Millennium Challenge Corporation

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Reducing Poverty Through Growth
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Millennium Challenge Corporation Reducing Poverty
Through Growth
Millennium Challenge Corporation

• Fulfillment of Monterrey commitment to
  provide greater resources to countries taking
  greater responsibility for their own
  development.
• Established in law January 2004
• Poverty Reduction Through Growth

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Board of Directors
Millennium Challenge Corporation Reducing Poverty
Through Growth

• Secretary of State, Chair
• Secretary of Treasury, Vice-Chair
• USTR
• USAID Administrator
• MCC Chief Executive Officer John Danilovich
• Four public members
• Christine Todd Whitman
• Kenneth Hackett
• Two to be named

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Millennium Challenge Corporation Reducing Poverty
Through Growth
Based on Key Lessons of Aid

• Policies Matter
• Country Ownership Critical
• Results, Not Inputs Count

We want to make decisions ourselves. It is our
country, and we have to take on leadership and
responsibilities. If you take a look at the last
two issues, our vision and country ownership, you
will realize why the MCA is so important for us.
Here we have a new approach which helps us to
implement our vision. We have opportunities to
design and implement our own programs. --Marc
Ravalomanana, The President of Madagascar
School of Advanced International Studies, Johns
Hopkins University, April 19, 2005

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Millennium Challenge Corporation Reducing Poverty
Through Growth
Policies Matter

• Good policies encourage inflows of private
  capital and increased trade, the real engines of
  growth.
• Country eligibility based on sixteen independent
  indicators in three different criteria
• Countries are measured against other countries of
  similar income level

• Ruling Justly
• Investing in People
• Encouraging Economic Freedom

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Millennium Challenge Corporation Reducing Poverty
Through Growth
23 Countries Selected by MCC Board for FY 2004,
2005 and 2006

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Millennium Challenge Corporation Reducing Poverty
Through Growth
Policies Matter

• Threshold Program reinforces MCA incentive to
  improve policies for countries close on
  indicators with demonstrated commitment to
  reform.
• May propose funding to improve on MCC
  indicators

Burkina Faso Improving Girls Primary School
Completion Rate

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Threshold Countries
Millennium Challenge Corporation Reducing Poverty
Through Growth
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Country Ownership Critical
Millennium Challenge Corporation Reducing Poverty
Through Growth

• Eligible countries submit proposal 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

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Results Count
Millennium Challenge Corporation Reducing Poverty
Through Growth

• Specific objectives and measures of success
  are agreed on from the beginning
• A monitoring and evaluation plan is an integral
  part of each Compact
• Continued funding is contingent on continued
  performance on the indicators and meeting agreed
  benchmarks for program implementation

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Example The Madagascar Compact
Millennium Challenge Corporation Reducing Poverty
Through Growth

• Signed April 18, 2005
• 110 Million over 4 Years
• Goal Increase investment in rural Madagascar
• Three Integrated Projects
• Land Tenure
• Financial Sector
• Agricultural Business Investment

Family selling produce and grains outside home in
Mahitsy, Madagascar.
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Implementation
Millennium Challenge Corporation Reducing Poverty
Through Growth

• The Compact defines responsibilities. The
  country is responsible for implementation.
• Each Compact also defines the governance and
  accountability structure.
• MCC may have one or two representatives in an
  MCA country

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Where is MCC Today?
Millennium Challenge Corporation Reducing Poverty
Through Growth

• Congress has appropriated 4.27 billion to
  date. Requested 3 billion for FY07.
• Eight Compacts signed Armenia, Benin, Cape
  Verde, Georgia, Honduras, Madagascar,
  Nicaragua, and Vanuatu
• Over 1.5 billion committed
• Threshold agreements approved with Burkina
  Faso, Malawi, Tanzania, Paraguay and Albania
• More Compacts and Threshold agreements in
  progress

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Technology at MCC
Millennium Challenge Corporation Reducing Poverty
Through Growth

• Windows based computing
• MS/Office suite Exchange, Word, Excel,
  PowerPoint
• MCCnet (LAN/WAN) established 12/2004
• Primary data center in Sterling VA, warm backup
  data center in San Jose CA
• ExperienceMCC (EMC2) Intranet
• Project management MS/Project, MS/Enterprise
• Document management FileSite from Interwoven