tv U.S. Global Leadership Coalition Summit U.S. Lending and Private Sector... CSPAN June 19, 2018 12:31pm-1:19pm EDT
wait for that adjudication. >> is that a good way it characterize his response? >> none of us -- >> any chance he ends the zero tolerance policy -- >> i'm not going to attempt -- >> he has the power right now -- >> a lot of people are wondering why he doesn't. >> ted cruz, what about -- >> we're going to be looking at those. [captions copyright national cable satellite corp. 2018] >> this afternoon senate commerce subcommittee exams cambridge analytica's partnership with facebook during the 2016 presidential campaign. the hearing is a follow-up to one earlier this year with facebook c.e.o. mark zuckerberg. today's hearing will focus on the collection and use of social media data, the privacy concerns raised in the wake of the analytica facebook scandal, and potential steps to protect consumers, live coverage at 2:30 p.m. on c-span3.
also online at c-span.org. you can listen with the free c-span radio app. a portion of yesterday's u.s. global leadership coalition conference. senator chris coons talks about u.s. public and private lending programs in the developing world. >> thank you. hello, everybody. welcome to a very distinguished and fascinating panel. i'm always delighted to be back here because what you do and what you stand for and what you advocate for is so incredibly important. efforts are es and always so needed and welcomed. the discussion that we're going to have here today really
resolves around or highlights the opportunity to efforts are always so needed and strengthen one of the tools of america's global economic engagement which has the support of the administration, as well as bipartisan support in congress. no mean feat these days, that's development finance. let me set the table a little bit if i may. since 1990, extreme poverty has been cut in half in many of the fastest growing economies in the world today are in the eveloping world. creating economic opportunity for american businesses and investors eagletory sell their goods and services, but it can be hard to get the financing. because these markets are seen as carrying higher financial risk, economic opportunities are nonetheless real, this is where the tool of economic development and development finance come in. overseas private investment corporation, helps promote economic development by providing risk insurance, financing for u.s. businesses,
private sources of financing are unavailable. has it worked? the answer is yes. since 1971, opic has catalyzed more than $08 billion in u.s. exports, supporting hundreds of thousands of american jobs, and returns money to the treasury each year because its loans are repaid with a default rate of just 2%. so it actually helps reduce the deficit. that should be a little bumper sticker. today our question is for these remarkable policymakers and experts, how can the united states do more to unlock the potential for economic growth around the world while creating opportunities for american businesses to be there to take the risk to have the financing? ray wash it is burn, thank you so much for being here. and bob, thank you so much. and senator coons, you don't have anything else to do, thanks for stopping by.
we stole you out of some hearings as i understand it, if you have to leave early, we understand. we hope we'll be able to hang on to you. let me start with you, if i may, when were you nominated to lead opic, you promised to build it. and the administration has proposed to create new development finance institution with even greater resources, authorities, reach. i'm interested in maybe a good place to start the conversation how you and your business background resonated with opic, and why this administration has become such a strong supporter of it? >> sure. well, first before i start on that i want to compliment senator coons. when i was nominated for this position, opic was going to be eliminated. >> i was going to ask you about that. ray: some going through my confirmation hearing, why do you want a job that might be eliminated? but senator coons and to his
leadership helped convince me this is the job and this is going to be the organization that's going to be here to lead. he deserves a lot of credit where we're. frank: what exactly is that leadership? ray: what i saw in opic, i came out of the private sector, hi the boards, the boards, severa banks, been in the manufacturing business, i could see going to foreign countries what an important resource having available finance is. i spent a lot of time in africa, in zambia, for example. my family's worked in or . nnages there -- orphannages there. when i sit and talk to people in these countries, they can't get financing longer than two or three years at very, very high interest rates which really keeps the ability to do business away. i was in honduras two weeks ago. honduras is. -- a country that's very important in the entire northern triangle of central
