USAID Launches New Policy on Economic Growth
U.S. Agency for International Development (USAID) has recently published a new Policy on Economic Growth. Only through economic growth can countries generate the resources they need to plan, finance, and implement solutions to their own development challenges, the key to ending the need for foreign assistance and completing the Journey to Self-Reliance. To support the implementation of the U.S. National Security Strategy, USAID can play a catalytic role in promoting economic growth led by the private sector, by helping developing countries become stronger trading and security partners. The new Policy advances the commitment of USAID and the broader U.S. Government to promote inclusive, sustained, and resilient economic growth as a mutually beneficial investment.
This Policy draws on the latest thinking and evidence in the field of economic development, and includes guidance on topics such as COVID-19, fragile states, gender, trade, and poverty. It provides six key principles to enhance the impact of our economic-growth programs:
- Enable Partners to Become Self-Financing;
- Prioritize Inclusion, Sustainability, and Resilience;
- Be Systemic and/or Catalytic;
- Be Cost-Effective;
- Be Adaptive; and
- Benefit, or Show the Strong Potential to Benefit, the U.S. Economy and the American People.