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Last Thursday, CGD was pleased to host MCC CEO John Danilovich and Benin Minister of Finance Cosme Sehlin at a public event on the just-signed $307 million Benin compact, bringing the total number of compacts to eight. Watch excerpts from the event here.
Danilovich is a breath of fresh air for the agency, using his opening remarks and an extended Q&A period to send some much-needed strategic messages. Of note to me:
-- Danilovich indicated a trend toward larger compacts, signaling that future compacts may run in the $350-$450 million range.
-- Danilovich put forward a vision for the MCC, "the overriding force is to be transformational through incentivizing countries to reform their policies and their institutional structures." A good vision for sure, but I still think the MCC needs to better communicate the linkages between an institutional vision focused on policy reform and projectized grant making.
-- Danilovich publicly launched the term "MCC effect" whereby the MCC process is leveraging change either in recipient countries or in the broader development assistance architecture. Says Danilovich, "according the IFC's Doing Business Unit, 80% of new startup firms are due directly to the MCC." I hope the MCC communications team runs with this term and consistently showcases the innovative aspects of MCC.
-- Having seen first-hand the consultative process in Benin, Danilovich cited Benin's process as a model that he hopes other countries will look to as they prepare their compacts.
For others who were there, pipe up and add to the discussion.
CGD blog posts reflect the views of the authors, drawing on prior research and experience in their areas of expertise. CGD is a nonpartisan, independent organization and does not take institutional positions.