Awkward Timing for MCC Chief's Departure

Financial Times' Andrew Balls reported last night that Paul Applegarth's surprise resignation resulted from failing confidence within the Bush administration that the flagship aid program was fulfilling expectations. Ball wrote:

The timing of the resignation was awkward for the administration, occurring just before the Group of Eight summit in Scotland next month. At the summit, President George W. Bush will promote the Millennium Challenge Account, overseen by the MCC, as the US's preferred way of raising aid flows to African countries.

European proposals, in contrast, are for innovative financing schemes to increase aid, or new taxes. Within the administration, officials are concerned at slow progress made by MCC in disbursing aid. Last week at a meeting with African leaders, Mr Bush pledged to "work harder and faster" to increase aid after receiving complaints about the MCC's excessive bureaucracy.

This meeting followed Mr Applegarth's gradual loss of support of the MCC board members including Condoleezza Rice, secretary of state, and John Snow, Treasury secretary according to administration officials and others close to the MCC.

Mr Applegarth's resignation will be portrayed as signalling that the administration is serious about boosting the MCC. State Department and MCC spokeswomen declined to comment on the resignation. Tony Fratto, Treasury spokesman, said the administration did not comment on personnel decisions, but added: "As the president has said, we want to see the MCC at the leading edge of how development assistance is delivered. We appreciate the work Mr Applegarth did in getting the MCC off the ground."