Former Senator John Sununu, in Ghana as part of a ONE / (RED) delegation, with the Head Mistress of the Bowjiase Junior Secondary School which was renovated as part of the MCC Compact with Ghana.

MCC Resident Country Director in Ghana Jim Bednar with ONE President and CEO David Lane, at Ghana’s Bowjiase Junior Secondary School. Delegates from ONE and (RED) visited farmers, students, parents and teachers during a recent trip to learn how U.S. Government programs are making a positive difference in the lives of millions of Africans.

MCC, together with friends from the ONE Campaign and (RED), witnessed the reality of what can happen when people come together to fight poverty.  At the Bawjiase Junior Secondary School, hundreds of students, teachers and parents welcomed us to view the renovated classrooms where education has an improved, better home in this community.  The words of the Head Mistress were a moving tribute to what positive things the peoples of the United States and Ghana are accomplishing together.

The decision of the ONE and (RED) delegations to visit MCC programs was a visible signal of the commitment of diverse groups to foster innovative approaches to reduce poverty in Africa and around the globe.  They asked the men, women and children they met about their hopes for their future and the biggest obstacles to economic growth in their homes and communities.  One thing that was clear from the conversations I witnessed was that integrated approaches - programs that tackle the problem of poverty from all angles, including infrastructure, education, agricultural training, trade, and policy - are the best way to ensure lasting, tangible results.  We at MCC are grateful for the commitment of groups like ONE and (RED), who want to see poverty reduction programs in action and experience first-hand the challenges and the exciting headway we are making with partners like Ghana.

From the N1 Highway that MCC is helping rehabilitate to the farmer training programs to the renovated classrooms in Bawjiase, it was inspiring to see the U.S. Government’s $547 million compact with Ghana helping to fortify our strong relationship as friends while ensuring that the next generation of Ghanaians can take advantage of the potential and promise of their future.

This weekend, I had the pleasure of joining the Prime Minister of Cape Verde, other government authorities, U.S. Ambassador Marianne Myles, hundreds of citizens, and the leadership of MCA-Cape Verde at the inauguration of the newly rehabilitated road from Orgãos to Pedra Badejo on the island of Santiago, made possible through MCC’s $110 million compact. It is a significant milestone for Cape Verde’s development, and marks MCC’s first completed road project in Africa. This new construction is the first of three roads being rehabilitated on this island.  In addition there are four bridges under construction on Santo Antão Island.  These works decrease transportation costs for people and goods, improving access to markets and services.   This will help move Cape Verde closer to realizing its goal of poverty reduction and economic growth for the benefit of its citizens.

How?

The new road, over hilly terrain through one of the island’s productive agricultural valleys, is already starting to make a real difference in the lives of Cape Verdean families, farmers, businesses, nongovernmental organizations, and social service providers who live and work in communities along its path.  It is a six meter wide road with improved safety and drainage systems, complying with environmental and social requirements. We estimate that nearly 12,500 people will directly benefit from just this 10.2 kilometer stretch of road.  They will now be able to reach markets more efficiently and have better access to schools and other community services.

This  road is just one component of Cape Verde’s MCC compact, aimed also at increasing agricultural productivity,  modernizing the Port of Praia-the nation’s capital-and  fostering  private sector development. Reliable road infrastructure is indispensable to the long-term success of projects in these other sectors.  The fact that the Government of Cape Verde, with Parliament’s endorsement, set aside a maintenance fund for upkeep of the newly constructed road and others being refurbished demonstrates a commitment to quality and sustainability.

In these ways, the new road brings new opportunities.  The statement I delivered at the road inauguration on behalf of MCC’s Acting CEO Rodney Bent reaffirms our determination to build on the success of this first opportunity to now realize the potential of the MCC-Cape Verde compact. My MCC colleagues and I are very proud to be part of this partnership between the US and Cape Verde that made this investment possible, concrete evidence of the historic friendship between our peoples.

Girls will benefit from the IMAGINE project in Niger. Photo by MCC staff.

During a recent trip to Niger, I had the opportunity and privilege of meeting with those coordinating this West African country’s MCC Threshold Program. I came away impressed with their energy and dedication as they work in a challenging environment.

Niger is one of the poorest countries in the world, ranking near the bottom of the United  Nations’ Human Development Index. It has bounced from drought to coup to famine for centuries. Nonetheless, its people persevere with dignity and fortitude in this country nearly twice the size of Texas.

