Is the White House using MCC as a political bargaining chip?

WASHINGTON — The integrity of a U.S. government agency lauded for its focus on transparency and aid effectiveness could be at risk due to the Trump administration’s push for a diplomatic win in the Balkans, experts and civil society activists warn.

On March 13, the Millennium Challenge Corp., a development agency created in 2004 to work with countries based on principles of mutual accountability, placed an operational hold on its $49 million “threshold program” with Kosovo, and on a country compact currently under development that could be worth $124 million. In a statement, the agency explained that the hold would be lifted if Kosovo’s government removes tariffs it has imposed on goods from Serbia.

“The decision to proceed with MCC programs rests on the actions of the Government of Kosovo. It is MCC’s hope that the Government of Kosovo chooses to resolve this tariff issue quickly in order to proceed with MCC programs. Once a resolution is reached, MCC will resume operations as appropriate,” the statement reads.

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