MCC’s private-sector Board members are already some of our best spokespersons about what our country-driven approach is accomplishing in Africa.  MCC’s Board composition is unique, with private-sector members—along with key government officials—playing a crucial role in guiding the organization in our mission to reduce poverty through growth.  Catholic Relief Services President Ken Hackett, who serves on MCC’s Board as one of those private-sector members, joined me earlier this week to talk about the Burkina Faso compact during an outreach meeting with President Compaore.  Ken shared his first-hand perspective on how investments in Africa are making a difference.  I am also happy to report that MCC Board member Senator Bill Frist is currently in Africa and is visiting MCC projects and beneficiaries as part of his itinerary.  Be sure to read about some of his impressions.

As the debate in Washington continues about how best to deliver foreign assistance, MCC is pleased to see such robust dialogue emerge around the very principles that are at the core of our operating model.  During congressional hearings and meetings in recent weeks, we have heard time and again how aid with accountability, a focus on results, partner country-led solutions, an intolerance for corruption, and investments for long-term economic development are more than nice ideas; they are best practices that should be examined and embraced to deliver U.S. development assistance effectively.  We at MCC welcome this debate and invite you to look further into what is unfolding in the 18 countries where we are working to fight poverty by employing these core principles.  It’s not a fight that any one approach alone can win, but MCC is changing the conversation about foreign assistance and providing an effective action plan.  Poverty, after all, is a foe that demands our actions, and not just our words.

Today, MCC welcomed former UN Secretary-General Kofi Annan to our Washington headquarters to commemorate an important milestone that helps us accomplish our mission to reduce poverty and improve the lives of our friends and partners in Africa. The signing of a Memorandum of Understanding with AGRA will allow our organizations to achieve more at a time when food security issues are a top priority in the fight against poverty. Mr. Annan and I agree that implementing long-term, country-based solutions to foster agricultural growth is key to reversing the current food crisis in a sustainable way. By joining forces on this front, we are helping to deepen the commitment to the work already underway in our partner countries, from reforming agricultural sectors to investing in fundamental rural infrastructure. I invite you to learn more about what our local partners and experts agree are closely linked aspects of food security and poverty reduction that demand our attention.

Mr. Annan’s cooperation with MCC, and his words of encouragement for MCC’s mission, are the latest in a growing chorus of support for the results we are seeing on the ground. President Bush, a bipartisan group of Senators, and groups like the Center for Global Development, InterAction, Freedom House, and the U.S. Global Leadership Council have been sending a clear message of support to Congress over the past few weeks. As CEO of an agency helping to change the conversation about the way the U.S. can help address poverty, I am encouraged to see support from the many champions of those who live on less than $2 a day. We agree with them that poverty isn’t political-it’s about policy, not politics.

The various memoranda of understanding MCC has signed recently are much more than mere paper or policy declarations. We are seeking ways to leverage the resources of those in the private sector (such as GE and Microsoft), of those with in-depth, on-the-ground knowledge in places like Africa (as is the case with DfID and AGRA), and of those who can help us find a diverse, talented workforce (as with the Phelps-Stokes Fund) in order to achieve our goals. I have asked that each of these memoranda of understanding be available to the public on our website so that you can see how MCC works to augment U.S. taxpayer money with additional initiatives. Only by engaging and working together with groups like these can we prevent duplication, improve the impact of each kilometer of road or irrigation, and help our partners attract long-term growth opportunities. MCC is just one tool in the toolbox to help address global poverty. We can accomplish much more by working together, and I welcome your input to help identify those working relationships that will help us achieve these goals.

When MCC sits down to discuss impediments to long-term economic growth with a partner country, investments in the rural and agriculture sectors are usually at the top of our partner’s list. As a result, many of these countries have asked MCC, through our grants called compacts, to fund infrastructure and agricultural investments needed for long-term, sustainable, market-based solutions. To date, MCC has made significant rural and agriculture-related investment obligations, including projects in fifteen of the sixteen countries where we currently have compacts. All told, MCC has obligated nearly $2.8 billion to strengthen the agricultural and rural economies in eligible countries to ensure increased and sustainable food production and reliable access to sufficient, safe, and affordable food.

MCC investments in food systems are critical to helping the world’s poor provide for their families and communities today and in the future. These investments, moreover, will better position them to face potential future crises with greater capacity and resilience. The development of a more robust and productive agricultural economy in MCC eligible countries is enabling improved access to affordable, safe food for their rural communities as well as for the increasing number of citizens who live in urban areas.