And the MCC, in partnership with the government and people of Niger, have identified an important way to foster long-term progress and sustainable development: promoting the education of girls. Building upon its innovative program in Burkina Faso, the Niger Threshold Program is funding the IMAGINE (Improve the Education of Girls in Niger) project, which includes the building of 68 “girl friendly” schools in seven regions throughout the country. These school complexes will include three-classroom buildings with sufficient desks for all students, separate latrines for boys and girls, a water source, housing for female teachers and a school canteen.

Throughout the developing world, there are many obstacles that prevent children, especially girls, from going to school. Those barriers include long walking distances from school, hunger, early and forced marriages, and time-consuming chores at home. The result is that the cycle of poverty is continued over generations. Conversely, education is a powerful tool in fighting poverty, unleashing the potential of a whole segment of the population unaccustomed to having the opportunity to earn their own livelihoods. Research shows that providing girls one extra year of education beyond the average can boost eventual wages by 10-20 percent.

Over the long term, we believe that these kinds of programs aimed at improving the education of girls will lead to increased food security. This is because girls in school receive the knowledge and develop the skills that will enable them to better manage resources for themselves and their families.

Better education for girls also contributes to improvements in the nutrition, health and education of future generations. This knowledge will bolster other assistance efforts being carried out by organizations like my own, Catholic Relief Services. For example, we are implementing a nationwide effort in Niger to encourage the use of mosquito nets to prevent malaria. Better educated women will be more likely to see the benefits of using the nets and will make sure their families do so.

“As chair of the Millennium Challenge Corporation, it is wonderful for me to see the results of our work and our investment,” shared Secretary of State Hillary Rodham Clinton last Sunday as she toured MCC projects in El Salvador that are improving the lives of the poor.   I felt honored and proud to show Secretary Clinton just how MCC’s $461 million grant is reducing poverty and stimulating economic growth here in El Salvador, where a new president has just taken office following a remarkable democratic election.  As the Secretary met with Salvadorans benefitting directly from MCC projects–from students to farmers to families assisted as electricity finally comes to their homes in the country’s Northern Zone–we see tangible proof of U.S. commitment to the region, and the effective role MCC’s smart assistance continues to play in changing the lives of the poor of El Salvador.

It was especially gratifying for Secretary Clinton to witness the signing of a public-private partnership (PPP) that will leverage MCC resources with those of the private sector and provide sustainable benefits for the poor.  This contract is a true milestone, as it represents MCC’s first financing of a public-private partnership in infrastructure and serves as a model for similar partnerships in other MCC partner countries. By combining funds from MCC, the Government of El Salvador, and the company AES, this partnership will construct 1,300 kilometers of rural electrification lines, connections, and extensions to existing lines in the Northern Zone.  This innovative PPP transaction will provide access to electricity for over 30,000 poor families in El Salvador’s Northern Zone. 

In these challenging economic times, when every development dollar must count, MCC understands that we can do more by working with partners who share our vision for economic growth and prosperity for the world’s poor.  Today, we all join Secretary Clinton in applauding how the private sector and MCC are setting an example in El Salvador by working together to benefit the poor in sustainable ways.

It was a great pleasure to help welcome an impressive group of distinguished guests to MCC last week to mark Africa Day.  What continues to unite Africa—a continent of 53 countries each with their own distinct culture and history—is a shared vision for a new day of opportunity and prosperity to transform the lives of the continent’s poorest.  The U.S. Government’s MCC is proud to play a role in realizing this goal by diligently implementing results-driven programs that are making a difference in the lives of Africa’s poor.

We have invested more than 70 percent of our total grant funding-more than $4.7 billion-to fight poverty and stimulate sustainable economic growth in 18 African countries.  Our partners are using these investments

• to boost agricultural productivity so as to increase food security,
• to educate girls and teach mothers how to prevent HIV transmission to their newborns, and
• to build roads not only to help farmers get their crops to market but also to help families get to schools and health clinics.

MCC’s partnerships throughout Africa are helping the poor earn the income they need to pull themselves and their households out of poverty and toward a better future.  MCC is proof positive of the Obama Administration’s support for Africa, even in the midst of the current economic crisis.

Commemorating Africa Day at MCC (l to r): President of Catholic Relief Services and MCC Board Member Ken Hackett; President of Bread for the World David Beckmann; Acting MCC CEO Rodney Bent; Special Assistant to the President and Senior Director for Relief, Stabilization, and Development at the National Security Council Gayle Smith; U.S. Assistant Secretary of State for African Affairs Ambassador Johnnie Carson; African Union Ambassador Amina Salum Ali; and Chair of Africa Day and Moroccan Ambassador Aziz Mekouar.

