Blog Contributor:
Beth Adler
Beth Adler is a Research Assistant on the policy team, working on trade, agriculture, and economic development topics. Beth was born in Johannesburg, South Africa and lived there until she was 11, when she moved to Philadelphia. She comes to D.C. from Boston where she was running disease management education programs in low income communities with a non-profit called Project HEALTH. Beth studied International Development at Brown University, and spent two summers doing HIV/AIDS and education work in Cape Town, South Africa, the city that has stolen her heart. In her free time Beth enjoys cooking/baking/experimenting with food, exploring D.C., and swimming.
Mar 22nd, 2010 9:55 AM UTC
By Beth Adler
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ONE just returned from a listening and learning trip to Senegal, Ghana, Mozambique and Kenya with members of our board and other supporters. ONE’s Beth Adler reflects on a water and sanitation public private partnership in Mozambique:
One of our days in hot and green Mozambique was spent welcoming some ONE delegation members to a water and sanitation site run by a public private partnership called Water and Sanitation for the Urban Poor (WSUP) which includes ONE’s long-time partner CARE.
WSUP works in Maputo’s urban slums, called bairros, connecting families with the water network and building sanitation blocks to replace latrines. They also complement the physical infrastructure they install with health and hygiene in the bairro schools. The organization is a unique public-private partnership between private sector companies like Thames Water, Halcrow, and Unilever, NGOs like CARE, Water Aid, and WWF, and Cranfield University. A core component of WSUP’s operation is to working in close collaboration with local authorities, municipalities, and local service providers to provide sustainable solutions that will be used and maintained even once donors leave.
Our first stop was at the bairro’s standpipe—the current water provision mechanism. The standpipe is open for several hours each day and people line up with their jerry cans, sometimes for hours, to get water. When we visited, the line was comprised almost entirely of women and girls who after filling them would carry the jerry cans home on their heads. Our second stop was the home of a family who saved to pay for the installation of a water tap just outside their house. The mother explained that she was thrilled with the tap—it’s allowed her more time to purchase and market the vegetables she sells to earn her family income. Her family has also been able to sell some water to their neighbors, adding a source of income for them.
Walking through the unpaved, muddy streets of the bairro, it was clear that families live close together and there isn’t space in homes for personal sanitation facilities. We visited a latrine—shared by more than 30 families—which is typical of the sanitation situation in the bairros. A sanitation block is slated for installation soon, about which the community is very excited. We then saw a sanitation block in another part of the bairro. The block is a simple, concrete structure that takes about two months to construct. It has toilets as well as a water pipe and place for families to do laundry. The block is maintained by a committee of people in the community, and the water pipe is operated by a woman who draws an income from opening and closing the pipe each day and ensuring that the meter is paid so that residents can receive water.
The need for improved water and sanitation services in Maputo are severe and growing. The city is home to over 1 million residents and is growing at 6% annually. The water supply coverage from a conventional network is around 40%. The general coverage for sanitation is around 82%, and in the peri-urban areas there have been significant investments for the construction of improved latrines. Mozambique’s Government policy is to improve these conditions but it does not have the capacity without assistance.
The WSUP project in Maputo aims to improve the health and living standards of residents by providing sustainable access to potable water for 180,000 people and improved sanitation facilities for 100,000. Their hygiene programs also reach 11,000 children. Our bairro visit really opened our eyes to the challenges in the water and sanitation sector—and the opportunities. WSUP is making impressive progress talking this issue and it was a treat to see them in action!
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Feb 2nd, 2010 10:10 AM UTC
By Beth Adler
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Yesterday President Obama released his budget request for the FY2011. The Millennium Challenge Account, which funds the Millennium Challenge Corporation (MCC), saw an increase of $175 million over last year, bringing the total to $1.28 billion for FY2011. Last year Congress approved $1.08 billion for the MCA.
We welcome this increase as a harbinger of continued interest in the MCC, which is especially exciting considering the difficult economic climate. We were concerned that given the budget environment, the MCA could have taken a hit and been unable to fund crucial compacts in the pipeline like those of Zambia and Malawi.
The MCC is a unique foreign assistance institution that support country-led development plans. The MCC focuses specifically on supporting programs that reduce poverty by encouraging sustainable economic growth through market-based investments in agriculture, infrastructure, water, education, private sector development, and capacity building. The MCC selects countries to receive assistance based on their performance on 17 policy indicators. Countries then construct a “compact” which outlines the greatest barriers to their own development and proposes initiatives to address those hurdles. The MCC currently has compacts with 11 sub-Saharan Africa countries, valued at a total of approximately $5 billion.
Several countries are in the process of compact development and are expected to complete and sign those compacts in FY2011, including Malawi, Zambia, Cape Verde, and Indonesia. While the increase in the account is very exciting, it may not be enough to fully fund the two or three compacts that could come due next year.
We’ll also be keeping an eye on the MCC as the institution settles in with their new CEO, and contemplates possible reforms—like concurrent and regional compacts. The budget request may be in, but be sure to check back here for other MCC developments.
