Implementing Millennium Challenge Corporation Compacts
The Millennium Challenge Corporation (MCC) is now in the fourth year of implementing some of its compacts of assistance to developing countries to promote economic growth and reduce poverty. According to MCC's establishing legislation, a compact cannot exceed 5 years.
- MCC's pace of implementation has consistently lagged behind projections,
and MCC has rescoped several of its compacts due to implementation delays
and rising energy, construction, and foreign exchange costs.
Full Report of GAO-08-1145R (PDF, 54 pages) - MCC needs to assess what it can successfully complete within the compacts'
available time, what the rescoped compacts' effects will be on economic growth
and poverty reduction, and how it will oversee compact efforts that are funded
within the 5-year window but not completed until afterward.
Full Report of GAO-08-1145R (PDF, 54 pages)
^ Back to topWhat Needs to Be Done
MCC needs to take several actions to improve its economic analysis, including the following:
- Ensure that MCC officials perform economic analyses that more fully reflect
the countries' socioeconomic environment and are better understood by country
public- and private-sector representatives.
Highlights of GAO-06-805 (PDF) - Assess whether statements of expected benefits in Vanuatu and other compact
countries accurately reflect the underlying data and analysis.Improve economic
analysis by phasing the costs and benefits in compact economic rates of return
calculations and by more fully accounting for risks.
Highlights of GAO-07-909 (PDF) - Adopt and implement written procedures for a secondary independent review of its economic analyses.
- Improve MCC’s guidelines by identifying a consistent approach
with preferred methods for projecting compacts’ impact on income and
poverty.
Highlights of GAO-08-730 (PDF)
Additionally, MCC should improve its monitoring and evaluation capabilities.
Highlights of GAO-06-805 (PDF)
^ Back to topKey Reports
- Millennium Challenge Corporation: Summary Fact Sheets for 11 Compacts Entered into Force
- GAO-08-1145R, September 26, 2008
- Summary (HTML) Full Report (PDF, 55 pages) Accessible Text
- Millennium Challenge Corporation: Independent Reviews and Consistent Approaches Will Strengthen Projections of Program Impact
- GAO-08-730, June 17, 2008
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 46 pages) Accessible Text Recommendations (HTML)
- Millennium Challenge Corporation: Analysis of Compact Development and Future Obligations and Current Disbursements of Compact Assistance
- GAO-08-577R, April 11, 2008
- Summary (HTML) Full Report (PDF, 27 pages) Accessible Text
- Millennium Challenge Corporation: Vanuatu Compact Overstates Projected Program Impact
- GAO-07-909, July 11, 2007
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 69 pages) Accessible Text Recommendations (HTML)
- Millennium Challenge Corporation: Compact Implementation Structures Are Being Established; Framework for Measuring Results Needs Improvement
- GAO-06-805, July 28, 2006
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 101 pages) Accessible Text Recommendations (HTML)