Global Development Council Report: Modernizing Development

development architecture and policies to effectively address the changing landscape of international development. The report highlights the shift from traditional bilateral and multilateral aid programs to a more diverse stream of financing, including domestic resources, private capital flows, foreign direct investment, private philanthropy, and remittances. The report proposes concrete, actionable measures to make U.S. development efforts more catalytic and innovative. These measures aim to galvanize the private sector, promote sustainable growth, spur innovation and focus on results, collaboratively mobilize resources, and focus on youth and women's empowerment in major urban areas. Galvanizing the private sector for development is a key element of the new approach. The council recommends establishing a U.S. Development Bank, which would pull together various strands of development finance into a coherent whole. This includes the Overseas Private Investment Corporation (OPIC), the U.S. Trade and Development Agency's feasibility studies and technical assistance programs, USAID's private-sector units, and relevant international technical assistance programs. To strengthen OPIC, the White House is urged to push for its permanent reauthorization and request an increase in its administrative budget to support the hiring of additional staff. This would enable OPIC to support the investment activities of U.S. companies, more fully utilize its Congressionally-authorized investment ceiling amount, and enable more comprehensive, transparent, and evidence-based reporting and evaluation of development results. The council also recommends embracing social impact investing across all development agencies. This includes utilizing social impact investing to accomplish social as well as financial objectives, and considering the concept of introducing equity investing into OPIC's portfolio. Additionally, the council recommends establishing a "one-stop shop" that allows the private sector to more easily explore and interface with all parts of the government engaged in development finance. Promoting sustainable growth is another key element of the new approach. The council recommends appointing a Climate Smart Development and Resilience Advisor, expanding Feed the Future by three countries while targeting women for 50% participation, reducing food waste and loss, and utilizing geospatial data to guide a major effort to restore degraded lands. The report emphasizes the importance of addressing climate change, the rise of megacities, and the need to feed, educate, and find employment for growing populations. It also highlights the need for developing new models of economic growth that are ultimately more sustainable than today's. The council's recommendations aim to make U.S. development efforts more effective and sustainable, and to galvanize the creativity, resources, and partnership of developing countries, civil society, the private sector, and key multilateral institutions.