In more news from Capitol Hill on Tuesday, the Senate Foreign Relations Committee unanimously approved the nomination of Daniel Yohannes to be chief executive officer of the Millennium Challenge Corporation (MCC). As we mentioned earlier on our blog, Yohannes, a West Coast entrepreneur, banker and philanthropist emigrated to the U.S. from Ethiopia at the age of seventeen with $150 in his pocket. Yohannes testified before the Committee earlier this month, promising to create a “global culture of opportunity” at the MCC.

Yohannes’ nomination now moves to the Senate floor, but the exact timing is still unclear. We’ll keep you posted as more news comes up!

On November 4, the Senate Foreign Relations Committee, presided over by Senator Robert Menendez (D-NJ) and Ranking Member Senator Richard Lugar (R-IN), held the confirmation hearing for Daniel Yohannes, nominee for CEO of the Millennium Challenge Corporation (MCC). Yohannes began his testimony by praising MCC efforts; the MCC, he said, “lays innovative foundations” to address the problems of global poverty.

Senators Menendez and Lugar both questioned the place of the MCC within the larger development agenda: Lugar asked if the MCC should remain a separate agency while Menendez stressed that it should be complementary to other aid initiatives, rather than replace them. Yohannes agreed, noting that the MCC has been created from the best practices learned from past endeavors and therefore extremely effective, but that it cannot be successful alone. It is imperative to work with other agencies such as USAID and groups on the ground, he said, to take a coordinated approach and prevent duplicity.

Menendez also praised the country-ownership aspect of the MCC and asked Yohannes how he would ensure that governments are working with a broad cross-section of civil society organizations (CSO), including those who are often not consulted, such as women. Yohannes emphasized he would make CSO input a priority, making certain that a variety of groups and CSOs are consulted.

Lugar encouraged Yohannes to highlight the impacts of the MCC, lamenting that it sometimes takes years to develop projects, compacts and see results, frustrating Congress and others. Yohannes agreed that it was time to show the American people concrete results and emphasized that the U.S. can be proud of its efforts to eradicate deep-seated poverty around the world. Yohannes promised to continue the MCC’s efforts to partner with others to create a “global culture of opportunity.”

Last week I wrote about an event I attended at the Millennium Challenge Corporation headquarters, where I got to hear firsthand from 4 Resident Country Directors about how MCC programs are working to stimulate economic growth.

Today, MCC’s “Poverty Reduction Blog” has a series of clips and interviews featuring various Resident Country Directors. They serve as a useful tool for understanding the work MCC does and what’s going on in the field.

You can check them out here.

Yesterday, the Millennium Challenge Corporation gave a handful of local DC bloggers a chance to meet with some really interesting people. They were the Resident Country Directors for Georgia, Ghana, Madagascar and Nicaragua. Each director had a chance to talk about what they’d seen in their respective country– both the successes and the setbacks.

Accountability appeared to be the watchword of the morning. In case you’re unfamiliar with their work, for a country to be eligible for MCC assistance, it must demonstrate a commitment to policies that promote political and economic freedom, respect for civil liberties, and other criteria.

Glenn Lines, the Resident Country Director (RCD) for Madagascar spoke about the decision to terminate the MCC’s Compact with the country after a coup. This is a unique situation for the MCC that also provides an opportunity to ensure a successful “windup” and smooth transition. Nicaragua, here represented by RCD Steve Marma itself has suffered a recent setback with the MCC’s decision to suspend funding for their Compact following the country’s political decisions that were inconsistent with MCC’s eligibility criteria. Despite these setbacks, each RCD was clearly proud of the MCC’s work building and improving infrastructure, and providing other aid.

The setbacks in Madagascar and Nicaragua led to a larger discussion about what we mean when we talk about “effective foreign aid.” Katerina Ntep, representing Ghana, discussed the importance the MCC places in each country’s ability to be eligible and remain eligible over the course of their partnership. She also spoke about the importance of predictability in providing necessary aid which has led to the successful training of 51,000 farmers in Ghana through the MCC. Jim McNicholas, RCD for Georgia, underscored the necessity of accountability in ensuring each MCC partnership contributes to a spirit of country ownership.

You can read more about the Millennium Challenge Corporation on the ONE Blog here.

In August, ONE partnered with The Field Museum and hosted Sen. Durbin on a rally around the Water for All Act.

Recently, ONE again joined with The Field Museum to host the Millennium Challenge Corporation and spotlight their compacts that work on clean water in impoverished nations around the world. Most ONE members are very familiar with the MCC and how they work to partner with countries that are taking steps to fight corruption and show transparency and accountability in their own development.

This short video from the event highlights the great work that is being done in many countries. Check it out!

Who says bad news comes on Friday afternoons? Late last Friday, after months of speculation over who would take the helm of the Millennium Challenge Corporation (MCC), President Obama announced his intent to nominate Daniel W. Yohannes for chief executive officer of the MCC. This counts as good Friday afternoon news for supporters of the MCC and its innovative approach to development.

