During his first official visit to Ghana, MCC CEO Daniel Yohannes meets the Chief of the region.

For my first official trip as MCC’s CEO, I chose to look at MCC projects in two African partner countries, Ghana and Cape Verde. Both countries are well into their compacts, and I wanted to come and see the impact our funds are having on the lives of the men and women here.

I just completed the Ghana portion of the trip and am very excited about this country’s future. MCC is investing $547 million into making agriculture more productive, building schools, and paving roads. The numbers are impressive enough, but until you see the progress on the ground, it is hard to truly understand how complex, integrated, and successful this compact is.

Much of the credit for the success goes to the Ghanaians themselves, who set up an entity called MiDA that will exist and foster economic development long after the MCC compact is over. I also want to acknowledge MCC’s resident mission, led by Jim Bednar, Resident Country Director, and Katerina Ntep, Deputy Resident Country Director, who are working with the Ghanaians to oversee implementation.

As a child of Africa, I was thrilled to meet some of the boys and girls who now sit in classrooms for their lessons, instead of under trees. The Ghanaians identified lack of education as a constraint to their country’s economic growth, and MCC is proud to help address this challenge by funding the building of 310 schools, of which 65 are already finished. We have seen enrollment increase substantially. The number of girls in just the two schools I visited has doubled. This project is also an important example of collaboration and coordination with our partners at USAID, who are training teachers for the schools we are building.

In addition to the schools I visited, I was able to inspect progress on some of the rural roads our funds are paving, talk to pineapple farmers about how MCC-funded investments in cold storage are helping them export their crops, and meet a number of people who now have full rights and title to their property, thanks to the MCC-funded land titling project.

All of these elements are critical to successfully driving sustainable economic growth in Ghana through increased agriculture productivity. MCC’s five year program, therefore, works up and down the value chain. It starts with training the small farmer, works with banks to ensure he or she has access to credit, supports cooperative farming, and develops the roads to get products to markets.

LEFT: MCC CEO Daniel Yohannes meets Mavis, a rice farmer who increased her yield from five bags of rice a season to more than 140 bags after a MCC-funded training program. They meet at the MiDA office. RIGHT: MCC CEO Daniel Yohannes participates in a ceremony at Winneba to distribute land title certificates to about 30 people, half of whom are women.

I was honored to be part of the group who passed out land title certificates to about 30 people, half women. MCC is funding new offices and surveys to provide these official land titles to a total of about 5,000 Ghanaians. As the many government ministers in attendance said, these titles are an absolutely critical step in ensuring economic growth. If people have title to their land, they can use that asset to access credit and have the security they need to expand production. I was particularly happy to see so many women obtaining titles in their names.

Before we left, I met with representatives of both the local and international private sector, who are also very excited about Ghana’s future and MCC’s role in addressing economic constraints. I met one farmer who was able to increase her yield from five bags of rice a season to more than 140 bags after a MCC-funded training program, and another farmer who increased his income from around $60 a year to over $1,070 by changing his crops to line up with international market demand. In Ghana, we have literally hundreds of stories of men and women like these who now “see their farms as businesses and not just as an occupation,” as one program participant said.

I also had a good meeting with Ghanaian President John Atta-Mills, who, like many Ghanaians I met, was keenly interested in learning how Ghana could qualify for a second compact when the current compact finishes in two years. The president reaffirmed his commitment to making sure the projects finish on time, with transparency, accountability, and measured results.

It is clear to me that there is real opportunity in Ghana. I look forward to the next half of my trip to see the progress unfolding in Cape Verde.

Prime Minister of Moldova Vlad Filat addresses the audience at today’s compact signing ceremony. Also pictured (from left to right): His Excellency Iurie Leancă, Deputy Prime Minister and Minister of Foreign Affairs and European Integration; Daniel W. Yohannes, MCC CEO; Hillary Rodham Clinton, Secretary of State.

We’re off to an exciting 2010 here at MCC. Secretary of State Hillary Rodham Clinton started the New Year with a groundbreaking speech on development in which she highlighted the promising role MCC is playing to help countries build their own future. The Secretary said, “Under MCC compacts, we provide funding and technical support; the country provides the plan and leads the way toward achieving it… This approach points to the difference between aid and investment. Through aid, we supply what is needed to the people who need it… But through investment, we seek to break the cycle of dependence that aid can create by helping countries build their own institutions and their own capacity to deliver essential services. Aid chases need; investment chases opportunity.”

