Manager of U.S. Department of Transportation’s Safe Skies for Africa Programs Cornelia Wilson Hinter, MCC Managing Direct of Private Sector Initiatives Jeri Jensen and General Manager-Engineering of Ghana Ports and Harbors Authority Kwasi Kwakwa participate on a panel discussion on regional trade integration.

Last week, the United States Government joined African small business leaders, NGOs, civil society stakeholders, and representatives of the Kenyan government for the 8th annual African Growth and Opportunity Act (AGOA) forum in Nairobi, Kenya.

The three-day forum, including parallel private sector and civil society meetings, featured participation by two MCC Board members, Secretary of State Hilary Rodham Clinton and United States Trade Representative Ambassador Ron Kirk.  Accompanying the Secretary on the trip were Members of Congress – Jim McDermott, Donald Payne, Nita Lowey – as well as Agriculture Secretary Tom Vilsack. AGOA, for those less familiar with the trade policy world, represents bipartisan legislation enacted in the late 1990s and signed by President Clinton to help address the fact that the recently-enacted Uruguay Round of multilateral trade negotiations did little to benefit developing countries.  The idea behind the act was to stimulate trade with Africa by giving most African countries duty-free treatment, with the ultimate purpose of stimulating U.S. investment in Africa and helping include Africa in the global economy.

MCC partners with countries that identify the greatest constraints to their development and establish their priorities to create sustainable economic growth. While each country’s grant is unique, most MCC partners place a high priority on increasing competiveness and facilitating regional and international trade. In fact, trade capacity building is a critical part of the U.S. Government’s AGOA contribution.  This promotes economic growth through trade and improves the linkage between trade and development by assisting countries to develop physical, human, and institutional capacity necessary to take full advantage of trade opportunities and, most important, to increase growth and reduce poverty. In 2008, MCC was the largest U.S. Government source of trade-related funding for sub-Saharan Africa, obligating nearly $1 billion.

MCC – with 70 percent of its portfolio in Africa, almost half dedicated to infrastructure   – is already undertaking a number of projects that support AGOA’s objectives in various ways.

• MCC is now working with 19 countries in Africa, developing or implementing compacts or threshold programs;
• MCC partner countries are a natural focus to take advantage of AGOA because they are already undertaking  reforms  to attract investment;
• MCC could be “the other half of the equation” to go hand-and-glove with AGOA preferences because MCC resources are already dedicated in that direction, with  $2 billion in roads  or ports to connect producers to markets; a half a billion in credit facilities to stimulate business enterprises; energy investments to facilitate greater production and exporting opportunities; an investment in hydroelectricity to support textile production in Lesotho;
• Sixty-four percent of MCC’s portfolio is related in some way to agriculture productivity, and agriculture is the area where AGOA’s trade preferences have the greatest potential;
• MCC is one of the few donors that invests in both agriculture and infrastructure in a major way
• MCC is placing greater focus on demand-driven strategies that connect beneficiaries to global markets, in product areas that could potentially also benefit from AGOA.

Ultimately, MCC is realizing the full potential of AGOA by not only expanding trade and investment opportunities but also promoting sustainable development and good governance.

Kenyan entrepreneurs at AGOA’s exhibition area featuring their traditional handcrafted soapstone carvings, tableware and refined beadwork.

MCC's Jonathan Bloom and Minister of Finance Lucien Marie Noël Bembamba

Today, Burkina Faso took a great step forward.  Its $480.9 million, five-year Compact with the Millennium Challenge Corporation (MCC) to reduce poverty through economic growth has entered into force (EIF), meaning that the five-year clock to implement the grant has officially begun.  For over a year, the Government of Burkina Faso has been tremendously busy preparing for this moment.  The entity in charge of implementing the Compact—Millennium Challenge Account-Burkina Faso (MCA-Burkina Faso)—has already created a strong foundation for achieving Compact success.

