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.

Linking Students to the Workforce

Posted on October 14, 2011 by Tanya Young, Program Officer, El Salvador

 

Despite progress made in recent years, development in El Salvador’s northern zone has been hampered by gaps in education and training.  The Education and Training Activity in the Compact between the Government of El Salvador and the Millennium Challenge Corporation (MCC) aims to address some of these limitations.  However, increasing the quality and capacity of formal and non-formal vocational programs only partially addressed some of the impediments to poverty reduction in El Salvador.  MCC and FOMILENIO, the entity the Government of El Salvador created to implement the Compact, recognized that it would also be necessary to link students to the workforce in order to promote economic growth.

Recently, MCC’s Deputy Resident Country Director, Kenneth Miller, and FOMILENIO’s Executive Director, José Angel Quirós, were joined by Minister of Labor, Humberto Centeno, and a large audience of mayors, government officials, teachers, and students at the launch of the Sustainable Entrepreneurship and Labor Insertion Plan Program (also known as “PILAS”). The PILAS Program is an innovative approach to improving the incomes and real employment opportunities for 9,000+ participants in FOMILENIO’s Education and Training Activity.

By the end of the Compact, MCC expects to have invested over $30 million to promote quality education in the northern zone of El Salvador.  To date, the infrastructure of 20 schools has been rehabilitated, a new state-of-the-art technical & vocational facility, the Technological Institute in Chalatenango “ITCHA,” has been built, over $3 million in scholarships has been awarded to over 3,000 deserving students, 500+ instructors have been trained and schools have been equipped with learning tools such as computers and software.  To complement these efforts, the PILAS Program aims to link students and trainees with employers and opportunities for entrepreneurship.  The $2 million dedicated to supporting this job placement initiative is expected to help ensure the sustainability of the education and training activity.  Working together with local employment service agencies and regional NGOs, FOMILENIO has begun to connect the large youth population of the region with employment opportunities across the country. 

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.

The Jug Half Full

Posted on February 8, 2011 by Jonathan Brooks, Resident Country Director for Honduras

 

The community at Colonia Milenio Pumas has been dear to MCC’s heart. Nestled on a hill about 30 km north of Comayagua along the CA-5 highway, it is the largest and among the earliest resettlement communities set up as part of the highway construction (nearly 30 families). We followed the community’s progress throughout the years as it slowly changed from a group of people linked only by one of the poorest stretches of the CA-5 highway, into neighbors who formed a true community.

January 25th was special. Overcoming some initial difficulties, MCA-Honduras, the Honduran entity which implemented the compact, established a water system to guarantee water access though both the dry and rainy spells of the year. We were invited to join in the inauguration of the water system as well as the naming of the community school. In a touching tribute to one of our colleagues who worked with dedication on the resettlement effort, the community named their new school, “Escuela Jonathan Nash.” 

There was much clapping and giggling from the school children who joined in the naming of their new school, and there was even louder applause from the entire community when they witnessed the rush of water that flowed from a faucet in the school yard as part of the dedication. The water flowed into a clay jug which had been set aside for the occasion. As I saw the water line begin to fill the jug, I was reminded of what many Hondurans have pointed to as one of the legacies of the program: the belief that their lives can improve. As I stood and smiled with the community as the water flowed, I realized that they had come to see their own jug as half full.

A Reason to Celebrate in Honduras

Posted on September 29, 2010 by Ambassador Hugo Llorens, U.S. Ambassador to Honduras

Hispanic Heritage Month offers a unique opportunity to reflect on the culture and contributions of Hispanic-Americans.  As a Cuban-American serving as U.S. Ambassador to Honduras, I can appreciate not only the drive of Hispanic-Americans to create a better life for themselves and their families in the United States, but also the determination of Hondurans who are optimizing U.S. assistance to pull themselves out of crushing poverty once and for all.  If we need one more milestone to celebrate during Hispanic Heritage Month, we can celebrate the achievements in Honduras through the U.S. Government’s Millennium Challenge Corporation (MCC) grant of $205 million dollars.
This September, Honduras became the very first country in the world to complete a five-year partnership with MCC.  This partnership was designed to reduce poverty in Honduras through sustainable economic growth.  This is no small accomplishment, given MCC’s performance-based model for economic development that provides the financial resources but also expects, in return, that the recipient country own the process of designing and implementing its own projects.  This partnership has been a true commitment to empowerment and accountability—through MCC, Honduras has built local capacity, strengthened institutions, and proved to Hondurans that they themselves can meet challenges they never did before.  Honduras effectively addressed their constraints to growth—even in the face of political transitions.

This can-do mentality unleashed by the MCC model has brought about real change and new opportunities for the poor in Honduras.  Training programs and access to credit have triggered a new spirit of entrepreneurship, helping farmers transition from the traditional production of beans and maize to the modern production of higher-value crops that generate more income.  With more income, Honduras farmers are investing in their land and in their families—homes, schools, healthcare.  By taking on projects as their own, Honduras developed new standards in transparent procurement processes, responsible resettlement, and effective gender integration.  By including civil society and private sector members alongside government officials on the Honduran-based board of the local entity responsible for managing the implementation of the MCC grant, the Honduran people learned best practices in local decision-making.  And, by improving roads with MCC funds, Hondurans have created new opportunities for greater trade and for easier and faster ways to reach markets, schools, and health clinics.

I have seen, first-hand, that farmers along the improved road are getting their fruit to the markets quicker and without the damage often caused by big potholes. These roads are attracting tourists and tourism revenue—improved areas host attractions such as the Lenca Trail (the Lencas form the largest indigenous group in Honduras).  A new bus route now exists between San Sebastian and Tomala thanks to the road improvements, which have made it safer for bigger buses to transit frequently.  Now, this new route will open access even as far to El Salvador, cutting travel time from three to two hours.

Americans can be proud that their investment in Honduras delivered results and established a platform for growth that Honduras can harness for even greater poverty reduction.  This is an efficient use of American tax dollars, creating a more prosperous neighbor in the hemisphere.  Having seen the work of MCC, I can say with certainty that there is no more effective way to sustainably reduce poverty and promote economic growth than by empowering countries and their citizens through partnerships that deliver tangible results.  Such is the Millennium Challenge Corporation model. 

A native of New York, Ambassador Llorens has been serving as U.S. Ambassador to Honduras since 2008.