1. Millennium Challenge Corporation (MCC)
Description, Background & Business 1

2. Millennium Challenge Account (MCA)
Formally established in 2004 as a new, independent government corporation managed by a CEO and overseen by a Board
Fulfills President Bush’s 2002 Monterrey commitment to “provide greater resources to countries taking greater responsibility for their own development”
Illustrates that development is a key pillar in the US national security strategy -- helps to build democratic societies
Mission: Poverty Reduction Through Economic Growth
MCA resources add to other U.S. aid
The process: eligibility, approval, MCAs, Threshold-- procurement, Compact--procurement, Procurement Agent, Fiscal Agent 2

3. Eligibility
MCC eligibility intended as a reward to countries for good policy performance and be an incentive to improve further.
A “candidate country” must meet one of the following income criteria and cannot be statu­torily ineligible to receive U.S. economic assistance under the Foreign Assistance Act or any other provision of law.
Low Income Category: countries with a per capita income among the poorest 75 countries; or
Lower Middle Income Category: countries with a per capita income above the poorest 75 countries but below $4,125. 3

4. Eligibility (cont)
To evaluate policy performance, MCC uses objective and quantifiable policy in­dicators in three broad policy categories:
Ruling Justly,
Investing in People, and
Encouraging Economic Freedom.
MCC favors policy indicators developed by independent third party institutions that rely on objective, publicly available data and have an analytically rigorous methodology.
MCC seeks indicators that have broad country coverage, cross- country comparability, and broad consistency in results from year to year. 4

5. Encouraging Economic Freedom
Indicators Used
Ruling Justly (WB)
Investing in People
Encouraging Economic Freedom
Civil Liberties (Freedom House)
Immunization Rates (World Health Organization and UNICEF)
Business Start-Up (IFC)
Political Rights (Freedom House)
Public Expenditure on Health (World Health Organization)
Land Rights and Access (IFAD and IFC)
Control of Corruption (World Bank/Brookings Institution WGI)
Girls’ Education (UNESCO)
Trade Policy (Heritage Foundation)
Government Effectiveness (World Bank/Brookings Institution WGI)
Primary Education Completion (Scorecard LICs)
Regulatory Quality (World Bank/Brookings Institution WGI)
Rule of Law (World Bank/Brookings Institution WGI)
Secondary Education Enrolment (Scorecards LMICs)
Inflation (IMF WEO)
Freedom of Information (Freedom House / FRINGE Special/ Open Net Initiative)
Public Expenditure on Primary Education (UNESCO)
Fiscal Policy (IMF WEO)
Child Health (CIESIN and YCELP)
Access to Credit (IFC)
Natural Resource Protection (CIESIN and YCELP)
Gender in the Economy (IFC) 5

6. Countries with Completed Compacts since 2004 (in millions)
Latin America
Africa
Eurasia
El Salvador: $461M
Nicaragua: $175M
Honduras: $215M
Out of 21 completed compacts, 12 were located in the Africa Region.
Benin: $307M
Burkina Faso: $481M
Cape Verde: $110M
Ghana: $547M
Lesotho: $363M
Madagascar: $110M
Mali: $461M
Morocco: $698M
Mozambique: $507M
Namibia: $305M
Senegal: $540M
Tanzania: $698M
Armenia: $236M
Georgia: $395M
Mongolia: $285M
Moldova: $262M
Philippines: $433M
Vanuatu: $66M 6

7. Overview: MCC Africa Engagement
Over $5bn approved:
COMPACTS
Malawi: $351M (suspended)
Liberia: $256M
Cape Verde: $66.2M
Ghana: $498M
Namibia: $304M
Mali: $460M
Mozambique: $507M
Lesotho: $362M
Tanzania: $698M
Senegal: $540M
Madagascar: $110M (terminated)
Marocco: $697M
Cote d’ Ivoire: $525M
Niger: $437M
THRESHOLD PROGRAMS
Burkina Faso: $481M
Kenya: $13M
Uganda: $10M
Sao Tome & Principe: $7.3M
Rwanda: $25M 7

8. Current MCC Threshold Countries
FY2016 (in millions)
Latin America
Africa
Eurasia
Guatemala: $28M
Honduras: $16M
Sierra Leone: $44M
Kosovo: $49M

9. MCC Ongoing Compacts FY2016 (in millions) Latin America Africa Eurasia
El Salvador: $277M
Benin: $375M
Cape Verde: $66M
Ghana: $498M
Liberia: $256M
Morocco: $450M
Niger: $437M
Cote D’ Ivoire: $525M
Malawi: $351M
Zambia: $355M
Georgia: $140M
Jordan: $275M
Indonesia: $600M
Philippines: $433M

10. Planned MCC Compacts Latin America Africa Eurasia Lesotho Senegal
Mongolia
Nepal
Philippines
Kosovo
Sri Lanka

11. MCC Latest Commitment
MCC launched its latest commitment to help mobilize the private sector.
MCC’s new Public-Private Partnership (P3) Platform includes a commitment of $70M in MCC grants -incl. $52M in Africa- to support public-private partnerships in partner countries. This new commitment is expected to generate $1bn in private-sector investments over the next five years. 11

12. Compact Commitment per Sector12

13. Contact
The PFD Group
818 18th Street, NW, Suite 1010 Washington, D.C USA Tel            
          Fax
Mr. Spiros Voyadzis 13

14. Thank You!
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