Heavy equipment donation means hands-on training for Mongolian students

Posted on November 22, 2011 by Robert Reid, Mongolia Resident Country Director

Earlier this month, seven technical and vocational schools in Mongolia received donations of more than $1.7 million in heavy equipment from the Department of Defense. In return, the students will be trained on usage, maintenance and repair to better prepare them to find jobs. This was the first time Mongolia has received equipment through the program.

MCC’s five-year compact with Mongolia includes $47 million to improve the country’s vocational education system. To leverage these investments, MCA-Mongolia signed a memorandum of understanding in March with the U.S. Department of Defense Excess Property Program, which allows for the donation of non-lethal, excess property to countries that contribute to the U.S. Government’s efforts to promote democratic development and regional stability.

The schools, which often cannot afford to purchase expensive machinery, received 18 pieces of donated machinery frequently used in the mining, road, construction, and agriculture industries.

Donated items include cranes, graders, tractors and scoop loaders. Hands-on training will better prepare students to find jobs after school.

MCC is helping improve Mongolia’s technical and vocational education system through policy reforms, professional development for instructors, the establishment of a labor market information system, and the provision of essential equipment. An estimated 170,000 people are expected to benefit from the project over the next 20 years.

Take a second look at this year’s scorecards

Posted on November 9, 2011 by Sheila Herrling, Vice President for Policy and Evaluation

The Millennium Challenge Corporation just posted its hallmark policy scorecards for the world’s low- and low-middle-income countries – and for the first time, MCC is publishing two scorecards for each country.

After more than a year of research and consultation, the MCC Board recently approved the transition to a new, updated scorecard. MCC is publishing both scorecards this year to make the change as transparent as possible.

The heart of the new scorecard remains the same: independent data, a control of corruption hurdle and policy measures to evaluate a country’s commitment to ruling justly, investing in people and economic freedom. The changes we made are consistent with MCC’s work and approach: We have added a democratic rights hurdle and indicators that measure gender in the economy and access to credit.

What may not be obvious—but what I am most proud of—is how the new scorecard shines a spotlight on MCC’s ability to innovate and stay current. For years, the foreign assistance community has recognized our scorecards as a leading mechanism to help drive evidence-based decision-making. The incorporation of emerging policy areas and new data—like the data on Internet filtering in the freedom of information indicator—show that MCC is nimble enough to adapt to a rapidly changing global world.

We often say challenge is our middle name at MCC. This is one of many challenges the agency takes on that I have been thrilled to be a part of.

MCC’s Stage II Threshold Program in Albania Successfully Concludes

Posted on August 18, 2011 by Bruce Kay, Director of Threshold Programs for Europe, Asia, the Pacific, and Latin America

MCC completed its first $13.85 million Threshold Program in Albania in 2008. As a result of the success of the program, MCC approved a $15.7 million Stage II Threshold Program, building upon the accomplishments of the first.

The Stage II Threshold Program in Albania ended last month. The results of the Threshold Program in Albania should be a source of pride for all who worked to make it a success.

Already we can see a number of remarkable achievements that have modernized government operations, cut down on red tape for businesses and entrepreneurs, and strengthened governance and the rule of law in Albania.

Our partners at USAID, the agency administering the program on MCC’s behalf, recently released a series of web videos  that highlight some of the successes of the Stage I and Stage II Threshold Programs. The videos, in Albanian with English subtitles, focus on the establishment of an e-governance system, improvements to tax administration, the new business licensing and registration centers, and engagement with civil society.

These videos reflect Albania’s tremendous progress. Thanks to MCC support under the Threshold Program, Albania now has an integrated e-governance system serving to make public administration more efficient and less susceptible to corruption.

The system’s main features include:

1. A United Nations award-winning e-procurement system, which has expanded competition and reduced costs, and is now used for all government purchases over $4,000 in value;
2. A tax e-filing and e-payment system now used by two-thirds of all taxpayers, which has increased the public revenue while slashing corruption opportunities;
3. A one-stop-shop business registration system, which has decreased economic informality and, according to the World Bank/IFC’s Doing Business magazine (2009, 2010), improved Albania’s business climate by more than 70 places in the global ranking;
4. A single-window licensing system now used by most Albanian professionals and businesses to obtain their licenses; and
5. functioning joint investigative units that are now investigating and prosecuting dozens of organized crime and corruption cases, including one case involving a former deputy Prime Minister. 

The Stage II Threshold Program also developed a National Planning Registry, used now to manage and track building permit applications in five cities. It bolstered civic watchdog groups and helped them hold the Government of Albania accountable for maintaining the reforms ushered in by the Threshold Program.

It also created a myriad of now-functioning institutions that protect the interests of businesses and citizens alike, including a National Registration Center and branch offices in most cities, a National Licensing Center with branch offices, a Public Procurement Advocate, and a Taxpayers Advocate. 

