Earlier this year, I wrote about the ban on the international financing of fossil fuels, proposed by Special Envoy John Kerry and others. I argued that such a ban would be particularly devastating for poor countries that are reliant on institutions such as the World Bank to finance much-needed energy projects. For now, the world’s richest countries (also the largest shareholders in the World Bank) have allowed the financing of natural gas projects when no other alternative is available. But this may not last long,
CGD Policy Blogs
The US International Development Finance Corporation (DFC) is the $60 billion agency that’s supposed to catalyze investment to capital-starved countries, bolster job-creation in emerging markets, and support US foreign policy. The BUILD Act which created the DFC was a bipartisan bill, carefully crafted to overcome long-standing objections from both liberals and conservatives to its beleaguered predecessor agency. Recent actions from the Hill and the White House, each one arguably unobjectionable on its own, all add up to a highly worrying erosion of the DFC’s mandate—that threaten both the political bargain that sustains the agency and US strategic goals across Africa.