The four Compact-funded projects continue to progress at an impressive rate.  For the Rural Land Governance Project, project analysts  are working on baseline data collection on land conflict and land tenure security, to enable monitoring of project performance. The Parliament of Burkina Faso also has passed a new rural land tenure law (“Loi Portant Régime Foncier Rural”), which is a critical step in Burkina’s land tenure reform process.  For the Roads Project, contracts are being signed this week for project management, technical assistance, and environmental and social assessments for the longest road segment funded by the Compact.  For the Agriculture Development Project, the management audit of the Sourou Valley Development Authority is complete, and the Ministry of Agriculture is now developing an action plan to address the findings of the audit.  The action plan will then be implemented by the development authority.  Burkina Faso also has completed Phase One of the BRIGHT 2 Project, a girls’ education program designed as a 3-year continuation of the highly successful Bright Threshold Program.

The “EIF” event culminates a week of activities, including a televised roundtable panel with other MCA CEOs from Mali and Benin, who were visiting Burkina Faso.  These CEOs discussed their experiences and shared best practices and lessons learned in implementing MCC poverty reduction grants in their countries.  It was fascinating to hear examples of the good work MCC partner countries are doing, and the people we are affecting in meaningful ways around the world.  It was also heartening to receive advice from the CEOs of Mali and Benin, who are both several years ahead of Burkina Faso on Compact implementation.

Front Row: Joseph Bissiri Sirima, National Coordinator Burkina Faso; Nene Traore, Director General, Mali; Prime Minister Tertius Zongo; Simon Pierre Adovelande, National Coordinator, Benin; Kateri Clement, RCD. Back row: Samuel Laeuchli, Charge d’Affaires, US Embassy; Alizeta Diallo, Deputy National Coordinator, Burkina; Jonathan Bloom, Deputy Vice President, MCC.

On July 30th, MCA-Burkina Faso also unveiled its new logo—with symbols representing all four Compact projects as well as the important partnership between Burkina Faso and the United States.  This partnership was emphasized by the American Embassy’s Chargé d’Affaires, Mr. Samuel C. Laeuchli, at a dinner at my house on July 30th.  At the dinner, Mr. Laeuchli toasted MCA’s success and highlighted that the staff of MCA are the ones who are truly implementing these important projects to reduce poverty in their country, with America’s support and funding.  On Thursday, MCC and MCA also signed an Implementing Entity Agreement with the Ministry of Environment, one of eight important agreements with Government of Burkina Faso ministries which spells out the terms of collaboration.  On Friday, there was an event at the Ministry of Finance, where the Chargé d’Affaires, MCC Deputy Vice President Jonathan Bloom, and the Ministry of Finance exchanged letters signifying that both countries had met all of the requirements in the Compact and were now ready to “enter into force.”

Finally, a highlight of the week was a televised meeting with the Prime Minister of Burkina Faso on July 31st.  The Prime Minister is very enthusiastic about the Burkina Faso Compact and is confident that it will make a significant difference in the lives of the poor here in Burkina.  I am proud to be working alongside my Burkinabe colleagues and friends, whose commitment to the fight against poverty is an inspiration.  The partnership between MCC and Burkina Faso reflects a shared commitment to winning the fight against poverty and creating sustainable opportunities for economic growth that will improve the lives of Burkinabe.  Now, the clock is ticking as we chart further progress ahead.

MCC Deputy Resident Country Director Jim McNicholas with Vice President Joe Biden, during his visit to Georgia. The Vice President re-affirmed the U.S. commitment to support the Georgian people

Vice President Joe Biden visited Tbilisi, Georgia this week, meeting with Georgian President Mikhael Saahkashvili, members of Parliament, leaders of the opposition parties, and business leaders.  One of the highlights of the visit for the Georgian media was the Vice President’s visit with children at a center for families displaced by the August war.   At each stop on his visit, the Vice President spoke of a U.S.-Georgia partnership based on the ideals of democracy and re-affirmed the U.S. commitment to support the Georgian people as they continue to build the institutions and economy of their country.  “I especially today call upon the young people of Georgia,” Mr. Biden said on the floor of the Parliament, “the next generation of Georgian leaders, to continue to contribute their ideas, their voices, and their energy to help create a peaceful, stable, democratic, and economically prosperous Georgia.”

