Spring 2007
MCA Monitor Update: Spring 2007The MCA Monitor Update is a quarterly newsletter summarizing key events and issues related to the Millennium Challenge Account examined through CGD's MCA Monitor. To receive our Update by email: Sign up for the MCA Monitor Update Contents
1. Budgeting for FY2008: An Argument for Funding the MCC at the Requested $3 Billion In a recent paper, Will the Millennium Challenge Account be Caught in the Crosshairs? A Critical Year for Full Funding, the MCA Monitor team addresses concerns about the MCC's disbursement pace and makes a case for fully funding the MCC at the $3 billion requested level in FY2008. We argue that the MCC can spend the full $3 billion and should be given a chance to do so, particularly since a decision to cut funding could jeopardize the core credibility of the program. Read also about MCC CEO John Danilovich's justification for full funding at the March 13 hearing before the House Appropriations Subcommittee on State, Foreign Operations and Related Programs. 2. Two New Field Reports from Central America The MCA Monitor issued two new Reports from the Field. The latest additions to the series offer observations on compact implementation in two Central American countries, Honduras and Nicaragua, the second and fourth countries to sign compacts, respectively. The story from Nicaragua discusses three themes--incentives, independence and innovation--that, coupled with effective consultation and coordination, have enabled the compact to get off to a good start. The story from Honduras recognizes the quality of MCA Honduras' program interventions and planning, but also identifies a number of risks that will create some challenges for successful and timely implementation. 3. Lessons from Seven Countries In a new brief, Lessons from Seven Countries: Reflections on the Millennium Challenge Account, Sarah Lucas, former senior associate for research and policy at CGD, draws together observations and reflections on the common key themes, successes and lessons that emerge in her country reports. The note is based on visits to seven MCA countries conducted between July 2005 and March 2007 on behalf of the MCA Monitor. These visits caught glimpses of different aspects of the MCA experience including compact development, compact implementation and the threshold program. Lessons and observations from these countries fall into four categories: successes of the MCC approach, key challenges going forward, big-picture lessons on aid-effectiveness, and specific operational recommendations. 4. Filling the NGO Seats on the MCC Board President Bush nominated two new members to the MCC Board of directors. Alan Patricof and Lorne Craner were recommended by the House Democrats and Republicans respectively to fill two of the four Board seats reserved for non-governmental members. The other two NGO seats, reserved for candidates recommended by the Senate, are currently occupied by Ken Hackett and Christine Todd Whitman whose terms expire at the end of the year. We hope the Senate Dems will recognize the tremendous service to date of Ken Hackett and renew his term; Whitman has announced her intention to leave. 5. MCC Puts Sri Lanka Compact on Hold The MCC called for a hold on further compact development activities in Sri Lanka based on escalating violence and increased restrictions on rights and freedoms in the country. Though Sri Lanka's eligibility status is not affected by this decision, it is less likely that they will sign their compact before the end of 2007 as the MCC had originally projected. 6. Armenian Elections Show Improvements in Democracy In the run-up to Armenia's parliamentary elections, there was some concern that the elections might not meet democratic standards. The MCC closely monitored the situation, and though it never specifically threatened to stop Armenia's compact if the elections were found to be fraudulent, the prospect of this possibility may have provided added incentive for the government to focus on improving the electoral process. In the end, Armenia's elections were deemed to be largely in accordance with international standards, thus relieving the MCC from having to seriously assess its continued partnership with the country. 7. The MCC Approach to Tackling Corruption In April, the MCC released a Working Paper (pdf) on its role in the fight against corruption. CSIS hosted a panel discussion in May to discuss the MCC approach, address the difficulties integral to any donor-supported fight against corruption, and offer broad recommendations for the MCC to consider when designing programs and talking about results. 8. Improving Women's Rights in Lesotho: Evidence of the MCC Effect The MCC was recognized for its role in providing both incentives and support for the Government of Lesotho's recent enactment of a law removing the minority status of married women and ensuring their access to property rights. The MCC's support for policy change in Lesotho is consistent with its touted gender policy that integrates gender considerations into all aspects of compact planning and programs. 9. Cape Verde Reports to Congress In March a delegation from MCA Cape Verde presented to Congress their progress to date on the compact signed in July of 2005. Though MCA Cape Verde has made some visible progress with enhanced e-government capabilities and initial road construction underway, the main story so far is what has been accomplished behind the scenes with the establishment of the crucial operational and legal foundation. This is comparable to the "invisible year" story that Sarah Lucas reported from Madagascar. Though operational/foundational steps are less observable, the MCA-CV delegation foresees a long term impact on government capacity building and program sustainability resulting from the "invisible year" efforts. |