When Albania launched its initial Threshold Program in 2006, it was classified by the World Bank as a low-income country. In a sign of progress, the country jumped to the upper middle-income category in 2010.

Albania’s income status now precludes the country from being a candidate for MCC assistance, but MCC recognizes the tremendous progress made through the two Threshold Programs implemented in Albania.

As noted above, USAID administered the program on MCC’s behalf, with further assistance from the U.S. Department of Justice. USAID/Albania and the Government of Albania were critical partners, and the Department of Justice OPDAT program deserves kudos for its work bolstering law enforcement mechanisms, now used with great effect.

For more information on Albania’s initial and Stage II Threshold Programs, visit MCC’s Albania page.

Reporting from Armenia: A Peace Corps Volunteer Working with the MCA

Posted on July 20, 2011 by Sharon Keld, Peace Corps Response Volunteer

As a former Peace Corps volunteer and a 20-year veteran of the corporate marketing world, I’ve seen my fair share of economic development projects. Now, I am in Armenia as part of a program that partners Peace Corps response volunteers with MCC projects. My main responsibility has been assisting the Communication team at MCA-Armenia (the Armenian government entity responsible for implementing the MCC Compact in Armenia) in its efforts.  The position has given me a front-row seat to MCC’s investments in Armenia. After observing the dedication and professionalism of everyone involved in this effort, I have concluded that it has been one of my most inspiring experiences yet.

The MCC’s total investment in Armenia’s agricultural and water sector is expected to reach $177 million by the program’s completion in September 2011. The goal of the program is the reduction of rural poverty through the rehabilitation of Armenia’s vital irrigation infrastructure, complemented with extensive technical and financial assistance to rural farmers and to the government irrigation entities that support them.

I can see the difference that MCC and MCA-Armenia are making in the lives of people here.  During my time in Armenia, I have been witnessed the opening of a tertiary canal, a nursery visit, and the ribbon-cutting for two pumping stations. But the event that touched me most was a small event honoring Hamazasp Gabrielyan, the 1,000th borrower under an activity designed to expand the accessibility of credit for rural Armenians.  With this small loan of approximately $8,000, Hamazasp will build a new cooling facility that will allow him to extend his selling season and increase his income.  As I listened to his story, I felt a deep sense of pride and gratitude. Thanks to our investment and contribution, thousands of farmers like him will have access to better irrigation and training in advanced farming techniques. This will improve their incomes and their lives. 

Another personal highlight was attending a tree-planting ceremony along with 80 Armenian schoolchildren.  As part of its environmental policy, MCA-Armenia is required to compensate for any trees cut down during construction.  The launch I attended kicked off a campaign in which MCA-Armenia planted 1,500 trees this spring.  As I helped plant a tree outside the village hall, and observed the gratitude and enthusiasm of the community members, I couldn’t help being filled with pride and enthusiasm about my work here and the work of MCC to benefit the Armenian people.

Two Roads, One Dream: Building History in Vanuatu

Posted on April 22, 2011 by Frances Reid, Senior Investment and Risk Officer

It was a great personal pleasure to participate in the closing ceremonies marking the end of the Compact in Vanuatu, and the completion of the Santo East Coast Road and Efate Ring Road rehabilitation. Vanuatu was one of the first countries selected to receive MCC funding, and it remains the only Pacific island nation to have entered into a compact with MCC. I’ve been extremely impressed with the serious efforts made by the government and the commitment of the people of Vanuatu over the last five years, not only to carry out the requirements of the Compact, but also, and in the long run more importantly, to strive to meet the rigorous policy reform eligibility criteria which MCC considers the key to the sustainability of development. Vanuatu has truly emerged as a model of democracy and commitment to good policy, and as a regional anchor of stability.

In a country which had only 73 kilometers of paved roads before project inception, the Compact has nearly tripled this number to a grand total of over 220 kilometers of paved roads! The rehabilitation of these two national roads, the most important roads in the country and affectionately renamed the Goodwill Highway and the Road of Life, is already improving access to market and providing critical access to social services in the two most critical economic development corridors in Vanuatu.

This project has been the highest priority for everyone involved and it has already made national history. From the precedent of community consultations and community engagement through the commitment to building infrastructure in a culturally respectful way to capacity building at both MCA-Vanuatu and the Engineering Support Unit and Government commitment to good policies for economic growth, this has been a demonstration of country ownership, dedication, and partnership. MCC takes pride in having been part of this effort to lay a foundation for sound, sustainable, country-led economic growth.

The Compact is also a testament to good donor cooperation. New Zealand, in particular, as well as Australia, through their development assistance programs, contributed in critical ways to the completion of the Compact program. Their willingness to work with MCC and the Government of Vanuatu to achieve a common purpose is an excellent example of how donor cooperation is supposed to work.