The Overseas Private Investment Corporation: Its Role in Development and Trade
ID-81-21
Published: Feb 27, 1981. Publicly Released: Mar 06, 1981.
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Highlights
The Overseas Private Investment Corporation (OPIC) was created to mobilize and facilitate the participation of U.S. private capital and skills in the economic and social development of less developed friendly countries. GAO was asked to review OPIC to determine the developmental impact of OPIC-supported investments, the effects of these investments on the U.S. economy, and the participation of small U.S. businesses in OPIC programs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| United States International Development Cooperation Agency | The President of OPIC, in consultation with the Director of the International Development Cooperation Agency, should fully implement the new system for evaluating and following up on OPIC small business promotion efforts, particularly the investor-mission and feasibility-study programs. |
GAO has no information on the actions taken in response to this recommendation.
|
| Overseas Private Investment Corporation | The President of OPIC, in consultation with the Director of the International Development Cooperation Agency, should fully implement the new system for evaluating and following up on OPIC small business promotion efforts, particularly the investor-mission and feasibility-study programs. |
GAO has no information on the actions taken in response to this recommendation.
|
| United States International Development Cooperation Agency | The President of OPIC, in consultation with the Director of the International Development Cooperation Agency, should require the OPIC staff to: (1) consult with appropriate Labor Department and labor union officials, as well as a wide range of industry experts, when assessing import-sensitive industry project proposals; and (2) develop specific operational guidelines for approving projects in all import-sensitive industries. |
GAO has no information on the actions taken in response to this recommendation.
|
| Overseas Private Investment Corporation | The President of OPIC, in consultation with the Director of the International Development Cooperation Agency, should require the OPIC staff to: (1) consult with appropriate Labor Department and labor union officials, as well as a wide range of industry experts, when assessing import-sensitive industry project proposals; and (2) develop specific operational guidelines for approving projects in all import-sensitive industries. |
GAO has no information on the actions taken in response to this recommendation.
|
| United States International Development Cooperation Agency | The Director of the International Development Cooperation Agency and the President of OPIC should develop and implement policy guidelines and a system of closer coordination with the Departments of State and Commerce to: (1) identify in the poorer developing countries more development-oriented and financially attractive investment opportunities; (2) help resolve problems encountered by U.S. businesses in the investment process; and (3) assist interested developing countries to improve their foreign investment screening and approval processes, priorities, and promotion efforts. |
GAO has no information on the actions taken in response to this recommendation.
|
| Overseas Private Investment Corporation | The Director of the International Development Cooperation Agency and the President of OPIC should develop and implement policy guidelines and a system of closer coordination with the Departments of State and Commerce to: (1) identify in the poorer developing countries more development-oriented and financially attractive investment opportunities; (2) help resolve problems encountered by U.S. businesses in the investment process; and (3) assist interested developing countries to improve their foreign investment screening and approval processes, priorities, and promotion efforts. |
GAO has no information on the actions taken in response to this recommendation.
|
| United States International Development Cooperation Agency | The President of OPIC, in consultation with the Director of the International Development Cooperation Agency (IDCA), should undertake, in conjunction with the primary U.S. export-oriented agencies, a concerted effort to further identify the specific areas and means by which U.S. foreign investments can significantly stimulate U.S. exports. They should also improve OPIC project selectivity, by requiring that more consideration be given in the OPIC analysis of proposed "trade exception" cases to: (1) strengthening its procurement requirements to include production inputs as well as initial procurement; (2) comparing U.S. with other industrialized nation trade benefits from U.S. foreign investments; and (3) examining long-term effects of possible technology transfers. The President of OPIC and the Director of IDCA should establish a more active role for AID in screening trade exception cases for possible conflicts with development objectives and devising guidelines and criteria for analyzing these cases. |
GAO has no information on the actions taken in response to this recommendation.
|
| Overseas Private Investment Corporation | The President of OPIC, in consultation with the Director of the International Development Cooperation Agency (IDCA), should undertake, in conjunction with the primary U.S. export-oriented agencies, a concerted effort to further identify the specific areas and means by which U.S. foreign investments can significantly stimulate U.S. exports. They should also improve OPIC project selectivity, by requiring that more consideration be given in the OPIC analysis of proposed "trade exception" cases to: (1) strengthening its procurement requirements to include production inputs as well as initial procurement; (2) comparing U.S. with other industrialized nation trade benefits from U.S. foreign investments; and (3) examining long-term effects of possible technology transfers. The President of OPIC and the Director of IDCA should establish a more active role for AID in screening trade exception cases for possible conflicts with development objectives and devising guidelines and criteria for analyzing these cases. |
GAO has no information on the actions taken in response to this recommendation.
|
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