"I consider the MCA a great innovation in international development," said Cape Verde's Prime Minister Jose Maria Pereira Neves. "It encourages positive change. I believe countries with good policies should be rewarded."Neves spoke about the Cape Verde compact at a meeting in Washington DC on July 13 organized by the Center for Global Development, Bread for the World and the Millennium Challenge Corporation. The United States and Cape Verde signed a five-year $110 million on July 4 in Praia; the first time a compact has been signed outside of the United States.The compact will finance projects in infrastructure ($74 million), agriculture ($11 million), and private sector development ($7.2 million). In addition, $8 million and $4 million will be allocated to program administration and monitoring and evaluation.Cape Verde is the third country to sign a compact with the MCC, and the second in Africa to do so after Madagascar. Nicaragua and Honduras have also signed compacts.CGD Senior Fellow Steve Radelet, who moderated the discussion, lauded Cape Verde's efforts. "A lot of positive change has taken place in Africa. In the 90's, there were only four democracies. Today, Africa counts close to 20 democracies," Radelet said. "Cape Verde has been at the forefront of that change. It is perhaps hard to notice because it is a small country, but Cape Verde has led the way to change."MCC CEO Paul Applegarth showcased Cape Verde's accomplishment as an example to emulate. "Now with these compacts, we have real examples that show how the system works," he explained. "We hold it as gospel that countries have to pick and choose what works for them. The other MCA countries can talk to the countries that have signed compacts about their experiences."Thirteen other countries that qualified for MCA funding do not yet have compacts.When asked what could have been done differently, Jose Brito, Cape Verde's ambassador to the United States, pointed to one of the main challenges the MCC faces in explaining the innovative concepts that it embodies."I recognize the MCA process is complex. At the beginning, the guidelines were not clear. But we learned together through this process," Brito said. "The MCC should also rethink the importance of economic rate of return for the program. Many development projects, particularly in education and agriculture, do not show great economic rate of return at the outset. Yet in the long run, they are essential for poverty reduction."David Beckmann, President of Bread for the World, urged the audience to help move Congress to support and fully fund President Bush's request $3 billion for the MCA."I am excited about the G8 commitment to Africa. This will help millions of people," Beckmann said. "But from the United States perspective, it is a recommitment to an earlier promise. We need to do our part to ensure that promise is kept."As for the Capeverdians, they are eager to implement the program. "We hope to get the money soon," Ambassador Brito said. "That is what it is all about, not the signing ceremony."
