On December 6, George Ingram testified before the U.S. Development Finance Corporation on DFC’s role in expanding development finance. His written testimony follows.
Building on the effort to revitalize the World Bank and other MDBs/DFIs, catalyzed by U.S. Treasury Secretary Janet Yellen, the administration and Congress should begin now to provide the capabilities for the DFC to fulfill its role in galvanizing a significantly higher level of private financial flows to developing countries.
The 2022 report Financing a big Investment push in emerging markets and developing countries for sustainable, resilient, and inclusive recovery and growth calls for a doubling of private lending to development countries by 2025. The Triple Agenda report (in 2 volumes) of the Independent Expert Group commissioned by the Indian G20 Presidency outlines a path to enhancing financing for development. Its findings identify a need for incremental investment in climate action and SDG financing of $3 trillion annually by 2030, of which $2 trillion would be from domestic finance and $1 trillion in international finance. The international finance would be comprised of $500 billion each of official development finance and private capital. The report was discussed at the October meeting of G20 Finance Ministers and recommended for further consideration in the final declaration.