Results for Whom?

Posted on December 1, 2011 by Daniel W. Yohannes, Chief Executive Officer, MCC

The Fourth High Level Forum on Aid Effectiveness took place this week as government leaders from over 150 countries gathered to discuss progress made on donor promises to tackle global poverty. These discussions started with the Paris Declaration in 2004, then the Accra Agenda for Action in 2008 and continued in Busan. Delegates talked about “ownership,” “mutual accountability” and “outcomes.” Ownership is about countries determining and driving their own development priorities. Mutual accountability means we work in partnership—as donor and recipient countries—to achieve development solutions and share responsibility for successes and failures. And as partners, we are committed to delivering tangible outcomes and meaningful impacts–the ultimate result of any assistance.

MCC's Sheila Herrling, Daniel W. Yohannes, and David Weld participate in discussions at this week's 4th High Level Forum on Aid Effectiveness.

Achieving results was a major theme that weaved through discussions at Busan. Results-focused aid is a shared objective. Yet, an interesting set of questions around “how” and “for whom” remains. Who defines results? How are they obtained? Do process results no longer matter? Are we measuring results for donors, for recipients or for both? MCC brings much to the table in terms of putting a results-focused assistance program into practice. As Secretary of State Hillary Rodham Clinton said in her speech at the forum’s opening ceremony, MCC is a pioneer in measuring results. Some thoughts based on our experience at MCC:

First, how we pursue a results-focused approach matters. Country ownership is bigger and deeper than consultations around a national development strategy. As MCC Vice President Sheila Herrling mentioned during Tuesday’s Results Thematic Session, a big part of that ownership is how countries include civil society in results setting and results monitoring, and how countries and donors find ways to share that information transparently and accessibly with the public. During my remarks at the Results Plenary, I stressed that inclusive, country-driven development must embrace the voices of women because we know gender equality is key to development effectiveness. Efforts to more purposefully examine how a results agenda can strengthen country systems and institutions will ultimately lead to better and more sustainable outcomes.

Second, focusing on outcomes and impact is absolutely the right approach. That said, we should not lose sight of monitoring and evaluating policy reforms and intermediate targets, which help us establish the path to outcomes and impact. At MCC, we embrace an innovative “continuum of results” — tracking, measuring and publicly communicating results along the entire lifecycle of each country-determined program we fund, from inputs, to outputs, to policy reforms, and ultimately to measurable outcomes for beneficiaries. We count interim milestones met along the way because each one brings us a step closer to reaching the program goal. MCC’s continuum of results also includes post-program impact evaluations to help us improve accountability, determine if observed outcomes are attributable to MCC’s investments and to learn whether programs were designed correctly. Because MCC’s continuum of results is built on transparency and critical learning, it becomes a tool for assessing what works and does not work in development and what can be improved for the future.

Third, the question of “results for whom” got a lot of play in Busan. To be accountable to their own citizens, partner countries must answer this often difficult question and demonstrate how development resources are used and what results they achieve. As we discuss our drive for positive results, we must never lose sight of what an actual result means for ordinary men and women around the world. Ayesha Otibo, the chairwoman of a farmer-based organization comprised of 50 female rice processors in Ghana, received training on ways to develop her business and increase crop production. Ghanaian pineapple farmers, like Tony Botchway, used MCC support to seek new markets. Andre Soui-Guidi, a business owner in Benin, is now able to access credit in order to expand his operations and create more jobs for his fellow citizens. At the same time, we cannot and should not ignore the fact that results matter also for the taxpayers of donor countries who, even during these challenging economic times, want to continue funding for development. Our ability to demonstrate that their investments are paying off—that developing countries are improving governance and democratic rights, assistance is reaching the poor, and investments are yielding positive returns--is critical to sustaining strong development cooperation.

Lastly, international events like Busan tend to focus on what hasn’t been achieved. That’s fine in terms of accountability and the need to keep progressing toward commitments. But, let’s remember the real advancements made, including by the United States. Major U.S. development efforts—from the multilateral development banks, to Feed the Future, to Partnership for Growth, to MCC—all emphasize inclusive, country-led, outcomes-focused approaches. For MCC’s part, we look forward to continuing our work to break new ground in advancing and innovating on development effectiveness, and putting principles in this area into practice.

Participating in the U.S. Delegation to HLF4: A First for Partnership for Growth

Posted on December 1, 2011 by Daniel W. Yohannes, Chief Executive Officer, MCC, and Rajiv Shah, Administrator, U.S. Agency for International Development

This post first appeared on DipNote, the official blog of the U.S. Department of State, on November 30, 2011.
 

