Millennium Challenge Account
• Fulfillment of Monterrey commitment to “provide
greater resources to countries taking greater
responsibility for their own development.”
• Millennium Challenge Account:
– rewards countries with pro-development
policies
– builds on country ownership and responsibility
– focuses on results
Based on Monterrey Principles
• New untied, grant financing
• Set aside up front to ensure predictability
• Not designated for specific purpose,
leaving choice to partner country
• MCA targets a single mission:
– “reducing poverty through growth.”
Policies
• MCC rewards
countries doing
better than
peers on
international
indicators
related to
development
• Threshold
Program helps
countries close
to qualifying
improve policies
Compact Eligible Countries
Africa
Latin America
Eurasia
Benin
Burkina Faso
Cape Verde
Ghana
Lesotho
Madagascar
Mali
Malawi
Morocco
Mozambique
Namibia
Senegal
Tanzania
Bolivia
El Salvador
Honduras
Nicaragua
Armenia
East Timor
Georgia
Jordan
Moldova
Mongolia
Philippines
Ukraine
Vanuatu
Threshold Countries
Africa
Latin America
Eurasia
Burkina Faso*
Kenya
Malawi*
Mauritania
Niger
Rwanda
São Tomé and
Principe
Tanzania*
Uganda
Zambia
Guyana
Paraguay
Peru
Albania
East Timor*
Indonesia
Jordan*
Kyrgyz Republic
Moldova*
Philippines*
Ukraine*
Yemen
* Country also eligible for Compact funding
Ownership
• Eligible countries determine their own priorities
and develop their own proposals 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
Results
• MCC and partner governments sign a
“Compact” that:
Agrees on specific objectives and
measures of success
Elaborates a monitoring and evaluation
plan
$5.5 Billion in Signed Compacts
($ in million)
Benin $307
Honduras $215 Nicaragua $175
Vanuatu $66
Georgia $295
Armenia $236
Cape Verde $110
Ghana $547
Madagascar $110
Tanzania $698
Mali $461
Mongolia $285
El Salvador $461
Morocco $698
Lesotho $363
Mozambique $507
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The Ghana Compact
$547 million Compact signed August 1, 2006 to:
•
improve agricultural productivity, increasing production
of high-value commercial and basic food crops,
•
improve access to markets through better transport,
•
expand availability of community services in rural areas,
•
foster greater private investment in agriculture.
Expected Results:
• Training of 51,000 farm households
• Irrigation for 80,000 hectares of land
• Employment opportunities for over
230,000
• Improved welfare and quality of life for
over 1 million people
Status of the Ghana Compact
Lessons Learned/Challenges
• Country ownership takes time and commitment
 Countries must set and own priorities
 Participatory, meaningful, timely consultation on priorities builds
support for successful action
 There are trade offs
• Capacity grows through doing
 Graduated assistance often needed
• Coordination and harmonization can be full time jobs
• MCC (and other development) assistance is only a catalyst
 Further efforts to leverage other financing for development essential,
especially from private sector