Millennium Challenge Account

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Millennium Challenge Account

• Fulfillment of Monterrey commitment to provide
  greater resources to countries taking greater
  responsibility for their own development.
• Millennium Challenge Account
• rewards countries with pro-development policies
• builds on country ownership and responsibility
• focuses on results

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Based on Monterrey Principles

• New untied, grant financing
• Set aside up front to ensure predictability
• Not designated for specific purpose, leaving
  choice to partner country
• MCA targets a single mission
• reducing poverty through growth.

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Policies

• MCC rewards countries doing better than peers on
  international indicators related to development
• Threshold Program helps countries close to
  qualifying improve policies

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Compact Eligible Countries
Latin America Bolivia El Salvador Honduras Nic
aragua
Africa Benin Burkina Faso Cape Verde
Ghana Lesotho Madagascar Mali Malawi Morocco
Mozambique Namibia Senegal Tanzania
Eurasia Armenia East Timor Georgia Jordan Moldov
a Mongolia Philippines Ukraine Vanuatu
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Threshold Countries
Africa Burkina Faso Kenya Malawi
Mauritania
Niger
Rwanda São Tomé and
Principe Tanzania Uganda
Zambia
Eurasia Albania East Timor Indonesia Jordan Kyrg
yz Republic Moldova Philippines Ukraine Yemen
Latin America Guyana Paraguay Peru
Country also eligible for Compact funding
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Ownership

• Eligible countries determine their own priorities
  and develop their own proposals for MCC funding,
  after consulting with civil society and private
  sector.
• MCC assesses proposals based on
• The contribution to poverty reduction and growth
• The quality of the consultative process and
  breadth of support
• The ability to measure results

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Results

• MCC and partner governments sign a Compact
  that
• Agrees on specific objectives and measures of
  success
• Elaborates a monitoring and evaluation plan

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5.5 Billion in Signed Compacts( in million)
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MCC Funding by Sector
USD millions
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The Ghana Compact

• 547 million Compact signed August 1, 2006 to
• improve agricultural productivity, increasing
  production of high-value commercial and basic
  food crops,
• improve access to markets through better
  transport,
• expand availability of community services in
  rural areas,
• foster greater private investment in agriculture.
  

• Expected Results
• Training of 51,000 farm households
• Irrigation for 80,000 hectares of land
• Employment opportunities for over
• 230,000
• Improved welfare and quality of life for
• over 1 million people

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Status of the Ghana Compact
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Lessons Learned/Challenges

• Country ownership takes time and commitment
• Countries must set and own priorities
• Participatory, meaningful, timely consultation on
  priorities builds support for successful action
• There are trade offs
• Capacity grows through doing
• Graduated assistance often needed
• Coordination and harmonization can be full time
  jobs
• MCC (and other development) assistance is only a
  catalyst
• Further efforts to leverage other financing for
  development essential, especially from private
  sector

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