The boardroom at the General Electric Company at 30 Rockefeller Plaza in New York City is a long way from villages in Ghana or rural communities in El Salvador. I was reminded this week, however, that the expertise, technologies, and resources of corporate America are important bridges to these faraway places. The private sector offers exciting, real options for growth for the poorest people of these countries, and MCC is partnering with the private sector to make our mutual efforts more effective and take this responsibility to heart. MCC signed an agreement with GE to explore areas of mutual cooperation and ways to leverage financing and technical know-how to help MCC countries find long-term solutions for reducing poverty and sustaining growth. From clean air and water technologies to corporate best practices, GE is willing to help our partners maximize their MCC funding to fulfill their own development priorities. GE Vice Chairman and CFO Keith Sherin and I spoke to a group of business leaders and opinion makers about the urgency for private sector engagement. MCC’s approach to foreign assistance—using a results-driven, corporate model —is encouraging the private sector to move beyond “charity” to a strong sense of corporate social responsibility in developing countries where they do business. I hope others will join the growing list of corporations that are engaging with our MCC partner countries. We’re creating a conversation about how these companies can and should provide the technologies, employment opportunities, and investments that will make MCC’s roads, bridges, ports, schools, and irrigation projects something that is much more than just stand-alone infrastructure. With the private sector’s involvement, they become real opportunities for sustainable development.

MCC countries must demonstrate a commitment to democracy to be eligible for our grant funding. Democracy is multifaceted—it’s not just about elections or governance—and we believe that well functioning democratic institutions provide an environment that leads to sustainable economic growth. Last week, MCC hosted an expert panel at our Washington headquarters to address this issue and to look at the links between a free press and economic growth. Our panelists agreed that raising the profile of this important issue is a cornerstone of what MCC helps partner countries strive for, and achieve. Keeping corruption in check requires a free press that can investigate, uncover, and report. Only when the press functions as a viable, independent institution can it truly fulfill its role in society. MCC programs in developing countries are training journalists, strengthening institutions that fight corruption, increasing transparency, and helping build democracies.

MCC continues to bring people around the table to talk about global poverty. Earlier this week while in New York to sign the memorandum of understanding with GE, I was reminded of how much interest there is in the United States to address this problem. From prominent members of the Philippine-American community, to business leaders, to the media, to promising students at places like Manhattan’s Hunter College, we are a nation that takes development assistance seriously. The U.S. taxpayer investment that MCC represents is a symbol of this commitment, but so is the urgency with which the private sector in America—through philanthropic efforts, involvement in critical issues like gender, the environment, human rights, and increased investment—has taken on this responsibility. Poverty is a problem that merits this serious contribution from public and private sector America, and MCC is proud to be part of this conversation and commitment.

(Technical edits were made to this post on April 9, 2008 at 5:13 p.m. —Ed.)

People from diverse sectors of society continue to talk about MCC’s different model as conversations about foreign assistance increase, in communities both inside and outside the beltway. It is clear from these conversations that poverty reduction abroad is not just a “Washington issue.” It affects all Americans and was clearly on the minds of the business leaders who I met with at a recent event in Indianapolis organized by the Initiative for Global Development (IGD). An increasing number of companies, large and small, have asked MCC to explain how they can get involved to maximize the positive impact of MCC investments for the people of our partner countries. We view involvement from the private sector as key to our success.

MCC has a great deal to learn from companies who are operating internationally, and we continue to invite development experts, the NGO community, and the private sector to share best practices and discuss concerns with us. While grants from the U.S. Government can help address areas of critical need, they simply cannot provide the full range of technology and long-term market-driven investments that the private sector can. MCC offers the helpful push to spark the interest of the private sector that millions of people—living on less than $2 a day—desperately need. The responsible, long-term cooperation of the private sector is what will help these people through the “finish line” to experience an end to systemic poverty. (Read a recent Washington Post article that touches on these themes.)

With compacts in 16 countries and threshold programs in 17 countries, MCC’s work covers a broad spectrum of technical and policy areas. We are working to improve the way we communicate the nature of our work and have made recent changes to our quarterly status reports, including a new project timeline and other features. Our hope is that this report can offer a more detailed “snapshot” of where we are in our work with partner countries. We are also proud of our groundbreaking use of economic rates of return in our analysis. We’ve put this data on the web with interactive features for you to explore. We welcome your feedback, and I invite you to e-mail us at info@mcc.gov with your ideas for how we can improve the way we communicate with you as we work together to reduce poverty through economic growth .

I view these meetings as a continuation of the all-important and all-inclusive consultative process — something we expect from our countries as a hallmark of our model, and something MCC does here in the U.S. with our stakeholders. This process doesn’t end when compacts are signed or in implementation, and our public discussions are indicative of this commitment.