america, honduras, el salvador, guatemala, big textile industries down there. create thousands of jobs in the u.s., but conversely, the unemployment rate for people under 30 there is over 50%. so where do they go to look for opportunity? they come to the united states. if we could provide opportunity for them in those countries, there is no reason for them to come to the united states. they don't want to leave their friends. but there is no access to capital. on the manufacturing sense, opic providing very affordable financing with terms of 15 to 20 years enable people to commit to build big factories. frank: you have gone from the administration from zeroing to doubling this thing. how did that happen? ray: i talked to a lot of people. the real story is the chinese have $2 trillion in their development agencies. the japanese have $168 billion. opic when i came in had $22 billion deployed and ability to
do $28 billion. the build act, we're going to get up to $60 billion in size which is very minor on the world stage. we haven't been reformed since 1971. the two important aspects that we're getting with this bill, which we had to have, one, the feasibility studies because a lot of these countries we can look at and we're asked to take a look at, but we had in idea if that's the place to go. opic has been the organization that has answered the phone, we haven't had the tool to go out and get people. that's changing. now we're going to have equity authority. other countries don't want to do business with us because all we're is a dead instrument currently, now we have the opportunity to have equity participation. a lot of these projects can't sustain debt. they have to have equity in it. both things are -- we're still very small on the world stage, still the leader on
the world sfage. everyone wants the united states involved. opic is opened in 130 countries. we have 675 projects. since i have been in office i have been to over 20 countries. everywhere we go the need sin credible. he chinese are everywhere. frank: we'll come back to that. what did you say to have him take this on? senator coons: he has a heart for africa. he deeply understands the equity markets and finance. to have someone with his passion and energy and engagement taking on the role of leading opic with an openness not just sustaining opic but nodernizing it was the right man, at the right time, right place. the build act is bipartisan and bicameral. we have a very broad significant number of co-sponsors in the senate and house. i am grateful to republican chairman bob corker, foreign relations committee, who's really been my lead on this in the senate. and to congressman ted yoho, republican from florida, adam smith, democrat from
washington, leads in the house. we have dozens of co-sponsors that span the whole ideological spectrum. frankly, this is a great moment for to us do something that is good policy, good politics, and role in the our world. as ray said, in my eight years as a senator, four chairing the africa subcommittee, i went to a dozen countries in africa and the united states had been significantly eclipsed by china as the major source of infrastructure investment, as its major export and development partner, and this is also true in central and south america and southeast asia, around the world, in frontier markets and developing markets, the united states was missing a critical opportunity. and to have the chance to work th ray missing a critical opportunity. and to have the chance to work with ray in a great bipartisan group of folks in congress to modernize and strengthen owe picks -- opic torques give it equity authority, the opportunity to do advance studies, feasibility studies, but also to issue loans in local currency, to take on investors who are not u.s.
nationals, and to issue new instruments that could strengthen its scope and reach is very exciting. we will still be significantly smaller this new d.f.i. than our european counterparts or the chinese, but we'll be moving in the right direction. we will be able to work in partnership with the d.f.i.'s from our core nato and western european partners, and we'll be able to have a significant role in the developing world at exactly the time when what i hear from heads of state, civil society, and business leaders all over the developing world is they want us. and the politics of the moment is that we're going to gradually decrease the amount of grants the united states government is giving through entities like usaid. this gives us an opportunity for usaid and a new reformed opic to lead development initiatives using private capital. that works for our politics. that works for policy. i think it's a very smart initiative. i'm thrilled the trump administration has embraced it enthusiastically. frank cloy you were speaking
recently about the bill. you said there is no way the traditional aid by which i mean large public sector grants are will be a sufficient most p effective way to harness resources necessary to bring the world's poorest countries out of poverty. official development is now dwarfed by private capital. senator coons: one of the striking things to give more credit, congressman ted yoho is a freedom caucus member. he came to congress convinced that one of his main goals was to eliminate foreign aid. get rid of it. you got a guy who was hired to get rid of opic. the guy came to congress get rid of foreign aid. both of whom have been persuaded through their engagement to see this moment of opportunity where private capital in which you are deeply -- which congress canman yoho is a champion, private capital partnered with the u.s. federal government can be our most significant tool of development in the coming decades. i think that's an important moment and big change.
