Millennium Challenge Corporation

$905 million*

Minimum Requirement for American Leadership

 
The Millennium Challenge Corporation (MCC) is an innovative, international assistance agency charged with reducing global poverty by enhancing economic growth.

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Justification for Funding

  • The MCC provides program-oriented partnerships with developing countries committed to the principles of good governance, economic freedom, and investment in their citizens.
  • The MCC works with the poorest countries in the world striving for positive development. The MCC signs agreements – known as compacts – with countries competitively selected based on independent, transparent policy indicators. The development agendas are country-led and country-driven; the selected countries identify their priorities for achieving sustainable economic growth and implement their own programs.
  • The MCC enables private sector investment. For example, MCC investments in Benin, Ghana, and Jordan totaled nearly $1.1 billion. These investments laid groundwork that helped mobilize an additional $5 billion in private investments

Cost of Cuts Below $905 Million

President and Congress Budget Comparison

       Congressional Budget   

       President's Budget Request (Base + OCO)

  • The MCC’s work has produced constructive, sustainable policy changes in both countries implementing compacts and in those seeking to qualify for MCC candidacy. Without robust funding, countries may be hesitant to undergo reforms in order to qualify for MCC high standards.
  • In December 2017, the Millennium Challenge Corporation selected Timor-Leste as a compact and The Gambia for a threshold program. The MCC will need continued robust congressional support to finalize these and other partnership agreements; if current funding trends continue, the MCC may not have the funds necessary to achieve these countries’ growth potential.

 

$1 billion

Opportunity to Catalyze American Leadership

 

Justification for Additional Funding

  • The MCC partners with countries that are showing signs of positive development by providing threshold programming that helps those countries take the steps necessary to be fully eligible for a compact. Partner countries value the effects of MCC assistance and the potential for partnership provides incentive for reform. Countries work proactively to increase their levels of transparency, efficiency, and governance capability so that they may become eligible for MCC funding.
  • InterAction supports legislative authority for the MCC to create concurrent, multi-country compacts to further leverage U.S. and international private sector investments in regional infrastructure projects. The regional projects would provide development opportunities where, despite national divides, markets and communities are economically and socially integrated.

Impact of 10% More Funding

MCC Effect
The high standards required by MCC have created the MCC Effect as countries strive to meet MCC standards as a goal for their own reform and development actions.

  • Using rigorous data analysis as the basis for its investment decisions, the MCC is a leader in pioneering many best practices in international development, including transparency, gender integration, and country ownership. Additional funds would help to spear head this work.

*Enacted FY18 Omnibus Appropriation

For more information, please contact: Brian Wanko, bwanko@interaction.org

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