When MCC was founded, there was widespread skepticism about the effectiveness of foreign assistance. Many observers, both external and internal to development institutions, agreed that too much aid was being spent on poor projects in service of poorly defined objectives with correspondingly little understanding of what these funds were achieving.
A key pillar of MCC’s model is its focus on policy performance. One of MCC’s defining characteristics is that it provides funding only to countries that demonstrate commitment to good governance and growth-friendly policies.
The Millennium Challenge Corporation (MCC), an independent US foreign assistance agency, was established with broad bipartisan support in January 2004. MCC has a single objective—reducing poverty through economic growth—which allows it to pursue development objectives in a targeted way. There are three key pillars that underpin MCC’s model: that policies matter, results matter, and country ownership matters.
This brief reviews the MCC’s focus on country ownership. A longer discussion can be found in the full paper, “Focus on Country Ownership: MCC’s Model in Practice.”
The Millennium Challenge Corporation (MCC), an independent US foreign assistance agency, was established with broad bipartisan support in January 2004. The agency was designed to deliver aid differently, with a mission and model reflecting key principles of aid effectiveness.
This brief reviews the MCC’s focus on policy performance. A longer discussion can be found in the full paper, “Focus on Results: MCC’s Model in Practice.”
This brief reviews the MCC’s focus on policy performance. A longer discussion can be found in the full paper, “Focus on Policy Performance: MCC’s Model in Practice.”
One of the key pillars of MCC’s model is that country ownership matters for results. In broad terms, the idea of country ownership is that donors’ engagement with developing countries should reflect the understanding that partner country governments, in consultation with key stakeholders, should lead the development and implementation of their own national strategies and that foreign aid should largely serve to strengthen recipients’ capacity to exercise this role.
The Millennium Challenge Corporation’s (MCC) board of directors is scheduled to meet on December 10. As usual, they will use this end-of-year meeting to vote on which countries will be eligible for MCC assistance for FY2015.
With MCC entering its second decade, there are active questions about what it can do to expand its impact. One question is to ask how MCC might expand the set of partners with which it works.
The Millennium Challenge Corporation (MCC) is at a crossroads. Many of its early compacts—large-scale, five-year grants that support country-led solutions to poverty reduction through economic growth in a select set of poor but well-governed countries—are coming to a close.
The Millennium Challenge Corporation is a US agency that provides results-oriented assistance to low- and lower-middle income countries that exhibit strong performance on a number of measures of development. Among these measures is the Worldwide Governance Indicator for control of corruption. A country must score in the top half of its income group on control of corruption to pass the overall selection procedure. This paper examines the empirical underpinning of this “corruption hard hurdle.”
On December 10, the Millennium Challenge Corporation’s (MCC) board of directors will select countries as eligible for compact and threshold program assistance for FY2014.
To inform the Millennium Challenge Corporation’s review of its country selection process, the MCA Monitor has conducted a parallel review and offers five key recommendations.
As the first country to sign a compact with the Millennium Challenge Corporation, Madagascar has been the global guinea pig for the MCA approach. Its early experience offers important lessons for countries following in its path - both about the real challenges of program administration, and the real potential of the MCA as a source of transformation and innovation.
Sarah Lucas May 2006 Download the full text version of the field report (PDF, 89KB)
Ghana is expected to sign the largest MCA compact to date--upwards of $500 million over 5 years--by the end of July.