We take a look back at how the Millennium Challenge Corporation came about — and assess its scorecard.
Also in today’s edition: We go over how Africa’s mpox response is unprecedented, and consider what a Kamala Harris White House would mean for global development.
Two decades ago, the U.S. government sought a fresh approach to foreign aid by tying it to good governance and anti-corruption measures. This vision led to the creation of the Millennium Challenge Corporation, with the idea that aid dollars would do better if they only went to countries committed to reform and transparency. In other words, countries must behave to get the goods.
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Since its inception, MCC has invested nearly $17 billion across 47 countries, targeting economic growth and benefiting some 380 million people. But despite the initial ambitions to be a transformative $5 billion-a-year agency, MCC's current budget is around $900 million annually. Even so, experts agree that MCC's model of selectivity, country partnership, and large grants has proven effective.
In its early days, MCC operated like a startup, with a small team and intense pressure to quickly implement projects. The agency aimed to be distinct from traditional aid models, especially USAID, by emphasizing measurable outcomes and accountability. Its scorecard system, which evaluates countries based on 20 indicators — including corruption, political rights, and civil liberties — determines eligibility for funding. The model has led to about 25% of grants being canceled due to countries failing to meet policy requirements.
MCC has faced challenges, writes Devex Senior Reporter Adva Saldinger. The complexity of development issues in many countries often requires more time and resources than expected. Competition from countries like China — which offers aid without stringent requirements — has also complicated efforts.
Still, MCC has made significant strides, training over 450,000 farmers, building nearly 7,000 kilometers of electricity lines, and constructing thousands of roads and sanitation facilities. Its focus on impact measurement and transparency has set a standard in the development community.
So, on MCC’s 20th anniversary, we look at the challenges and opportunities of reimagining international aid.
Read: 20 years of MCC — How big dreams faced tough realities (Pro)
ICYMI: Inside MCC’s $434 million pipeline for 2024 (Pro)
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A scathing report by USAID's Office of Inspector General found that the agency failed to provide consistent and comprehensive oversight of multilateral partners like the World Food Programme, UNICEF, and the World Bank.
Despite these organizations receiving nearly $46 billion from USAID between 2019 and 2022 — an almost 300% increase — the agency's oversight has been alarmingly lax, according to the report. Only 27% of these partners underwent necessary pre-award reviews, and post-award checks were scarcely conducted, putting substantial funds at risk of mismanagement.
Recent fraud investigations into top WFP officials in Sudan and past scandals in Ethiopia, where food aid was allegedly stolen, underscore the consequences of USAID's oversight gaps, writes my colleague Elissa Miolene.
For Charles Pope, a former USAID contracting officer, the issues are emblematic of two different, long-entrenched problems at the agency: staffing issues, and the difficulties of working with multilateral institutions laden with bureaucracies of their own.
“This is yet another symptom of the greater disease of gross understaffing,” Pope tells Elissa. “It’s not that [US]AID staff don’t want to oversee what’s going on, but something has to give.”
Read: Investigation raises questions over USAID oversight of UN awards (Pro)
+ For the latest episode of our weekly podcast, Elissa joins Devex’s Raj Kumar and David Ainsworth to discuss the implications of the USAID OIG report and other top development stories from this week.
The Democratic National Convention revealed some pretty big implications for global development, with November’s election set to influence U.S. foreign policy. Here's what our President and Editor-in-Chief Raj Kumar reckons professionals need to know:
• Electoral shifts could increase foreign aid — Vice President Kamala Harris's potential to expand the Democratic electoral map to states like North Carolina could lead to Democratic control of the U.S. Congress. This shift would likely result in increased foreign assistance and reforms for U.S. development agencies, moving past the recent years of funding cuts and partisan gridlock.
• Harris’s background may shape development priorities — Harris’s experience as a daughter of immigrants and a woman of color may bring a new focus to U.S. foreign policy, emphasizing regions like Africa and Central America. There could also be a stronger push for initiatives supporting gender equality and reproductive health, reflecting Harris’s domestic advocacy.
• Uncertain leadership leaves policy direction unclear — The lack of clarity on who Harris might appoint to key development and foreign policy roles, such as at USAID, MCC, and the U.S. International Development Finance Corporation, creates uncertainty in the sector. The advisers and appointees Harris chooses will be critical in determining the U.S. stance on global development, making this an important aspect for professionals to watch closely.
Read: 3 things we learned about development at the Democratic Convention
ICYMI: Where is Kamala Harris on US foreign aid? (Pro)
+ Check out our page dedicated to the future of U.S. aid.
For the first time, the Africa Centres for Disease Control and Prevention declared a continental health emergency, marking a significant shift in how it handles health crises — and how it can work together with the World Health Organization.
Africa CDC Director-General Dr. Jean Kaseya emphasized how this coordinated response to the mpox crisis showcases Africa's ability to lead health interventions, supported by international partners. This approach aims to overcome past issues of poorly choreographed health responses and delays in accessing medical countermeasures.
With over 18,900 suspected mpox cases and more than 540 deaths reported this year, this new strategy is critical, writes Devex Senior Reporter Sara Jerving. Africa CDC’s declaration has mobilized discussion around resources, access to vaccines, and local manufacturing efforts. It also represents a step toward autonomy for Africa CDC, reducing dependence on the African Union and creating a more agile response system.
The unified response is seen as a “milestone” by health leaders like Dr. Githinji Gitahi of Amref Health Africa, reflecting a shift toward self-reliance and more efficient management of health emergencies.
But funding remains a challenge. Africa CDC said it requires $245 million but has secured less than 10% so far. Effective coordination and transparent communication with communities will be crucial to managing the outbreak and preventing the spread of misinformation. The mpox response is not just a health crisis; it's a pivotal moment in redefining Africa's approach to public health.
Read: Mpox is a ‘milestone’ outbreak for Africa
The World Bank has 408 projects awaiting final approval, with a total cost of $287.7 billion. Of these, 202 projects have been in development for over a year, while 206 new projects were added recently.
The largest new project? A $1.3 billion scheme in Kazakhstan to make transportation more resilient and climate sustainable. Others netting $1 billion or more include one in the Congo Basin, and another in Argentina. The most funding commitments regionally went to Latin America and the Caribbean, receiving $8.7 billion, and Brazil got the most support of any single nation.
These trends show shifting priorities and regional focus within the World Bank’s project portfolio, which Devex’s Alecsondra Kieren Si will continue to monitor.
Read: What's in the World Bank's $226 billion project pipeline? (Pro)
+ To keep up to date with global development’s latest funding opportunities, data-driven funding analyses, and resource mobilization news, sign up to Devex Money Matters — our free, Monday newsletter.
At least five people were killed after an Israeli air strike hit an aid convoy delivering fuel and medicine to a hospital in southern Gaza, as Israel agreed to humanitarian pauses to allow polio vaccination for some 640,000 children across the Gaza Strip. [The Guardian and BBC]
Over 31 million people are facing acute food shortages due to the combined impacts of rising costs and ongoing insecurity in Nigeria. [Reuters]
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