As part of the U.S.–Georgia partnership, the Millennium Challenge Georgia Compact, a five year program totaling $395 million in grant funds, has been providing necessary resources for Georgians to invest in their economy and reduce poverty.  Georgia is committed to the core MCC philosophy of country ownership and accountability.  It has created a strong management team and government oversight board to ensure that U.S. funds are spent efficiently and achieve results for the Georgian people.

Now in its fourth year of implementation, Georgia is beginning to see tangible results.  Under MCC funding, the municipal water supply network for Poti, Georgia’s largest port, has been rehabilitated, improving the water supply for the city’s population of 50,000.  Georgia’s energy security has been strengthened by the completion of two rounds of priority repairs on the main natural gas pipeline.  The pipeline, operated by the Georgian Oil and Gas Corporation, transports gas from Azerbaijan to Georgia for residential heating and to operate Georgia’s only electricity power plant.

Pictured is the Gadabani Pipeline rehab site where MCC is funding the replacement of corroded pipes, reducing the chances of gas leaks. Georgia is committed to the core MCC philosophy of country ownership and accountability.

Additional infrastructure improvements are on the way.  Another four municipalities are undergoing water system rehabilitations.  Construction on the Samstkhe-Javakheti road, connecting Tbilisi with Armenia and Turkey, is currently underway.  Georgia also chose to invest in agriculture and to assist the growing number of small and medium size enterprises in Georgia.  The Enterprise Development Project has already invested over $25 million in the Georgian economy through a combination of grants and equity investments for farmers and businesses.  Much of this total has been mobilized since the August war and since the economic crisis has negatively impacted the Georgian economy.

Millennium Challenge Georgia Fund CEO George Abdushelishvili recognizes that he, his team, and partners have a lot of work ahead to deliver on the promise of the MCC grant.  “When Georgia has a good partner, and especially when we hear Vice President Biden highlight our countries’ partnership here in Tbilisi, it makes me want to do more,” he says.

Santa Catarina on Santiago Island has always been a municipality with great cultural and economic potential.  Its full potential, however, has gone underdeveloped, given how difficult it is to access it various communities.  This has long been the reality for the seven major communities along the way from  Assomada to Chã de Tanque to Rincão, a way that has seen its share of notable landowners, fishermen, and adventurers who used the Port of Rincão to develop Cape Verde’s economy.

Indeed, Rincão served as one of the most important ports on Santiago Island, from where agricultural products were shipped all over the country. Some speculate that the port was used by militants fighting for Cape Verde’s independence, making  Rincão a place of  historic significance in the fight for Cape Verde’s freedom.

However, as time passed, Rincão was left isolated due to the lack of infrastructure and access to major cities like Assomada.  Fishing became Rincão’s main means to survive.

When Cape Verde and MCC signed the $110 million compact in July 2005, the people of Rincão were excited  at the chance finally to develop their community, with a road that would pave the way to prosperity and connect them to greater commerce and community services.  This past week on July 18, 2009, the road from Assomada to Chã de Tanque to Rincão was inaugurated.  It is  totally asphalted, modern, and functioning,  providing a gateway to the world for the people of Rincão

As one of the  first infrastructure projects completed within the Millennium Challenge Account-Cape Verde (MCA-CV)  program,  I am  proud of this milestone, and proud to see this day come for the people of Rincão. More than just a celebration of a road, or the success of the MCA-CV in partnership with Cape Verdeans, this is a time of reflection on the rich history of the people of Rincão.  Now, what used to be for them a painful one hour and a half journey to Assomada is a pleasant 30 minute drive.

With this completed road, the future of Rincão has the potential to attract tourism-related investments, and the six other localities along the road are already enjoying more dynamic and closer interactions, reclaiming the historic greatness of the municipality of Santa Catarina. Rincão is reborn and has the very real potential to become a reference point  for the  tourism and culture sectors.

With the inauguration of the road in Rincão, we can all say, “Yes, it’s possible!”

Thanks to MCC funds, the dream of bridging the prosperous past with a bright future for this area  of Cape Verde gives us all reason to smile.

