Tag Archive | Egypt

OPIC: a better way to do development?

I must admit that I’m far less familiar with the OPIC’s operations than with those of the World Bank, IMF, and other development finance institutions. However, OPIC (the Overseas Private Investment Corporation) might arguably be doing a greater service to society than these more well-known agencies.

For one, it’s been able to finance itself since its creation in 1971, something that can’t be said for most bodies that insure private businesses in high-risk areas like the DRC, Sudan, and post-revolution Egypt. Secondly, the money is used to fund private ventures rather than languishing in government coffers and being syphoned off by bloated bureaucracies. Thirdly, the funding is being targeted (at least from what I can tell) towards high-risk (high-need) areas that would otherwise lack access to high amounts of capital or insurance–something that is very often not the case for other aid coming from the U.S. (which has historically been directed towards areas of national security interest, towards keeping incumbent dictators in power, and generally ignoring areas of greatest need.) Political insurance and general loans are far less “sexy” than humanitarian aid, but I’m thankful that at least OPIC is dedicated towards providing these services.

I definitely wish that OPIC had more staff dedicated to examining the social and environmental ramifications of their investments (like the $200 million that went towards coal-fired power plants in Indonesia in 1995 or the $60 million that was used to fund silver and tin mining for an American corporation in Bolivia in 2005)…

But there were investments that I did like: