Wireless industry, watch out! Geniuses are at work in Washington. This is the baby-the Overseas Private Investment Corp., a federal agency that operates at no net cost to U.S. taxpayers. (Brace yourselves for the bath water below.)
Throughout its operating history, OPIC has supported investments totaling nearly $80 billion, generated $40 billion in U.S. exports and helped to create 200,000 American jobs. It has accumulated reserves of more than $2.4 billion.
It has underwritten equity, institutional debt, loans and leases in the form of nearly $3 billion of repayment insurance for American telecom companies providing systems, equipment and services in developing nations. OPIC also insures against expropriation of overseas facilities by local governments, against difficulties exchanging local currency for U.S. dollars and against damage to assets and interruptions of business income caused by political violence.
In 1996, OPIC’s portfolio included more than $214 million for cellular communications projects, among them: AT&T Wireless Services Inc. in India; US West International in India and Poland; Motorola Inc. in Lithuania and Chase Manhattan Bank in Russia.
1996 also marked a transition point for OPIC’s telecommunications portfolio in that it began a concerted effort to increase its support for projects undertaken by small businesses. Furthermore, the telecommunications sector is becoming an increasingly important part of OPIC’s underwriting business.
Now, here’s the bath water. Asked about Congress’ attitude toward OPIC, Richard Stanaro, investment officer for its finance department, said this: “It’s hostile. I try not to get into politics. We’re self-sustaining and contribute to the (U.S.) economy. But politics isn’t always rational.
“We believe our constituency, once it makes itself heard, will have influence with Congress.”
In a new book, “America: Who Stole the Dream?,” two Pulitzer prize-winning Philadelphia Enquirer reporters make a compelling case-in part-for more encouragement of American exports in order to promote the growth of domestic jobs.
“To receive OPIC support, projects must demonstrate a potential for positive effects on the U.S. economy,” the OPIC operating requirements state. “Assistance is denied to projects that are likely to have a negative effect on U.S. employment or trade.”
OPIC constituency, have you made your New Year’s resolutions yet? While federal legislators sharpen their collective ax, you might well do better if you sharpen your pencils and your arguments.
