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Millennium Challenge AccountMillennium 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
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Based Based onon Monterrey Principles 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.”
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• MCC rewards countries doing better than peers on international indicators related to development
• Threshold Program helps countries close to qualifying improve policies
PoliciesPolicies
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Compact Eligible CountriesCompact Eligible CountriesAfricaAfrica
BeninBeninBurkina Faso Burkina Faso Cape VerdeCape Verde GhanaGhana LesothoLesotho MadagascarMadagascarMaliMaliMalawiMalawiMoroccoMoroccoMozambiqueMozambiqueNamibiaNamibiaSenegalSenegalTanzaniaTanzania
Latin America BoliviaBoliviaEl SalvadorEl SalvadorHondurasHondurasNicaraguaNicaragua
Eurasia
ArmeniaArmeniaEast TimorEast TimorGeorgiaGeorgiaJordanJordanMoldovaMoldovaMongoliaMongoliaPhilippinesUkraineUkraineVanuatuVanuatu
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Threshold CountriesThreshold Countries
AfricaBurkina Faso*Kenya Malawi* Mauritania Niger Rwanda São Tomé and Principe Tanzania*Uganda Zambia
Latin America GuyanaParaguay Peru
* Country also eligible for Compact funding
EurasiaAlbaniaEast Timor*IndonesiaJordan*Kyrgyz RepublicMoldova*Philippines*Ukraine*Yemen
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OwnershipOwnership
• Eligible countries determine their own priorities Eligible countries determine their own priorities and develop their own proposals for MCC and develop their own proposals for MCC funding, after consulting with civil society and funding, after consulting with civil society and private sector. private sector.
• MCC assesses proposals based on: MCC assesses proposals based on: The contribution to poverty reduction and The contribution to poverty reduction and
growth growth The quality of the consultative process and The quality of the consultative process and
breadth of supportbreadth of supportThe ability to measure resultsThe ability to measure results
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ResultsResults
• MCC and partner governments sign a MCC and partner governments sign a “Compact” that:“Compact” that:
Agrees on specific objectives and measures of success
Elaborates a monitoring and evaluation plan
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$5.5 Billion in Signed Compacts$5.5 Billion in Signed Compacts($ in million)($ in million)
Benin $307 Honduras $215 Nicaragua $175 Vanuatu $66
Georgia $295
Cape Verde $110
Madagascar $110
Tanzania $698
Mongolia $285
Armenia $236
Ghana $547
Mali $461
El Salvador $461
Morocco $698 Lesotho $363 Mozambique $507
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1,638.3
874.4
517.6 425.8 411.4288.8 281.3 193.7 139.4 96.6 52.2
0
400
800
1,200
1,600
Land T
ransp
ort
Ag/Irrig
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Wat
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ams
Other
Infra
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Finan
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/Busi
ness
Servi
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Energy
Secto
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ducatio
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Proper
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and R
ights
Health
Air Tra
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Govt R
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MCC Funding by Sector
USD millions
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The Ghana CompactThe 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
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Status of the Ghana CompactStatus of the Ghana Compact
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Lessons Learned/ChallengesLessons 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
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