For 6 decades, the U.S. Government has used private capital and private sector engagement to help foreign governments strengthen their market economies. The types and sources of private capital used by the five agencies OIG oversees are framed by their missions and development objectives. Some engage through financing, such as loan guarantees, while others primarily receive gifts, donations, and joint funding. The approaches that the agencies use to engage the private sector and to mobilize private capital are influenced by a number of factors, including economic opportunities and the availability of potential partner companies whose goals align with theirs. Tracking and reporting private capital also varied across agencies, and some identified challenges validating data. Some agencies have taken steps to improve private capital mobilization through training and new policies.
We did not assess the effectiveness of the private capital activities identified and therefore did not make recommendations.