Those who joined us for Africa Day from the Administration, the diplomatic corps, and the development community spoke with one voice:  Africa’s promise is vast and the commitment to partner with Africans to realize such potential is firm.  Gayle Smith, Special Assistant to the President and Senior Director for Relief, Stabilization, and Development at the National Security Council, Ambassador Johnnie Carson, the U.S. Assistant Secretary of State for African Affairs, Rodney Bent, our acting CEO here at MCC, Her Excellency Ambassador Amina Salum Ali from the African Union, His Excellency Ambassador Aziz Mekouar of Morocco and chair of Africa Day, Ken Hackett, President of Catholic Relief Services, and David Beckmann, President of Bread for the World, discussed the continent’s constraints to growth and realistic approaches for overcoming them.  Their special insights offered pragmatic, practical, and results-driven solutions that are meaningful and sustainable for the people of Africa.   View the event’s video for details.

Ambassador Johnnie Carson joins Jonathan Bloom, MCC’s Deputy Vice President for Compact Implementation in Africa, and Darius Mans, MCC’s Vice President for Compact Implementation, to discuss MCC’s partnerships in Africa.

The commitment to transparency and the fight against corruption intensified this week in Paraguay.  I was honored to witness a milestone moment as the U.S. Government, through the Millennium Challenge Corporation, and the Government of Paraguay signed a $30.3 million Stage II Threshold Program. This second program aims to institutionalize key reforms in public administration and supports anticorruption activities in the judiciary, law enforcement, customs, and healthcare.  It builds upon the successes of Paraguay’s first “umbral” or threshold program.

This latest agreement is one more symbol of the friendship between Paraguay and the United States as we work toward the shared goals of prosperity and opportunity.  It also reflects the constructive and active engagement that the U.S. Government has with the peoples of the Americas. It involves effective cooperation across a number of U.S. agencies, as USAID will be managing the implementation of this threshold program, with help from the U.S. Department of Justice and the U.S. Department of Treasury Office.

President Fernando Lugo, who participated in the ceremony, signaled strong political will to stamp out corruption by reaffirming his government’s commitment to anticorruption measures. “[We] will not do business out of corruption and will not dialogue with the mob. But instead will actively promote the destruction of this cancer. So a new country will be born free of illicit dealings because that’s what the people chose on April 20,” referring to Paraguay’s 2008 election day.

It was a standing room only event, with top officials from the Government of Paraguay, representatives from the diplomatic corps, and members of the press in attendance.  The people of Paraguay realize that promoting transparency and accountability are keys to fighting corruption and fundamental to job creation and ecomomic growth.  Now, through its MCC Stage II Threshold Program, Paraguay has another effective tool to strengthen its institutions against the risk of corruption and to pursue results-oriented programs to reduce poverty and stimulate sustainable economic growth for the good of all Paraguayans.

From left to right: Minister of Finance Dionisio Borda, Ambassador Liliana Ayalde, and USAID Mission Director John Beed

From left to Right: United States Agency for International Development (USAID) Mission Director John Beed, Minister of Finance Dionisio Borda, President Fernando Lugo, United States Ambassador Liliana Ayalde, and President of the Senate Gonzalez Quintana.

Holy Week, or Semana Santa, is normally a quiet time for most countries in Latin America.  This week-long celebration of Easter brings families together, while closing most government offices and businesses, as people enjoy much-needed vacations or time to attend religious ceremonies, rest, and reflect.

El Salvador is usually no exception.  However, last Monday, FOMILENIO was abuzz with activity as the very first road construction contract was signed for the Northern Transnational Highway.  High-level officials, including the Technical Secretary of the Presidency, the Minister of Public Works and Transportation, and FOMILENIO’s Executive Director, interrupted their vacations to meet with representatives of MECO S.A., a Costa Rica-based construction firm, to celebrate the long-awaited initiation of this historic project.  The conference room was full of television, radio, and newspaper reporters.

