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"The US Agency for International Development (USAID) is a major player in global development, disbursing $44 billion in fiscal 2023 and anchoring private investment in various sectors. Its elimination could undermine investment in countries from Sri Lanka to South Africa, making it more expensive for them to borrow on international markets. The agency's support enables start-ups to grow, helps lower the risk for banks and other lenders, and boosts the ability of governments to repay debts. However, alternatives to USAID funding are limited, and the rapid pull-back could have a significant impact on frontier markets."
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