BLOG POST

Foreign Aid to Tanzania to Fight Corruption: MCC Threshold Program Approved

By
Sheila Herrling
February 02, 2006

Yesterday, the Millennium Challenge Corporation approved an $11 million Threshold Program for Tanzania to fight corruption, including in the government procurement system. Tanzania is the third country to receive Threshold Program finance, preceded by Burkina Faso and Malawi.The Threshold Program is, according to the MCC, used to:

"help selected countries address the specific policy weaknesses indicated by their scores on the MCC policy indicators. The Board of Directors selects countries as eligible for Threshold Program assistance based on their demonstrated commitment to meet the eligibility criteria for MCA Compact funding, including improvement of their scores on sixteen policy indicators."
Interestingly, Tanzania passed all six governance ("ruly justly" indicators. It's problem areas were health and girls' primary education expenditures, cost of starting a business, and trade policy.

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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.

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