With rigorous economic research and practical policy solutions, we focus on the issues and institutions that are critical to global development. Explore our core themes and topics to learn more about our work.
In timely and incisive analysis, our experts parse the latest development news and devise practical solutions to new and emerging challenges. Our events convene the top thinkers and doers in global development.
Aid effectiveness, US global development policy, USAID, MCC
Casey Dunning was formerly a senior policy analyst for the US Development Policy Initiative at the Center for Global Development. Dunning previously worked as a senior policy analyst for the Sustainable Security and Peacebuilding Initiative at the Center for American Progress. Before that, in a previous position at CGD, she conducted the center’s analysis on the Millennium Challenge Corporation and researched the application of aid effectiveness principles within USAID, with a particular emphasis on country ownership, aid selectivity, and innovative aid-delivery models. She has worked on harmonizing gender violence and rule-of-law programs in Liberia with Emory University’s Institute for Developing Nations, and at the Carter Center and the International Rescue Committee. Dunning graduated from Emory University with a specialization in international political economy and has also completed studies at Oxford University and Trinity College, Dublin. She holds a masters degree in public policy from George Washington University.
The development community breathed a sigh of relief on December 23 when President Obama signed a nine-bill spending package that included healthy funding for the International Affairs budget. But there is more in this behemoth than topline funding numbers. Tucked away in the State, Foreign Operations portion are new income definitions for the Millennium Challenge Corporation’s (MCC) low income and lower middle income country categories.
At first glance, this may seem like news only for MCC wonks and income data nuts, but the new specifications will have far-reaching effects. The new income definitions will create new low income country (LIC) and lower middle income country (LMIC) groups with new indicator medians that could change a country’s passing/failing status. MCC legislation also dictates that only 25% of MCC funds may be used for LMICs; the new income definitions will alter the countries that fall under this cap by altering the income country groups.
Last Thursday, December 15, the Millennium Challenge Corporation (MCC) board of directors convened for its annual meeting to select eligible countries for FY2012 MCC assistance. As a result (and largely in line with MCA Monitor predictions), the board selected Benin and El Salvador to develop second compacts, and selected Honduras and Nepal to develop threshold programs. In addition, the board reselected Georgia, Ghana, and Zambia to continue compact development and approved Cape Verde’s second compact.
Second Compacts for Benin and El Salvador
Benin and El Salvador are FY2012’s newly compact eligible countries and will now begin developing second compacts. Both countries are notable for having passed the new indicators system while failing the old system (due to only passing one indicator in the Investing in People category). Under the new system, El Salvador passes 14 indicators and Benin passes 11 indicators.