Presentation by John Hurley, Visiting Policy Fellow Centre for Global Development and former lead US negotiator for the Addis Ababa Action Agenda

Presentation by John Hurley, Visiting Policy Fellow Centre for Global Development and former lead US negotiator for the Addis Ababa Action Agenda

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  Private capital for developmentand foreign aid John Hurley Center for Global Development May 31, 2017
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  Private capital fordevelopment and foreign aid Private Flows Remittances US Initiatives The U.S. FY2018 Budget
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  Private Flows -“Take note with concern that a significant number of developing countries have not experienced a rise in international capital flows.”
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  But not consistenttrend for all countries
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  Remittance Prices –“We will strengthen existing measures to lower the transaction costs.”
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  Remittance Prices –Impact of Technology
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  Bilateral Initiatives • “Wewill strengthen national, bilateral and multilateral efforts to assist developing countries in overcoming the structural or other constraints which currently limit their attractiveness as a destination for private capital and foreign direct investment.” (para 23, AAAA) • “The programmes, mechanisms and instruments at the disposal of the multilateral development agencies and bilateral donors can be used for encouraging business investments, including by mitigating some of the risks faced by private investors in critical sectors…” (para 24, AAAA)
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  Power Africa • ElectrifyAfrica Act of 2015 - promote first-time access to power and power services for at least 50,000,000 people in sub-Saharan Africa by 2020 in both urban and rural areas. Signed by President Obama February 8, 2016. • “In carrying out policies under this section, such institutions shall promote the use of private financing and assistance and seek ways to remove barriers to private financing for projects and programs under this Act, including through charitable organizations.” • Power Africa has more than $54 billion of commitments from its more than 140 public and private sector partners to achieve its goals. The 57 projects that have reached financial close are worth more than $14 billion.
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  Food Security • GlobalFood Security Act of 2016 authorizes a comprehensive, strategic approach for United States foreign assistance to developing countries to reduce global poverty and hunger. Signed by President Obama July 20, 2016. • “leverage resources and expertise through partnerships with the private sector, farm organizations, cooperatives, civil society, faith-based organizations, and agricultural research and academic institutions…” • In 2015, Feed the Future helped over 9 million small-scale farmers and rural families adopt practices that improved agricultural productivity, boosting their incomes by more than $800 million. In areas where Feed the Future is active, these improvements have helped reduce poverty up to 26%.
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  Women Entrepreneurs Fund? •Announced by Ivanka Trump in Saudi Arabia • Promised a combined $100 million by Saudi Arabia and the United Arab Emirates specifically to help women in the Middle East • World Bank President Jim Yong Kim said he first heard about it when it was pitched to him by Trump and German Chancellor Angela Merkel • Goal is to announce at the G-20 summit in July with additional donations from the United States and other countries, a fund with a total of $1 billion for women's economic empowerment
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  Trump FY 2018Budget Proposal • The full budget features a 32 percent cut to topline funding for the Department of State and Foreign Operations. • Plans to eliminate the Overseas Private Investment Corporation (OPIC), the United States’ chief development finance institution, citing concern that it displaces the private sector. • Would zero out US food assistance under the United States’ largest international food aid program, known as Food for Peace Title II (or P.L. 480). Suggests future food assistance will be provided through the International Disaster Assistance account but rather than shoring up the account to shoulder the additional cost, it cuts that account too. • Plans to eliminate the Overseas Private Investment Corporation (OPIC), the United States’ chief development finance institution, citing concern that it displaces the private sector.