This annual report marks two milestones in 2016: CGD’s 15th anniversary and, at the end of the year, its first leadership transition, with founding president Nancy Birdsall being succeeded by Masood Ahmed.
The Millennium Challenge Corporation (MCC) was established to provide large-scale grant funding to poor, well-governed countries to support their efforts to reduce poverty and generate economic growth. However, the statutory definition of which countries are “poor” for the purposes of MCC candidacy is inadequate. Based solely on GNI per capita with a rigid graduation threshold, it does not portray a clear picture of broad-based well-being in a country. Using a new, comprehensive country-level dataset of median consumption/income, the authors explore the merits and limitations of such a measure and suggest how it might be applied as an additional determinant of MCC candidacy.
The United States has been at the forefront of providing several development-related global public goods, including peace and security via its contributions to international peacekeeping, the monitoring of international sea trade routes, its engagement in forums such as the Financial Action Task Force to stem flows of funding to terrorist organizations, and more. Yet it has not fully capitalized on its comparative advantage in research and development at home that matters especially for the world’s poor, or on its opportunities for globally transformative investments abroad in such areas as clean power and disease surveillance. We propose two areas where the United States should lead on providing even more transformative global public goods.
MCC’s model has received much recognition. However, since the agency controls just a small portion of the US foreign assistance budget, it alone has not fulfilled — and cannot be expected to fulfill — the founding vision of transforming US foreign assistance policy. Partly in response to the recommendations stemming from the 2010 Presidential Policy Directive (PPD) on Global Development, the larger agencies, especially the US Agency for International Development (USAID), have commendably worked to incorporate many of the same principles included in MCC’s model. For the most part, however, those principles are applied to a still-limited portion of the overall US foreign assistance portfolio. The next US president should continue to support MCC as a separate institution and support efforts to more thoroughly extend the good practices promoted in MCC’s model throughout US foreign assistance in general.
The development landscape between now and 2030 will be look completely different from the last fifteen years. The Sustainable Development Goals which look likely to be agreed in September, including a commitment to eradicate absolute poverty by 2030, will be addressed against a very different backdrop to the relatively successful period of the Millennium Development Goals. There are three challenges we are going to have to address.
This paper examines courses of action that could help the bank could adapt to shifting development priorities. It investigates how country eligibility standards might evolve and how the bank might start to break away from its traditional “loans to countries” model.
Time and time again I have seen NGOs and politicians in rich countries advocate that the poor follow a path that they, the rich, never have followed, nor are willing to follow.
When Sir Tim Lankester defends the aid programme against charges that it can sometimes be misused for other things, he knows what he is talking about. He was the most senior civil servant in Britain’s aid ministry (then called ODA, now known as DFID), and in 1991 he bravely blew the whistle on a project to finance a dam in Malaysia because it was not a good use of development money (and indeed turned out to be connected to agreements to buy British arms).
This paper articulates how development assistance can promote program evaluation generally, and impact evaluation specifically, as a contribution to good governance.
This paper focuses on aid effectiveness. The paper considers peer-reviewed, cross-country, econometric studies, published over the last decade in order to propose areas with policy implications related to the conditions under which aid is more likely to be effective.
The lack of reliable development statistics for many poor countries has led the U.N. to call for a “data revolution” (United Nations, 2013).
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.
Advancing the US–Africa Trade and Development Agenda: Aligning US Policy Tools to Address Core Competitiveness Constraints
On July 29, 2014, senior fellow and director of CGD’s Rethinking US Development Policy Initiative Ben Leo testified before the House Ways and Means Subcommittee on Trade at a hearing about the future of the African Growth and Opportunity Act (AGOA) .
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.
Getting Serious about Underperformance of the African Growth and Opportunity Act: Policy Options for Supporting Trade Potential in Africa
With the African Growth and Opportunity Act (AGOA) scheduled to expire in September 2015, the US Congress and Obama Administration will need to consider its status this year.
Maximizing Access to Energy: Estimates of Access and Generation for the Overseas Private Investment Corporation’s Portfolio
We conservatively estimate that more than 60 million additional people in poor nations could gain access to electricity if the Overseas Private Investment Corporation were allowed to invest in natural gas projects, not just renewables.
A strengthened OPIC—more efficiently deploying existing tools at no additional budget cost—would (1) increase US commercial access in emerging economies, (2) reflect economic, social, and political priorities in developing countries, (3) promote flagship US initiatives during austere budget conditions, and (4) support stability in fragile or frontline states.
In this note, CGD senior policy analyst Alexis Sowa outlines three recommendations for US development assistance to Pakistan: name the leader of US development efforts, clarify the mission, and finance what is already working.