Helping Georgia Achieve Long-Term Growth

September 9, 2008

Blog entry by Rodney Bent, Deputy Chief Executive Officer

After last month’s conflict between the Republic of Georgia and Russia, Under Secretary of State Reuben Jeffery led an interagency delegation to Tbilisi, Georgia, from August 25th to 27th, to assess that country’s economic and reconstruction needs. MCC signed a $295 million compact with Georgia in September 2005 to help the government there reduce poverty, and I was glad to be a part of the U.S. assessment team.

The delegation arrived in Tbilisi aboard a U.S. Air Force C-17 bringing relief supplies such as tents and humanitarian daily rations. From the moment we landed, the delegation spent three days in intense discussions with officials from the U.S. Embassy, the Government of Georgia, businessmen, civil society, and ordinary citizens.

Georgia is a small country, smaller than South Carolina, with about 4.6 million citizens. The Prime Minister, Lado Gurgenidze, heads a team that is energetically confronting the challenges of the conflict: a new influx of internally displaced persons, disruption of transportation networks, and general uncertainty about the future. Before August, the Georgian economy had been growing at about 10 percent a year.

What we saw was sobering. Areas of Georgia that were already in need of assistance to replace aging or inadequate infrastructure are now more in need than ever. I met with Georgians who made it clear that, given the proper roads and other resources, they could resume their plans for economic growth.

MCC’s existing projects [see map] were not directly affected by the conflict. The MCC model — in which the partner country selects and implements projects — is one that the Georgian government would like to replicate more broadly, both with other donors and for other sectors of the economy. The Georgian government has proposed a “Phoenix Fund” for a broad array of possible infrastructure projects, from roads to railroad rolling stock to natural gas projects to water and sanitation.

MCC, as part of the package of assistance announced by the Administration after the assessment team returned to the U.S., is considering a $100 million compact amendment for Georgia. The new funds would enable Millennium Challenge Georgia to finish some projects for which preliminary design and feasibility studies had already been completed, but could not fit within the compact’s original $295 million total. Such an amendment would first need to be approved by MCC’s Board of Directors. Many of the projects under consideration were previously included in the original compact but were later scaled back as a result of external pressures such as dollar depreciation and increased international construction costs.

MCC’s indicator assessment of Georgia for fiscal year 2008 was markedly positive in that Georgia passed 15 of the 17 indicators, including every indicator in “Ruling Justly” and “Economic Freedom.” Our new set of indicators for Georgia, and other candidate countries, will be released by early November.

Click here for more details regarding ongoing MCC projects in Georgia and information about how additional resources will help Georgia reduce poverty and achieve long-term economic growth.

Eyewitness to progress: the signing of Namibia’s MCC compact

July 28, 2008

Blog entry by Rodney Bent, Deputy Chief Executive Officer

Namibia is celebrating its 18th year of independence and, as coincidence would have it, MCC today signed its 18th compact with Namibia, a $304.5 million partnership for education, ecotourism, and agriculture.

This morning, I met with Namibian President Hifikepunye Pohamba to congratulate him and his government on the compact.  The government is intent upon development of its poorest areas, as Namibia has the second highest disparity of household income in the world.  The compact has three main projects.

The education project will focus on school textbooks, primary and secondary school infrastructure improvements, vocational training, and a sustainable system of scholarships for post-secondary school students. We estimate that about a million students will benefit over the years from this project.

The ecotourism project, largely in the poor northern part of the country, will focus on communal conservancies, protecting Namibia’s astonishingly beautiful natural resources, including wildlife for future generations.  In addition, this project will attract more tourists to Namibia and improve the jewel of the country’s tourism industry, Etosha National Park.

The agriculture project is focused on livestock, as a substantial number of households graze cattle on communal lands in northern Namibia.  The project will provide veterinary centers and training for farmers in rangeland management, improved livestock productivity, and land access.  A small part of the project is focused on helping poor families harvest high-value indigenous natural products like devil’s claw, marula oil, Kalahari melon seed, hoodia, and ximenia.

