Expand and Enhance: A Proposal to Strengthen the MCA Eligibility Process When Adding the Natural Resource Indicators

January 29, 2007

At the end of January 2007, the Millennium Challenge Corp. briefed staff-level representatives of its Board on plans to add two new natural resource indicators to its country eligibility criteria. These two indicators, Natural Resources Management and Land Rights and Access, are slated to be incorporated into the selection process starting in FY 2008. In mid-February, the Board will determine how the new indicators will be officially incorporated into the country eligibility process, specifically, in which of the three indicator categories--Ruling Justly, Investing in People, or Economic Freedom--they belong. While the initial MCC recommendation was to include both in the Investing in People basket, CGD’s MCA Monitor team evaluates this option, presents alternatives, and ultimately recommends an option that places the Natural Resources Management indicator in the Investing in People basket, places the Land Rights and Access indicator in the Economic Freedom basket, and makes some new adjustments within both baskets to accommodate the additions, including adding a new education indicator.

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