The US International Development Finance Corporation (DFC) has been operating for less than two years, and already some lawmakers are keen to expand its mandate. On the one hand, it’s good to see such appreciation for the tools of development finance. On the other, we share deep misgivings about proposals that would authorize—and even encourage—DFC investment in upper-middle-income and high-income countries absent a strong developmental objective or justification. That would divert attention and resources from the agency’s central mission: mobilizing private finance where it’s needed most. And, as mission creep spreads, it will likely mean DFC delivers less value for money and could jeopardize future support for the agency.
Diplomacy is Good, But the D in DFC is for Development | Center For Global Development (cgdev.org)
