Ideas to Action:

Independent research for global prosperity

Time for MCC Innovation on Budget Support

September 5, 2006

When the U.S. Millennium Challenge Corp. (MCC) was established, many people assumed it would provide some of its funding through budget support. But so far the MCC has relied exclusively on old-fashioned project finance. In a new issues and options paper, Sheila Herrling and Steve Radelet argue that the MCC should pioneer a new approach, in which the share of funding provided as budget support is linked directly to the measured quality of the recipient’s public financial systems. As systems improve, so would the share of funding provided as budget support. Learn more and join the debate