The signing ceremony was held at the office of the Prime Minister, with the Right Honorable Prime Minister Nahas Angula presiding over the event.  A number of ministers, including the Director General of the National Planning Commission (NPC), board members of the NPC, and a U.S. trade mission organized by the Corporate Council on Africa were among the dignitaries who attended the event.  Tonight, our Namibian counterparts will host us at a celebration to mark the compact’s signing at the base of the Auas Mountains, featuring a local choir and traditional dancers.

Helping Make Education a Reality for Girls in Niger

March 28, 2008

Blog entry by Rodney Bent, Deputy Chief Executive Officer

Niger is one of the poorest countries in the world, with a per capita income of $260 a person, and a troublesome ranking of just three from the bottom in the UN’s Human Development Index (174 out of 177). I’ve just returned from a trip to the country where I represented MCC during the signing of a $23 million threshold agreement. The bulk of the threshold program—$18 million or so—is to help Niger improve its low rate of girls’ primary school completion. Niger is in the bottom 5 percentile of low income countries and has a bright red score on MCC’s index for this category. Red, in terms of MCC’s “scorecards” of performance, is not good.

The threshold program has been put together with a notion of helping up to 200 schools become more “girl-friendly.” It’s one drop in an enormous bucket of educational needs, but the Minister of Education, Monsieur Samba Mamadou, shared with me his excitement about the threshold program. The morning after the signing ceremony, he joined me, the US Ambassador to Niger Bernadette Allen, local USAID representative Mark Wentling, and USAID regional Mission Director Henderson Patrick, who flew up from Accra for the occasion. We set off in a dusty caravan of vehicles for the province of Tillaberi to visit some of these schools and talk to our local partners about their needs and challenges.

We bounced for dozens of kilometers along a mix of paved and sandy roads—a reminder of the overwhelming needs of so many countries where we work. The driver of our car had to flip on the wipers constantly to blow away the dust on the windshield. I asked the Minister of Education about Niger’s education needs during the trip. “Everything” was the short answer to the question, with the most critical component being trained teachers, followed by school buildings, notebooks for students (“cahiers”), textbooks, blackboards, desks—you name it. We talked at length about the discrepancy between boys’ and girls’ enrollment rates. He cited the reasons as cultural, social, and economic. Many parents need help in hauling water for the families’ use during the day. Other daughters are married when they’re 13 or 14. The minister made it clear that he, like so many others, understands full well the importance of having girls remain in schools and wants to help make it a reality.

After we drove several dozen more kilometers on the western side of the Niger River, we arrived at the first school. The school buildings are one story tall, built of tan bricks. There was no electricity that I could see, but there were dozens and dozens of people, adults, teachers, local officials and three Peace Corps volunteers at this first site. The school rooms I saw were simple, sometimes with a blackboard, but always packed with kids. In one school room, they’re wearing paper hats with “Niger-MCC-USA” written around the bands. They sang and clapped as we ducked to enter the school room and wish them well. On the black board, in one corner, someone had written the number of garcons and jeunne filles that were in attendance that day. That particular day, in that classroom, the girls outnumbered the boys. This was great news. The governor assured me that the word was getting out to the local officials, tribal leaders and families about the importance of encouraging their daughters to come to school. The need for new classrooms to accommodate the students was evidenced by a lean-to, with a primitive stick roof, that serves as a classroom for 30 or more children, who appeared to be about five or six years-old. There were no chairs and no desks. The head of the school talked to us about the need for latrines, and for places to feed the children. A “cafeteria” would probably be too grand a name for what will likely be a new room for this purpose, possibly with a stove and water. I asked some Peace Corps volunteers, who are working in schools further away from this one, what they needed. “Everything” again was the simple answer. MCC’s Niger Threshold Program certainly isn’t everything, but it is at least a start.