Today, Secretary Clinton and Prime Minister Vladimir Filat of Moldova presided as Moldovan Minister of Foreign Affairs Iurie Leancă and I signed Moldova’s $262 million MCC compact. This is an investment in opportunity, designed to reduce poverty and stimulate growth. Moldova’s compact will rehabilitate irrigation systems, help farmers diversify into high-value agriculture, and build modern and safe roads to markets that will generate new opportunities for private sector investment, which is the engine of growth and jobs. The Moldovan people are working toward the complete realization of this compact’s potential to increase their incomes and create a better future. MCC is proud to partner with Moldova.

Over recent weeks, I have been meeting with colleagues throughout the development community. Listening to stakeholders from the Center for Global Development, the U.S. Global Leadership Coalition, ONE, InterAction, and the Corporate Council on Africa, as well as ambassadors from partner countries worldwide, is proving incredibly valuable in assessing the key constraints we face at MCC and how we can effectively address them. I’m committed to deepening our dialogue by listening to and learning from those who share our determination to improve the lives of the world’s poor.

At the end of the month, I’m looking forward to visiting Cape Verde and Ghana. I am going to these MCC partner countries to see the progress underway and gain perspective on the challenges of program implementation.

I’m very excited about what lies ahead for MCC, and I look forward to deepening our impact through increased innovation, private sector engagement, partnerships, and focus on results. That’s how we will raise the standard of living for the world’s poor in sustainable and meaningful ways.

Senator Frist visits with 16-year-old Rouite Tisma, a patient at the Baptist Mission Hospital in Fermathe, Haiti

As we have all seen, a week ago Haiti experienced one of the most devastating earthquakes in its history, leaving hundreds of thousands believed dead, tens of thousands homeless or orphaned, and many families still trying to reconnect with loved ones.  Although MCC does not provide humanitarian assistance, many partner U.S. Government agencies are diligently working and coordinating on the ground to provide desperately-needed help to the Haitian people.  USAID, for one, is spearheading the U.S. Government’s relief effort, led by Administrator Rajiv Shah, an MCC Board member.  Another MCC Board member, Senator Bill Frist, is also on the ground in Haiti, contributing to the relief efforts through his Hope Through Healing Hands Foundation.  Please take a moment to read his first-hand accounts of his experience.

President Obama and Secretary of State Clinton are committed to expanding opportunities for the world’s poor.  As I shared with the Senate Foreign Releations Committee during my recently-concluded confirmation process, I am grateful for the opportunity to contribute to their efforts to fight poverty through MCC.

Daniel W. Yohannes is sworn in as chief executive officer of MCC by Meredith Cabelka of the Office of the General Counsel on Tuesday, December 1, 2009.

My first week on the job as MCC’s new CEO has been even more rewarding than I anticipated.  Before being confirmed, I had heard many times about the professionalism, dedication, and talents of the men and women who work at MCC.  Now that I’m onboard, I can attest to this.  This new challenge is energizing, and I look forward to working with these accomplished professionals to make a difference in the lives of the poor around the world.

As I begin my work at MCC, one of my most important tasks is to listen.  Listening closely to those not only at MCC headquarters, but also in partner countries, in Congress, and in the development community will provide insightful feedback on what works well and what could be tackled with more innovation.

Listening will inform action.  It will continue to position MCC as a vital part of the future of foreign aid.  As I shared in every one of my conversations this week, I am committed to action that will broaden and sustain opportunities for the world’s poor.  Sound policies, grounded in good governance, will create an environment that nurtures opportunities.  Building the capacity of countries to lead their development in close cooperation and coordination with other U.S. Government and international donors will empower partners to expand opportunity.  Fostering pro-growth strategies will attract greater participation from the private sector.  This is the engine of innovation, opportunity, and jobs that powers long-term, sustainable development.

Next week, Secretary of State Hillary Rodham Clinton, who chairs MCC’s Board of Directors, has graciously agreed to preside at my swearing-in ceremony.  We will be together again a day later for my first MCC Board meeting.  I will be sharing the outcomes of that meeting with you at our outreach event next Thursday.  Join us then, and always feel free to contact us with your thoughts on MCC.  I’m listening and want to hear from you.

