February 2006
Vol. 2 Issue 2

Recent Events

• MCC signs $307 million compact with Benin
• Board approves $11.15 million Tanzania Threshold Country Program
• Board approves $34.65 million Paraguay Threshold Country Program
• Board approves $13.85 million Albania Threshold Country Program
• President Bush submits his budget for FY 2007 including $3 billion for MCA
• Ambassador Danilovich addresses the Society for International Development
• MCC Announces Environmental Guidelines

MCC in the News

• With New Leader, Foreign Aid Program Is Taking Off- Washington Post
• Rice: Not Slighting Americas - Miami Herald
• Dar to Form Unit Deal With Financial Crimes - All Africa
• Freedom fighters in the Arab press - Chicago Tribune
• A Partnership to Transform Ghana's Agricultural Sector - Accra Daily Mail

Notable Quotable

“The Millennium Challenge, as I said, gives us a particular kind of tool to encourage responsible behavior by states, and I can tell you that countries come in, they want to make the case for why they ought to be a Millennium Challenge country and they will tell you what they're doing to fight corruption and they will tell you what they're doing to invest in their people.”

Ask the Expert

February Expert: Stephen Groff

Stephen Groff is the Deputy Vice President for Operations for Millennium Challenge Corporation (MCC) and is a member of MCC's senior executive management team. He oversees a broad range of MCC interactions with eligible countries, including proposal development, proposal due diligence, Compact negotiation and Compact implementation. He plays a central role in ensuring quality, technical excellence and development impact in MCC operations. More..

Term of the Month: “MCC Effect”

“MCC Effect” is a term that has been coined to describe improvements in policy performance in countries that are either seeking to become eligible for MCC assistance, or have already been selected as eligible and are continuing the reform process. There is growing evidence that countries are responding to the incentives created by MCA funding and, in doing so, putting themselves on the track to poverty reduction and economic growth.

MCC selects as partners the countries that are most actively fighting corruption and ruling justly, that are investing in health and education for their people and that are promoting economic freedom. This selection process is transparent and competitive because MCC seeks to reward countries that are undertaking these reforms, and providing an incentive for other countries to do the same. One Finance Minister put it this way, “It's not about the money. It's about the recognition that we're doing the right thing.”

MCC is seeing results in policy reforms and performance improvements, both in the countries we are working with, and in those striving to become eligible.