The U.S. Model of Insuring Development Investments Against Political Risks: Tracking Transformative Changes

The paper tracks the trajectory of transformation in the U.S. model of insuring development investments against political risks. First it outlines a novel normative context for providing political risk insurance (PRI), which took shape in the United States in 2018. Then, it compares the numerical parameters of insurance activities by the U.S. International Development Finance Corporation (DFC) over FY 2020–2024 with those of its predecessor, the Overseas Private Investment Corporation (OPIC) in FY 2015–2019, analyzing and explaining the main changes in the scope and geographical priorities of PRI coverage. Finally, the paper unveils the substance of debates around the DFC’s reauthorization which have so far resulted in an increased securitization of development investment support, including political risk insurance.