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

Chairman Nita Lowey (D-NY) and Ranking Member Kay Granger (R-TX) exemplified bipartisan leadership in navigating the $48.8 billion State-Foreign Operations bill though the House Appropriations Committee yesterday afternoon. After a few amendments, the bill passed by a near unanimous voice vote demonstrating solid support for live-saving, effective programs.

Over the past few months ONE members across the country contacted Members of Congress on the importance of fighting poverty, and it is clear that ONE has been heard. But no resting on our laurels, there is much, much more to do. The full House will take up the bill after the July 4th holiday, and the Senate Appropriations Committee will begin its work around the same time.

On our key programs, some funding levels are very good, and on others, we need to do more. For global health programs, the House Appropriations Committee provides $7.7 billion, which includes fully funding PEPFAR at $5.259 billion. The global health amount also includes $750 million for the Global Fund to Fight AIDS, Tuberculosis and Malaria, and there is an additional $300 million in the Labor-Health and Human Services bill for a total of $1.05 billion, but the need is $2 billion, so we have some work to do in boosting the funding for this critical, proven program. Good news is that the bill fully funds the President’s Malaria Initiative at $585 million and the Millennium Challenge Account at $1.4 billion, both huge increases from last year’s levels. There is also positive funding for basic education, child and maternal health, and other development programs.

However, in addition to the Global Fund, there is another area of significant concern, and that is the funding of the President’s Food Security initiative. The President’s request was approximately $1.4 billion, but the bill provides about $1 billion, and we believe most of this cut will be felt by African and Latin American countries. This is a key initiative that will help the world’s poorest countries increase their agricultural productivity, reduce poverty, and provide economic prosperity.

Yesterday’s action marks an important step in the funding process, and also provides us with the opportunity to make a difference going forward.

-Arjun Mody

An on-the-ground post from Tony Fratto, who is among the delegation traveling through Ethiopia and Ghana this week. Learn more about the trip here.

Today we visited a first-class Ghanaian pineapple-exporting farm and processing facility about 2 hours west of Accra.

It’s an 1800-acre farm, Fair Trade certified, exporting to Europe.

The Millennium Challenge Corporation (MCC), a U.S. Government corporation designed to work with some of the poorest countries in the world, is helping to provide capital and trade credits.  The farmers act in a cooperative, and we had the opportunity to talk to farmers from five of the largest pineapple farms.  The farmers explained that the capital supports the investment in the processing facility, which helps the farmers to increase production and add value for exports.

An important part of smart, effective development — which ONE is encouraging — is to have well-integrated projects.  In this case, the MCC’s support for expansion of the N1 highway (a critical road that connects farmers to airports, markets and sea ports) is coordinated with efforts to expand agriculture production outside of Accra.  The expanded highway will significantly reduce the time and cost of bringing ag products like these pineapples to market, which will increase productivity and competitiveness, and in turn, returns to farmers.

-Tony Fratto

Writing in the Charlotte Observer, former Senator Bill Frist offers his take on the state of global health and President Obama’s recently announced global health strategy. Praising the Millennium Challenge Corporation’s holistic approach to global health, Frist explains how the MCC can help lay “the groundwork for poverty reduction and economic development.”

Excerpts below, full piece here:

Economists would argue that one of the surest ways out of poverty is for people to increase their incomes to take care of themselves and their families. For incomes to rise, developing economies must work to generate growth opportunities through trade and commerce, reliable infrastructure, and sound policies that create and sustain jobs for the poor.

When the poor are stricken by disease and weak health, they are unable to take advantage of these opportunities. Rather than climbing out of poverty, they fall deeper into it. It’s clear that economic development and human development are intertwined. Growth needs a healthy workforce. The productivity and development of communities – and their ability to participate in the global economy – rely on the physical well-being of citizens to innovate, build, harvest, and work. Sustaining such productivity requires children to learn in school, not fall behind because they are too sick to concentrate. By building healthier, hopeful, and productive communities, we build safer and more secure societies that can alleviate global poverty and contribute to global prosperity. When communities are productive and thriving they don’t become breeding grounds for dangerous extremism.

We need to rethink America’s global health diplomacy within this context […]

-Chris Scott

Lunch hour at ONE tends to vary. Sometimes we go out for sandwiches, sometimes we stay in and heat up frozen and pre-cooked meals, and sometimes we sit down with partners and talk about innovative ways to combat extreme poverty. Today was the latter, as ONE staff shared a lunch hour with staffers from the Millennium Challenge Corporation (MCC).

The MCC is a government agency created to be unlike any other foreign assistance program. By focusing on country ownership and sustainable long-term economic growth, the MCC represents a new, transparent, accountable, and results oriented approach to development aid. So what is it that makes MCC different?

