Threshold Country Plan Guidance for Fiscal Year 2007:
Principles of the Millennium Challenge Account

The mission of the Millennium Challenge Account is to reduce poverty through sustainable economic growth. MCC’s approach is based on several key principles – policy performance, country ownership, accountability, and results – that must be reflected throughout the development and implementation of MCA programs. The approach emphasizes the central role a government's own policies and institutions play in facilitating economic development and the need for a strong sense of country “ownership” of development initiatives.

MCA Compact eligibility is determined by demonstrated performance as measured by 17 policy indicators.  Threshold Program assistance is intended to support and accelerate ongoing policy, legal, and institutional reforms to help improve performance on the MCA eligibility criteria and to improve a country’s chances of qualification for Compact assistance. Participation in the Threshold Program does not guarantee that a country will become eligible for MCA Compact assistance in the future.  Conversely, a country may become eligible for future MCA Compact assistance without participating in the Threshold Program.  Some threshold countries have been selected for MCA Compact eligibility while implementing their threshold programs. In this case, the countries must continue to successfully implement their threshold programs and achieve agreed-upon performance and/or reform benchmarks before they sign an MCA Compact.