Under an initiative called Partnership for Growth, the United States, El Salvador, Ghana, Philippines and Tanzania are pioneering a new approach to long-term, sustainable development.

PFG is designed to transform the character and conduct of our bilateral relationships with a select group of high-performing lower-income countries poised to be this generation's emerging markets. The initiative aims to improve coordination, leverage private investment, and focus political commitment to accelerate and sustain broad-based economic growth. With mechanisms in place to hold us accountable for more effective, efficient development results, PFG puts President Obama's Presidential Policy Directive on Global Development into action.

Today marked the first time we have convened a meeting with the United States and all four PFG partners. The setting is especially significant: we are all gathered in Busan, South Korea for the Fourth High Level Forum on Aid Effectiveness. Throughout our meetings, we have focused extensively on ways to deliver meaningful results, ensure mutual accountability and empower country ownership.

State Department Counselor and Chief of Staff Cheryl Mills led the meeting with El Salvador Foreign Minister Hugo Martinez, Ghanaian Deputy Minister of Finance and Economic Planning Fiifi Kwetey, Philippine Minister of Finance Cesar Purisima, and Tanzanian Minister of Finance Mustafa Haidi Mkulo. After addressing the High Level Forum, Secretary Clinton was also able to join us.

We partnered with these countries based on their demonstrated commitment to democratic principles and good governance, their sound policy performance, their potential for continued economic growth, and their track record of cooperation with the United States.

The PFG is an attempt to approach development differently than we have done in the past. PFG is not about more aid; rather it is about fostering a mature economic partnership to unlock a country's growth potential. Together, we analyze the binding constraints to growth, prioritize a set of clear, measurable actions, and work to overcome those barriers through five-year action plans. Along the way, we review our progress through a formal evaluation process or in more informal meetings, as we did today.

Our PFG partners are all at different stages of this process and have unique insights to share. We had frank discussions about the challenges each country faces, and how the U.S. government can improve coordination to assist these countries in strengthening long-term economic growth. We applaud El Salvador, Ghana, Philippines, and Tanzania for their commitment to taking the difficult steps required through the PFG, and look forward to continuing our close collaboration in the months ahead.

The session represented exactly why we have come to Busan this week: to take a hard look at our efforts, identify areas for strengthened coordination, and -- ultimately -- improve our ability to deliver effective development assistance.

Dr. Rajiv Shah serves as Administrator of the U.S. Agency for International Development (USAID), and Daniel W. Yohannes is the Chief Executive Officer of the Millennium Challenge Corporation (MCC).

Inspiration, Implementation and Impact in Indonesia

Posted on November 21, 2011 by Daniel W. Yohannes , Chief Executive Officer

With great hope that we can transform the lives of Indonesia’s poor for the better, I joined Secretary of State Hillary Rodham Clinton and Indonesia’s Finance Minister Martowardojo, along with other distinguished government ministers, ambassadors and guests, for the signing of Indonesia’s $600 million MCC compact in Bali this past Saturday. As Secretary Clinton said, each of the elements of the compact represents a step forward in the relationship between the United States and Indonesia. I am proud that MCC is partnering with the Indonesians to achieve their goals for long-term poverty reduction and economic growth.

MCC’s investments in low-carbon economic development, better natural resources management, nutrition to prevent childhood stunting, and procurement modernization create new opportunities to improve the quality of life for Indonesians. Our partnership will work to raise productivity, increase household incomes, reduce household energy costs, and improve the delivery of growth-enhancing goods and services by the public sector. I am struck by how open the Indonesians have been to MCC’s distinct model for development—one that is country-driven, reform-centered and results-focused to maximize effectiveness and sustainability. This innovative compact embodies Indonesia's priorities and its strong commitment to our partnership.

As I shared with the Indonesians, much hard work awaits us. Our partnership must now turn the inspiration of a momentous signing into the implementation of an action plan that will deliver lasting impact. Through an unfaltering commitment to tangible results, accountability and transparency, we can achieve the full promise of the compact. Let’s get to work.

“Who says oil and water don’t mix”

Posted on October 23, 2011 by Daniel W.Yohannes , Chief Executive Officer

My travels as MCC CEO bring me to many memorable places, but it’s the people who inspire me the most. Nicolas Kinsou Ahouandjiinou is one such person who I met in the Beninese village of Djeregbe.

