Subject: Update: Pompeo, Ivanka, and the Governors
From: "Liz.Schrayer" <[email-masked]>
To: "Liz.Schrayer" <[email-masked]>
Date: Wed, 1 Aug 2018 21:26:18 +0000

Dear Board of Directors,

I wanted to update you on a few current issues that are moving this week – and share a report from the USGLC’s outreach at the recent National Governors Association meeting.

1. POMPEO’S NEW ASIA STRATEGY. At the U.S. Chamber’s Indo-Pacific Forum on Monday, Secretary Pompeo made his most focused remarks to date on deploying development and diplomacy tools as foundational to U.S. engagement in the region and as a counter to China’s growing influence. The speech cited multiple examples of effective, existing programs and Pompeo announced several new initiatives. A few highlights:

  *   MCC, OPIC, and USAID. For the first time, the Secretary specifically touted development programs run by MCC, OPIC, and USAID in a speech. He highlighted investments each agency has made in the region over decades – and was followed by Mark Green and Ray Washburne, who also addressed the Forum.

  *   New Initiatives. Pompeo announced “$113 million in new initiatives to support foundational areas of the future: digital economy, energy, and infrastructure” and noted that the investment is a “down payment on a new era” of U.S. commitment to the region. These new programs – the Digital Connectivity and Cybersecurity Partnership, Asia EDGE, and the Infrastructure Transaction and Assistance network – will be run through the State Department and USAID.

     *   Important to note: Technically, this is not “new money” but rather funding that would be drawn from FY18 and prior year funding that had not previously been earmarked. The Administration will not be requesting additional funding from Congress to launch these programs.

  *   BUILD Act. Pompeo gave a shout out to the BUILD Act, which would double resources for development finance and touted OPIC’s long history of investment in the region.

  *   Josh Rogin summed it up best in the Post: “The nascent American plan is still tiny compared with what Beijing has to offer, but it could mark the beginning of an economic strategy to counter Beijing’s growing regional economic influence.”

2. IVANKA GIVES YALI A SHOUTOUT. Just as the media reports that Ivanka and Jared are “here to stay”, USGLC board member Kristin Lord of IREX – who runs the YALI program – shared that Ivanka recorded a welcome video for this year’s opening program.

  *   Ivanka embraced the initiative and told the group of 700 young African leaders from 48 countries: “Initiatives like YALI are critical to ensuring global stability, peace, and economic prosperity.” Nice to see, given this initiative was launched under the previous Administration. Watch the clip here<https://www.youtube.com/watch?v=xCzAD44iDEQ>.

3. TACKLING THE OPIOID CRISIS. In our effort to continue driving the policy debate on hot topics – and thanks to a bit of board inspiration and great research by John, look for my op-ed in USA Today in the next few days on the international link to the opioid crisis. Nice new media relationship that Sidney created.

4. USGLC LEADS NATIONAL GOVERNORS ASSOCIATION’S GLOBAL INITIATIVE. Thanks to Derek’s new portfolio, he landed us a key role as the lead partner with NGA’s new Global Initiative, which seeks to better connect governors on international policy issues. With foreign leaders reaching out at the sub-national level, the interest in international economic engagement was high.

Our role proved to be highly effective – particularly given how several governors have national ambitions. A big thank you to Governor Tom Ridge, Sarah Thorn, and General Castelaw for participating with us in Santa Fe. A few key takeaways:

  *   Governors Roundtable. We hosted the Global Initiative Roundtable at the invitation of the NGA, featuring Governors Herbert (Utah), Hutchinson (Arkansas), and Bullock (Montana) – also the incoming NGA Chairman – with a delegation of 40 Kenyan governors and ambassadors.

  *   Private Meetings. We saw a good portion of the governors that attended the NGA summer meetings, with successful one-on-one discussions with: Gov. Sandoval, outgoing NGA Chair (Nevada), Gov. Martinez’s staff (New Mexico), Gov. Herbert (Utah), Gov. Bullock, new NGA Chair (Montana), Gov. Hutchinson (Arkansas), Gov. Bevin (Kentucky), Gov. Hickenlooper (Colorado), Gov. Walker (Wisconsin), Gov. Haslam (Tennessee), and Gov. Snyder (Michigan).

  *   Opportunities. We used the opportunity to educate and inform the governors about development and diplomacy issues and to make the case that their overseas travels should include developing countries. We now have opportunities to host several in the coming months:
     *   1 governor returning from a trip to Ghana and South Africa
     *   2 governors who are considered potential 2020 presidential candidates
     *   1 governor is looking to participate in a local salon event with his Senator
     *   1 governor interested in speaking at a state launch event

5. MCC Concern. Just as Secretary Pompeo was touting MCC’s work in the Indo-Pacific, two recent pieces in the Washington Post have highlighted a concerning trend of the White House “installing political allies and loyalists in appointed jobs intended for development experts” at the agency. We are keeping an eye on this one as part of a storyline to sideline MCC, USAID, and other development agencies embraced by prior administrations, in favor of OPIC.

This week, I’m in Aspen for the Brookings-Blum Roundtable with many of our Board members and Advisory Committee members, some of whom I will see at a joint dinner with the Aspen Strategy Group later this week. More to report on this.

Best,

Liz
Liz Schrayer, USGLC