The Millennium Challenge Corp.’s board of directors has approved updates on MCC’s selection criteria and methodology. New indicators have also been added to the scorecard in line with its approach of partnering only with countries that demonstrate sound economic and democratic governance.
MCC’s new indicators include those that measure freedom of information, gender in the economy and access to credit.
The changes — which are expected to improve how country policy performance is reflected in MCC’s scorecard — are “based on lessons learned over the last seven years” and on extensive research, data analysis and consultation, says the U.S. government agency.
According to MCC CEO Daniel Yohannes, the changes reinforce “MCC’s core values of focusing on growth, demanding results, promoting transparency, highlighting policy performance and being disciplined and selective in our partnership decisions.”
The updated selection criteria will be used along with the existing version when MCC’s board assesses countries’ performance in its next meeting in December.
The MCC board also selected Tunisia as eligible for Threshold Program funding. Being in the heart of the Arab Spring, Tunisia’s ability to sustain its transition to democracy, Yohaness says, is closely linked to its economic performance. The MCC-Tunisia partnership will thus center on “a policy reform-based program to identify and address binding constraints to economic growth.”
In addition, MCC conditionally approved a $600 million compact with Indonesia pending finalization of technical negotiations with its government.
The compact aims to reduce poverty in the world’s fourth most populous country where more than 140 million are poor. It will include projects related to supporting low-carbon economic development, a nutrition program to prevent stunting among children and a project to modernize the government’s procurement system.
These projects were developed by the Indonesian government in consultation with local governments, civil society and the private sector.
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