if you look backwards, republican and democratic administrations have had one or two big initiatives that impact the continent, africa or the developing world. pepfar, under bush administration. i think this launch of a new d.f.i. has real promise to be the most significant initiative of the trump administration and developing world and a way for to us harness what we're best at to meet the moment in the developing world and to really tackle what's left of extreme poverty and create export markets an opportunities for u.s. government. frank: powerful point. bob, let me ask you this. private capital, which the senator has talking about, is playing and creasingly greater role driving this global development today, only about 1% of the financial flows into the developing world come from official government assistance. 90% comes from private capital, private actors. that kind of thing. how do you and how do private investors, private sector, work
alongside america's developing agencies like opic to provide these opportunities? bob: thank you. thank to you the council for the invitation to participate today and be with great leaders. you might see a branch here in washington or agencies like els well over 100 countries, the only american bank in africa, across most of the middle east, south asia, or central america. we were in the congo before we were in connecticut. as a private sector investor and banker, more importantly, to many investors, i also say social enterprises, nonprofits, and others is on the ground. and clearly the role of private sector capital is just -- it is
the future for all the countries we're talking about. opic for ked with years. we have watched its evolution. i think i looked over the last five, seven years, about years. we have watched its evolution. i think i looked over the last five, seven years, about $2.3 billion in financing together. i should say that's not that opic finance is out. so we co-finance. we're maybe originating in a local market, local country, local currency, local law, i would say this is very unusual, and opic will co-finance together. we'll risk share. that's really developmental. frank: give us an example of that and what it looks like in terms of the real project or investment. bob: we just recently did one in ghana, about $40 million. only 6% of the population has access to formal banking redit. small, medium sized enterprises, very expensive and
very hard to ack test. -- access. that finance something one example of what we might do together. in jordan, we worked together to microfinance institution. a microfinance p institution there, we're in turkey or elsewhere, also lending to small entrepreneurs. in those cases we originate a loan, we lend in local currency. and opic is one of those syndicated, risk takers it would not be possible to do the volume that we do or go -- perhaps that edge of the tenor we get the small enterprises and local institutions into the a ate sector without partner like that. we both take risk. yes, it is developmental risk. it's new. but what it allows is many local, a partner like that. private sect participants themselves raise their visibility in the private markets. and to access capital, hopefully, thereafter, from the public. that's not the case with many
of the other agencies. we work with many. we like to work with opic, but the dutch, british, french, germans, and chinese more recently are also very active in this space. i think the affirmation, there is a lot of affirmaon having opic involved in your business. it's good due diligence. they look at the labor laws. they look at the sustainability and environmental conditions of those borrowers. that sets a benchmark to any company that's going to go out there and try to raise public or private funding. frank: let me ask a question to both of you. this is a very important thing. you talk about this in your remarks that i was quoting from the other day. one third of the investments are in weak and francle states also have a connection to national security. you talk about that and how this targeting comes about and how one third of the development fi can be used in these fragile states to show a return on investment that correlates to
national security. ray: an example ray: an example of a deal we did in africa. it's a cell phone tower and infrastructure business. it's only going to countries where the g.d.p. is $450e a person or less. -- $450 a person or less. how does that make a return? opic's inexpensive financing to go in, we're able to build out a phone network. by doing that people then have access to phones, which they can get mobile banking, which they didn't have access before, it opens up to the entire world. we feel like that helps stabilize societies. senator coons: the last congressional delegation i led to africa, we went to niger. two countries that have been the targets of aggressive increasing larger tariff attacks. two partners of ours in security. if there aren't opportunities for growth in countries like these where a majority of the 25, where 25, where
there just aren't enough chance force entrepreneurship and economic growth, there is no long-term answer to the security pruzzle. having opic available -- puzzle. having opic available to guarantee loans, projects, or development opportunities in countries trying to move towards stablets is a critical piece -- stability is a critical piece of the total investment we're making in these countries both developmental and security. these are countries where the heads of state were very welcoming, security forces are closely aligned. but where economic growth has been elusive and where without that access to capital, it's unlikely that they are long term going to be successful countries. these are also markets where cities where has been broadly engaged, adventure some around the world for a long time, would not be investing without a partner like opic. opic or the new development finance institution should the bill pass, will be able to make strategic investments in
frontier or developing markets that can help stabilize fragile states. that's a key piece of our overall development. frankly we were -- bob: if we end up lending money to a textile manufacture, and they have 100 employers, there is a multiplier effect of five to seven jobs for every new job created. suppliers and on down the food chain. it's not just one job. when you see that we created that, you have to look down and the multiplier effect upon that. that's bringing employment to these countries that need it. frank: when are working in these weak and disenfranchise the states. a lot of attention on how american taxpayer dollars are being spent around the world. they have special challenges and special risks because they are weak and fragile states. what do you at opic do to assure yourself that these are solid investments? what more do you have to do in these states as opposed to
something -- bob: one thing i'll speak real quick. there is a large equity component that goes into these. we're not making 100% loans. we're making 50% to 75% loans. there is a tremendous amount of equity in these projects of the one reason our default rate has been so low is they haven't been overleveraged. with debt. ou get a little dicier contry, we have also been able to mobilize foundations and endowments and insurance companies to-g take the first risk money. a lot of -- we're the lender of last resort f you could do it, first question we ask we have also been able everyone why doesn't city do the loan without us? why doesn't wells fargo or someone else? we're not crowding out private business and private banking, we're there because no one else will go there. but there is enough of an equity component in there to hopefully modify that. bob: folks being concerned about taxpayer dollars. opic has returned money to the
u.s. treasury every year it's been -- bob: we're certainly not going to look to lose any money. it's being on the ground. in our case in many ways. i think opic looks for partners from the private sector on the ground. even in countries where the governments are challenging. so we're together visiting whether it's guatemala or honduras. or africa or o asia. i think -- or asia. it's that due diligence do you. it is an early stage. there is risk taking there. there is risk taking that can have exponential multiplier effect for a small enterprise. many of the enterprises we do together get access to women who have the least access. we did about -- i was looking about $450 million of financing together with opic. 15 institutions in 25 countries that would be microfinance institutions or inclusive finance. those reached over $1.3 million
. 88% of which were women. so a million women. that's not easy to do during conventional banking. you certainly wouldn't do that early stage without good marters in. -- partners. ray: first thing i did is focus lending on female businesses and lending. opic committed $350 million. i was at the g-7 last week -- two weeks ago, and we committed th the other fwfment-7 countries to mobilize $3 billion. totally focused on women. so no other organization in government has done that. what we do is, to his countries to mobilize point, we'll go to a local bank and 20 to 25% of loans are earmarked, 100%, for women. so they are able to buy a truck, begin a small business, a big part is having access to
capital. so we can can do that down through a the banks. that's a big part of our mission, too. not only is lifting everyone up, whole rising tide. frank: let's look at the other side of the coin for a minute. talk about this kind of assistance and support going into developing contrifments let's talk about the return on investments and pay back for american companies and u.s. exports. there is a correlation here. senator coons: if you look at our history over the last seven decades, today 11 out of 15 of our largest exports markets were at one point development assistance beneficiaries in the united states. the single biggest example in terms of moving from abject poverty to being a robust partner is south korea. there is many others. japan and germany after the war. but there are other places around the world where countries that just a few decades ago were receiving u.s. assistance are today major export markets for us. i hosted an annual conference in delaware a number of years,
put it on last year, where we talked -- i try to connect with my constituents and help them understand how our real and robust export markets for delaware businesses in the developing world. some cases where opic has made the deciding difference in being able to export from companies large and small from my immediate community. ray: made the opic has made the difference. senator coons: some of these are very small. for example iron bridge galvanizer and exporter, some are well established companies. but frankly what matters more than anything else is that the average american needs to realize that u.s. foreign assistance has changed and modendized dramatically over the decades. that this component of it returns money to the treasury. but also helps create export opportunities for american businesses. i spent eight years in manufacturing. ray and i both spent time in manufacturing. we're a small percentage of the world's total g.d.p. or total
market. for manufacturing to continue to grow in the united states, we have to continue to grow export market opportunity. having opic or a modernize development finance institution is a key piece of continuing to win in export market world where we face aggressive competitors who have larger, better resource d.f.i. if we can get opic and eximboth fully engaged, i think we can win again. frank: how much is it -- force ray: one thing we look a is the logistics. ports, airports. we finance the airport in quito in ecuador. u go, how does that have anything to do with exports? it opened up for tour itch. infrastructure, hotels came down. that became an export -- we can't build that into our matrix. but you look at the logistics
end of it where we get the flow of goods out of the united that's d these areas, a big part of our focus can. frank: i know we'll lose in you a minute. you have a job in the senate. senate koonce: anything here th a big part of our is more fun, more purposeful, productive, and fun than what i'm doing back there, forgive me. [applause] senator coons: i can't tell you how grateful i am to my great partner here, ray, to the republicans and democrats in the senate and house who have worked hard and over many, many months to get this bill to the point where it is ready to move in the house and senate. it is more purposeful and more enjoyable than the hearings to which i must now return. frank: i'm going to -- i know how much your participation and your enthusiasm and passion means to usglc and this cause. to your conversation was people from all sides of the aisle because you believe in this so
much. talk about that for just a moment before you leave, which is the politics of this moment, which is fraught. and how this conversation can and what opic does and its approach to investment. clearly you are experimenting with the bill back. how are you doing and where are the politics on this? senator coons: what's striking about the reach of the co-sponsors of this bill, as i mentioned, is to have congressman yoho as well as ngressman smith, senator corker, myself, if i listed the whole 40 or more bipartisan co-sponsors, it's literally every point along that span. my very first trip overseas eight years ago as a senator was with bob corker. time invested with him, traveling to afghanistan and pakistan, jordan and israel laid the foundation of a working relationship. we did, if i remember correctly, five bills in the last congress together that became law. he has been a tremendous partner. the usglc recognized this in 2015 at a point where i was
concern i did not deserve the recognition but bob corker did. i have an odd approach to legislating compared to ompletse i get paycheck every two weeks. my w-2 says legislator. i think as a result every time i cash the paycheck i ought to identify what's the next bill i'm working on. the way our system is structured i can't move a bill that isn't bipartisan f i can't find a republican working on a bill what am i doing introducing it. this doesn't seem complicated. this is an area that makes sense, works, goodpolicy. it's not going to be on the frodge page. "washington post." -- front page of the "washington post." frank: it will get you here. [applause] senator coons: i don't know what other senators, nstituents are saying to them. i just know and accountable for what my constituents are saying to me. they say to me, literally, every week, they call me on the sidelines of a soccer game or lacrosse game, coming out of church, or walking down to the
train station, work across the aisle, get things done. figure out how to move stuff forward. it's a very drag pragmatic state. it's a state though we have differences about the big issues, they want to see us working together. this actual partnership is the kind of thing that gives people hope that our system can can work. in closing, we're in a contest of ideas globally. it is blindingly clear to me when i'm in africa, but also clear to me here. the rest of the world is watching. to the extent they see our politics fail to deliver meaningful answers to the questions that the average american has, that gives a tool whether to china, russia, or other countries to say don't have the messiness of democratcy. don't have the problems of new hahn rights advocates and free -- human rights advocates and free press. follow our model which is one party and state sponsored author parne capitalism and you will develop rapidly. .
spent a semester in kenya in 1984 as a very young man. coons coons i wrote my thesis about the role of congress and u.s. foreign aid policy never imagining i'd end up being a senator on the relevant committee. it's an exciting opportunity to a difference. i've seen how it has made the difference of the lives of people in the developing world and the opportunity it's created for america. this is a pragmatic right in front of us possible way to have a real impact on the world. and to me at the end of the day that's what public service is about is solving complex problems in ways that help people around the world and that shows america at its best. what a great combination. what a great thing to get to do. frank: thank you. give our regards to your colleagues.
mr. coons: i will. [applause] frank: any comment on what the senator said? >> only he summed it up brilliantly. where i live in london, we watch agencies at the moment ing the tools they have -- [inaudible] we talk about brexit there. hope there is a bipartisan solution there. [inaudible] >> several times about the competition out there. can you hear me? we got a -- there we go. you mentioned china on more than one occasion. there is a competitive landscape. >> [inaudible]
frank: public-private partnership going. >> compete with the chinese dollar for dollar. as i travel around the world, you get off -- get off in zambia, the airports, go by the chinese, go to the soccer stadium built by the chinese before you get to government, you see chinatown. what they do is come in, finance their projects. when the project is over, they leave the workers behind and create a chinatown. this happens all over the world. they're just planting these -- s in these different [inaudible] ray: they -- can we watch dollar for dollar?
o. [inaudible] so we got to be smart in ways [inaudible] frank: let's go to questions. >> so thank you very much. i just wanted to point out a couple factoids. 90% of the jobs for the poor in developing countries and specifically at the bottom of the pyramid is self-employment, not employment. 90% of the businesses that are involved in this space that have product services for job programs that are focused on this population are in fact startups. there are very, very few mid or
large cap companies that are actually in this space that have a sliver of their wheelhouse in this space. and i think we're all wanting to do a sustainable approach to development, one that's smart, and one that involves business. if the reality of the marketplace and of course what you folks are suggesting here, other than michael, which hopefully does get involved with the bottom of the pyramid, but with larger projects, it's a trickle down approach. it really is trickle down. you don't find the bottom getting employed. as you know, the biggest issues at the bottom are incredible unemployment, especially among youth and women. i'd like to get your comments on that. >> from our standpoint it's availability of credit to these people. and when you travel the world, what does everybody have? you can go in the worse slums. everyone seems to have a cell phone these days. ray: if we can get a mobile payment plan. for example, in a lot of companies, you have to pay for your electricity every single
day. you have to hit it and it might be 10 cents a day. if you don't pay it, the electricity goes off. so we have to -- that's the eauty of these apps on these phones. we can create programs. they lend the money at an interest rate, very low interest rate, to where -- and that enables people to go start these microbusinesses you talk about. everything you said we 100% agree with. >> and i think it's true. we focused on microcredit. reaching the small businesses which does create employment. when you get to things like the cell phone platforms, they sound, you know, far distance in many ways, we -- robert: if i look at the example in kenya, a one acre fund, which is known by opec as well, we are using a mobile payment platform to divide payments, 250,000 small farmers all over the country.
transfer about 11,000 transfers month. the average loan of the transfer which might be a loan for fertilizer, supplies, is $5.85. taking down the cost, you a loug people to work and not have to go -- allowing people to work and not have to go to town to make payments takes infrastructure. it takes the apps and the platforms to expand that. in mexico, we have partners. we have seven million people on the transform platform. 80% of whom never had a bank account before. so these new technologies do take investments, sometimes in the macro, just as they do in power and in water in order for us to really work down the value chain. ray: and one point on that, the credit risk of these actually is very, very small. this is a chance these people have. like you said, a small $5 or $10 loan, we don't want people
to feel like it's an entitlement, here, go start a business. we lent it to you and you are going to pay it back and then again.oan to you and capitalist society people under the credit side. the credit risk we found is very, very low. it's higher on a bigger loan because people think they can walk away from their debt. this is it. if they screw their credit there might be another $5 loan. frank: question over here. >> it's been very interesting. especially your concerns over china. let me ask you something perhaps very simple. help es the development local american economies in a small town where i come from, scranton, pennsylvania? ray: well, great point. as we said earlier, for u.s.
companies and businesses to get products out, they have to have a logistics chain to get products out. but a lot of what we do in these countries is, as i said in the northern triangle, an incredibly high unemployment rate. what are these people doing? they're coming to the united states. if we can stabilize those economies, as the general said earlier, you are not putting bullets on the ground. you're putting jobs on the ground, it stabilizes those economies and it stabilizes those governments. so how scranton, pennsylvania, benefits from that is you get a more stable worldwide economy. frank: well, do you have something to say? robert: i think when these economies thrive we benefit. we benefit from a strategic and stability perspective. there are future new markets, the most rapid growth are in many of these same countries we're talking about for development and that's very important. to the biggest american
companies all the way down because they are going to be the buyers of your own produce as well or products. maybe not everyone's businesses but the thriving markets. the other thing is, people aspire in the private market to the u.s. model business. i find this is a great response. we find this all the over the world. we have to look at the opportunities that will come from more robust partners round the world. ray: one thing when we review loans, we don't look at those that export to the u.s. we are not doing a steel mill in colombia that then exports steel to the united states. our loan process, we can't displace a u.s. job. and so it's very important to remember that. what we're trying to do is try to create other economies that are strengthened in other countries. they can export within their region but they can't recollection port back to the u.s. frank: and they can import. ray: they can import a lot of things from the u.s.
>> as a trade facilitator from the heartland, i understand and appreciate development and finance programs like that. opec and ex-im bank. every day i promote export opportunities for companies all throughout kansas. but what i found over the years, although it's an effective argument to talk about dollars and cents and return of investment, that does not resonate with everyone. can you talk more about how important the impact is on foreign policy and different messaging that reaches a broader audience instead of the business folks? ray: from a foreign policy perspective, as i said earlier, stability is our goal. we want to have stability throughout the world. where you get instability is where people don't have jobs. we do loans in afghanistan. iraq.loans in
r cut point is $18 -- g.d.p. in ukraine is $2,400. mexico it's $10,000 a person. the more we can create stability in the market through jobs, that's what resonates back hopefully to people in your neighborhood is we all watch the nightly tv and these people are running around throwing rocks at each other. wouldn't you rather them walking down the street going to a job? frank: what about our other talking points that you -- what about other talking points thaw find good around the united states when you're describing what you do and what its fundamental purpose is? ray: well, as ambassador green said earlier, what we want to have in the united states is we're a blessed country and we need to share that wealth in some sense but we don't necessarily want to look at it as giving entitlements and giving it away. now, there are certain aid projects people talk about.
countries starving, you deliver food. we would much rather fund small businesses to grow and strengthen their economy. when you go around the united states, when i talk to different businesses, they're saying we'd like to go into that country in central america or that country in africa or independent owe pacific. the borrowing risk is too high. where does the u.s. company want to go? where the risk to their dollar is lessened, correct? if they are going to vietnam, you have a communist government, but we're trying to strengthen that government to get them away from the chinese, that's where opic comes in. we have political risk insurance. when people hear that, that's how we're thwarting the chinese and giving access to capital, it sells. rank remember another -- frank: another question. >> [inaudible] question for you ray and then a joint question. that act, will that help
structure? [inaudible] can you speak about the footprint as far as where the inaudible] ray: yes, we can do both. the reason why we need the equity piece, a lot of projects can't take a lot of debt and so they need equity. n our case we provide the debt product. other countries d.f.i.'s like ourselves don't want to go on the equity side because we don't feel like we have skin in the game. we have a small piece of the deck. robert: i think on the geography, it's very diverse. i think recently with opic, we have been traveling and looking introducing private sector clients in central america and mexico, east africa. i think pakistan is a place where -- a partner in the past. we look at opportunities.
i just want to say sometimes we are as very fragile or complicated government. the private sector is an important ally to the u.s. in those countries. they are trying practically, as the senator said, to get on and to do business and to provide a thriving economy. that may not always be possible at a government level. but opic and we are not really looking -- we are not lending or financing or working at the government level. there are bilateral treaties. it's really about that private sector, local or otherwise. and that's an important voice for the u.s. in any country. frank: i think we have time for one last question. go ahead. >> thank you. [inaudible] the question i have is, how do you maximize the dividend? they need to have a job. they also need to have education. they need to have a skill.
inaudible] education and training skills. inaudible] ray: well, we do lend to schools. we have schools all over the world. for-profit institutions. more trade school types. but you got to create people with a skill set to be able to deal with this new economy and very much on the electronic side with computers. we have computer training classes and things like that you have to build a society up and basic education and we have
been very successful in that space. robert: we have been working and looking at opportunities with opic. again, close education around health care provoiders and also many of the partners or the clients of opic, too, not even with us, are social enterprises. they are not always for-profit companies. they are nonprofits that have created social enterprises. sustainable deliverers of services and many are in the social service sector too. frank: thank you very much for your question. i very much like to thank both of you and senator coons for leading this conversation. it is beyond inspiring to hear places where there is a real sense of momentum and agreement and bipartisanship. especially in something that is so important as this. will you join me in thanking our panelists. [applause] [captions copyright national cable satellite corp. 2018] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org]