Yohannes comes to his new post with many of the expected credentials. Private sector experience? Check. Leadership qualities? Check. DC political insider? Hold up. Yohannes, a West Coast entrepreneur, banker and philanthropist emigrated to the U.S. from Ethiopia at the age of seventeen with $150 in his pocket. It’s not exactly the typical background for the head of a U.S. government agency, but I suspect it will go far in symbolizing and strengthening the goals and ideals of the MCC.

The White House released the following description of Yohannes:

Daniel W. Yohannes is President and CEO of M&R Investments, LLC, a privately-held investment firm specializing in real estate, financial institutions and the green energy sector. Previously, he served as Vice Chairman of U.S. Bank for the Commercial Banking Group, Consumer Banking Group and as Head of Integration for Community and Public Affairs. In this role, his responsibilities included leading the integration of U.S. Bank and Firstar, which resulted in the 6th largest bank in the country. From 1992 to 1999, Yohannes was President and CEO of U.S. Bank (formerly Colorado National Bank), where he grew the Colorado franchise from $2 billion to $9 billion in assets. From 1977 to 1992, he worked at Security Pacific Bank (now Bank of America), where he held a number of leadership roles. Yohannes is on the Board of the National Jewish Hospital and Research Center, the Denver Art Museum, the University of Colorado Medical School and Project C.U.R.E., which provides medical supplies to 110 countries. Yohannes holds a B.S. in Economics from Claremont McKenna College and a M.B.A. from Pepperdine University.

In a Denver Post article from 2006, Yohannes was quoted as saying he was at the age “where you want to make a difference”. At the time, he was referring to his role as chairman of New Resource Bank, a San Francisco-based start up designed to work with businesses in clean energy. He said it was “not about a tiny little bank in San Francisco, but about thinking globally.” Well, it seems he’s turned his global sights even further and will soon be leading a U.S. development agency that has its sights on major global changes in poverty and economic opportunity. Readers of our blog will recall that just last week Senegal signed a $540 million five-year compact with the MCC, and is one of eleven sub-Saharan African countries who have compacts with the MCC, all of whom were deemed eligible for assistance because they performed well on rigorous criteria around good governance, economic policies and investments in areas like health and education.

My fingers are crossed that Yohannes’s confirmation process will go quickly so that he can start his new role as spokesman and leader of the MCC soon. And as our friends at the Center for Global Development say, Yohannes’ “private sector background and can-do leadership style should prove useful in…turning the promise of the (MCC) model into results.”

So, three cheers for the long-awaited announcement of an MCC CEO. And here’s hoping that someday soon we have similar good news that there is someone to lead the U.S. Agency for International Development (USAID). Al Kamen, who writes the Washington Post’s In the Loop column, has a few suggestions.

-Sarah Jane Staats

Yesterday the Millennium Challenge Corporation (MCC) signed a $540 million, five-year compact with Senegal. This is the 11th compact with a sub-Saharan African country and the 19th compact globally. The signing, which took place on Wednesday morning at the U.S. Department of State, was presided over by Republic of Senegal President Abdoulaye Wade and U.S. Secretary of State Hillary Clinton. The compact itself was signed by Senegal’s Minister of Finance and Economy Abdoulaye Diop and Acting MCC CEO Darius Mans.

At an afternoon event hosted by Congressman Donald Payne (D-NJ), a packed room on the Hill heard from Representative Payne, Darius Mans, Representative Sheila Jackson-Lee (D-TX), and President Wade, among others. It was evident that each speaker was proud of this new compact, the partnership it reflects, and the potential it has to further development in Senegal. Rep. Payne lauded President Wade for his commitment to democracy, and Rep. Jackson-Lee said that the Senegal compact was an “…affirmation of President Wade’s commitment to democracy, tolerance, and the future of his young people.”

In his address, President Wade said “I am proud to be the president of a country that the American people believe deserves support for our development.” He praised the U.S. for recognizing the critical role infrastructure plays in development, a factor that Wade himself has made a priority for Senegal.

Darius Mans welcomed this new partnership, and said that the compact reflects Senegal’s own development priorities, emphasizing long-term growth through infrastructure and agriculture. This compact, he said, signals that Senegal is “open for business” with the private sector, and that the next step will be to deliver on these promises. Mans expressed his hope that the MCC compact with Senegal will provide frameworks for lasting growth in the country.

The compact, which is one of the largest signed to-date, focuses on road rehabilitation and irrigation, with an eye towards bolstering agricultural productivity and food security in Senegal, and boosting rural markets and trade. The plan will involve rehabilitating crucial roads in northern and southern Senegal, which is intended to help agricultural communities get their goods to local and international markets and improve access to services like schools and hospitals for rural communities.

