World Customs Organization Praises Threshold Program

Posted on June 9, 2011 by Bruce Kay , MCC Director for Threshold Programs

The Millennium Challenge Corporation’s (MCC) second (Stage II) threshold program in Paraguay received international recognition last month at the Brussels meeting of the World Customs Organization (WCO). Specifically, Paraguay’s web-based system for imports (referred to by its Spanish acronym, VUI), which was implemented at the Paraguayan Customs Office with support from MCC’s Threshold Program, was recognized and praised in front of 200 country delegates. 
 

This web-based system was designed, developed and implemented in approximately six months, record time for a process that has taken some countries years to develop, and with less success. This state-of-the–art, innovative technology will increase coordination across government agencies and departments; while five institutions currently participate, the goal is to link all nineteen institutions involved in the importation process to the VUI system, thus providing a high degree of efficiency to the system. The short design and implementation phase, and the proactive approach with participating institutions, reflects the high degree of political commitment on the part of the Government of Paraguay, particularly the Customs Director, to this endeavor. 

At the meeting in Brussels, representatives from Paraguay shared their practical experiences and lessons learned in securing and sustaining the political and administrative will that is required to implement the VUI. The VUI was developed as part of the Threshold Program’s customs component, which aims to strengthen the capacity of the customs office in order to reduce tax evasion and corruption.  Since the government launched the VUI in July 2010, the cost and time required to process import permits from government institutions has been reduced, improving competiveness and transparency in customs operations. 

Erich Kieck, the Director of the Capacity Building Directorate at the WCO said, “Paraguay stood out at the conference as an administration that took advantage of the assistance of the MCC. They followed through and implemented the international trade single window, despite many challenges.  By overcoming these challenges, gaining political support and effectively using their resources, this administration demonstrated how important perseverance can be in reaching a goal. This achievement will result in gains for the Paraguayan government and economy and demonstrates how to move from ideas to actions.”
 

Paraguay’s Stage II Threshold Program began in 2009 and will complete all activities in April 2012. The United States Agency for International Development (USAID) is responsible for administering Paraguay’s Threshold Program on MCC’s behalf.  Watch this video to see how MCC and the Government of Paraguay are fighting corruption.

Fighting Corruption:  Practices, Process and Progress

Posted on December 9, 2010 by Jolyne Sanjak, Managing Director, Technical Support

In 2010, MCC made significant progress in implementing its Fraud and Anti-Corruption Policy and procedures to prevent, detect and remediate fraud and corruption in MCC-funded activities. Today, International Anti-Corruption Day, is a time to review progress made in 2010 and determine where MCC is headed in 2011.

In 2010, MCC rolled out a new training course to assist Millennium Challenge Account entities (MCAs) in effectively understanding MCC’s policy and their role as our partners in fighting fraud and corruption. The course trains MCAs in methods for recognizing corrupt acts, protecting the Compact against risks of fraud, and reporting wrongdoing. The training is mandatory for all MCAs and MCA staff. MCAs in Lesotho, Namibia, Tanzania and Senegal have already received this training; Mali, Mongolia and Morocco are slated for January and February 2011.

As part of a comprehensive, consistent and explicit approach to preventing, detecting and remediating fraud and corruption, MCC’s policy requires that the MCAs put in place project-specific Action Plans to reduce risk. The Action Plans detail project-appropriate methods and mechanisms by which the MCA will manage risks of corruption; each plan includes a detailed timetable and monitoring strategy. These Action Plans are also made public in accordance with MCC’s policy of transparency and accountability. An example of an Action Plan can be found on the MCA Burkina Faso web site. Others will be posted as the Action Plans are finalized and approved.

Corruption is difficult to eradicate. With commitment and perseverance, however, MCC and its partner countries can control and reduce the threat of corruption to achieving Compact goals of sustainable development, poverty reduction and economic growth. International Anti-Corruption Day reminds us that we can achieve this goal by working together with renewed resolve.

Guyana Advancing its Business Climate

Posted on February 25, 2010 by Carol Horning, USAID Mission Director

In August 2007, MCC launched a $6.7 million Threshold Program with the Guyanese Government to support the country’s ambitious competitiveness strategy and reform plan focused on overcoming fiscal challenges, strengthening the procurement system, and creating an efficient business registration process. Together with interagency coordination, a focus on aid effectiveness, and Guyana’s commitment to positive reforms, the MCC Threshold Program is delivering lasting and encouraging results.

The MCC-funded Threshold Program, implemented on the ground by USAID, focused on strengthening the Guyana Revenue Authority, strengthening the IT infrastructure, and training key staff to implement reforms. In addition, the customs administration was reformed to conform to global standard operating procedures that strengthen Guyana’s competitiveness and trade opportunities.

Now, at the conclusion of this two-year program, many of Guyana’s fiscal challenges have been tackled, with increased revenue generation and a more efficient business registration process. Guyana can now plan significantly for higher investments, resulting in sustainable development benefitting the country and its people. Meanwhile, strengthening the customs administration through the acquisition of new equipment is bolstering Guyana’s capacity to address smuggling and trafficking activities.

At Guyana’s Deeds Registry, company and business registrations have been converted from deteriorating paper documents into a state of the art electronic recording system. So far, over 5,000 company records and 90,000 business registrations have been computerized. The number of days to start a business in Guyana has also been reduced from 46 days to 30, all while anticipated legislation in Guyana is expected to reduce the start-up time even further, from 30 to 12 days. Simplifying and standardizing the registration process will improve the business climate for new investments. Even residents outside Guyana can now download business forms and register companies from anywhere in the world.

Though much of the program focused on training, IT infrastructure for various record systems as well as equipment for customs and policy reform have been critical for creating momentum to produce results. Increased tax revenue and compliance permit Guyana to now plan for greater investments in its own schools, clean water, and many other programs throughout the country that improve the standard of living for the Guyanese people. Working hand in glove, MCC and USAID are collaborating with Guyana to support not only the country’s development but also its future as a partner in eliminating global poverty.