Private-Sector Development and U.S. Foreign Policy

Evidence of Indirect Diplomatic, Economic, and Security Benefits

What benefits does private-sector development provide to the United States? When the government facilitates connections between the U.S. private sector and the private sectors of developing countries, what does the United States get out of it? This report seeks to answer these questions by examining two broad measures: the direct development benefits that accrue to the host country; and the indirect benefits that accrue to the donor nation. In justifying its extensive foreign aid budget to Congress and the broader public, the executive branch frequently cites the diplomatic, security, and economic benefits of such aid. This report provides some quantitative indicators for those benefits.

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Daniel F. Runde
Senior Vice President; William A. Schreyer Chair; Director, Project on Prosperity and Development
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Conor M. Savoy

Conor M. Savoy

Former Senior Fellow, Project on Prosperity and Development