Recent events have focused increased attention on how closely the world’s economies are dependent on one another to achieve global prosperity and security.  At the Millennium Challenge Corporation, we can see first-hand how poverty anywhere is a threat to prosperity everywhere.  Finding long-term solutions to fight the problem of global poverty is not simply the right thing to do, it’s also the most expedient thing to do - for the men and women of our partner countries and for our long-term economic stability here in America.

MCC announced this week that another $2.55 billion in U.S. Government poverty-reduction grants had entered into force in Lesotho, Mongolia, Morocco, Mozambique, and Tanzania.  This means that these programs are now entering the implementation phase, joining 11 other compacts already being implemented around the world.  Over the next five years, the work of design, preparation, training, construction, and monitoring and evaluation will take place in a number of sectors that will bring tangible results for the people of these regions.  In Morocco, this means more efficient fisheries.  In Tanzania, it means improved rural roads.  In all our partner countries, it means a transparent process where the communities have a voice in these projects.  The flow of money is scrutinized in a transparent manner, and all segments of society - with a special emphasis on women - will have a chance to participate and prosper in their local economies.

In Washington, I was pleased to see our friends in Congress again show their strong support for MCC’s mission to reduce poverty through economic growth.  Legislation introduced by Chairman Donald Payne of the House Subcommittee on Africa, and a letter authored by Congressmen Adam Smith (D-WA) and Christopher Shays (R-CT), signed by 36 of their colleagues, place a premium on confronting global poverty with smart, results-based programs.

I had the opportunity to brief many of you following the MCC Board of Directors meeting held earlier this month.  The meeting touched on a number of important subjects, including MCC programs in Georgia.  I was also happy to announce the approval of Threshold programs in Rwanda and a Stage II (second) Threshold program with Albania.  We look forward to public events marking the signing of these programs in mid-October.

As our work with our partners continues, we at MCC are proud to be delivering foreign assistance in the name of the American people in a way that conveys our trust and vision for a more prosperous world.  MCC’s new logo, developed at the suggestion of the U.S. Congress and many of our stakeholders, helps convey this partnership.  It is a partnership that has an impact in the lives of the poor in dozens of countries, and is a smart use of hard-earned taxpayer money.

This has been an exciting few days for MCC. President Bush signed our largest compact to date, with Tanzania, in Dar es Salaam this past weekend, bringing unprecedented attention to what MCC is achieving with partner countries—poverty reduction through sustained growth. The comments made by both President Bush and President Kikwete during the signing ceremony capture what I believe is already clear through our work: People expect and demand results and accountability for these funds, for reforms that will bring about prosperity and stability. Poverty reduction is so much more complex than a single program or a single effort. It requires solid policy reforms to establish the institutional foundation upon which these investments can be based. I am currently in London en route from Africa back to the United States and have had the chance to speak with the international press regarding the MCC. One thing that clearly struck a chord with journalists ranging from the BBC to major media outlets in the pan-Arab press was that MCC’s work is a clear manifestation that the U.S. isn’t “imposing” anything on these countries. The poverty reduction proposals come from the countries themselves. We cannot force a country to adopt a project or a policy reform that does not come from the partners. Only this way will they have the backing and wherewithal to flourish. I told the press that MCC, together with the historic investments in programs on the African continent, are a clear statement that the President, the U.S. Congress, and the American people understand the urgency for poverty reduction in Africa. America grasps the extent of the problem and we are working to address it.

While in London, I met with UK Secretary of State for International Development, Douglas Alexander MP, to sign a memorandum of understanding to solidify cooperation between our two organizations. Our work together has been extremely positive to date, and this new agreement will help the two organizations—whether in the field, in places like Africa, or at headquarters, in London or Washington—better share data, and work through coordinated programs. The agreement demonstrates a willingness at the highest levels in our governments to deepen our already positive collaboration. The agreement strengthens practical cooperation in Africa where concrete cooperation is already underway. It also addresses sector and technical cooperation issues ranging from infrastructure to growth diagnostics to impact analyses. It makes sense that our two organizations should look for ways to work together. We owe it to our respective taxpayers whose funds we administer. Poverty reduction is a bigger problem than any one country—or any single donor—can handle on its own. I am pleased that the agreement I signed with DFID does more than more than just talk about coordination. It is a tangible example of donor coordination.

I am returning to Washington from my trip to Morocco having witnessed firsthand the potential of one very unique aspect of our compact there—the support for artisans, tourism development, and the environment in Fez Medina. This innovative component of the compact will enable artisans to increase the quality of their goods by supporting access to training and support in much-needed areas such as: modern production techniques, business management, access to bank and microcredit loans, the construction of modern, environmentally friendly kilns, and pottery workshops. While only a portion of the $698 million MCC compact with Morocco, it speaks volumes about how integrated strategies in poverty reduction affect multiple sectors, groups of people, and have great potential for growth. I was struck by the historical beauty of these crafts. Even more impressive, however, was the desire of the Moroccan artisans to transform something of beauty into something that will transform their long-term well-being. Helping craftsmen conserve their traditions while prospering from the process is a scenario where not just the Moroccans, but all of us, win.

I came to Morocco to review first-hand the progress on its $697.5 million MCC compact. It has been a fantastic, productive trip thus far, both in terms of the people I have met, their message of enthusiasm and gratitude for the work we will achieve together, and the clear commitment from our partners to make this compact a success.

MCC’s compact with Morocco is diverse and spans a wide geographic area. Beginning in Marrakech, I first traveled west through Chichaoua and Essaouria provinces, two of the poorest in the country. I was also able to visit areas where we will implement the innovative, $300 million Fruit Tree component of the compact. Talking with the potential beneficiaries of our programs, the hard-working local farmers, I learned first-hand about how MCC’s work will improve irrigation techniques in Morocco. The irrigation systems in these targeted areas have been used by local populations for centuries. These systems are built by the communities and demonstrate great ingenuity, including the capture of water from springs and the construction of clever zigzagging networks of earthen canals. In an effort to build on the wisdom of the past and help render it sustainable — and environmentally-friendly — for the future, MCC assistance will be used to rehabilitate these irrigation systems — covering an area of over 50,000 hectares — to allow for more efficient use of scarce water and increase revenues through higher yields and improved quality of crops like dates, olives, almonds and figs.

In the coastal town of Essaouria (which people were quick to tell me was the setting of Orson Welles’ 1950’s classic Othello) I met with Morocco’s first and only woman serving as mayor, Asma Chaabi, and the Director of the National Office of Fishing (ONP). Together, they presented an overview of the challenges small-scale Moroccan fisherman are facing and the anticipated benefits MCC investments in the sector will have in the very near future. These fishermen were themselves involved in the development of this project and are confident that it will result in benefits for their households and their community. Working with ONP, MCC will invest $116 million to improve the competitiveness of thousands of small-scale fisherman across the country through improved landing sites and port facilities. MCC assistance will facilitate the development of wholesale fish markets in support of hundreds of mobile fish vendors.

So far, I have been tremendously satisfied that the MCC program is off to a fantastic start. It is clear that this compact is a successful, tangible partnership between the people of Morocco and the United States. Countless Moroccans, ranging from local farmers to government leaders at all levels, have expressed gratitude to the American people for investing in their future. It is clear that the talented team in place so far, led by Moroccans themselves, has the professional skills and deep determination to successfully and fully implement this program. I have also been touched by the candor and friendship of the many hardworking farmers and fishermen I have met along the way who are looking for a better life, one that will be a reality thanks to MCC’s work.