MCC Reorg

This is a joint post with Casey Dunning.Millennium Challenge Corporation CEO Daniel Yohannes has announced plans to reorganize to improve the MCC’s focus on results, partnerships, policy reform, and gender.  MCC will combine compact development and compact implementation units, and economic analysis and evaluation will be integrated into an enhanced department of policy and evaluation (formerly policy and international relations).The changes come as the MCC moves from start-up to steady program and is about to complete its first compacts.  MCC followers will recall that compact development and compact implementation departments were separated a few years ago in an effort to get money out of the door faster.  Today, the MCC pace is quicker and it makes sense to have the same staff working on compact development and implementation, especially as the MCC closes out compacts in Honduras and Cape Verde that are reaching the end of their five year terms.The integration of economic analysis and monitoring and evaluation into the policy shop is a bigger move, reflecting the need to better communicate results and impact, including on policy reform.  The MCC must demonstrate results now to Congress while recognizing that many compact results will only be seen over a longer term.  The MCC will wisely continue to monitor the impact of its programs for ten, fifteen, even twenty years, but must provide enough input to maintain executive branch and congressional support in the interim.In the midst of two major U.S. development policy reviews and possible new foreign assistance legislation on the Hill, it is all the more important for the MCC to be savvy in showing that it supports overall foreign policy objectives but has a unique approach and distinct MCC results. The MCC will need to consistently convey what it is – and what it is not – during these U.S. development reform efforts.The MCC is also creating a small, new division of risk management as they look to expand their private sector engagement. My hope is that the risk analysis will encourage the MCC to be innovative while mitigating risk, rather than dissuading staff from any risk-taking.What do you think of the changes?