We explored investment opportunities in Tanzania this week, so that private- sector investments can complement MCC efforts and encourage deeper long-term growth. Small- and medium-sized companies, including those owned and operated by minorities and women, came to ask questions about our work and how they can get involved. Together with the government of El Salvador and Vice Minister Margarita Escobar, we explored similar areas of opportunity in the northern region of El Salvador. The message of the meeting was clear: There are exciting things happening in this region of El Salvador because of MCC’s work through FOMILENIO (the local entity responsible for implementing MCC’s $461 million grant) and investors are the ones who can help the people increase the pace in their battle against poverty. We heard about Salvadorans who are building new tourism projects, investing millions of private dollars that are leveraged by MCC’s public investment in roads, education, and training. We are very excited to see the Salvadoran diaspora taking advantage of these opportunities by investing in their home country and creating hundreds of jobs, and more important, generating hope for the poor people living in El Salvador’s Northern Zone.

The consultative process is more than just meetings with investors and stakeholders from our partner countries. This week I testified before the House Appropriations Committee Subcommittee on State and Foreign Operations in what could also be considered part of this open, transparent dialogue on MCC. The hearing was — as it should be —rigorous and probing, and allowed MCC to talk to one of its most important stakeholders, the US Congress, about our progress to date and our plans for the future. I am keenly aware that the funds we at MCC administer are taxpayer investments. When you are before a group of elected officials, as I was on Tuesday, you must demonstrate how your organization is fulfilling its mission. I was proud to be able to tell Congress that MCC is doing what it was designed to do: helping countries reduce poverty and sustain growth, based on a sound foundation of good government policies. I was pleased to note the positive and encouraging reaction of certain committee members and told the group as a whole that we welcome further dialogue with them — as we do with all our stakeholders — on MCC’s work. That’s what makes this a real consultative process and guides us in fulfilling our mission in even better ways.

While in London, I met with UK Secretary of State for International Development, Douglas Alexander MP, to sign a memorandum of understanding to solidify cooperation between our two organizations. Our work together has been extremely positive to date, and this new agreement will help the two organizations—whether in the field, in places like Africa, or at headquarters, in London or Washington—better share data, and work through coordinated programs. The agreement demonstrates a willingness at the highest levels in our governments to deepen our already positive collaboration. The agreement strengthens practical cooperation in Africa where concrete cooperation is already underway. It also addresses sector and technical cooperation issues ranging from infrastructure to growth diagnostics to impact analyses. It makes sense that our two organizations should look for ways to work together. We owe it to our respective taxpayers whose funds we administer. Poverty reduction is a bigger problem than any one country—or any single donor—can handle on its own. I am pleased that the agreement I signed with DFID does more than more than just talk about coordination. It is a tangible example of donor coordination.

I am returning to Washington from my trip to Morocco having witnessed firsthand the potential of one very unique aspect of our compact there—the support for artisans, tourism development, and the environment in Fez Medina. This innovative component of the compact will enable artisans to increase the quality of their goods by supporting access to training and support in much-needed areas such as: modern production techniques, business management, access to bank and microcredit loans, the construction of modern, environmentally friendly kilns, and pottery workshops. While only a portion of the $698 million MCC compact with Morocco, it speaks volumes about how integrated strategies in poverty reduction affect multiple sectors, groups of people, and have great potential for growth. I was struck by the historical beauty of these crafts. Even more impressive, however, was the desire of the Moroccan artisans to transform something of beauty into something that will transform their long-term well-being. Helping craftsmen conserve their traditions while prospering from the process is a scenario where not just the Moroccans, but all of us, win.

MCC’s compact with Morocco is diverse and spans a wide geographic area. Beginning in Marrakech, I first traveled west through Chichaoua and Essaouria provinces, two of the poorest in the country. I was also able to visit areas where we will implement the innovative, $300 million Fruit Tree component of the compact. Talking with the potential beneficiaries of our programs, the hard-working local farmers, I learned first-hand about how MCC’s work will improve irrigation techniques in Morocco. The irrigation systems in these targeted areas have been used by local populations for centuries. These systems are built by the communities and demonstrate great ingenuity, including the capture of water from springs and the construction of clever zigzagging networks of earthen canals. In an effort to build on the wisdom of the past and help render it sustainable — and environmentally-friendly — for the future, MCC assistance will be used to rehabilitate these irrigation systems — covering an area of over 50,000 hectares — to allow for more efficient use of scarce water and increase revenues through higher yields and improved quality of crops like dates, olives, almonds and figs.

In the coastal town of Essaouria (which people were quick to tell me was the setting of Orson Welles’ 1950’s classic Othello) I met with Morocco’s first and only woman serving as mayor, Asma Chaabi, and the Director of the National Office of Fishing (ONP). Together, they presented an overview of the challenges small-scale Moroccan fisherman are facing and the anticipated benefits MCC investments in the sector will have in the very near future. These fishermen were themselves involved in the development of this project and are confident that it will result in benefits for their households and their community. Working with ONP, MCC will invest $116 million to improve the competitiveness of thousands of small-scale fisherman across the country through improved landing sites and port facilities. MCC assistance will facilitate the development of wholesale fish markets in support of hundreds of mobile fish vendors.

