Millennium Challenge Corporation Board Approves First Compact with Madagascar

Washington, D.C. —Today, the Millennium Challenge Corporation (MCC) Board of Directors approved MCC's first Millennium Challenge Compact. The nearly $110 million, four-year Compact with Madagascar aims to reduce poverty through economic growth and focuses on projects in three areas: property rights, financial sector, and agricultural business investment.

“All credit should go to the people and Government of Madagascar,” said MCC CEO Paul Applegarth. “ It is their commitment and hard work that led Madagascar to become the first country to finalize a Compact with MCC. Throughout the process, MCC and the Malagasy have worked as partners to develop a results-based program focused on poverty reduction through sustainable economic growth. This program will allow the rural poor in Madagascar the opportunity to secure property rights, obtain access to credit, and better understand market opportunities.”

MCC and the Government of Madagascar expect to sign the Compact in April.

Mr. Applegarth added, “The Millennium Challenge Account, an initiative launched by President Bush, is a historic approach to development assistance that recognizes sound policies and good governance are vital to poverty reduction and economic growth in developing countries. The MCA directs assistance to countries that govern justly, invest in their people, and promote economic freedom. MCC is working closely with other eligible countries as they move forward on their proposals for MCA assistance.”

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Millennium Challenge Corporation (MCC), a U.S. government corporation designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth.