The United States has made economic development a central tenet of its national security policy, alongside defense and diplomacy. One of the best and most cost-effective avenues for furthering economic development is investing in locally owned businesses, and yet the United States currently has no means for effectively and efficiently doing so.

Small and medium enterprises (SMEs) have shown great potential in spurring economies, but their owners—especially women—are often unable to acquire the skills, resources, and support necessary to grow and sustain their businesses. Promoting local programs and global initiatives that encourage investments in SMEs and women entrepreneurs in lower-income countries will strengthen growth engines, diversify economies, improve communal well-being, stabilize societies, and accelerate progress toward international development goals. All of these results are in the interest of the United States, and could be achieved more quickly with the creation of an American development bank that aims to invest in and direct technical assistance to entrepreneurs in lower-income nations—the next-generation emerging markets.

This can be done by expanding on the work already under way at the Overseas Private Investment Corporation (OPIC). Though several multilateral organizations have tackled pieces of this work, the United States has a unique role to play: investing in entrepreneurialism that creates jobs, bolsters the middle class, and spurs economic growth.