So far, I have been tremendously satisfied that the MCC program is off to a fantastic start. It is clear that this compact is a successful, tangible partnership between the people of Morocco and the United States. Countless Moroccans, ranging from local farmers to government leaders at all levels, have expressed gratitude to the American people for investing in their future. It is clear that the talented team in place so far, led by Moroccans themselves, has the professional skills and deep determination to successfully and fully implement this program. I have also been touched by the candor and friendship of the many hardworking farmers and fishermen I have met along the way who are looking for a better life, one that will be a reality thanks to MCC’s work.

Another interest repeatedly expressed during the day’s events (which included a meeting sponsored by the Global Leadership Campaign and Center for Hemispheric Policy at the University of Miami) was corruption. There were many questions about MCC’s corruption indicator, a measure a country must pass to be eligible for MCC assistance. Corruption is a killer of long-term economic development. I raised this point during other meetings this week (with CSIS as part of their “Smart Power” series and with the Inter-American Dialogue). We’ve got to open our eyes when we talk about how this problem affects burgeoning economies. We can’t simply think of corruption as something that happens when a public official takes a bribe or skews his balance sheets. There is a lot that goes into corruption—which is why it deserves a hard look. MCC has put together some ideas on the issue which you can read on our web site’s anticorruption page. Corruption is a complex issue, and not always easy to measure, but it has to be a part of our equation when we are investing US assistance funds. At the end of the day, we in America pay for corrupt practices abroad because it limits our ability to do business honestly and efficiently and jeopardizes our opportunities here at home.

I got an earful regarding corruption this past week—which tells me that we are on the right path by helping to fight it through the MCC process. It’s just one of the reasons why what we do in places like Malawi or Madagascar matters to people in Miami or Maryland. As well it should. (Let me know what you think at info@mcc.gov).

It was particularly important that some of MCC’s friends from the Congress, including Chairwoman Nita Lowey, Congressman Jim Knollenberg, and Senator Norm Coleman, made time to attend the event, as well as MCC Board members Ken Hackett, Henrietta Fore, and Alan Patricof.

MCC’s main message for today was that in four short years we have accomplished an astonishing amount. I am proud to tell people that what started as a great concept has become, in the span of four short years, a great reality. What was once a group of eight people in borrowed offices is now a first-rate organization with a robust portfolio of work. We are not only one of the newest, but with fewer than 300 staff, we are definitely one of the smallest U.S. government agencies. And yet, with $5.5 billion committed in 16 compacts worldwide, we are moving ahead at great speed with much more on the way.

Events like this one today are not only a chance for us to show our progress, they are also an opportunity for us to listen to our colleagues. We want to know about their experiences, challenges, and successes in the countries where we are presently working or might work in the next few years. It is an opportunity to listen to how our programs might benefit from the insight of other groups or how together we can leverage private sector resources to build another kilometer of road, provide additional infrastructure, or strengthen community services for the poor of our partner countries. I took part in some of these conversations today and observed scores more of them taking place. People who follow MCC are, for the most part, not shy about sharing their ideas. These are often constructive inputs – which we welcome – and many times they are stories of success that we are achieving together.

Africa in particular has been an important theme this week. The Africa Society hosted its Andrew Young Lecture Series on Tuesday, where I was pleased to deliver the keynote address. Other presenters spoke at length about how more than half of MCC’s compacts and resources are dedicated to Africa. This should come as no surprise given the amount of need on the continent and the range of partners who are willing to enact policy reforms in order to secure MCC funding. I answered some tough but thoughtful questions during the event. They gave me reason to reflect on how the organization, moving from a focus on compact development to compact implementation, has a responsibility to help African countries build capacity to complete the complex task of putting MCC resources to work.

On Monday night I was also on Capitol Hill – this time as a guest of the First Lady during the President’s State of the Union Address. I was happy to hear the prominent mention of the MCC in the President’s speech and, like many of you, noted his call for full funding of the MCC program. The applause came from both sides of the aisle for good reasons. There has been a great deal of comment on the MCC and its work since this remark and I welcome the chance to talk about our programs to those who may not have been aware of MCC before the speech. On a night when all parts of our government come together united in purpose, the State of the Union underlined what I have known since joining MCC: this work matters to America. It matters to our partners. It matters to the taxpayer, and MCC will help shape the future of our country’s credibility and legacy overseas. Even though many of the people who watched the State of the Union will never visit our compact countries, the work of poverty reduction is relevant to each of them. Poverty anywhere threatens security and prosperity everywhere. This is why MCC matters and why I am proud to be a part of these short four remarkable years