As an early voice calling for the creation of the U.S. International Development Finance Corporation (DFC), MFAN has continued to track the agency closely since it opened its doors in December 2019. Transparency is pivotal to DFC’s success in fulfilling its mission outlined by the BUILD Act, and we commend the DFC for its ongoing efforts to enhance transparency within its operations.
In order to improve measurement and accountability, and to increase participation from the private sector, MFAN believes the DFC should continue to improve the transparency of its data -- especially at the investment level. Increased transparency will provide the ability to measure important functions such as development impact, whether the private sector is being crowded in, not crowded out, and whether the DFC is following its own environment, social, and governance (ESG) policies. Specifically, we believe the DFC should focus on improving data around: (1) development impact, both predicted and actual (as currently assessed by the Impact Quotient): (2) mobilization of private sector resources, including by type of financial instrument; and (3) ensuring that U.S. ESG policies are being practiced, especially for project-affected communities.
Building on these guidelines, MFAN recently submitted comments to the DFC on its new draft Transparency Policy, detailing our recommendations for how the agency can continue to strengthen best practices in accountability and transparency – including timely, consistent, and comprehensive information. Read our full recommendations here.