At the press conference, the participants provided the media and the public at large the details of this important project.  Spanning about 290 kilometers (180 miles), the Northern Transnational Highway is slated to extend from the Guatemalan border in the northwest corner of El Salvador, all the way across the northern part of the country to the Honduran border in the east.  For more than 50 years, Salvadorans have dreamed of having this strategic transport corridor, necessary to link small towns and cities throughout the Northern Zone, and also to link them with the rest of the country.  These goals seem all the more important when one considers how the Northern Zone suffered disproportionately during El Salvador’s civil war, not only in terms of physical infrastructure development but also in terms of human and social development.  In many ways, the Northern Transnational Highway is a symbol of peace, and a concrete example of how MCC funds can be used to stimulate economic growth and poverty reduction.

This is why news of the first road construction contract made local headlines and nightly news programs.  The first 23 kilometer road segment covered by this contract includes two important bridges, including one of approximately 150 meters, or 460 feet, over the Río Lempa, the largest river in the country.  This segment stretches from the bustling border town of Metapán to Santa Rosa de Guachipelín, a small municipality on the shores of Río Lempa.  The ability to cross this river quickly and safely from Santa Rosa Guachipelín to Metapán year-round, instead of having to travel a far longer and circuitous route (see photo), is a major benefit.

Several reporters directed their questions to the topic of job creation-a high priority given the challenges confronted by El Salvador and others in the region experiencing the aftershocks of the global financial crisis.  In addition to estimates of over 300 jobs on this first segment, Mr. Denis Monge, a representative from MECO, talked about opportunities for women.  He indicated that MECO would make hiring women a priority.  He pointed out that this goal is particularly important in the Northern Zone, since women are heads of households and principal income earners in a disproportionately high number of families, a result of decades of emigration, where many people, especially young men, have left the country in search of greater economic opportunities.

Stay tuned for news about the groundbreaking on this first road segment, scheduled for later this month.

After last month’s conflict between the Republic of Georgia and Russia, Under Secretary of State Reuben Jeffery led an interagency delegation to Tbilisi, Georgia, from August 25^th to 27^th, to assess that country’s economic and reconstruction needs. MCC signed a $295 million compact with Georgia in September 2005 to help the government there reduce poverty, and I was glad to be a part of the U.S. assessment team.

The delegation arrived in Tbilisi aboard a U.S. Air Force C-17 bringing relief supplies such as tents and humanitarian daily rations. From the moment we landed, the delegation spent three days in intense discussions with officials from the U.S. Embassy, the Government of Georgia, businessmen, civil society, and ordinary citizens.

Georgia is a small country, smaller than South Carolina, with about 4.6 million citizens. The Prime Minister, Lado Gurgenidze, heads a team that is energetically confronting the challenges of the conflict: a new influx of internally displaced persons, disruption of transportation networks, and general uncertainty about the future. Before August, the Georgian economy had been growing at about 10 percent a year.

What we saw was sobering. Areas of Georgia that were already in need of assistance to replace aging or inadequate infrastructure are now more in need than ever. I met with Georgians who made it clear that, given the proper roads and other resources, they could resume their plans for economic growth.

MCC’s existing projects [see map] were not directly affected by the conflict. The MCC model — in which the partner country selects and implements projects — is one that the Georgian government would like to replicate more broadly, both with other donors and for other sectors of the economy. The Georgian government has proposed a “Phoenix Fund” for a broad array of possible infrastructure projects, from roads to railroad rolling stock to natural gas projects to water and sanitation.

MCC, as part of the package of assistance announced by the Administration after the assessment team returned to the U.S., is considering a $100 million compact amendment for Georgia. The new funds would enable Millennium Challenge Georgia to finish some projects for which preliminary design and feasibility studies had already been completed, but could not fit within the compact’s original $295 million total. Such an amendment would first need to be approved by MCC’s Board of Directors. Many of the projects under consideration were previously included in the original compact but were later scaled back as a result of external pressures such as dollar depreciation and increased international construction costs.

MCC’s indicator assessment of Georgia for fiscal year 2008 was markedly positive in that Georgia passed 15 of the 17 indicators, including every indicator in “Ruling Justly” and “Economic Freedom.” Our new set of indicators for Georgia, and other candidate countries, will be released by early November.

Click here for more details regarding ongoing MCC projects in Georgia and information about how additional resources will help Georgia reduce poverty and achieve long-term economic growth.

Namibia is celebrating its 18th year of independence and, as coincidence would have it, MCC today signed its 18th compact with Namibia, a $304.5 million partnership for education, ecotourism, and agriculture.

This morning, I met with Namibian President Hifikepunye Pohamba to congratulate him and his government on the compact.  The government is intent upon development of its poorest areas, as Namibia has the second highest disparity of household income in the world.  The compact has three main projects.

