A new development finance agency is in the brink of creation. This past may the US Senate Committee on Foreign Relations approved legislation to create a new development finance institution and is currently heading to Congress for approval. The new agency combines current efforts overseas as well as expanding U.S. development finance capabilities.
According to Wall Street Journal reports, It is through the Build Act that the US will enhance its role in international development by combining several little-known government agencies into a new body with authority to extend $60 billion in development financing—more than doubling the cap of the current agency that performs that function. The Better Utilization of Investments Leading to Development Act (BUILD) Act allocates money from the private sector dollars in developing countries to build infrastructure around energy, technologies, and business ecosystems. to ultimately reduce the need for American foreign aid.
Critics have singled out the BUILD Act as the US response to China’s immersion in funding aid in Asia, the plan proposes great advancement of Sustainable Development Goals in Africa,Asia, and South America. If this legislation is passed we will see a new
Knowingly or not, this bipartisan legislation will potentially determine a new world order in how development is financed around the world. Making access to capital more free and market-oriented business environment.
Regardless, it is a great opportunity for Atlas Corps fellows to follow up on. Whether your active in Humanitarian Aid with MSF or the Red Cross or an entrepreneur in the MENA region, you will want to look into what China and the US are doing n the development finance realm for the months to come.
For more information check out this explainer video