[PDF] Millennium Challenge Corporation The Mcc Effect Creating Incentives For Policy Reform Promoting An Environment For Poverty Reduction Revised November 2008 eBook

Author : Frederic Sautet
Publisher :
Page : 24 pages
File Size : 10,77 MB
Release : 2009
Category :
ISBN :

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The Millennium Challenge Account's (MCA) focus on results and creating incentives for developing countries to enact good policy continues to hold promise for a well-needed change in government-driven international development assistance. The continued success of the MCA will depend on the ability of the leadership to allow the mission - to reduce poverty through growth - to guide decisions. The Criteria and Methodology for Determining the Eligibility of Candidate Countries for Millennium Challenge Account Assistance in FY2006 reemphasizes the MCC's commitment to economic freedom and a strong entrepreneurial environment as the driver of economic progress. However, it also contains troubling proposals for new indicators that lose sight of this focus. With so many problems surrounding development, it is tempting to construe the MCA as a new fix-all for development. However, this will not help developing countries or the MCA. Economic development brings social benefits such as better health, a clean environment, and quality education. The MCA must continue to encourage countries to enact policies that create the conditions for economic prosperity. If, rather, it attempts to stimulate the consequences of development before addressing its causes, it is almost assured to fail on both accounts. The process set forward to develop a new quot;Natural Resource Managementquot; indicator must be reconsidered, and any new indicators must clearly demonstrate their relationship to the MCC's mission. The MCC needs to reconsider this and similar actions proposed in the report. These actions threaten to: Prioritize narrow interests over economic growth and are likely to achieve neither, Contradict the intent of the legislation that authorized the MCA and undermine its core principles, and Confuse the consequences of development with the causes of development, encouraging economically harmful policy. The importance of clearly articulating good indicators cannot be underestimated. Because of the strong incentives the MCA creates for countries wish to become eligible to receive funds, the MCA's influence reaches far beyond the dollars it spends. Poor choices now will have severe consequences as more countries tailor reforms to the indicators MCC chooses.

Author : United States Government Accountability Office
Publisher : Createspace Independent Publishing Platform
Page : 102 pages
File Size : 43,92 MB
Release : 2017-09-13
Category :
ISBN : 9781976362774

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In January 2004, Congress established the Millennium Challenge Corporation (MCC) to administer the Millennium Challenge Account. MCC's mission is to reduce poverty by supporting sustainable, transformative economic growth in developing countries that create and maintain sound policy environments. MCC has received more than $4.2 billion in appropriations, and, as of May 2006, it had disbursed $22.4 million to four countries whose signed MCC compacts have entered into force. For the first three countries with compact entry into force-Madagascar, Cape Verde, and Honduras-GAO was requested to examine (1) key aspects that MCC reviewed, and the criteria it used, in its due diligence assessments; and (2) the structures that have been established for implementing the compacts.

Author : United States Government Accountability Office
Publisher : Createspace Independent Publishing Platform
Page : 84 pages
File Size : 16,45 MB
Release : 2017-09-08
Category :
ISBN : 9781976191787

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Established in January 2004 with a mission to reduce poverty through economic growth, the Millennium Challenge Corporation (MCC) has committed $6.9 billion for compacts with 19 developing countries. MCC vests compact management with accountable entities in recipient countries, called Millennium Challenge Accounts (MCA). MCAs, with guidance from MCC, allocate resources, oversee and implement a financial plan, approve expenditures and procurements, and implement compact projects. This report, directed by the fiscal year 2008 Consolidated Appropriations Act, assesses MCC and MCA (1) financial controls; (2) procurement practices; and (3) development, implementation, and oversight of contracts and projects. GAO focused on financial and procurement transactions and projects at MCAs in Honduras, Georgia, and Cape Verde, countries with high disbursement totals as of the end of fiscal year 2008.