WASHINGTON, D.C.- September 26, 2018 – The U.S. House of Representatives today passed the Better Utilization of Investments Leading to Development Act (BUILD Act), which establishes the United States International Development Finance Corporation (IDFC). The new IDFC would utilize the core principles of the Millennium Challenge Corporation (MCC) investment model as well as MCC’s constraints to growth analysis and agency data for identifying factors impeding economic growth in a country, assessing the enabling environment for public-private partnerships, and recognizing investment opportunities.
Following passage by the House, MCC Vice President of the Department of Congressional and Public Affairs Karen Sessions released the following statement:
“MCC’s model incentivizes policy and institutional reforms that must take place to support economic growth. Looking to that model in the implementation of the new Development Finance Institution is foundational to the success of the BUILD Act.
MCC together with the IDFC will provide the United States with an avenue for the most effective development finance capabilities that match those employed by other donors, supporting U.S. global leadership and facilitating private sector led investment in developing countries.”
Congressman Ted Yoho released the following statement:
“MCC was the last major improvement in U.S. Foreign Aid. They have development metrics for our government to accomplish goals in nations we assist and ways to remove aid from countries that do not meet certain requirements.
The BUILD Act will incorporate some of these ideas to streamline our foreign aid vehicles so we can help countries improve their infrastructures to develop their economies, and create strong bilateral trading partners. The ultimate goal is to transition countries from aid to trade efficiently and effectively.”
The BUILD Act was incorporated into H.R. 302, the FAA Reauthorization Act of 2018. The legislation now heads to the Senate for consideration.
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