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And the award for burying the lede goes to MCC CEO Dana Hyde. At an event hosted by Brookings and CGD Friday about MCC’s future, Hyde quietly acknowledged that the MCC is “actively engaged in pursuing” the possibility of Cash-on-Delivery Aid programs in its compacts. This is hugely exciting news—for MCC, as well as the rest of the US aid architecture. Paying for outcomes (not inputs) means a focus on concrete development results, as well as mutual accountability and transparency.

Here is Hyde in response to a question on the reference to pay-for-success in her remarks at CGD:

MCC’s model is ripe for experimenting with pay-for-success financing, such as COD Aid and Development Impact Bonds. As Hyde recognized in her remarks, pay-for-success mechanisms like COD Aid are ideally placed to address MCC’s model of supporting development: “the two key core elements of MCC’s model – a bedrock commitment to country ownership and accountability for results focus – lend themselves very well to a pay for results approach.”

Congratulations to MCC for continuing to lead on innovation.

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CGD blog posts reflect the views of the authors, drawing on prior research and experience in their areas of expertise. CGD is a nonpartisan, independent organization and does not take institutional positions.