Development Finance

Development is a central pillar of the U.S. National Security Strategy. The Office of Development Finance (ODF) leads the State Department's efforts to spur economic development overseas by promoting growth-oriented economic policies, good governance, entrepreneurship, openness to trade and investment, and effective overseas development assistance. Under the Bureau of Economic, Energy and Business Affairs (EEB) and within the International Finance and Development unit, ODF has the lead role in the Department on official trade financing and export credit issues. We coordinate international donor policy for reconstruction in selected areas affected by conflicts or natural disasters. ODF works with other USG agencies and the multilateral development banks (MDBs) to bring trade, investment, and assistance to developing countries and to promote sales of U.S. goods and services. ODF works closely with the Millennium Challenge Corporation (MCC) and is the liaison office for the MCC in the Department. Some of our achievements and ongoing responsibilities include:

• Formulating International Development Policy
  • ODF represents the State Department and formulates U.S. development policies for summits such as the Monterrey Financing for Development Conference, the UNCTAD, the G-8 Summit, the World Economic Forum, and the Summit of the Americas. During these meetings we advance strategies to alleviate poverty and to reach the Millennium Development Goals, Including consideration of total economic engagement -- net trade and investment, personal remittances, and private grants by companies and NGOs -- recognizing that financial support for developing countries takes many different forms and does not come as foreign assistance from the government alone. In collaboration with other U.S. government agencies, ODF releases an annual Fact Sheet on U.S. contributions to international development. 
• Reconstruction and Development in Post-Crisis Areas
  • Iraq
    • In the first 3 years after the liberation of Iraq, the office led the effort to mobilize international resources to re-start economic activity and reconstruction. The office also played a central role in supporting the development of the May 3, 2007, International Compact for Iraq, in which Iraq committed to significant economic reforms in return for international donor support, including debt forgiveness.
  • Lebanon
    • Since the month-long war between Hezbollah and Israel in 2006, the office has assisted in mobilizing international support for reconstruction and longer-term economic reforms to promote growth and stability. The office worked to support the success of the January 25th Paris Donors' Conference (Paris III) that resulted in Lebanon receiving over $7 billion in pledges of assistance.
  • Afghanistan
    • The office led the mobilization and coordination of international support for Afghanistan in late 2001 and early 2002 through the Tokyo donors' conference, which raised $4.5 billion in pledges for Afghan reconstruction.
  • Haiti
    • After the political turmoil in Haiti, we have been assisting in the mobilization and coordination of international donor assistance as outlined in the Haiti Interim Cooperation Framework. Additionally the office has been working with other U.S. Government agencies to develop bilateral initiatives that stimulate economic growth. Throughout the reconstruction and development effort, we are ensuring that all activities build upon lessons learned from our past donor assistance to Haiti
  • Liberia
    • To ensure the international community's continued support for the Government of Liberia's reform and reconstruction agenda following 14 years of civil war, the office played a pivotal role in planning, and mobilizing additional international donor assistance for, the February 2007 Liberia Partner's Forum co-hosted by the U.S. Government. The office also led USG coordination in preparation for the June 2008 Liberia Poverty Reduction Forum in Berlin to demonstrate strong U.S. support for Liberia’s first full Poverty Reduction Strategy.
  • Pakistan
    • In the aftermath of the 2005 earthquake, the office developed and implemented strategies to mobilize donor contributions from both MDBs and sovereign nations for the reconstruction of the devastated regions.
• Continuous involvement with other Government Agencies and Development Banks as a representative of the Department of State
  • U.S. Department of the Treasury
    • This office works in close coordination with the Department of the Treasury which serves as the lead point of contact between the USG and the multilateral development banks to promote U.S. views on development policy and ensure appropriate consideration of other U.S. policy objectives.
  • U.S. Agency for International Development (USAID)
    • ODF works closely with USAID on issues of economic assistance priorities, development policy and aid effectiveness.
  • U.S. Export-Import Bank
    • To help U.S. exporters compete globally and to create domestic jobs, ODF works closely with the U.S. Export-Import Bank (Ex-Im) to promote its efforts supporting exports of U.S. goods and services and providing credit and loan guarantees. ODF also works to ensure a level playing field for U.S. exporters, to minimize export credit subsidies, and to promote best financing practices by participating in export credit negotiations at the Organization for Economic Cooperation and Development (OECD).
  • U.S. Trade and Development Agency
    • Through its coordination with U.S. embassies and other USG agencies, the office assists the U.S. Trade and Development Agency in enabling American companies to participate in infrastructure and industrial projects as well as trade capacity building and other technical assistance in developing countries.
  • Multilateral Development Banks
    • This office organizes State Department participation at annual meetings of MDBs, including the World Bank, Asian Development Bank, Inter-American Development Bank, and African Development Bank, and the European Bank for Reconstruction and Development.
    • The office reviews loan packages from MDB to ensure that the projects:
      • Are consistent with U.S. Government policies regarding human rights abuses or trafficking in persons;
      • Foster economic growth and sustainable development;
      • Are consistent with market-oriented reforms;
      • Promote core labor standards;
      • Protect human rights and the environment;
      • Foster transparency in governments and businesses; and 
      • Are aligned with other U.S. Government agencies in the Working Group on Multilateral Assistance.
    • The office represents the Department of State during replenishment negotiations.
• Involvement with Environmental Initiatives
  • ODF is actively involved in assuring a commitment to sustainable development through:
    • Assisting in the U.S. participation in the Global Environmental Facility (GEF);
    • Representing EEB in the interagency environmental working group on multilateral assistance;
    • Representing State in negotiations to update the OECD export credit group's Common Approaches on the Environment;
    • Representing EEB at the "Tuesday Group" with environmental non-governmental organizations; and
    • Promoting sustainable environmental infrastructure projects in the U.S.-Mexico border region by assisting in the formulation of effective policies and procedures at the North American Development Bank.
• Coordination with the Millennium Challenge Corporation (MCC)
  • ODF is the primary State Department liaison to the Millennium Challenge Corporation to reduce global poverty. The MCC is charged with promoting transformative economic growth in low and lower middle income countries, which qualify for MCA funds by demonstrating their commitment to ruling justly, investing in their people, and encouraging economic freedom. ODF supports the Secretary of State in her role as Chair of the MCC's Board of Directors.