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Jan 28th, 2010 1:50 PM UTC
By Beth Adler
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On Friday Moldova signed a compact with the Millennium Challenge Corporation (MCC), making it the 20th country to receive innovative development financing from the MCC. The five-year, $262 million Compact will focus on irrigation infrastructure, high-value agricultural production, and road rehabilitation. As the MCC notes, Moldova is the poorest country in Europe, and relies heavily on farming which employs 40 percent of the population and accounts for 17 percent of their GDP.
Investment in the transportation, infrastructure, and agriculture sectors will enable Moldova to make the most of their agricultural production and use it to enhance economic growth. The high-value agriculture project is intended to increase production of and marketing opportunities for lucrative produce like fruits and vegetables. This project could help increase farmers’ incomes and generate opportunities in Moldova’s rural areas. Farmers could also benefit from improved access to credit as well as a technical assistance scheme co-financed by USAID, which will help farmers transition to higher-value agriculture, post-harvest processing, storage, and marketing.
The irrigation project is slated to repair 11 large irrigation systems which irrigate 15,500 hectares of land, while the road rehabilitation project includes repairs to a 93 kilometer stretch of highway that is a key link for passenger travel as well as trade.
Moldova previously completed an MCC Threshold program in which they focused on combating corruption in the country. As MCC CEO Daniel Yohannes mentioned, “I commend Moldova’s commitment to poverty reduction and economic development opportunities. Moldova’s MCC threshold program has already created an environment where innovative technologies, productivity, and increased access to markets can flourish. Now, with this Compact, MCC looks forward to deepening our partnership with the people of Moldova to foster long-term economic growth.”
Moldovan Prime Minister Filat commented that the Compact will greatly assist Moldova in moving from a difficult past towards a successful future.
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Jan 26th, 2010 2:30 PM UTC
By Beth Adler
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Yesterday the Government of Haiti and other members of the international community, including U.S. Secretary of State Hilary Clinton, met in Montreal to discuss the recovery and rehabilitation process in Haiti. Canada convened the meeting, demonstrating strong leadership that should continue in the run-up to the 2010 G8 meetings, which Canada will host. The group committed to a ten-year rebuilding effort, guided by a set of principles: Haitian ownership of their own future; coordination; sustainability; effectiveness; inclusiveness; and accountability. The group also committed to the continued response of donors to Haiti’s most pressing post-disaster needs.
Acknowledging the crucial connection between emergency assistance and long-term development initiatives, the convening groups pledged to pursue longer-term, strategic objectives to assist Haiti. The participants emphasized that the Haitian government will be front and center of the rebuilding effort, and that any initiatives will also have a strong focus on accountability and effectiveness of the financing. As Secretary Clinton noted, “As we work together to design the mechanism that will be used to deliver assistance and create the conditions for sustainable development, we bear a responsibility to our taxpayers to assure that the money that our government commits will be well spent, transparently, and with results on the ground for the Haitian people.”
Here’s the video:
The strategic objectives agreed upon include strengthening democratic governance, for example, building effective, transparent democratic institutions that can respond to the needs of the people. Engagement will also focus on sustained social and economic development, including economic growth and poverty reduction. A third objective is maintaining rule of law which means supporting the UN stabilization mission in Haiti and integrating the security, law, and justice systems to achieve democratic governance and social and economic development.
While no group financial pledge was made at the meeting—Haiti made no financial requests as no comprehensive assessment has been conducted to determine the cost of reconstruction a few countries announced new commitments Participants also committed to meeting the basic needs of Haiti’s people, and working to construct a roadmap for Haiti’s reconstruction and development. In the short term this means restoring operational capacity of the Haitian government to meet the needs of its people, and conducting comprehensive needs assessments.
In March, an international conference will be held in the U.S., steered by the Government of Haiti, with major donors attending. At this conference, partners will agree on an effective coordination mechanism to address Haiti’s needs, clear and realistic benchmarks, and an ongoing tracking mechanism for implementation.
The prospect of strong support for the reconstruction effort coupled with the debt cancellation for Haiti that ONE is calling for (link to other blog post or site), which is being discussed in the decision-making bodies of multilateral creditors, will help Haiti get back on track to undertake after the earthquake.
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Dec 22nd, 2009 1:18 PM UTC
By Beth Adler
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Our friends at the African Development Bank have launched a new blog called Building Africa Today. Right now the blog is focused on private sector activity, a priority area for the AfDB, and is providing great data that examines economic trends on the continent.
For those of you that are unfamiliar with the African Development Bank (AfDB), it is one of several multi-lateral development banks serving developing regions—in this case, of course, Africa. The AfDB provides development financing and technical assistance to African member countries and the private sector within Africa for projects in a variety of sectors. In addition to funding country-specific projects designed to eradicate poverty and promote sustainable development on the continent, the AfDB houses several initiatives and mechanisms that aim to leverage additional resources for Africa.
