Threshold Country Plan Guidance for Fiscal Year 2007: The Process

Once a government indicates to MCC its interest in participating in the Threshold Program, it should name a point of contact for the MCC Threshold Program.  MCC then initiates a process to assist the country to develop its Threshold Country Plan in partnership with MCC and other U.S. agencies.

As a first step, MCC produces a comprehensive assessment (Indicator Analysis) of the country's performance on the eligibility criteria for MCA Compact assistance. This analysis is entirely based on non-U.S. government sources. It does not necessarily reflect the opinions, judgments, or analytical assessments of any U.S. government agency.

MCC shares the Indicator Analysis with the threshold country government to facilitate the government's understanding of performance as measured by the indicators. This information is intended to help guide the government toward focus areas for the Threshold Country Plan where indicator performance can be improved.

This Indicator Analysis should stimulate a dialogue between MCC and the threshold country's embassy in Washington, as well as between U.S. government and threshold country government officials in the country. The purpose of this dialogue is to discuss the Indicator Analysis, establish targets of opportunity for a threshold program, and provide additional guidance on next steps.  An MCC team will travel to each threshold country as part of this process.

To apply for Threshold Program assistance for fiscal year 2008, a threshold country government must submit its Threshold Country Plan in two sections, as summarized below.  A detailed “Outline for a Threshold Country Plan” can be found at www.mcc.gov.

Section I:

The purpose of Section I of the Threshold Country Plan is to ensure at an early stage that MCC and the threshold country government have a common understanding of the general focus of the Threshold Country Plan.  In-country, the threshold country government is encouraged to discuss Section I with U.S. Government representatives in the U.S. Embassy and the U.S. Agency for International Development (USAID).  In Washington, threshold country embassies may work directly with MCC.  Each threshold country government should submit Section I of the Threshold Country Plan to the USAID office in the country (or to the U.S. Chief of Mission if the country does not have a USAID office) no later than March 14, 2008.  MCC encourages earlier submissions if at all possible.

Countries developing Threshold Country Plans for a Stage II threshold program should submit Sections I and II simultaneously no later than March 31, 2008.

Section I should be three to five pages in length and should include the following:

Policy Reform Strategy: The Policy Reform Strategy broadly states the purpose and value of the Threshold Country Plan in advancing policy reform in the country and provides the basis for the development of all subsequent goals and plans.

Indicator Focus: Section I should describe the scope of the proposed Threshold Country Plan, as well as the following:

• identifying the indicators to be addressed (such as “Control of Corruption,” “Girls' Primary Education Completion” or “Days to Start a Business”);
• specifying the policy areas that the government intends to address through the Threshold Program (e.g., judicial reform through the training of judges; reduced days to start a business through streamlining regulations and instituting a “one-stop shop”);
• explaining why those indicators and policy areas were selected;
• identifying how the Threshold Country Plan supports the policy reforms that the government is committed to implementing;
• identifying the expected outcomes of the Threshold Country Plan (e.g., reduce instances of bribes connected with favorable judicial decisions; reduce the number of days to register a business from 60 to 30 days); and
• describing efforts the government or other donors are undertaking in the relevant sector and how the Threshold Country Plan will complement those efforts.

 

Section I should not include an estimated budget.  Cost estimates will be developed by the lead implementing U.S. Government agency (which will be determined following approval of Section I).

Section II:

The next step consists of fully developing the Threshold Country Plan through an iterative process among the threshold country government, MCC, and the lead implementing U.S. Government agency.  Section II of the Threshold Country Plan is due to MCC on or before June 16, 2008.

As noted above, countries developing Threshold Country Plans for a Stage II threshold program should submit Sections I and II simultaneously no later than March 31, 2008.

Section II of the Threshold Country Plan should consist of:

• A description of the proposed program activities and how they will achieve measurable performance objectives;
• A description of the government's commitment to sustain the program and an explanation of how the initiatives will be sustained beyond the term of the threshold program;
• A statement of the names, titles and responsibilities of the team that will manage the threshold program for the government and any local implementing partner(s) that will work with the government to ensure that MCC resources will achieve the desired outcomes;
• A description of country consultation on the proposed threshold program with civil society, the private sector, academia, and donors, including a description of specific donor activities if other donors are working in the same area as the threshold program;
• A performance benchmarks chart that lists the outcomes to be achieved and how the activities in the threshold program will lead to achieving those outcomes (a sample chart may be found at http://www.mcc.gov/countrytools/threshold/guidance-2007-threshold-perfbenchmarks.pdf; and
• A detailed budget, developed by the lead U.S. implementing agency, with all funding needs accounted for and explained.

MCC and other appropriate U.S. Government agencies will review the proposed Threshold Country Plan.  If approved for funding by MCC, an applicant country will be encouraged to post its Threshold Country Plan on its official country website.  In addition, MCC will post the agreement between the threshold country and the United States on the MCC website, www.mcc.gov, upon signature.

The suggested contents of a Threshold Country Plan are set forth in more detail in the Outline for a Threshold Country Plan http://www.mcc.gov/countrytools/threshold/guidance-2007-threshold-cntryplanoutline.pdf
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