Primary TextEconomic growth is a necessary condition for ending global poverty and delivering shared prosperity. Accelerating economic development in a sustainable way that reduces inequality within partner countries is a priority for the United States and the broader development community.
Since the 2007–2008 Global Financial Crisis, global economic growth has significantly slowed, driven by demographic shifts, reduced investment, and increased misallocation of capital and labor. This global slowdown has severely impacted many of USAID’s partner countries, which are facing severe economic headwinds. Successive global crises have exacerbated existing vulnerabilities, threatening development progress and jeopardizing democratic opportunities.
Policymakers in low- and middle-income countries (L/MICs) and a range of local development actors are increasingly seeking responsive partners to help deliver high-quality economic growth. To meet this need, it is vital for USAID to have the right tools to engage L/MICs as true partners, addressing their most urgent economic challenges with precision, speed, and scale.
USAID Economic Growth and Trade Policy
USAID’s new Economic Growth and Trade Policy takes stock of recent trends and outlines how the Agency will make the necessary strategic shifts to foster economic growth that is more sustainable, resilient, and inclusive. In its commitment to helping partner countries overcome barriers, USAID’s new Policy builds on the 2021 Economic Growth Policy and 2016 Trade Capacity Building (TCB) Policy to provide a unified framework to address emerging economic issues, such as rising debt, slowing growth and investment, supply chain risks and economic coercion. USAID will also create supplemental TCB guidance to show how USAID can support partners in responding to the economic opportunities in the global marketplace.
The Policy shows how we work in support of a prosperous future for our partner countries, with economic opportunity available to all and incomes and wealth rising at a stable rate. By expanding and diversifying the global marketplace, the Policy strengthens economic resilience abroad while creating opportunities for American businesses and bolstering U.S. economic security. This vision is achievable by working with local, international, public, and private stakeholders to promote economic growth through the following goals:
Policy Goals
Sustainable economic development
Resilience to economic crises
Improved inclusive economic opportunities
In advancing these goals of sustainable economic development, resilience to economic crises, and improved inclusive economic opportunities, USAID’s programming will be underpinned by five operational principles: (1) Expand strategic partnerships; (2) Prioritize systemic change; (3) Measure and evaluate impact; (4) Use a cross-sectoral approach; and (5) Advance the United States’ strategic and economic priorities.