Former Senator John Sununu, in Ghana as part of a ONE / (RED) delegation, with the Head Mistress of the Bowjiase Junior Secondary School which was renovated as part of the MCC Compact with Ghana.

MCC Resident Country Director in Ghana Jim Bednar with ONE President and CEO David Lane, at Ghana’s Bowjiase Junior Secondary School. Delegates from ONE and (RED) visited farmers, students, parents and teachers during a recent trip to learn how U.S. Government programs are making a positive difference in the lives of millions of Africans.

MCC, together with friends from the ONE Campaign and (RED), witnessed the reality of what can happen when people come together to fight poverty.  At the Bawjiase Junior Secondary School, hundreds of students, teachers and parents welcomed us to view the renovated classrooms where education has an improved, better home in this community.  The words of the Head Mistress were a moving tribute to what positive things the peoples of the United States and Ghana are accomplishing together.

The decision of the ONE and (RED) delegations to visit MCC programs was a visible signal of the commitment of diverse groups to foster innovative approaches to reduce poverty in Africa and around the globe.  They asked the men, women and children they met about their hopes for their future and the biggest obstacles to economic growth in their homes and communities.  One thing that was clear from the conversations I witnessed was that integrated approaches - programs that tackle the problem of poverty from all angles, including infrastructure, education, agricultural training, trade, and policy - are the best way to ensure lasting, tangible results.  We at MCC are grateful for the commitment of groups like ONE and (RED), who want to see poverty reduction programs in action and experience first-hand the challenges and the exciting headway we are making with partners like Ghana.

From the N1 Highway that MCC is helping rehabilitate to the farmer training programs to the renovated classrooms in Bawjiase, it was inspiring to see the U.S. Government’s $547 million compact with Ghana helping to fortify our strong relationship as friends while ensuring that the next generation of Ghanaians can take advantage of the potential and promise of their future.

This weekend, I had the pleasure of joining the Prime Minister of Cape Verde, other government authorities, U.S. Ambassador Marianne Myles, hundreds of citizens, and the leadership of MCA-Cape Verde at the inauguration of the newly rehabilitated road from Orgãos to Pedra Badejo on the island of Santiago, made possible through MCC’s $110 million compact. It is a significant milestone for Cape Verde’s development, and marks MCC’s first completed road project in Africa. This new construction is the first of three roads being rehabilitated on this island.  In addition there are four bridges under construction on Santo Antão Island.  These works decrease transportation costs for people and goods, improving access to markets and services.   This will help move Cape Verde closer to realizing its goal of poverty reduction and economic growth for the benefit of its citizens.

How?

The new road, over hilly terrain through one of the island’s productive agricultural valleys, is already starting to make a real difference in the lives of Cape Verdean families, farmers, businesses, nongovernmental organizations, and social service providers who live and work in communities along its path.  It is a six meter wide road with improved safety and drainage systems, complying with environmental and social requirements. We estimate that nearly 12,500 people will directly benefit from just this 10.2 kilometer stretch of road.  They will now be able to reach markets more efficiently and have better access to schools and other community services.

This  road is just one component of Cape Verde’s MCC compact, aimed also at increasing agricultural productivity,  modernizing the Port of Praia-the nation’s capital-and  fostering  private sector development. Reliable road infrastructure is indispensable to the long-term success of projects in these other sectors.  The fact that the Government of Cape Verde, with Parliament’s endorsement, set aside a maintenance fund for upkeep of the newly constructed road and others being refurbished demonstrates a commitment to quality and sustainability.

In these ways, the new road brings new opportunities.  The statement I delivered at the road inauguration on behalf of MCC’s Acting CEO Rodney Bent reaffirms our determination to build on the success of this first opportunity to now realize the potential of the MCC-Cape Verde compact. My MCC colleagues and I are very proud to be part of this partnership between the US and Cape Verde that made this investment possible, concrete evidence of the historic friendship between our peoples.

Girls will benefit from the IMAGINE project in Niger. Photo by MCC staff.

During a recent trip to Niger, I had the opportunity and privilege of meeting with those coordinating this West African country’s MCC Threshold Program. I came away impressed with their energy and dedication as they work in a challenging environment.

