Millennium Challenge Corporation Signs Compact with Madagascar

Washington, D.C. —Today, the United States, through the Millennium Challenge Corporation, signed a four-year Compact with the Government of the Republic of Madagascar worth close to $110 million. This first Millennium Challenge Compact will reduce poverty and stimulate economic growth in Madagascar by focusing in three areas: property rights, the financial sector, and agricultural business investment.

“MCC was proud to work in partnership with the people and Government of Madagascar on this Compact and congratulate them on a comprehensive, results-oriented strategy targeted at helping the rural poor,” said MCC CEO Paul Applegarth. “Completed just six months after submitting a proposal, this agreement is a testament to Madagascar's commitment to development. MCC looks forward to maintaining our collaborative relationship to ensure that the poor in Madagascar have the tools needed to lift themselves out of poverty.”

In addition to signing a Compact with Madagascar, MCC has notified Congress Compact negotiations are underway with four other MCA eligible countries: Cape Verde, Georgia, Honduras, and Nicaragua .

Launched by President Bush, the MCA is a historic approach to development assistance that recognizes sound policies and good governance are critical to poverty reduction and economic growth in developing countries.

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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.