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.
Yesterday the US Senate confirmed Daniel W. Yohannes to be the new CEO of the Millennium Challenge Corporation. During his confirmation, Yohannes stated his confidence that “MCC’s anti-poverty partnerships worldwide will generate sustainable economic growth and opportunity.”
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.
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’sCompact 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.
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!
ONE is campaigning to ensure that the Congressional budget does not cut foreign assistance programs like Feed the Future that help people break the cycle of poverty and hunger.
The Horn of Africa is experiencing its worst drought in 60 years. More than 11 million people, mostly nomadic pastoralists and farmers in south-central Somalia, north-eastern Kenya, and south-eastern Ethiopia, are severely lacking access to food.
2011 marks 30 years since the first cases of AIDS were documented. Take a closer look at the specific, achievable goals we must hit by 2015 to make this year the beginning of the end of AIDS.
As aid agencies warn more than 9 million people could be affected by a food crisis in East Africa, world leaders are failing to keep their 2009 promises to tackle the causes of chronic hunger and support farmers in the world's poorest countries.
