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A New Era for MCC Threshold Programs

MCC has entered a new era for its threshold program.  Honduras is set to become the first country to implement a new model of the program which is expected to help a country become compact eligible by allowing it to demonstrate its willingness to tackle tough reforms addressing policy constraints to growth in partnership with MCC.  There is potential for valuable insight from this approach, but it has some limitations: the threshold program experience may not translate directly to a future compact experience, and any insight gained will only be relevant for countries that have a shot at compact eligibility based on other criteria.