Transparency International Recognizes MCC’s Leadership against Corruption

Posted on March 26, 2009 by Rodney Bent, Acting Chief Executive Officer

Today, Transparency International-USA, the global civil society organization leading the fight against corruption, issued a statement welcoming MCC’s release of a comprehensive policy to prevent, detect, and remediate fraud and corruption in MCC-funded activities. Transparency International-USA and other stakeholders provided valuable recommendations to us in developing this policy, drawing from best practices in corruption risk management. With TI and other organizations, we recognize that corruption is one of the greatest barriers to long-term development and to the effective use and accountable management of development dollars. Through the ongoing implementation of MCC’s comprehensive policy, we will continue to combat corruption in every facet of our work in partner countries that are striving to reduce poverty through economic growth in sustainable ways.

Increasing Transparency and Accountability

Posted on March 20, 2009 by Rodney Bent, Acting Chief Executive Officer

The fight against global poverty is intertwined with the fight against corruption. That’s why we insist that our partner countries pass a corruption indicator to qualify for MCC’s compact assistance and maintain a passing score before MCC will enter into a compact with an eligible country. And, that’s why we codified this week MCC’s existing oversight approach into our Policy on Preventing, Detecting and Remediating Fraud and Corruption in MCC Operations.

True to our ongoing commitment to transparency, I invite you to visit our website and read this policyand, in the near future, a resource guide will be made available. Since our establishment, we have practiced fiscal accountability, technical due diligence, and monitoring and evaluation as part of how we operate. Our policy now formally captures and outlines these and other principles we have been applying-and will continue to apply-in order to prevent, detect, and remediate the risk of fraud and corruption in MCC’s threshold program as well as in compact development and implementation. I want to thank those in the development and NGO community who provided valuable feedback to us during the process we undertook to formalize our policy.

At a time when Americans are focused intensely on accountability, U.S. Government agencies, including MCC, continue to do our part to incorporate heightened accountability into all facets of our work. Fraud and corruption divert and diminish the flow of benefits to those who need them the most. The seriousness of our dedication to economic growth and poverty reduction means that we are serious about addressing corruption. We want every development dollar we invest to deliver the greatest benefit possible in the fight against global poverty.

A New Board and a Renewed Commitment to MCC’s Progress

Posted on March 13, 2009 by Rodney Bent, Acting Chief Executive Officer

Secretary of State Hillary Rodham Clinton chaired her first MCC Board meeting this week. I was pleased to be part of this historic transition, and I welcomed Secretary Clinton’s active participation at the meeting. Her presence and the presence of Treasury Secretary Timothy Geithner and other public and private sector Board members signal the importance of MCC’s ongoing commitment to delivering change in the lives of the world’s poor.

Board members demonstrated their firm resolve to address the needs of the poor. They faced difficult decisions, and they engaged in a thoughtful debate about the best way forward. Given the importance they place on these issues, the Board decided to convene an extraordinary interim review session to discuss ongoing concerns regarding Nicaragua and Armenia. The Board’s deliberate approach reaffirms MCC’s commitment to sound policy performance as a fundamental prerequisite for receiving U.S. development dollars. Long-term economic development and poverty reduction can best take root in countries where the policy conditions are conducive for growth, and governments themselves are committed to reform.

Secretary Clinton has already spoken of the important role development plays in defining America’s global reputation and in advancing President Obama’s foreign policy goals. The Administration’s strong international affairs budget for fiscal year 2010 is matching this rhetoric. It will allocate the resources necessary to achieve the results that matter in the fight against global poverty.

With the Board’s continued leadership and a budget that allows us to fulfill our mission, MCC’s partner countries can pursue country-sourced and country-driven programs that are foundational to reducing poverty and stimulating economic growth in significant and sustainable ways.