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Which Countries Pass the FY2011 Corruption Indicator? A Preview into Round 8 of the Millennium Challenge Corporation’s Country Selection

11/03/2010

In this MCA Monitor analysis, Casey Dunning and Sarah Jane Staats summarize which countries pass the latest control of corruption indicator, offering a first look at which countries might be selected as eligible for MCC assistance in FY2011.

In the MCC selection process, countries must pass the control of corruption indicator in order to qualify for MCC money, making it the one so-called “hard-hurdle” for MCC compact eligibility. Though the corruption hurdle is not legislatively mandated, the MCC, with the support of Congress, established the requirement to emphasize the MCA’s mission of providing assistance to promote economic growth and poverty reduction in a select group of poor but well-governed countries.

Key Findings:

Two of nineteen countries with signed compacts in force (Armenia and Mongolia) fail the FY2011 control of corruption indicator. Honduras, which recently completed its first compact, also fails the corruption indicator.
While not as significant as in FY2010, income group shifts play a pivotal role for the Philippines and Albania. After moving into the LMIC category in FY2010, the Philippines returns to the LIC category (and a less difficult peer group with lower medians) this year. In the midst of a Stage II threshold program, Albania graduates into the upper middle income category and out of future MCC candidacy.