sciences Research Council (HSRC). A key recurring theme and consensus emerged: South Africa must develop a clearer plan and strategy for the “piloting” phase of its national health insurance.

Some background: In 2011, the government of South Africa committed itself to providing all of its citizens with “a defined package of comprehensive (health) services” through national health insurance. While the details are still up in the air, the government issued a preliminary policy paper which estimated NHI to cost R255 billion (~US$30 billion) per year by 2025, if implemented as planned over a 14-year period.

ABCs of the CDI and Europe – David Roodman and Owen Barder

This podcast was originally recorded in September, 2012.

It’s that time of year again. In just a few weeks, CGD will release the 2012 results of its annual Commitment to Development Index (CDI) – a product that measures the extent to which wealthy nations are supporting poorer countries’ development efforts in seven policy areas: aid, trade, investment, migration, environment, security, and technology. In this week’s Wonkcast, I chat with David Roodman, CGD senior fellow and chief architect of the CDI, and Owen Barder, senior fellow and director for Europe, about the ABCs of the CDI and what we are calling a “deep dive” into the CDI for Europe.

Related Content

Europe Beyond Aid initiative

David recalls that CDI had its origins in a 2001 meeting between CGD president Nancy Birdsall and Moisis Naim, then editor-in-chief of Foreign Policy Magazine. Moises suggested that CGD, then a brand new think tank, should publish an index. Nancy knew she wanted to measure the rich world’s support for development and put David in charge of figuring out how. Eleven years later the index results remain fairly consistent -- with smaller, northern European countries grabbing top spots. I ask David why.

Send Salads to Ethiopia, and Solar Panels to Senegal

This post originally appeared on Carnegie Council for Ethics in International Affairs' Policy Innovations blog.

Imagine the United States sending low-calorie food aid to Ethiopia in response to the global obesity epidemic. Absurd, right? Even if global waistline trends are worrisome, Ethiopians didn't create the problem. Such a policy would be futile since it would have no noticeable impact on the global aggregate.

Europe’s Policy Footprint on Development

This is a joint post with Liza Reynolds.

This blog post announces the launch of the Europe Beyond Aid initiative and presents a summary of the research and preliminary analysis in its first working paper.

Europeans more than pull their weight in aid to developing countries. Last year Europeans provided more than €60 billion ($80bn) in aid, more than two and a half times as much as the United States. European members account for just 40% of the national income of the Development Assistance Committee (DAC) but give more than 60% of the aid.

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