MCC uses a series of 17 economic indicators to determine which countries meet a minimum standard to receive funding, known as the “threshold.” From this, eligible countries create program “compacts” based on what they see as their needs. It is true country ownership. The MCC then picks the best programs and funds them for a multi-year period while monitoring progress.

What this adds up to is the funding of the commonly overlooked, but incredibly necessary, long-term growth mechanisms that are developed by the recipient country and accountable to show results. In addition, the threshold that countries must meet provides clearly laid out goals for non-eligible countries to strive for. The Millennium Challenge Corporation is a functioning example of foreign assistance done in a smart and successful way.

For some success stories, check out some of the progress reports on our issues pages, including a report on the MCC program in Tanzania.

ONE would like to thank Aaron Sherinian, Neneh Diallo, Sherri Kraham, Jonathan Bloom, and Jim Mazzarella for a wonderful lunch session!

-Ian McGroarty, US Field Intern

It was inspiring to be part of such an impressive group during last week’s ceremony honoring the ONE Campaign. The 2008 Commitment to Development “Ideas in Action” Award, sponsored by the Center for Global Development and Foreign Policy magazine, brought together a core group of people whose collective voice demonstrates that Americans care deeply about poverty. ONE’s tireless commitment to raise awareness about global poverty through a grassroots campaign is certainly worthy of this recognition.

It is a commitment we too share at the Millennium Challenge Corporation (MCC). Some may not know about initiatives like this one in which the United States is working to combat global poverty through results-driven creativity and innovation. I enjoy hearing people’s reactions when they learn about MCC – a U.S. Government agency with the sole mission of reducing global poverty through sustainable economic growth. Without exception, they feel satisfied knowing that there is an approach that matches U.S. generosity with accountability and results.

Private citizens from all backgrounds and professional sectors know that poverty requires action and attention. Just ask MCC’s four private sector Board of Director members, who came together in a video to discuss how MCC generates real results in the fight against global poverty by marrying capacity-building engagement with partner countries and a smart, fiscally-responsible use of resources. In times like these, as Americans everywhere are watching every penny, they can be confident that their government’s MCC, together with our partner countries, are delivering returns and results from every investment made. The world’s poor and American taxpayers deserve no less.

One way this approach to foreign assistance builds accountability is by asking countries to identify their development needs. It is country responsibility—country ownership—at work. Ambassador Ombeni Sefue of Tanzania, which is implementing a $698 million MCC grant, says: “Ownership and partnership have to prepare us to stand on our own feet…We determine needs. We set priorities.” As partners in development, MCC countries are championing their programs from the outset and investing in their success until the end. ONE staff member Chandler Smith witnessed this when she recently visited a pineapple farm in Ghana, where MCC is partnering on a $547 million grant. Through MCC-funded technical training, Ghanaian pineapple farmers are growing their operations in sustainable ways.

For our part, MCC takes the time to study where our investments would make the most sense. After careful due diligence, we invest in those countries where our grants can have the deepest impact for the greatest number of people—in countries that support good governance, fight corruption, invest in their people, and encourage economic freedom. Practicing fiscal accountability, MCC funding is released in tranches as benchmarks are reached. MCC’s focus on the international best practice of “aid predictability,” where we set aside the entire grant amount from the start, gives partner countries the confidence of knowing that they will be able to complete their projects. It’s an effective, respectful, smart way to tackle these urgent problems.

Through country ownership and fiscal accountability, MCC is delivering on America’s commitment to end global poverty. With a strong budget, and partners like ONE and others in the development community, MCC can move even closer to making this shared commitment a reality. As MCC’s Acting CEO Rodney Bent said about the 2010 budget, “I think it will be reflective of the Obama administration’s support for MCC and of our work going forward, since MCC is about partnership and about finding good quality projects with partners. I’m confident that partnership, transparency, accountability, and working with other countries, in what I call a smart power way, is going to be a hallmark of the Obama administration, just as it has been a hallmark of MCC.”

-Aaron Sherinian Managing Director, Public Affairs, Millennium Challenge Corporation

Today the New York Times ran an op-ed advocating for the incoming administration to adopt the Millennium Challenge Corporation (MCC) as a central tool for development. The article explains that “The long-term engagement with the United States that is required for any country to earn a Millennium Challenge Corporation compact provides a platform for the kind of robust diplomacy that President-elect Obama has embraced. As he seeks to adapt American foreign assistance to a transformed world, one decisive step he can take is to signal his strong support of the corporation’s approach to global development.”

The piece, authored by the four non-government board members of the MCC (Lorne Craner, Bill Frist, Kenneth Hackett, and Alan Patricof), posits that the kind of aid MCC delivers – long-term aid given based on a clear set of indicators for projects defined by the recipient country, in which the recipient country takes responsibility for their development – works best. It also cites examples of the ‘MCC effect’; the idea that countries who are not yet compact-eligible will work independently to better their indicators due to the incentive of becoming eligible for large-scale support and funding.

