Title: Millennium Challenge Corporation
1Reducing Poverty Through Growth
2Millennium Challenge Corporation Reducing Poverty
Through Growth
Millennium Challenge Corporation
- Fulfillment of Monterrey commitment to
provide greater resources to countries taking
greater responsibility for their own
development. - Established in law January 2004
- Poverty Reduction Through Growth
3Board of Directors
Millennium Challenge Corporation Reducing Poverty
Through Growth
- Secretary of State, Chair
- Secretary of Treasury, Vice-Chair
- USTR
- USAID Administrator
- MCC Chief Executive Officer John Danilovich
- Four public members
- Christine Todd Whitman
- Kenneth Hackett
- Two to be named
4Millennium Challenge Corporation Reducing Poverty
Through Growth
Based on Key Lessons of Aid
- Policies Matter
- Country Ownership Critical
- Results, Not Inputs Count
We want to make decisions ourselves. It is our
country, and we have to take on leadership and
responsibilities. If you take a look at the last
two issues, our vision and country ownership, you
will realize why the MCA is so important for us.
Here we have a new approach which helps us to
implement our vision. We have opportunities to
design and implement our own programs. --Marc
Ravalomanana, The President of Madagascar
School of Advanced International Studies, Johns
Hopkins University, April 19, 2005
5Millennium Challenge Corporation Reducing Poverty
Through Growth
Policies Matter
- Good policies encourage inflows of private
capital and increased trade, the real engines of
growth. - Country eligibility based on sixteen independent
indicators in three different criteria - Countries are measured against other countries of
similar income level -
- Ruling Justly
- Investing in People
- Encouraging Economic Freedom
6Millennium Challenge Corporation Reducing Poverty
Through Growth
23 Countries Selected by MCC Board for FY 2004,
2005 and 2006
7Millennium Challenge Corporation Reducing Poverty
Through Growth
Policies Matter
- Threshold Program reinforces MCA incentive to
improve policies for countries close on
indicators with demonstrated commitment to
reform. - May propose funding to improve on MCC
indicators
Burkina Faso Improving Girls Primary School
Completion Rate
8Threshold Countries
Millennium Challenge Corporation Reducing Poverty
Through Growth
9Country Ownership Critical
Millennium Challenge Corporation Reducing Poverty
Through Growth
- Eligible countries submit proposal 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
10Results Count
Millennium Challenge Corporation Reducing Poverty
Through Growth
- Specific objectives and measures of success
are agreed on from the beginning - A monitoring and evaluation plan is an integral
part of each Compact - Continued funding is contingent on continued
performance on the indicators and meeting agreed
benchmarks for program implementation
11Example The Madagascar Compact
Millennium Challenge Corporation Reducing Poverty
Through Growth
- Signed April 18, 2005
- 110 Million over 4 Years
- Goal Increase investment in rural Madagascar
- Three Integrated Projects
- Land Tenure
- Financial Sector
- Agricultural Business Investment
Family selling produce and grains outside home in
Mahitsy, Madagascar.
12Implementation
Millennium Challenge Corporation Reducing Poverty
Through Growth
- The Compact defines responsibilities. The
country is responsible for implementation. - Each Compact also defines the governance and
accountability structure. - MCC may have one or two representatives in an
MCA country
13Where is MCC Today?
Millennium Challenge Corporation Reducing Poverty
Through Growth
- Congress has appropriated 4.27 billion to
date. Requested 3 billion for FY07. - Eight Compacts signed Armenia, Benin, Cape
Verde, Georgia, Honduras, Madagascar,
Nicaragua, and Vanuatu - Over 1.5 billion committed
- Threshold agreements approved with Burkina
Faso, Malawi, Tanzania, Paraguay and Albania - More Compacts and Threshold agreements in
progress
14Technology at MCC
Millennium Challenge Corporation Reducing Poverty
Through Growth
- Windows based computing
- MS/Office suite Exchange, Word, Excel,
PowerPoint - MCCnet (LAN/WAN) established 12/2004
- Primary data center in Sterling VA, warm backup
data center in San Jose CA - ExperienceMCC (EMC2) Intranet
- Project management MS/Project, MS/Enterprise
- Document management FileSite from Interwoven