The compact will also fund a water and irrigation management project in the Senegal River Valley to increase crop yields. Senegal currently imports 70 percent of its rice, which makes it vulnerable to the dramatic increases in food and rice prices that took place as recently as last year. The irrigation program is designed to increase crop production as a way of improving Senegal’s food security.

One is excited about the Senegal compact, as you can see in the press statement we released today; we look forward to following its implementation and results.

-Beth Adler

Today the Millennium Challenge Corporation (MCC) approved a five-year, $540 million compact with Senegal—the 11th compact to be signed with a sub-Saharan African country. Senegal was declared eligible for an MCC compact in May 2004, and has spent the time since developing their proposal. The compact aims to reduce poverty and spur economic growth by investing in projects in the transportation, irrigation, and agriculture sectors.

In the MCC’s press statement released today, acting MCC CEO Darius Mans said, “On behalf of MCC, I want to congratulate the people and Government of Senegal for developing an innovative compact that will make a tremendous difference in reducing poverty through economic growth by bolstering food security and transportation connectivity. The Senegalese have laid out a clear vision of improving the quality of their lives through a results-oriented plan. MCC welcomes the opportunity to work together to achieve these compact goals.”

The compact intends to invest in rehabilitating crucial roads in northern and southern Senegal, which, the MCC believes, will enable agricultural communities to get their goods to local and international markets and could mean improved access to services like schools and hospitals for rural communities. Senegal’s compact will also fund a water and irrigation management project that will develop up to 10,500 hectares of land in the Senegal River Valley. Senegal and the MCC hope that the new irrigation scheme will also help prevent the abandonment of 26,000 hectares of land by revamping drainage canals and ensuring secure land-tenure for farmers. The irrigation project is intended to increase crop yields, an essential step towards food security for Senegal, which, as the MCC notes, currently imports 70% of rice consumed in the country.

The compact is expected to be signed on September 16th; be sure to check back here as we will post additional details on the blog.

-Beth Adler

Today we attended a “Bloggers Brunch” hosted by our friends at the Millennium Challenge Corporation (MCC). Acting CEO Rodney G. Bent talked with us a bit about how the MCC operates and interacts with other government agencies like USAID and DfID. You can read about the MCC’s relatively short history here.

Of particular interest in our conversation was the pursuit and prioritization of transparency within the MCC’s various programs. Mr. Bent walked us through a new web feature on the MCC’s website on “Monitoring and Evaluation”. Here, users can track and follow the MCC’s progress and efforts at both the sector- and country-level. While still a work in progress, this feature is part of a larger desire of Mr. Bent’s for greater transparency in foreign assistance efforts amongst governments and organizations. While obviously a risk in part, foreign assistance can be greatly enhanced and improved with our willingness to admit what doesn’t work and share what does.

We really appreciated the candid conversation and are excited about the MCC’s work both offline and online.

-Virginia Simmons and Chris Scott (pictured below, left and center respectively)

New Hampshire native, Jim Bednar, the Millennium Challenge Corporation’s resident Ghana director, has a great op-ed in today’s New Hampshire Union Leader – the only state wide newspaper in New Hampshire.

In addition to the progress that is being made in Ghana, Jim notes former NH Senator Sununu’s recent trip to Ghana with ONE. Mr. Bednar speaks of his interest in international development as the same “pragmatism [that] defines why Americans should remain engaged in making the world better.” As you know, President Obama will be visiting Ghana later this week. Check back on the ONE Blog for further coverage of the trip.

Excerpts below, full op-ed here

The interconnected global community means that the prosperity of others is closely tied to our own. The severe economic crisis and the recent threat of a health pandemic are stark reminders that borders cannot insulate us. That’s why smart U.S. engagement in the fight against global poverty and disease matters as much to the poor in Ghana as it does to Americans in New Hampshire and the other 49 states.

Ghanaians strive for a better tomorrow. Here in West Africa, their commitment to stability and growth means greater development and trade. The country’s poverty rate dropped from 52 percent in 1992 to 28.5 percent in 2006. Yet there’s still more to do. Ghana’s poor live a reality of poverty few Americans can fully fathom. In a country where agriculture is the economy’s backbone, employing 60 to 70 percent of workers, a typical farmer knows the burden of extreme poverty.

…..

I think many Granite Staters would agree with MCC’s approach: We expect partner countries to lead their development through homegrown ideas and local implementation. This creates sustainable solutions of their own making. We demand practical results that deliver change in the lives of the poor. Such transparency and results-driven accountability ensure the responsible stewardship of U.S. tax dollars.

I can see how the Ghana-MCC partnership is beginning to make a difference for the poor. Road repairs will help farmers reach markets. The first of 60,000 farmers to be trained through MCC programs have learned to think more as business men and women, and banks are giving them credit. Seventy-five schools have been renovated, with hundreds more to be built.

-Matthew Bartlett