Mobilizing Private Sector Innovation to Advance U.S. Interests Overseas

By Paul Foldi, Vice President of International Development Affairs, PSC

On May 29 the Trump Administration introduced its muchawaited proposal for a State Department reorganization, including an organizational chart with a new Under Secretary for Foreign Assistance and Humanitarian Affairs (F). T his new role would oversee three pre-existing State Department bureaus — Democracy, Human Rights and Labor (DRL); Population, Refugees and Migration (PRM); and the Office of Foreign Assistance — along with the Office of Global Food Security, that was transferred from USAID. 

At the same time, the White House and “Foggy Bottom” (State Department) are also considering how to restructure and redirect U.S. foreign engagement towards economic opportunities —mobilizing capital through existing structures such as the U.S. International Development Finance Corporation or possibly through a new sovereign wealth fund. As these efforts advance, it is imperative to ensure that potential partner nations have transparent and accountable financial, regulatory, and governance structures in place. These systems are essential to unlocking economic growth, attracting private capital, and ensuring American taxpayer dollars are used appropriately. Thanks in large part to years of collaboration with American experts in these fields, many countries already have such systems well-established. However, other crucial economic and strategic partners still need our help, and U.S. private development contractors can play a vital role to help advance these goals.

The American private sector offers unparalleled mobilization capable of advancing U.S. priorities abroad. Private sector contractors serve as force multipliers by responding to overseas needs identified by the U.S. government through the deployment of technical experts who address specific challenges and possess years of regional, cultural, and linguistic expertise that help ensure long-term results. T hese technical experts also collaborate with host-country partners to address market reforms, prepare and implement infrastructure projects, streamline processes, and optimize resource utilization — ensuring that projects are completed on time and within budget. 

Read the entire article in the Summer 2025 edition of Service Contractor magazine.
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