MCC Announces FY2010 Countries

Dec 11th, 2009 5:57 PM UTC
By Beth Adler

On Wednesday the Millennium Challenge Corporation (MCC) Board held their last meeting of the year. At the meeting, the Board determined which countries are eligible to apply for compact funding in FY2010, and which are eligible to continue with the compact development process.

At the event yesterday to discuss the Board’s decisions, we heard from new MCC CEO Daniel Yohannes, who was on his ninth day on the job. Yohannes outlined his priorities for the MCC: a renewed commitment to innovation, increasing private sector engagement, like leveraging MCC monies to generate additional funding, working effectively and efficiently with other U.S. agencies, and with country-governments to reform their economic policy.

A panel of MCC Vice Presidents further explained the Board’s decisions. Cape Verde was selected as eligible for a second compact. As one of the first countries to complete a compact, Cape Verde has demonstrated results. Cape Verde will pioneer the second-compact process, which is never a given for compact countries. Countries not only have to pass the indicators to be eligible for a second compact, but they have to have a proven track record for effective implementation, show early results from the first compact, and embrace policy changes that will enable further successes. The ambassador from Cape Verde spoke briefly, expressing gratitude for the second compact and determination to further poverty reduction and economic growth in Cape Verde.

Zambia, Jordan, Malawi, Indonesia, and the Philippines were deemed eligible to continue with their processes of compact development. Indonesia and the Philippines graduated from the low-income country category and did not pass the indicators in the new, more competitive, lower-middle income country category. Considering that there was no evidence of policy deterioration, and they would have met the targets in the low-income category, the Board approved them to continue with compact development. The Moldova compact was also recently approved, and will likely be signed early in 2010.

The Board voted to suspend the Threshold program in Niger due to significant policy reversals by the Government of Niger since the Threshold program began. The MCC will work with USAID, who are implementing the Threshold program, to responsibly wind-down the program. The Board did not select any new Threshold program partners, but Liberia and Timor Leste are in the process of finalizing their Threshold programs.

The Board also approved several new projects in the Mongolia compact. The government began working with the MCC to design an alternative energy program and road-rehabilitation project after it became clear that they would be unable to complete the rail project originally in the compact.

We here at ONE are very excited about working with the MCC—and their new CEO—in the New Year.

TAGS: MCC, Policy News