Niger is one of the poorest countries in the world, ranking near the bottom of the United  Nations’ Human Development Index. It has bounced from drought to coup to famine for centuries. Nonetheless, its people persevere with dignity and fortitude in this country nearly twice the size of Texas.

And the MCC, in partnership with the government and people of Niger, have identified an important way to foster long-term progress and sustainable development: promoting the education of girls. Building upon its innovative program in Burkina Faso, the Niger Threshold Program is funding the IMAGINE (Improve the Education of Girls in Niger) project, which includes the building of 68 “girl friendly” schools in seven regions throughout the country. These school complexes will include three-classroom buildings with sufficient desks for all students, separate latrines for boys and girls, a water source, housing for female teachers and a school canteen.

Throughout the developing world, there are many obstacles that prevent children, especially girls, from going to school. Those barriers include long walking distances from school, hunger, early and forced marriages, and time-consuming chores at home. The result is that the cycle of poverty is continued over generations. Conversely, education is a powerful tool in fighting poverty, unleashing the potential of a whole segment of the population unaccustomed to having the opportunity to earn their own livelihoods. Research shows that providing girls one extra year of education beyond the average can boost eventual wages by 10-20 percent.

Over the long term, we believe that these kinds of programs aimed at improving the education of girls will lead to increased food security. This is because girls in school receive the knowledge and develop the skills that will enable them to better manage resources for themselves and their families.

Better education for girls also contributes to improvements in the nutrition, health and education of future generations. This knowledge will bolster other assistance efforts being carried out by organizations like my own, Catholic Relief Services. For example, we are implementing a nationwide effort in Niger to encourage the use of mosquito nets to prevent malaria. Better educated women will be more likely to see the benefits of using the nets and will make sure their families do so.

“As chair of the Millennium Challenge Corporation, it is wonderful for me to see the results of our work and our investment,” shared Secretary of State Hillary Rodham Clinton last Sunday as she toured MCC projects in El Salvador that are improving the lives of the poor.   I felt honored and proud to show Secretary Clinton just how MCC’s $461 million grant is reducing poverty and stimulating economic growth here in El Salvador, where a new president has just taken office following a remarkable democratic election.  As the Secretary met with Salvadorans benefitting directly from MCC projects–from students to farmers to families assisted as electricity finally comes to their homes in the country’s Northern Zone–we see tangible proof of U.S. commitment to the region, and the effective role MCC’s smart assistance continues to play in changing the lives of the poor of El Salvador.

It was especially gratifying for Secretary Clinton to witness the signing of a public-private partnership (PPP) that will leverage MCC resources with those of the private sector and provide sustainable benefits for the poor.  This contract is a true milestone, as it represents MCC’s first financing of a public-private partnership in infrastructure and serves as a model for similar partnerships in other MCC partner countries. By combining funds from MCC, the Government of El Salvador, and the company AES, this partnership will construct 1,300 kilometers of rural electrification lines, connections, and extensions to existing lines in the Northern Zone.  This innovative PPP transaction will provide access to electricity for over 30,000 poor families in El Salvador’s Northern Zone. 

In these challenging economic times, when every development dollar must count, MCC understands that we can do more by working with partners who share our vision for economic growth and prosperity for the world’s poor.  Today, we all join Secretary Clinton in applauding how the private sector and MCC are setting an example in El Salvador by working together to benefit the poor in sustainable ways.

It was a great pleasure to help welcome an impressive group of distinguished guests to MCC last week to mark Africa Day.  What continues to unite Africa—a continent of 53 countries each with their own distinct culture and history—is a shared vision for a new day of opportunity and prosperity to transform the lives of the continent’s poorest.  The U.S. Government’s MCC is proud to play a role in realizing this goal by diligently implementing results-driven programs that are making a difference in the lives of Africa’s poor.

We have invested more than 70 percent of our total grant funding-more than $4.7 billion-to fight poverty and stimulate sustainable economic growth in 18 African countries.  Our partners are using these investments

• to boost agricultural productivity so as to increase food security,
• to educate girls and teach mothers how to prevent HIV transmission to their newborns, and
• to build roads not only to help farmers get their crops to market but also to help families get to schools and health clinics.

