The ability of the US International Development Finance Corporation (DFC) to fulfill its promise of becoming a full-fledged, impact-focused development finance institution depends in part on how it leverages the expertise and resources of other US government development agencies.
The US Department of Defense (DOD) is not a development agency, but it does manage millions of dollars of development assistance.
USAID has announced its intention to pursue “strategic transitions”—shifting select countries which have achieved an advanced level of development to a model of US engagement that relies less on traditional development assistance and more on other forms of cooperation. This paper seeks to inform USAID’s approach to strategic transitions.
For over ten years, the international development community, including the US government, has committed to incorporating greater country ownership into the design and delivery of foreign assistance. This paper makes six broad recommendations for how USAID, MCC, and Congress can help the US government build momentum around its efforts to promote country ownership.
The Use and Utility of US Government Approaches to Country Ownership: New Insights from Partner Countries
Over the last decade, the US government has repeatedly expressed its commitment to incorporating “country ownership” into the way it designs and delivers foreign assistance. This paper draws upon perception-based data from government officials and donor staff in 126 developing countries to explore how development policymakers and practitioners evaluate US government efforts that promote (or hinder) country ownership and the extent to which these efforts are perceived as useful. While the US government does pursue some approaches considered favorable for country ownership, practices that put countries more firmly in the driver’s seat are underutilized compared to their perceived utility.
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.