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.
The welfare of the poor turns in large measure not only on technocratic development "policies", but the effective delivery of key public services, core elements of which require thousands of face-to-face discretionary transactions ("practices") by service providers. This paper presents eight current proposals for improving service delivery, on the basis of a principal-agent model of incentives that explores how these various proposals change flows of resources, information, decision-making, delivery mechanisms, and accountability.