As the international community prepares to mark the International Day for the Eradication of Poverty tomorrow, this is an important opportunity to take stock of MCC’s ongoing commitment to help reduce global poverty.  In partnership with countries worldwide, we continue to measure the impact of MCC’s results-focused investments totaling more than $7 billion.

What we see is a promising start.  To date, more than 87,677 farmers have been trained worldwide, and MCC-funded programs have made $29 million in agricultural and rural loans possible.  More than 12,236 hectares of land are under production, helping farmers increase their food security and take care of their families.  We have completed the construction of two new roads in Cape Verde, the first roads to be completed by MCC in Africa.  Around the world, we have more than 1,177 kilometers of roads under construction, helping communities reach markets and critical services, like schools and health clinics.  New schools have been built in Ghana and Burkina Faso, and we already know through an independent impact evaluation that both enrollment rates and test scores increased in Burkina Faso.  Be sure to bookmark and revisit often the dedicated results section of our website to track the progress we are making.

Another dimension of MCC’s progress is our work toward the Millennium Development Goals (MDGs).  Many of the events surrounding the International Day for the Eradication of Poverty focus on the MDGs.  MCC is one smart tool the Obama Administration is using to help countries reach these targets by 2015.  This means supporting not only country-driven programs that specifically address the MDGs but also country-led policy reforms that are essential for their sustainability well beyond 2015.  I invite you to read more about how MCC’s assistance is helping countries reach the MDGs.

The unfolding progress against poverty was the topic of a fruitful discussion yesterday when communicators from the international development community met at MCC to brainstorm ways of highlighting results.

Yesterday, MCC’s Managing Director for Public Affairs Aaron Sherinian welcomed Kathy Crosby of the Ad Council and co-host Nasserie Carew, Senior Public Relations Director at InterAction, to MCC for a lively roundtable discussion among communication professionals on how best to communicate results in the fight against global poverty.

And, results in the fight against global poverty will certainly be the underlying theme next week as MCC’s Resident Country Directors and Deputy Resident Country Directors, serving in MCC partner countries worldwide, gather in Washington for their annual conference.  This gathering gives them an opportunity to engage in technical training as well as intense discussions about lessons learned and best practices.  It also gives our stakeholders a firsthand occasion to hear directly from these individuals about the progress underway to improve the standard of living for the world’s poor.  Join us Wednesday, October 21 for a public forum with these directors from Africa, Eurasia, and Central America.

As world leaders gathered last week in New York for the United Nations General Assembly (UNGA) to discuss climate change, food security, and other pressing world issues, MCC co-hosted with InterAction a widely talked-about event on country-led development.  It was encouraging to see the standing-room-only crowd made up of civil society, government officials, and ordinary citizens, who came to hear and participate in an important dialogue on country ownership and smart aid.  Keynote remarks were delivered by representatives of MCC partner governments, including President Kikwete of Tanzania, President Compaoré of Burkina Faso, and Prime Minister Berisha of Albania.  Each thanked the American people for their generosity in providing grants to help their countries combat corruption and reduce poverty.   Prime Minister Berisha said it best, “There is no more fundamental way to fight poverty than by combating corruption.”  MCC couldn’t agree more.

Last week also marked the G-20 Summit in Pittsburgh, where world leaders discussed ways to revive the global economy.  Moving forward, MCC hopes that global leaders will engage the private sector to help developing nations achieve economic growth.  As MCC Board member Alan Patricof stated in his recent op-ed in the Pittsburgh Post-Gazette, “For the sake of the world’s poor, as well as America’s own prosperity, there is no substitution for the active participation and contributions of the private sector.  It is now up to the private sector to heed this call and act creatively to parallel, complement, and add to what the government is doing to fight global poverty.”

The events at UNGA and the G-20 Summit highlight a fundamental reality: the fight against global poverty cannot be won alone or with development assistance only.  Rather, it requires engaged and responsible partner countries that are willing to do their part and lead their development.  Poverty reduction also requires the private sector to pick up and build where aid leaves off.  We can make a sustainable difference in the fight against global poverty by working together, and MCC remains committed to this effective collaboration that delivers results for the world’s poor.

Standing from left to right, U.S. Assistant Secretary of State Ambassador Johnnie Carson, U.S. Ambassador to Senegal Marcia Bernicat, President of Senegal Abdoulaye Wade, Secretary of State Hillary Rodham Clinton, Senegal’s Minister of Foreign Affairs Cheikh Tidiane Gadio, and Senegal’s Ambassador to the United States Amadou Lamine Ba witness the signing of Senegal’s $540 million compact by Senegal’s Minister of Economy and Finance Abdoulaye Dip and MCC’s Acting CEO Darius Mans.

