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MCC Monitor Analysis

Can Tourism Development Help Reduce Poverty? A Question for the MCA

Sarah Lucas
April 1, 2005
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The Millennium Challenge Account (MCA) aims to “reduce poverty through economic growth.” It works on an innovative model rather like a foundation: eligible countries apply to the MCA to fund national development priorities. The MCA then assesses the proposals based on their potential to yield economic growth and poverty reduction. Several MCA-eligible countries have included tourism components in their funding proposals. But does tourism promote poverty reduction? In this MCA Monitor Analysis, Sarah Lucas offers a brief assessment of the potential effects of tourism on poverty reduction and suggests lessons for maximizing the poverty-reducing potential of tourism.

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