A Discussion on US Stimulus Aid for Italy:
An Interview with Kristie Pellechia
Q. I know you split your time between NYC and DC, have you been in DC during the shutdown?
I spent the first two weeks quarantined in DC as I had been in contact with the Brazilian delegation, which had 15 infected participants! Now, I’m back in NY. I spend so much time on planes or in foreign countries, it feels strange to be grounded!
Q. You work for the US International Development Finance Corporation. We had hoped to have a panel discussion at the Townhouse describing the work of the USIDFC, as well as other international development banks. They do fascinating work and cover a broad spectrum of activities. What drew you to this work?
The US International Development Finance Corporation (DFC) is the United States' Development Finance Institution. We finance development work that creates economic stability in emerging markets and our strategy is driven by foreign policy. I’ve always been interested in a few themes that align with this role: economic development, public service, and leveraging private sector solutions to government challenges. In my current role, I manage the portfolio for the Western Hemisphere, a region I’ve worked in for my whole career on the private side.
The timing (as always!) was important; this opportunity arose as Congress passed the “Build Act”, which was bipartisan legislation to double the size of our former agency (Overseas Private Investment Corporation) and create the new DFC. The opportunity to help build an agency, double the size of the portfolio, and support our government and the people of Latin America was pretty compelling. I liken this experience to getting an advanced degree in United States Government and Diplomacy but on a much more accelerated - and more exciting! - level.
Q. Even though we have to postpone our program to a future date when we can gather together, what are 2 or 3 of the most interesting aspects of this work you would like to share with your fellow CCF members?
The most interesting aspects of the work are the creativity, the variety, and the access it affords. We go into situations with limitless possibilities to identify private sector led solutions that address fundamental challenges. If the solutions are financially viable, then the investments should outlast different government regimes and politics. That should have a lasting impact on the people of the countries in which we operate.
In comparison to China’s Belt and Road Initiative, the United States' capital markets are the deepest source of financing in the world. By bringing private capital alongside the projects we support, we can help countries grow sustainably and without strings attached to other countries. With so much focus on Belt and Road, it's easy to forget the influence that the United States can have in exporting free markets.
Q. The US Government has made extraordinary commitments to assist with economic recovery from the COVID crisis. Your agency is named as one of the entities that will assist according to a Presidential Memorandum regarding assistance to Italy. Can you tell us a little about this program?
The DFC provides financing solutions (loans, political risk insurance, and equity) to private sector led projects in the developing world. The COVID crisis has become a liquidity crisis in addition to a health crisis. As a provider of liquidity, our role is more important now than ever.
In support of the President’s memorandum, we will be working within our existing mandate to provide financing solutions to Italian businesses in support of their operations in the developing world.
Q. For people who want more details, here is the link you shared. Italian businesses should also be referred to our website, where we have great resources about the application process. Are there any other initiatives from the USIDFC that are especially important to you?
Two initiatives are especially important. The first is “America Crece” (or “America Grows”), which is a United States-led, whole of government effort to work with other governments in the region to facilitate the structure of the energy and infrastructure sectors (key drivers of development as they are GDP multipliers) in such a way that they may be attractive to private sector finance. The infrastructure and energy needs in the hemisphere are so significant, they cannot be possibly financed by governments alone, so this initiative is fundamental to creating jobs and supporting long term economic growth. I think that the intersection of government and the private sector can be powerful in finding solutions to difficult problems, and this is one example of that.
The DFC has a significant women’s initiative (called “2x”) which is mobilizing 1 billion dollars for women in the Americas alone, helping women to access funding to build or grow businesses or access investment funds. Though I’ve been involved with other women’s initiatives, but I have not encountered a more impactful one than this.
Q. We look forward to welcoming you back to the Townhouse as soon as possible. Any favorite event you especially enjoyed since you joined CCF?
Thank you! Dinner at the Foundation is always a treat, regardless of the occasion! As I mentioned, I'm really interested in the intersection of government and the private sector. I especially enjoyed the presentations by Charles Gargano about the rebuilding of downtown Manhattan after 9/11 and Anthony Scaramucci’s insights on government and business. Also, I love to cook, so meeting Mary Esposito was special.