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CGD Policy Blogs

 

Hyde's Short and Sweet MCC CEO Nomination Hearing

On Tuesday, the Senate Foreign Relations Committee held a hearing on the nomination of Dana Hyde to be the new CEO of MCC, as well as Mark Lopes to be the US executive director of the Inter-American Development Bank.  The short hearing (attended by Senators Markey and Barrasso, chair and ranking of the International Development Subcommittee) was largely positive toward both MCC and Hyde.

A Sneak Preview of MCC’s Annual Country Selection Process

MCC is expected to publish its annual country eligibility scorecards next week.  I always love this time of year.  While MCC’s annual selection process isn’t exactly new anymore, each year raises new issues and questions.  The perennial question--a fundamental question--is which countries are going to pass the indicator criteria?  Not all the data are publicly available yet, but some key indicators are.  As a preview, we ran the numbers on how countries stack up on the corruption and democracy “hard hurdle” indicators.  Based on this ini

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.

Does the MCC Effect Exist?

“Conditionality” in foreign aid often gets a bad rap, but are there circumstances in which it works?  The Millennium Challenge Corporation (MCC) provides large-scale development assistance to selected poor but well-governed countries, chosen primarily based on their performance on a set of publicly available policy indicators (a type of ex ante conditionality).  MCC’s selection system is touted as an incentive for countries to pursue policy reform in order to gain MCC eligibility, a phenomenon nicknamed: the “MCC Effect”.  However, there is limited