The education project will focus on school textbooks, primary and secondary school infrastructure improvements, vocational training, and a sustainable system of scholarships for post-secondary school students. We estimate that about a million students will benefit over the years from this project.

The ecotourism project, largely in the poor northern part of the country, will focus on communal conservancies, protecting Namibia’s astonishingly beautiful natural resources, including wildlife for future generations.  In addition, this project will attract more tourists to Namibia and improve the jewel of the country’s tourism industry, Etosha National Park.

The agriculture project is focused on livestock, as a substantial number of households graze cattle on communal lands in northern Namibia.  The project will provide veterinary centers and training for farmers in rangeland management, improved livestock productivity, and land access.  A small part of the project is focused on helping poor families harvest high-value indigenous natural products like devil’s claw, marula oil, Kalahari melon seed, hoodia, and ximenia.

The signing ceremony was held at the office of the Prime Minister, with the Right Honorable Prime Minister Nahas Angula presiding over the event.  A number of ministers, including the Director General of the National Planning Commission (NPC), board members of the NPC, and a U.S. trade mission organized by the Corporate Council on Africa were among the dignitaries who attended the event.  Tonight, our Namibian counterparts will host us at a celebration to mark the compact’s signing at the base of the Auas Mountains, featuring a local choir and traditional dancers.

Niger is one of the poorest countries in the world, with a per capita income of $260 a person, and a troublesome ranking of just three from the bottom in the UN’s Human Development Index (174 out of 177). I’ve just returned from a trip to the country where I represented MCC during the signing of a $23 million threshold agreement. The bulk of the threshold program—$18 million or so—is to help Niger improve its low rate of girls’ primary school completion. Niger is in the bottom 5 percentile of low income countries and has a bright red score on MCC’s index for this category. Red, in terms of MCC’s “scorecards” of performance, is not good.

The threshold program has been put together with a notion of helping up to 200 schools become more “girl-friendly.” It’s one drop in an enormous bucket of educational needs, but the Minister of Education, Monsieur Samba Mamadou, shared with me his excitement about the threshold program. The morning after the signing ceremony, he joined me, the US Ambassador to Niger Bernadette Allen, local USAID representative Mark Wentling, and USAID regional Mission Director Henderson Patrick, who flew up from Accra for the occasion. We set off in a dusty caravan of vehicles for the province of Tillaberi to visit some of these schools and talk to our local partners about their needs and challenges.

We bounced for dozens of kilometers along a mix of paved and sandy roads—a reminder of the overwhelming needs of so many countries where we work. The driver of our car had to flip on the wipers constantly to blow away the dust on the windshield. I asked the Minister of Education about Niger’s education needs during the trip. “Everything” was the short answer to the question, with the most critical component being trained teachers, followed by school buildings, notebooks for students (“cahiers”), textbooks, blackboards, desks—you name it. We talked at length about the discrepancy between boys’ and girls’ enrollment rates. He cited the reasons as cultural, social, and economic. Many parents need help in hauling water for the families’ use during the day. Other daughters are married when they’re 13 or 14. The minister made it clear that he, like so many others, understands full well the importance of having girls remain in schools and wants to help make it a reality.

After we drove several dozen more kilometers on the western side of the Niger River, we arrived at the first school. The school buildings are one story tall, built of tan bricks. There was no electricity that I could see, but there were dozens and dozens of people, adults, teachers, local officials and three Peace Corps volunteers at this first site. The school rooms I saw were simple, sometimes with a blackboard, but always packed with kids. In one school room, they’re wearing paper hats with “Niger-MCC-USA” written around the bands. They sang and clapped as we ducked to enter the school room and wish them well. On the black board, in one corner, someone had written the number of garcons and jeunne filles that were in attendance that day. That particular day, in that classroom, the girls outnumbered the boys. This was great news. The governor assured me that the word was getting out to the local officials, tribal leaders and families about the importance of encouraging their daughters to come to school. The need for new classrooms to accommodate the students was evidenced by a lean-to, with a primitive stick roof, that serves as a classroom for 30 or more children, who appeared to be about five or six years-old. There were no chairs and no desks. The head of the school talked to us about the need for latrines, and for places to feed the children. A “cafeteria” would probably be too grand a name for what will likely be a new room for this purpose, possibly with a stove and water. I asked some Peace Corps volunteers, who are working in schools further away from this one, what they needed. “Everything” again was the simple answer. MCC’s Niger Threshold Program certainly isn’t everything, but it is at least a start.