Nicolas was born in Djeregbe and his father was a traditional healer in the village. Nicolas earned degrees from the University of Benin and the Institute of Tropical Agriculture in Nigeria, and had been travelling the world as an agronomist. One day, more than 20 years ago, Nicolas’s father called him home with a request: use your degrees to adapt the use of native medicinal plants to the modern world.  

During their conversation, Nicholas’s father gave him a 200-page notebook that contained his acquired knowledge of the medicinal properties of West African plants, including eucalyptus, lemongrass, laurel, chayote, and ginger. Paging through the notebook, Nicolas knew that he had to return to Djeregbe to realize his father’s dream.
After years of research and trial and error, Nicholas invented a process -- which he believes to be the first of its kind -- to mix the essential oils of traditional African medicinal plants with water to produce a flavored, bottled water. Having successfully mixed oil and water, and devised a way to modernize his father’s age-old practices, Nicholas then faced one more challenge: inadequate access to capital to grow his business, DETAREN SARL.

That’s where MCC came in. With grant support from our Access to Financial Services Project, DETAREN SARL purchased new machinery to produce and bottle the water. According to Nicolas, production has already increased from 1,200 to 8,000 bottles a day. The flavored water, which Nicolas named “Eau Noble,” is now sold in Benin and limited quantities are exported to Nigeria, Burkina Faso, Niger, and Togo. With his new capacity, Nicolas plans to double his staff to 15, and increase sales by expanding his distribution network to all of West Africa.

MCC has provided DETAREN SARL, and other members of the GATID consortium it has joined, with the assets and credibility they need to gain the attention of financial institutions like Bank of Africa and Oikocredit, which are working with the consortium to provide credit. Nicolas knows that access to credit is essential to growing his business and realizing his dreams -- and the dreams of his father. 

Nicolas’s story shows that the entrepreneurial spirit is alive and well in Benin. DETAREN SARL exemplifies the transformation that is happening all over Africa as old traditions give rise to new ways of thinking and new ways of doing business. MCC is proud to be working with entrepreneurs and innovators like Nicolas who are trailblazing Africa’s path to prosperity in the 21st century.

Learn more about the GATID consortium and how MCC is improving Benin’s investment climate

How MCC’s Work in Tanzania Supports a Better Economic Future for the United States

Posted on June 12, 2011 by Daniel W. Yohannes, Chief Executive Officer

Earlier this year, President Obama made clear in his State of the Union address that his focus is on winning the future – getting our economy going after the worst recession since the Great Depression, while laying the foundation for long-term economic growth and job creation.

Some might wonder how an international development agency like the Millennium Challenge Corporation (MCC) fits into this vision. America has always been a generous nation, and our moral leadership is reflected in MCC’s goal of reducing poverty through economic growth in developing countries. But MCC’s investments not only benefit poor people overseas, they are critically important to our future prosperity here at home.

That fact is illustrated in Tanzania where MCC investments are both helping to reduce poverty and providing opportunities for American companies. In 2008, MCC signed a $698 million compact with Tanzania. Two American companies, Symbion Power and Pike Electric, were awarded -- after an open, competitive bidding process -- contracts to build more than 20 power sub-stations and install approximately 1,000 miles of power lines in Tanzania, which will provide electricity to over 330 communities previously without power.

This weekend Secretary of State Hillary Clinton and I are visiting with these American entrepreneurs, who have used MCC-funded contracts as an opportunity to enter a new market and make their own investment in Tanzania.

While still one of the poorest countries in the world, with a gross national income of approximately $500 per capita, Tanzania is among a group of relatively well-governed African nations that are moving in the right direction. Real GDP growth has been 6 percent or higher in Tanzania in every year over the last decade – even in the midst of the global financial crisis.

In short, Tanzania is a next-generation emerging market that is a smart place to invest for American companies with an eye on the long term.

That is exactly the thinking of Symbion Power, which has just purchased a 112-megawatt power plant in Tanzania that it plans to modify and expand. Secretary Clinton and I are touring the plant with Symbion Power CEO Paul Hinks, and we are excited about this new venture and its potential to improve electrical service in Tanzania and provide an American company with a stronger foothold in Africa.

In this increasingly globalized economy, we need innovative companies like Symbion and Pike to aggressively pursue opportunities in fast-growing African markets. Their investments will help reduce poverty in Tanzania, but will also support jobs and economic growth in the United States. And the ties they forge will encourage Tanzania to look to America as a trading partner.

That is why MCC is excited to be partnering with companies like Symbion and Pike. As the progress we are making here shows, smart investment in the developing world and close partnership with the private sector can allow us to improve the lives of those who live in poverty even as we build a stronger America for our children and grandchildren.