III. Statement of USAID Policy and Objectives for Financial Markets Development
USAID supports developing countries' efforts to develop financial markets. USAID will encourage these countries to (1) design, adopt and implement policies conducive to the development of efficient, deep, and integrated financial markets, relying primarily on market rates of interest and other terms for the efficient mobilization of private savings and allocation of credit, and (2) build and promote competition between viable private, profit-making financial institutions. The primary source of capital for economic growth should be private domestic resource mobilization. USAID can be a catalyst for financial liberalization in developing countries through both the policy dialogue process and project assistance.
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