A Smart Power Tool for U.S. Leadership in the Global South

As the U.S. reimagines its development and economic statecraft tools in the wake of USAID’s dismantling, the U.S. International Development Finance Corporation (DFC) is the smart power tool that the United States needs to reach for in its toolbox.

The DFC must be reauthorized by October 2025, which presents an opportunity to expandand streamline this effective agency. A turbocharged DFC can play an important role infacilitating U.S. investment in key sectors abroad, augmenting U.S. national economicsecurity, continuing collaboration with allies and partners amid current challenges, andstrengthening the ability of U.S. companies to compete with China’s expanding global reach.

Government leaders, the private sector, and NGOs – including those in the development community – would be well-served by working together to not only ensure the continued operation of this valuable entity, but also its improved functioning.

Read the full paper here.