MCC programs are designed to reduce poverty through economic growth. MCC is well aware that the key driver of economic growth is the private sector, and has a number of initiatives to integrate the private sector into compact program development and implementation. Working with businesses, business associations, and foundations, MCC is:
Promoting private sector trade and investment opportunities that spring from MCC investments
Like any investor, the MCC rewards performance and results. Only the “best of the poorest”—those countries that are actively reforming, fighting corruption, helping their people and encouraging business development—are able to participate. These same characteristics make MCC countries attractive to the private sector. With this in mind, MCC organizes Investment and Procurement Forums in conjunction with each compact signing and conducts private sector outreach with and on behalf of its partner countries throughout compact development and implementation.
Highlighted in this outreach to the private sector are trade and investment opportunities directly related to compact programs. These opportunities are for companies looking to enhance their “double bottom line”: that is, investments that are both commercially viable and improve a country’s standard of living. Agribusiness, transport and logistics, and other sectors are featured in materials that are distributed through roundtables, conferences, and other channels. An example of these materials can be found here.
Identifying innovative models to leverage and sustain MCC investments through private sector collaboration
MCC’s partner countries have an opportunity to leverage their compact funding with private sector investment and financing. To help them take advantage of this opportunity, MCC’s private sector initiatives toolkit identifies innovative models of private sector collaboration that can enhance the efficiency, sustainability, and impact of MCC programs. The models illustrated in this toolkit include Private Finance of Infrastructure, Outsourced Management, Output-Based Aid, and Social Service Franchises.
Engaging in private sector dialogue during compact development to identify opportunities for collaborative investments
When developing compact programs, MCC partner countries conduct intensive consultative processes with their private sector and civil society to identify key constraints and opportunities for growth. MCC has developed a process for international private sector dialogue to provide feedback on proposed projects and identify leverage opportunities. Through this dialogue and the compact programs that result, MCC partner countries can address issues of concern to the private sector, which in turn can stimulate private sector interest.
Inspiring opportunities for public-private collaborations toward mutual goals
On October 22, 2007, MCC signed a memorandum of understanding (MOU) with Microsoft and other U.S. government agencies to promote international development in areas such as economic growth, health, governance, and education. On April 2, 2008, MCC signed an MOU with the General Electric Company (GE) to capitalize on the strengths, expertise, and experience of both organizations’ work worldwide. MCC is always looking for opportunities to develop public-private collaborations and recognizes the potential contributions of a wide range of organizations, including U.S. and non-U.S. private businesses, multinational corporations, small and medium-sized enterprises, business and trade associations, labor unions, foundations, and philanthropic leaders, including venture capitalists.
Enhancing awareness, transparency, and promotion of compact, threshold, and corporate procurement
MCC is continually building awareness, transparency, and promotion in procurement. Holding “Doing Business with MCC” events has expanded awareness. The redesign of MCC’s procurement webpage has increased transparency. And Investment and Procurement Forums in conjunction with each compact signing have better promoted specific country procurements. Other MCC initiatives in progress aim to further enhance communication with potential vendors.
Private Sector Initiatives Toolkit
MCC Compacts Lead to Economic Growth
Forging Alliances to Maximize Results
Private Sector Initiatives: MCC’s Gateway to Private Sector Engagement
MCC CEO Gives Keynote Address at U.S. Chamber Annual Global Conference
Memorandums of Understanding