The AfDB is known for investing in several specific development arenas including infrastructure and agriculture. The AfDB is often equipped to invest in these sectors when other donors are not. The Bank has played a particularly important role during this past year: as the financial crisis has unfolded, the AfDB has disbursed the money they have in the bank much more rapidly—called frontloading in bank speak. This funding has helped to buttress against the impacts of the crisis on African countries. Because of this frontloading, the AfDB will soon be out of money and will need to fundraise to replenish its covers. This will be a big priority for ONE this year—stay tuned for information there.
The folks at AfDB are also launching several new videos about their work, including this one which we showcased on the ONE Blog yesterday.
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Dec 11th, 2009 5:57 PM UTC
By Beth Adler
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On Wednesday the Millennium Challenge Corporation (MCC) Board held their last meeting of the year. At the meeting, the Board determined which countries are eligible to apply for compact funding in FY2010, and which are eligible to continue with the compact development process.
At the event yesterday to discuss the Board’s decisions, we heard from new MCC CEO Daniel Yohannes, who was on his ninth day on the job. Yohannes outlined his priorities for the MCC: a renewed commitment to innovation, increasing private sector engagement, like leveraging MCC monies to generate additional funding, working effectively and efficiently with other U.S. agencies, and with country-governments to reform their economic policy.
A panel of MCC Vice Presidents further explained the Board’s decisions. Cape Verde was selected as eligible for a second compact. As one of the first countries to complete a compact, Cape Verde has demonstrated results. Cape Verde will pioneer the second-compact process, which is never a given for compact countries. Countries not only have to pass the indicators to be eligible for a second compact, but they have to have a proven track record for effective implementation, show early results from the first compact, and embrace policy changes that will enable further successes. The ambassador from Cape Verde spoke briefly, expressing gratitude for the second compact and determination to further poverty reduction and economic growth in Cape Verde.
Zambia, Jordan, Malawi, Indonesia, and the Philippines were deemed eligible to continue with their processes of compact development. Indonesia and the Philippines graduated from the low-income country category and did not pass the indicators in the new, more competitive, lower-middle income country category. Considering that there was no evidence of policy deterioration, and they would have met the targets in the low-income category, the Board approved them to continue with compact development. The Moldova compact was also recently approved, and will likely be signed early in 2010.
The Board voted to suspend the Threshold program in Niger due to significant policy reversals by the Government of Niger since the Threshold program began. The MCC will work with USAID, who are implementing the Threshold program, to responsibly wind-down the program. The Board did not select any new Threshold program partners, but Liberia and Timor Leste are in the process of finalizing their Threshold programs.
The Board also approved several new projects in the Mongolia compact. The government began working with the MCC to design an alternative energy program and road-rehabilitation project after it became clear that they would be unable to complete the rail project originally in the compact.
We here at ONE are very excited about working with the MCC—and their new CEO—in the New Year.
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Dec 6th, 2009 6:48 PM UTC
By Beth Adler
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On Tuesday one of our partners, the Center for Global Development (CGD), released their annual MCC predications. Each year CGD analyzes the same data that the MCC will use to choose countries eligible for compact or threshold assistance, and provides their own analysis of countries likely to be selected by the MCC.
The MCC evaluates countries based on 17 indicators that fall into three categories: Investing in People, Ruling Justly, and Economic Freedom. In addition to the indicators, the MCC Board will consider the availability of funding, the opportunity to encourage economic growth and reduce poverty in the country, and, if the country is up for a second compact, their performance during the first. Countries are evaluated in two peer groups—low income countries (LIC) and lower-middle income countries (LMIC). Countries that have not previously been selected for a compact must pass the indicators to be eligible for consideration in the compact selection process. Also, countries that are in the process of developing their compacts, but have not yet signed them, must pass the indicators in order to continue with compact development.
CGD predicts that this year the only new LIC country to be chosen for a compact will be Guyana. Guyana has squarely passed the indicators for the last three years, and has demonstrated important policy changes over the last two years. It is also currently in the second year of a two-year threshold program sponsored by the MCC.
CGD named Rwanda a borderline country: it passes the indicators for the third year in a row, but it fails all three democracy indicators, so the Board will likely wait for improvement on those indicators to select it for a compact. Malawi, Moldova, and Zambia should all be selected to continue with the compact development process. Moldova’s compact was actually approved by the MCC last week but has yet to be signed.
In the LMIC category, CGD predicts that Cape Verde and Georgia (despite the latter missing a pass by one indicator) will be selected to prepare second compacts. Both countries are nearing completion of their first compacts, and would pioneer the second-compact process. Jordan passes the indicators and will likely be reselected to continue compact development.
CGD categorized the Philippines and Indonesia as borderline countries as they are unsure how the Board will address their graduation from the LIC to LMIC category. While the countries passed the indicators as LICs, they now fail in the higher-standard peer group of LMIC countries. CGD predicts that the Board will, and should, select both countries as eligible as they have done with other “graduates” in the past.
You can read the full CGD paper here—let us know what you think, and if you like, you can comment on CGD’s blog, too. The MCC Board will be making a decision next week about countries that will receive compacts with FY2010 funding. Check back to the blog for the results of that meeting.
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