MCC’s partnerships throughout Africa are helping the poor earn the income they need to pull themselves and their households out of poverty and toward a better future.  MCC is proof positive of the Obama Administration’s support for Africa, even in the midst of the current economic crisis.

Commemorating Africa Day at MCC (l to r): President of Catholic Relief Services and MCC Board Member Ken Hackett; President of Bread for the World David Beckmann; Acting MCC CEO Rodney Bent; Special Assistant to the President and Senior Director for Relief, Stabilization, and Development at the National Security Council Gayle Smith; U.S. Assistant Secretary of State for African Affairs Ambassador Johnnie Carson; African Union Ambassador Amina Salum Ali; and Chair of Africa Day and Moroccan Ambassador Aziz Mekouar.

Those who joined us for Africa Day from the Administration, the diplomatic corps, and the development community spoke with one voice:  Africa’s promise is vast and the commitment to partner with Africans to realize such potential is firm.  Gayle Smith, Special Assistant to the President and Senior Director for Relief, Stabilization, and Development at the National Security Council, Ambassador Johnnie Carson, the U.S. Assistant Secretary of State for African Affairs, Rodney Bent, our acting CEO here at MCC, Her Excellency Ambassador Amina Salum Ali from the African Union, His Excellency Ambassador Aziz Mekouar of Morocco and chair of Africa Day, Ken Hackett, President of Catholic Relief Services, and David Beckmann, President of Bread for the World, discussed the continent’s constraints to growth and realistic approaches for overcoming them.  Their special insights offered pragmatic, practical, and results-driven solutions that are meaningful and sustainable for the people of Africa.   View the event’s video for details.

Ambassador Johnnie Carson joins Jonathan Bloom, MCC’s Deputy Vice President for Compact Implementation in Africa, and Darius Mans, MCC’s Vice President for Compact Implementation, to discuss MCC’s partnerships in Africa.

The commitment to transparency and the fight against corruption intensified this week in Paraguay.  I was honored to witness a milestone moment as the U.S. Government, through the Millennium Challenge Corporation, and the Government of Paraguay signed a $30.3 million Stage II Threshold Program. This second program aims to institutionalize key reforms in public administration and supports anticorruption activities in the judiciary, law enforcement, customs, and healthcare.  It builds upon the successes of Paraguay’s first “umbral” or threshold program.

This latest agreement is one more symbol of the friendship between Paraguay and the United States as we work toward the shared goals of prosperity and opportunity.  It also reflects the constructive and active engagement that the U.S. Government has with the peoples of the Americas. It involves effective cooperation across a number of U.S. agencies, as USAID will be managing the implementation of this threshold program, with help from the U.S. Department of Justice and the U.S. Department of Treasury Office.

President Fernando Lugo, who participated in the ceremony, signaled strong political will to stamp out corruption by reaffirming his government’s commitment to anticorruption measures. “[We] will not do business out of corruption and will not dialogue with the mob. But instead will actively promote the destruction of this cancer. So a new country will be born free of illicit dealings because that’s what the people chose on April 20,” referring to Paraguay’s 2008 election day.

It was a standing room only event, with top officials from the Government of Paraguay, representatives from the diplomatic corps, and members of the press in attendance.  The people of Paraguay realize that promoting transparency and accountability are keys to fighting corruption and fundamental to job creation and ecomomic growth.  Now, through its MCC Stage II Threshold Program, Paraguay has another effective tool to strengthen its institutions against the risk of corruption and to pursue results-oriented programs to reduce poverty and stimulate sustainable economic growth for the good of all Paraguayans.

From left to right: Minister of Finance Dionisio Borda, Ambassador Liliana Ayalde, and USAID Mission Director John Beed

From left to Right: United States Agency for International Development (USAID) Mission Director John Beed, Minister of Finance Dionisio Borda, President Fernando Lugo, United States Ambassador Liliana Ayalde, and President of the Senate Gonzalez Quintana.