EMA, on the Carpet in D.C.

When class let out on Thursday, October 21st, fifteen Stern Emerging Markets Association (EMA) members had only one thing on their minds— road trip!

Shuffling our belongings on to a glorified airport van, we blazed a trail down to Washington D.C. You couldn't have thought of a more diverse bunch— hailing from Argentina, Bosnia, Brazil, England, Florida, Saudi Arabia, and Turkey. I, a token Red Sox fan, was thrown in for good measure. After five hours of conversation and a guilty pit stop at Roy Rogers, we finally made it to our alumni happy hour at the Black Rooster, a dive bar near Georgetown (we're Sternies, what did you expect?). After a round of beers and fried everything, we called it in early ahead of a busy Friday to follow.

D.C. is known as much for cherry blossoms and beltway politics as it is for being the epicenter of global development, financing, economics, and policy. Beyond the red carpet and flashing lights, thanks to EMA president Mark Rimer ('11), we had our own VIP day in store-- private meetings with the Overseas Private Investment Corporation (OPIC), World Bank Group, International Finance Corporation (IFC), International Monetary Fund (IMF), and Inter American Development Bank (IADB). After a quick continental breakfast at the Best Western, we were off.

First to bat was OPIC, an agency that mobilizes U.S. private capital and skills toward sustainable economic and social development in emerging markets. Director of Project Finance Kenneth Angell graciously presented not only a historical overview, but also delved into the nuts and bolts of OPIC's small-and-medium size enterprise (SME) loans and structured financing. He also discussed the ingredients in assessing and insuring political risk (e.g., currency conversion, war, civil strife), as well as key equity investment criterion and fund design. In addition to fielding our questions, Mr. Angell highlighted interesting projects, including hotels in Liberia and hydro power in Afghanistan, as well as OPIC's expanding focus for the future-- renewable resources.

Next, the World Bank, where we had the opportunity to meet with John Garrison, Civil Society Specialist of the World Bank and Aaron Rosenberg , Chief of Public Affairs for the IFC (an arm of the World Bank). Mr. Garrison, who facilitates dialogue between NGOs, governments, and the World Bank, detailed the contours of the past 60 years, including agriculture, healthcare, education, fiscal adjustment, citizen's/community empowerment, and governance. For the coming decade, the environment and global public goods are projected to be the key organizing forces. We also learned about career paths such as the Young Professionals Program and the Junior Professional Associate position. Mr. Rosenberg of the IFC shed light on the agency's traditional investment and advisory work, as well as IFC's newly initiated asset management operations. Hot topics included "green financing," weather insurance pilot programs for rural farmers, and programs for development outcomes.

Lunch in the World Bank cafeteria— a mosaic of ethnic food stations from around the globe (including desserts), under the backdrop of indoor waterpools, floating staircases, and a cavernous, sunlit atrium— is something you can't miss. A tour of the building will leave you breathless. But, no time to catch it, we were soon off to the IMF, to hear from Anthony Annette. The IMF's underlying mission from its birth following World War II has been to quell the economic roots of war by acting as "firefighter" (lending), "doctor" (surveillance), "architect" (global financial system), and "coach" (technical assistance). While the organization has met criticism over the past few decades, often stemming from the public's misunderstanding of its operations, the IMF has renovated itself, shedding its practice of "structural adjustment," ramping up outreach to parliaments, civil society, and labor groups, and maintaining stability during the recent global economic crisis. Moreover, following the recent G-20 meetings, the IMF has been entrusted a stronger role as an arbiter of international currency policy frictions and has granted developing countries more say, shifting voting power away from established rich nations.

Our last stop was the IADB, a division of the Inter-American Investment Corporation (IIC). Aniceto Huerta-Corcellos shared insight on IADB's work in 49 countries across Latin America and the Caribbean. Specializing in energy, Mr. Corcellos discussed energy financing for small and large projects, including a biomass plant in Chile. He detailed "double bottom line" investments, bridging risk with both return and development impact, facilitating company inclusion in carbon credit markets, and new debt structures ("quasi equity") to lubricate additional investment.

Capping off the trip was a toast at the bar at the W Hotel. Overlooking the D.C. landscape, the White House, the Federal Reserve, the Washington Monument, and everything we learned that day, we bristled at the thought of leaving. Government and development organizations, often caricatured and misperceived as lethargic, restrained, and hamstrung, were clearly performing, incredibly nuanced, dynamic, and rewarding work. The change of scenery was refreshing, but eventually we had to head back. The journey back home to Stern? Well, let's just say, what happened on the bus…stays on the bus.