 The developing world is changing fast. Shifts in politics, economics and demographics continue to change the landscape of international development. The pace of this change is accelerating. These rapid shifts present new challenges and opportunities for development and international security. Developing countries democratized and experienced substantial economic growth over the past two decades. In 1980, Freedom House reported 65% of countries as free or partly free. Today, it's 74%. But corruption remains a serious problem and effective governance is still a challenge for many developing countries. 90% of the world's youth live in these less developed countries and they are hungry for jobs and opportunity. Urban centers are nexuses of innovation for youth and the number of urban dwellers is expected to double by 2050. Since 2000, extreme poverty has been slashed by half but more than 1 billion people are still living on less than $1.25 a day. New sources of financing create new opportunities for investment and new solutions. In 1960, the vast majority of financial flows from the U.S. to the developing world were public. Now about 90% of flows from the U.S. are private. Across Sub-Saharan Africa, total domestic sources of revenue grew from about $100 billion in 2000 to nearly $530 billion in 2012. Dwarfing official development assistance, or ODA, which grew from $20 billion to $54 billion in the same period. At the same time, trade flows have diversified. South-South trade now accounts for about $5 trillion, approximately a quarter of the world's total trade. Implementing reforms in the 2013 WTO trade facilitation agreement alone could increase global trade by as much as $1 trillion and potentially create 21 million new jobs. Today, fostering international security must include diplomacy and smart development strategies. In the next 50 years, the U.S. must recognize and craft solutions for these large-scale ships and challenges. There is still a role for foreign assistance, but increasingly, aid is used to promote private investment, innovative financing mechanisms, and trade that can lead to sustainable growth. In Sub-Saharan Africa, 9 out of 10 jobs are created by the private sector. The U.S. must take advantage of a broader range of tools to remain a viable partner of choice for these developing economies. Building strong public-private partnerships will provide solutions for multifaceted challenges facing the world today. The U.S. private sector also has the ability to leverage global supply chains to create jobs and support local communities. At the same time, the United States government must continue to support effective and resilient systems for health, education, and food security. The world has made significant progress, but there are still many challenges to face in the next half-century. And only by recognizing the importance of development and developing nations will U.S. foreign policy continue to serve as a force for international peace, prosperity, and security.