The Threshold Program is an initiative of the Paraguayan government to combat corruption and strengthen the rule of law, with financial support from the Millennium Challenge Corporation (MCC) and administered by USAID.

MCC supports developing countries that demonstrate good governance, economic freedom and investment in their people through donations to fund large-scale government actions aimed at reducing poverty through sustainable economic growth.


There are two main types of financial support from the MCC: Compacts and Threshold Programs

The compacts are large donations of five years for countries that meet certain MCC eligibility criteria, and are designed to combat poverty.

In contrast threshold programs are smaller donations made to countries that are close to meeting criteria of eligibility for compacts and who are committed to improve its policy performance in such a way to be eligible for a compact.

As of December 2009, 20 countries have received support through MCC compacts and 19 others through the Threshold Program.  Paraguay and Peru, are the only Latin American countries that have received support through an MCC Threshold Program, and Paraguay and Albania are the only countries in the world in a second phase of this program.  Paraguay already completed the first Threshold Program between April 2006 and November 2008 which contributed to an improvement in its positioning in the Control of Corruption indicator of the MCC, going from 8 out of 100 in 2006 to 30 in 2008.  However, despite the achievements, Paraguay has not passed the eligibility criteria required by MCC in terms of control of corruption indicator.  Given the improvement achieved, MCC approved a second phase, which began in September 2009 with an Assistance Agreement signed between the Government of Paraguay and the United States Government.

This second phase will continue through April 30, 2012.  Its main objective is to reduce corruption and strengthen the rule of law in Paraguay through a more effective control of public resources, including prevention, control and punishment of acts of corruption.

Visit the Threshold Program Web Site : www.programaumbral.gov.py