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In response to the news that the US foreign aid agency the Millennium Challenge Corporation (ranked by Publish What You Fund as the world’s most transparent bilateral agency) is to be shut down, several CGD experts provided reactions.
Nancy Lee, Director of CGD’s Sustainable Development Finance Program and previously deputy chief executive officer of the Millennium Challenge Corporation:
“MCC is the only aid agency in the world that targets poor countries with good policies, helps countries choose the most growth-promoting investments through rigorous analysis, and funds the investments in ways that do not build unsustainable debt. Why destroy a model that has a 20 year track record of success?”
And Erin Collinson, Director of Policy Outreach at CGD:
“US lawmakers and officials on both sides of the aisle have long trumpeted MCC’s focused mission and commitment to accountability. Just last year, Congress passed legislation enabling the agency to expand its reach by working in a broader set of countries. Shutting down MCC is an unforced error that will hurt the United States reputation abroad.”
And Charles Kenny, Senior Fellow at CGD:
“The Millennium Challenge Corporation is pretty much the only bit of the US government funding public sector infrastructure in developing countries—the kind of thing China’s Belt and Road initiative has done, only with grants rather than loans.
“It was also created by bipartisan legislation, and continues to enjoy bipartisan support in Congress. Though the USAID experience so far suggests that might not be worth as much as you would think!”
And Cindy Huang, Senior Fellow at CGD:
“MCC is an outstanding model for partnering with countries to increase growth and reduce poverty—all based on rigorous data and tied to reforms to unlock private investment. In this new era of strategic competition, the United States needs MCC and development tools like it more than ever.”
