Ideas to Action:

Independent research for global prosperity

Honduras was the second country to sign a compact with the Millennium Challenge Corporation and the first country to successfully complete a five-year compact. Its $205 million compact focused on two main constraints to economic growth: high transportation costs and low agricultural productivity.

This report (the second report from the field for Honduras) examines the enduring results of the compact more than a year after its official closeout. It draws from interviews conducted with compact stakeholders and beneficiaries in Honduras to identify why Honduras’s compact was successful and how it was able to sustain that success.

Four lessons stand out:

  1. Sustainability measures were included in compact processes and projects.
  2. The MCC model was embraced at all levels.
  3. The accountable partner entity kept the focus on results despite multiple changes in government.
  4. The compact leveraged additional financing to achieve greater results.

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