MCC Signs $36m Threshold Program with Peru

On November 30, the MCC signed a $35.6 million Threshold Program with Peru to combat corruption and improve immunization. Peru becomes the 18th country to sign a Threshold Program with the MCC, bringing the total amount committed to the Program to about $400 million.
Interestingly, although Peru failed both the control of corruption and immunization indicators in FY2007, the year it was deemed eligible for the Threshold Program, it now passes both indicators, making it a bit odd to have a program aimed at improving them. Indeed, the indicators now standing in the way of Peru passing the full eligibility performance test are spending on health and education (which are incredibly low) and the recently added Natural Resources Management Indicator (NRMI). And so, as good as I'm sure the program is, the fact that the indicators it targets no longer need improvement to "pass the threshold" bring us back to the broader question of what the Threshold Program's objective is. Is it to provide assistance to get countries over the threshold? Is it technical assistance in key policy areas that are good for development and helpful to countries the MCC doesn't yet want to declare fully eligible? Is it a program to support reformers without an expectation that it will make a substantial difference in the country's ability to pass the indicators at the end of the program? For those interested in our thoughts on what to do with the Threshold Program, read that section iin our recent FY08 MCA Country Selection Round paper.