Country Selection

The MCA process to select eligible countries:

  • Identify candidate countries:  The MCA defines a pool of candidate countries based primarily on their annual per capita income level.  FY2011 marks the sixth year that the MCA can select eligible countries from two distinct groups: a low income country group (per capita income below $1,905) and a lower middle income country group (per capita income between $1,906 and $3,945).
  • Apply selection criteria:  The MCA uses seventeen indicators in three categories – ruling justly, economic freedom, and investing in people – to measure the candidate countries policy performance and compare them against each other. Countries must score above the median on half of the indicators in each category, as well pass the control of corruption indicator, to be eligible for the MCA. To pass the inflation indicator, a country’s inflation rate must be under 15 percent, rather score above a median.
  • Board discretion:  The MCA board of directors reserves the right to exercise discretion in the selection process, considering gaps, lags or weaknesses in data; if a country performs substantially below the median on any indicator; and additional qualitative information.

Countries that do not qualify for the MCA but are judged by the MCC board to be making progress in the indicators may be selected for the Threshold Program.

 

What's New on Country Selection:

As in years past, the FY2011 selection process did not include any changes to the data underlying the indicators.  However, the MCC is currently undertaking a review of the entire MCC selection process ahead of FY2010 selection.

Like last year, the FY2010 selection process did not include any changes to the data underlying the indicators.

The FY2009 selection process does not incorporate any changes into the indicators for round six of the MCA.

In the FY2008 selection process there were changes incorporated for the indicators.  It was the first round to incorporate two new measurements adopted on November 12, 2007 by the Board of Directors - a Natural Resource Management index in the investing in people category and a Land Rights and Access index in the economic freedom category.  Two previous indicators, Cost of Starting a Business and Days to Start a Business, were also combined into one Business Start-Up indicator for round five of the MCA.

 

CGD Work on MCA Country Selection

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