Economic Growth

A female shepherd walks towards the camera behind a herd of sheep on a road.

Climate impacts can impede economic development and undermine a country’s self-reliance. For developing countries whose economies largely depend on natural resources, shifts in climate are potentially devastating. Climate variability and change cause reduced agricultural yields, changing water quantity and quality, and damaged infrastructure systems. Impacts on the workforce include heat stress for field workers, shifting and expansion of disease transmission zones, and increased opportunities for disease transmission. All of these impacts create a drain on already fragile economies and divert capital that could otherwise be channeled into expanding businesses.

At the same time, greenhouse gas emissions are strongly related to conventional economic development. These include unsustainable land and natural resource use, more deforestation, increased emissions from changes in agricultural or industrial technology use, and increased emissions from construction of roads, energy systems, and other infrastructure.

There are strategies to reduce emissions and increase resilience in the economic growth sector, such as promoting “green” industries, establishing carbon taxes or carbon emissions trading systems, expanding financial services (lines of credit, insurance) to climate-sensitive industries, and improving the efficiency and management of water supplies. Climate resilient economic development can also be supported by strengthening governance systems, such as improved policies in support of sustainable land use or enhanced government capacity to manage disaster risk reduction and adaptation efforts.


USAID Private-Sector Engagement Policy

The private sector is an inextricable stakeholder in driving and sustaining outcomes capable of moving countries beyond the need for assistance. This policy is an Agency-wide call to action, and a mandate to work hand-in-hand with the private sector to design and deliver USAID's development and humanitarian programs across all sectors, and to harness its resources to open markets and provide opportunities for U.S. businesses.


Marketlinks' mission is to share good practice in inclusive market development around the world. The platform aims to help users consume and contribute content along a spectrum of issues from pathways out of poverty to mobilizing private capital, market facilitation to models for reaching scale.

Climate Finance Assessment: Opportunities for Scaling Up Financing for Clean Energy, Sustainable Landscapes, and Adaptation

This report analyzes the different ways that donors, development assistance agencies, governments, financial institutions, impact investors, and private companies can accelerate financing for investments in clean energy, sustainable landscapes, and climate adaptation.

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