The Millennium Challenge Corporation (MCC) was very busy last week. MCC CEO Daniel Yohannes highlighted the similarities in principle between the MCC and President Obama’s new policy on global development at USGLC’s annual conference. The MCC held its quarterly post-board outreach meeting at which compact close-out in Honduras, new compacts in Jordan and the Philippines, the revamped threshold program, and a prohibition of state-owned enterprises (SOEs) receiving MCC procurement bids were all discussed. And, President Obama put forth Ambassador Mark Green as a new MCC public board member and re-nominated Alan Patricof to serve a second term on the board.Mr. Yohannes began the outreach meeting extolling President Obama’s new global development policy and noted that the MCC will be at the forefront of shaping and implementing the new policy. Indeed, “the principles of the new global development policy are MCC principles that have been in practice for the last six years,” Mr. Yohannes pointed out.The outreach meeting marked the final day of the five-year compact in Honduras and vice president of compact operations Patrick Fine took the opportunity to expand upon the results of the compact. The Honduras compact was completed "on-time, on-budget, and with all targets met" despite a political crisis and three different governments during the duration of the compact. With numerous infrastructure projects completed and over 6000 farmers trained, the compact targeted development in rural areas and worked as a transformational tool to put in place systems that will continue to benefit the Honduran poor after the close of the compact.But, as one compact closes, another one opens. The board approved a new $275 million compact in Jordan that will focus on rehabilitating water systems to address Jordan’s severe water shortages. The compact attracted an additional $90 million in private sector financing and $30 million from the government of Jordan. The MCC has compacts currently in development with Malawi, Zambia, and Indonesia.MCC staff also presented a “fleshed out” version of the new threshold program. The purpose of the program will continue to be assisting countries reach compact eligibility, but the focus has been adjusted. Now the content of individual programs will be dictated by an initial constraints analysis rather than failing indicators. The MCC hopes this new focus will allow for broader policy reform and more innovative program components. As such, the threshold program path to eligibility will now be through a country’s demonstrated “opportunity to impact economic growth.” The revamped program certainly sets up more realistic programmatic goals, but it remains to be seen if the new threshold program will make good on its mission to shepherd countries into compact eligibility.Finally, a question from the audience prompted a revelation of the MCC’s revised procurement guidelines. Beginning October 22nd, state-owned enterprises (SOEs) will be ineligible to bid on MCC contracts. This new policy is designed to ensure fair competition and a level playing field for all. The revision is, in part, a response to Senator Jim Webb’s prior concerns about U.S. funds going to Chinese SOEs in numerous compact countries.While not a part of the outreach meeting, the MCC received additional good news last week by way of two public board member nominations from the White House. Ambassador Mark Green was nominated to replace Senator William Frist. Green is currently the managing director of the Malaria No More Policy Center and was formerly ambassador to Tanzania. Past MCC board member Alan Patricof was re-nominated to serve a second term. We are still waiting on the re-appointment of Lorne Craner and a board member nomination to replace the seat formerly held by Ken Hackett, president of Catholic Relief Services.
