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CGD has helped shape the Millennium Challenge Corporation through years of analysis dating back to the creation of its financing mechanism—the Millennium Challenge Account—by President Bush in 2002. Our research has helped guide MCC’s work to reduce poverty through growth and we remain at the forefront of creative thought for how to improve this important lever of US foreign assistance.
The Millennium Challenge Corporation (MCC) was established to provide large-scale grant funding to poor, well-governed countries to support their efforts to reduce poverty and generate economic growth. However, the statutory definition of which countries are “poor” for the purposes of MCC candidacy is inadequate. Based solely on GNI per capita with a rigid graduation threshold, it does not portray a clear picture of broad-based well-being in a country. Using a new, comprehensive country-level dataset of median consumption/income, the authors explore the merits and limitations of such a measure and suggest how it might be applied as an additional determinant of MCC candidacy.
For some time, we’ve been cheering MCC’s interest in pursuing approaches that pay for outcomes and encouraging the agency’s stakeholders to get onboard (here and here). Now we can applaud an important step forward. The agency’s new compact with Morocco, which both partners celebrated at an event last Thursday in Rabat, spells out the potential for a results-based financing component—a welcome development.
“Country ownership” has become a buzzword in the development community, but what does it really mean? A country ownership approach has multiple interpretations to different actors, within different sectors, and for different countries. It’s time to unpack this rhetoric and bring understanding and evidence to the catch phrase.
A dozen years since it was set up with a remit to reduce global poverty through economic growth, the US government’s Millennium Challenge Corporation recently revealed a new Strategic Plan. Deputy CEO Nancy Lee joined me on the CGD Podcast to discuss how the new plan responds to a very different development landscape.
The votes are in! Yesterday, MCC’s board of directors met to select countries for FY2015 compact and threshold program eligibility. Last week, I made some predictions about the choices the board would make. Let’s look at yesterday’s decisions and see how I did…
One of the biggest questions donors grapple with is how to balance implementing specific projects with building local capacity to execute similar programming in the future. Indeed, this question is central to the conversation—now active at USAID—about how donors can “work themselves out of a job.” One good example of how this can look comes from the Millennium Challenge Corporation’s (MCC) 2005-2010 partnership with Honduras. In this story, a key part of MCC’s legacy is not about what the agency funded but how it funded it.
Publish What You Fund launched their fourth annual Aid Transparency Index (ATI) today. The overall finding is that while many donors have made a number of international aid transparency commitments, the majority are falling short and not publishing useful information.
The last board meeting of the Millennium Challenge Corporation (MCC) under the Obama administration will take place on December 13, 2016. On the docket? Selecting which countries will be eligible for MCC assistance for fiscal year (FY) 2017. For the fourteenth year running, CGD’s Rethinking US Development Policy Initiative discusses the overarching issues that will impact the decisions and offers its predictions of which countries will be selected.
The country scorecards that serve as the basis for MCC country eligibility decisions aren’t complete, but the data for the particularly weighty indicators—including the must-pass Control of Corruption hurdle—is now available. I ran the numbers to get a sneak peek at some of the issues the agency and its board will grapple with over the next few months. Some of what emerged from this number crunching is encouraging—most current partner countries surpass MCC’s standards and some interesting new prospects for partnership emerge. More troubling is that two of the countries currently developing compacts—Kosovo and Mongolia—don’t pass the corruption hurdle.