In this analysis, Steve Radelet reviews the Millennium Challenge Account’s (MCA) foundational tenets of country selection, ownership and organization. He also identifies some concerns, particularly the proposal to include lower-middle income countries at a later date; the statistical difficulties with requiring countries to pass a survey-based corruption indicator; and the potential coordination problems that may arise with two separate U.S. foreign assistance agencies.
This paper examines the Bush administration's proposed methodology for how countries qualify for the funding from the Millennium Challenge Account in detail, exploring the judgments required and examining some alternative methods.
The Devil is in the Details: From the Millennium Challenge Account to the Millennium Challenge Corporation
The devil will be in the details in the establishment of the Millennium Challenge Corporation (MCC)--as it is with most organizational innovations. In this MCA Monitor Analysis Carol Lancaster identifies five major issues that must be addressed: the political process by which the MCC will be established; how the MCC will be funded; the criteria for eligibility; implementation of programs; and the management of the organization, including the role of the Board.
In this MCA Monitor Analysis Nancy Birdsall argues that the MCA principle of country eligibility based on performance has merit, and maintains that the application of eligibility criteria may not be as restrictive as some fear.
The oldest saw in Washington is the saying "Where you stand depends on where you sit". But just because it’s old doesn’t mean it isn’t right. This paper presents the options for housing the Millennium Challenge Account. Whether it is fully or partially integrated into an existing organization or created as a new organization, where this account is lodged organizationally will shape what it does, regardless of what the president intends it to do.
This paper defines two distinct and overarching objectives for the MCA and proposes 12 criteria for assessing recipient country eligibility. The authors recommend that the MCA be targeted to the poorest countries that are eligible for World Bank grants and concessional loans.
Beyond the Indicators: Delivering Effective Foreign Assistance through the Millennium Challenge Account
The launch of the Millennium Challenge Account (MCA) holds the promise of being a watershed event in the history of U.S. foreign assistance. This paper discusses how should aid be delivered, once eligibility is determined, to ensure it is as effective as possible in supporting growth and development in recipient countries.
This paper defines seven principles to guide the design and implementation of the Millennium Challenge Account" (MCA), a new compact for development announced by President Bush in March. It assumes that MCA resources will be targeted to low-income countries that have limited, if any, access to private capital markets for sovereign debt, and for whom borrowing from the World Bank and other multilaterals is limited; and that the MCA will be an additional program to those already financed and administered by the U.S. government, which have related but not identical objectives, and affect a set of countries that is not necessarily the same.
How Does The Proposed Level of Foreign Economic Aid Under the Bush Budget Compare with Historical Levels? And What Would Be The Effects of Bush's New "Millennium Challenge Account"?
This paper examines trends in U.S. non-military global aid and how the administration’s proposed budget for fiscal year 2003 would affect those trends. The analysis addresses how the overall level of proposed aid compares with past levels and examines three standards for measuring aid over time: aid as a percentage of total government outlays, aid as a percentage of the economy, and aid in inflation adjusted terms.