We’ll continue to keep you updated about the position of the MCC within the new administration.

-Beth Adler, ONE Policy Analyst

Last week the Board of the Millennium Challenge Corporation (MCC) determined which countries will be invited to submit compact or threshold proposals for FY 2009. The MCC is a U.S. government corporation that aims to reduce global poverty in the world’s poorest countries through the promotion of sustainable economic growth. Each year the MCC selects countries to submit proposals for either a compact or a threshold agreement with the MCC. Through the compact agreement, the MCC provides funding and technical assistance for poverty-reduction projects designated by the developing country. Threshold agreements assist countries in strengthening certain indicators to help them become compact-eligible. The board’s decision is based on a set of indicators countries need to meet in order to be compact-eligible that determine the country’s investment in people, economic freedom and commitment to democracy as well as their efforts to fighting corruption. The MCC released a press statement detailing the results of the meeting.

Three countries – Colombia, Indonesia, and Zambia – were invited to submit a compact proposal for large-scale funding for development projects. In addition, Liberia is eligible to submit a proposal for threshold program funding and support. Paraguay was invited to submit a Stage II Threshold proposal to continue to assist the country in achieving the indicators that will make it compact eligible. This is the first time the MCC has proposed a Stage II Threshold Program for countries who do not meet the compact-eligible indicators, but have made excellent progress through the threshold program towards achieving those indicators.

Jordan, Malawi, Moldova, Senegal, and the Philippines, who were invited last year to submit a compact proposal to the MCC, will be able to continue the process of developing compacts for FY 2009. However, the MCC has specifically stated that it will not sign a compact with the Philippines until it passes the indicator criteria on corruption.

The board voted to suspend assistance for new activities in Nicaragua, which has a $175 million MCC compact, due to actions taken by the Nicaraguan government that are inconsistent with the MCC’s eligibility criteria. Nicaragua passed all indicators except for Control of Corruption, for which they met the median score. However, the political conditions leading up to, during, and after the recent elections were not in line with the MCC’s commitment to policies that promote political freedom and civil liberties. The Board will determine subsequent actions regarding Nicaragua at their next meeting, based on the response of the Nicaraguan government.

The MCC announced that several countries are no longer eligible to submit a proposal for a compact program. These countries – Bolivia, Ukraine, and Timor-Leste – were in the process of preparing their compacts, but had not yet signed commitments with the MCC. Ukraine and Timor-Leste fail several indicators including the hard hurdle on Control of Corruption. Bolivia passed all indicators, but have essentially severed ties with the U.S. Timor-Leste was made eligible as a threshold country instead. The MCC will continue to work with Ukraine on implementation of their threshold program. Yemen, who was in the process of submitting a threshold program proposal, is no longer eligible for threshold assistance due to deterioration of policies in the country.

This was the last meeting of the current MCC board. The new board will convene in March of 2009.

-Beth Adler

Director Douglas Busby and Damascus Films recently put together a video with the cooperation of The Millennium Challenge Corporation explaining the MCC’s work, the progress they’ve made, and their hopes for the next administration.

Founded in 2004, the MCC is “based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people.”

Be sure to take a few minutes and check it out:

-Chris Scott

Sen. Bill Frist, MD, is traveling through Mozambique and Rwanda on a 10-day trip to visit and observe the great work of U.S. led initiatives. Throughout the trip he’s blogging on the Healing Hands blog and here on the ONE Blog.

In Maputo, Mozambique, today, I met with senior officials to discuss the progress of the Millennium Challenge Corporation Compact (MCC) that Mozambique signed with the United States last summer.

This five-year, $507 million agreement focuses on the neglected northern part of the country where I will visit later this week. The Compact will bring clean water to tens of thousands of people for the first time—making them less vulnerable to disease and more economically productive. MCC’s grant will also allow Mozambique to build new roads that link poor communities with markets. A land tenure component will help ensure that property rights are respected. Finally, the Compact seeks to eradicate a coconut disease that threatens one of northern Mozambique’s most valuable crops.

Last year, President Bush appointed me to the Board of Directors of the MCC, which was created by Congress in 2003 when I was Majority Leader of the United States Senate to reduce global poverty through economic growth. The MCC represents a fundamentally different way of giving American development aid to the world’s most deserving nations.

In the past, most of our aid money was, frankly, wasted. That’s because we didn’t pay attention to the quality of the government or how well it treated its people. That caused many Americans to grow skeptical about foreign aid. The late Senator Jesse Helms used to refer to foreign aid as a “rat-hole” because of all the waste and corruption!

We learned something from those failures. MCC only awards aid to countries that are accountable, both to their own people, and to the American taxpayers who ultimately provide the grants. There is no point at all in wasting your taxpayer dollars in countries with bad governments. But in well-governed countries, American generosity can produce transformational change in the daily lives of poor people. (more…)