Tag: MCA/MCC

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.

“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

The race is on for FY2013 Millennium Challenge Corporation (MCC) funding. The MCC board of directors meets December 19th to decide which countries will be eligible for FY2013 assistance.  CGD’s MCA Monitor offers a sneak peek at the countries we think the MCC is most likely to select as eligible for compacts or threshold programs and why.

It had the feel of a stop along a farewell tour, but I don't think the Millennium Challenge Corporation (MCC) minded the visit--and praise--they got from Secretary of State Hillary Rodham Clinton when she stopped by MCC headquarters this week. Clinton applauded the MCC’s open, data-driven approach and commitment to learning while doing, saying it “set the stage” for the Obama administration’s broader development reforms that are still underway.