Since its creation in 2004, the U.S. Government’s Millennium Challenge Corporation (MCC) has been advancing and accelerating the conversation on aid effectiveness. Building both on the 2005 Paris Declaration on Aid Effectiveness and the 2008 Accra Agenda for Action, the 2011 High Level Forum on Aid Effectiveness in Busan, Korea provides an important opportunity to push the dialogue further on the effective delivery of foreign assistance. MCC’s approach to development effectiveness stems from country-driven strategies to reform policies and build stronger institutions that propel a comprehensive continuum of results from initial inputs through to impacts.
Effective development assistance is built on five principles:
- Ownership: for aid recipients to design and implement their own national development strategies with their parliaments and electorates;
- Alignment: for donors to support these strategies;
- Harmonization: for donors to work to streamline their efforts in-country;
- Results: for development policies to be directed to achieving clear goals and for progress toward those goals to be monitored; and
- Mutual Accountability: for donors and recipients alike to be jointly responsible for achieving these goals.
Effective donor-recipient relationships practice these principles to deliver lasting impact. For MCC’s partnerships with poor but well-governed countries, these principles translate into the pursuit of effectiveness and efficiency, particularly as they relate to delivering results, realizing country-led development toward mutual accountability and maximizing transparency. Results, country ownership and transparency are key to Busan’s agenda and to how MCC operates.