Today, I had the distinct privilege of joining President Abdoulaye Wade and Secretary of State Hillary Rodham Clinton for the signing of Senegal’s $540 million MCC compact.  Senegal’s Minister of Economy and Finance Abdoulaye Diop and I signed the compact during a ceremony at the State Department.  This grant, which reflects Senegalese development priorities, will rehabilitate two major roads and expand a major irrigation and water resources management system.  These investments will be critical to boosting agricultural productivity, economic growth, trade, and food security.  This marks the first MCC compact to be signed during the Obama Administration, reflecting the President’s clear commitment to helping countries help themselves with a focus on transparency and accountability.

In fact, as I participated in today’s signing, it was clear that Senegal is already proof of President Obama’s words that “Africa’s future is up to Africans.”  The signing of Senegal’s MCC compact demonstrates the country’s commitment to lead its own development, build its capacity, and strengthen its institutions – - doing its part to make a difference in the lives of its citizens.  This compact resulted from extensive nationwide consultations with government agencies, donors, NGOs, civil society, women’s groups, and private sector associations, making its projects truly by and for the people of Senegal.  Senegal invested $20 million of its own resources to prepare its MCC compact, including conducting detailed feasibility and design studies for all projects.

As a result of such upfront, homegrown commitment, the Senegal compact we signed today is a strong roadmap for long-term economic growth.  It reminds us that country-led development—of helping countries already working to help themselves—ensures a smart and effective investment of American assistance.  I am proud of the MCC-Senegal partnership and the real potential it holds for poverty reduction and economic growth.

Now, the hard work of building roads and irrigating farmland begins.  I am confident that Senegal’s diligence in developing its compact will be matched by its resolve to implement it with transparency and accountability, as well as by its tangible actions to combat corruption. This is one sure way to unlock Senegal’s potential and deliver the sustainable results the Senegalese are expecting.

MCC Board Member and President of Catholic Relief Services Ken Hackett and MCC Acting CEO Darius Mans answer questions during the September 10th post-Board outreach event.

Today, I joined MCC Board Member Ken Hackett, President of Catholic Relief Services, at a public event to discuss the outcomes of yesterday’s quarterly meeting of MCC’s Board of Directors, chaired by U.S. Secretary of State Hillary Rodham Clinton. MCC routinely schedules these post-Board outreach opportunities as part of our ongoing, transparent engagement with our partners and stakeholders.  Both today’s discussion and yesterday’s board meeting shared a common theme: MCC’s assistance is not automatic.  Rather, it requires partners who are willing to shoulder the responsibility to practice good governance and accountability that is essential to growing their economies and delivering sustainable results in the lives of the world’s poor.

MCC welcomes working with those partner countries committed to this path.  This makes sense for their poor and it makes sense for our investments of American taxpayer resources.  The updated results section of MCC’s website summarizes our progress to date.  We are rapidly approaching cumulative disbursements of $1 billion and contract commitments of $2 billion aimed at reducing poverty around the world.

I invite you to read the press release that details the Board’s recent decisions and to take a moment to bookmark—and return often to—the results section of our website to view our latest progress.

As I near the end of my first week as Acting CEO, I have not yet amassed enough new experience to justify a long posting today. One of the things I have learned is that I am grateful to Rodney Bent and Ambassador John Danilovich, the outgoing Acting and former CEOs respectively, for leaving the organization in such good shape. I think most observers, both internal and external, recognize that MCC is now functioning better than ever, and the previous management team deserves much credit for their contributions over the years.

This view that MCC is functioning well is validated by analysis and data. A new working paper, written by two MCC economists and available here on our public website, assesses MCC institutional practices using a rating system developed by William Easterly and Tobias Pfutze of NYU and Georgetown University, respectively. This new analysis ranks MCC 8th among 40 foreign assistance agencies, and suggests that MCC’s ranking will rise as our portfolio of programs matures.

Of course, after more than 18 months of service as Vice President for Compact Implementation, I am perhaps more aware than anyone of the challenges this institution faces. In the coming months, MCC should continue to accelerate disbursements, even as we maintain our focus on the measurable results delivered to beneficiaries in partner countries. We also need to continue our engagement with the eight countries that are currently developing programs to ensure that the quality of programs improves over time. MCC is now five years old, but it is still a young and vibrant institution that needs to be given the opportunity to learn and grow.

