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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.
Of all the governance criteria MCC assesses, none is as singularly important as corruption, which, historically, has weeded out more countries for eligibility than any other individual factor. It is, however, difficult to measure with precision, which can (and has) lead to poor decisions when interpreted too rigidly, resulting in cutting off, purely on the basis of indicator rules, compact partnerships with countries that have had no demonstrable change in their anticorruption environment. If you care about corruption, this isn’t the way to go about emphasizing that.
The White House, State Department, and US Agency for International Development (USAID) reviews have rightly emphasized addressing duplication and inefficiency. But rather than focusing on a State/USAID merger, as has been widely rumored, the administration should look at something that leads to some of the biggest duplications, triplications, and even quadruplications of capacity that exists in the US government: the severe fragmentation of US development assistance.
Happily, in the last 25 years, the proportion of people living on less than $1.25 a day has dropped by two-thirds. Most of this success is due to major global forces such as trade and cross-border labor mobility. And much of the credit goes to the governments and citizens of developing countries themselves for pursuing the policies that have enabled donor, private sector, and (increasingly) their own resources to translate into development outcomes. But development assistance—including US aid—has made important contributions.
Established in 2004, the Millennium Challenge Corporation (MCC) was designed with a singular mission: toreduce poverty through economic growth. The agency’s approach reflects key principles of aid effectiveness, in particular, country selectivity, focus on results, and emphasis on local ownership.
The debate at a recent CGD event eloquently demonstrated once again that this is a moment of deep uncertainty and basic disagreement about the future and purpose of aid programs and development agencies. But even more risk is introduced into this perilous mix if we fail to understand what we already have in the toolkit and how these tools can be used to meet needs.
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 Millennium Challenge Corporation (MCC), an independent US foreign assistance agency, was established with broad bipartisan support in January 2004. MCC
has a single objective—reducing poverty through economic growth—which allows it to pursue development objectives in a targeted way. There are
three key pillars that underpin MCC’s model: that policies matter, results matter, and country ownership matters.
“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.
This brief considers how the United States Agency for International Development (USAID) and the Millennium Challenge Corporation (MCC) conceptualize ownership and apply the concept in practice. We focus on three pillars: ownership of priorities (the willingness and ability of donors to align their efforts with country priorities); ownership of implementation (the degree to which donors involve local partners in the design, implementation, monitoring, and evaluation of programs); and ownership of resources (the degree to which a partner country contributes its own finances to the objectives receiving donor support).
The Millennium Challenge Corporation’s (MCC’s) board of directors is scheduled to meet on December 16. When it does, the members will vote on which countries will be eligible for MCC assistance for fiscal year (FY) 2016. As always, the board is faced with some hard decisions. Three conditions are notable during this year’s selection process: scarce resources, a new MCC selection process, and fierce competition among countries.
Domestic revenue mobilization (DRM) seems set to be a priority area for the US Agency for International Development (USAID) under Administrator Mark Green. The challenge has been in tracking US (and other donors’) support for DRM activities. While the data only covers projects in 2015 so far, it contributes to a better understanding of what US aid agencies are doing in the DRM space and where they are working. If the United States is looking to step up assistance in this area, it will be instructive to understand the landscape of current efforts.