At this point, for however long my tenure as Acting CEO lasts, I want to assure those of you who closely monitor MCC and our practices that I will preserve the atmosphere of open engagement that was fostered by those who have occupied the CEO office before me. I will be encouraging MCC management to continue our ongoing substantive dialogue with external audiences and to explore ideas on how we can make MCC as effective as possible at delivering on its mandate to reduce poverty through economic growth.

Rodney Bent visits a family in Nicaragua who benefitted from the resettlement program associated with rehabilitation of two roads (Somotillo - Cinco Pinos and Villanueva - Guasaule) in the Department of Chinandega. For construction to proceed, MCC required a socially conscientious resettlement program for families living along side or in the path of the road rehabilitation work. MCC funded the building of modest new homes for those displaced by road construction in order to ensure that the living conditions for individuals and families are maintained as part of the program.

As I end my tenure at MCC, it’s gratifying to see just how far the organization has come over the past five years.  The MCC has evolved from concept to reality, with a few dings and dents to prove how real we are.  We’ve come a long way in five years, and the commentary about us reflects that evolution.  Leading development experts from the Brookings Institution to Oxfam America offer excellent perspectives on our work.

MCC is a tangible, measurable way the U.S. Government is helping partners create conditions for sustainable growth. By training farmers and increasing their agricultural productivity and food security, by opening schools and immunizing children, by building roads that connect communities to markets and citizens to vital services, by securing land and property rights for the poor, MCC is making a difference on the ground.  We expect MCC’s $6.4 billion in worldwide commitments so far will raise incomes by $8 billion over the life of our current investments, benefitting more than 22 million people. Our tenacious focus on measuring results through a comprehensive system of monitoring and evaluation means that we can make fairly accurate projections of our intended impact, and this is one way we are making a difference in Washington as well.

In addition to progress we have seen (and can measure) to date, I am encouraged by how an agency like MCC is able to affect the conversation about development assistance—both within the U.S. Government context and among other donors.  The core MCC principles of partnership, accountability, transparency, and responsibility are the very principles espoused by the Obama Administration and by many of the leading thinkers on foreign assistance reform.  As House Foreign Affairs Chairman Howard Berman remarked recently, “A lot of the ideas of MCC, to me, are a prototype for what should sort of take hold in our whole foreign assistance program.  So not only is this important in terms of what it’s doing in the countries it’s now active in, but as a good indicator and a good instructor of directions we might go in with the whole foreign assistance program.”

Now, well into a new administration and era, I am encouraged by the level of support MCC has been given by Congress and senior government leaders.   Secretary of State Hillary Rodham Clinton, chair of MCC’s board, confirms, “President Obama supports the MCC, and the principle of greater accountability in our foreign assistance programs.”  The Secretary herself has referred to Millennium Challenge grants as a “very important part of our foreign policy.  It is a new approach, and it’s an approach that we think deserves support.” Deputy Secretary of State Jack Lew has said, “MCC is getting off the ground and making real progress.”

At the same time, I want to say that proud as I am of our accomplishments, we’ve taken some deserved knocks.  Our approach can only work in concert with other U.S. Government agencies and with other donors.  We’ve learned to under-promise and over-deliver.

In Ghana, an MCC partner country, President Obama spoke of replacing “perpetual aid that helps people scrape by” with partnerships that build the “capacity for transformational change.” He called for partners “taking control of their destiny, and making change from the bottom-up.” MCC is already engaged in partnerships like these. Our commitment to country-sourced, country-led, country-implemented development solutions translates into highly-focused, targeted programs that reflect the priorities of countries and their citizens.  We believe that the future of our partners is up to them, not the external prescriptions of others.

As most readers of this blog are well aware, MCC has signed 18 compacts to date that reflect country-owned development priorities, and is planning many more.   Our approach is certainly not easy, but it’s essential if we want to create opportunities for growth and poverty reduction.  Admittedly, good governance—and all that entails—is not a light responsibility.  As MCC looks ahead, we must continue carrying the burdens of good governance and challenge ourselves as an organization, the countries that seek to work with us, other U.S. and international donors, and both our critics and supporters to recognize and realize the highest standards of partnership and transparency if we are to truly make a sustainable difference in the lives of the world’s poor.