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.

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.

On the ground in Liberia

Posted on July 14, 2010 by Cassandra Butts, MCC Senior Advisor

MCC Senior Advisor Cassandra Butts joins Liberian President Ellen Johnson Sirleaf, Rep. Vern Buchanan (R-FL), Rep. Mike Conaway (R-TX), Rep. Allyson Schwartz (D-PA), Rep. David Dreier (R-CA), and Rep. David Price (D-NC), and Liberian school girls currently receiving education scholarships, at the signing ceremony of MCC’s $15 Threshold Program with Liberia.

Last week I was fortunate to represent MCC at a signing ceremony kicking off MCC’s $15 million Threshold Program with the Government of Liberia.  Liberia’s President Ellen Johnson Sirleaf and a bipartisan U.S. congressional delegation led by Rep. David Price and Rep. David Dreier, representing the U.S. House Democracy Partnership, also attended the signing ceremony, which took place in Monrovia.  We were also pleased to have Rep. Donald Payne participate in the ceremony as a long-time supporter of African development and MCC.

The visit marked my first time back to Liberia since a 1999 trip as a member of a congressional staff delegation reviewing the status of refugees in what was then a conflict-riven region.  What I saw on my recent trip provided considerable hope that Liberia, under the leadership of President Johnson Sirleaf, is well positioned to translate MCC’s Threshold Program investment in land access and policy, girls’ primary education, and trade policy into successfully- implemented programs that will meaningfully contribute to Liberia’s future development.

MCC Senior Advisor Cassandra Butts visits with Liberian school girls in the King Gray community about educational opportunities for both school age youth and older youth who missed traditional schooling because of the country’s conflict.

While all three components of Liberia’s Threshold Program were identified by Liberians as a part of their national development strategy and are designed to improve Liberia’s performance in the policy areas measured by MCC eligibility criteria, the girls’ primary education program has a particular resonance for me as MCC’s point person for the integration of gender equality in the programs we fund.  This is a priority that I share with President Johnson Sirleaf as we, and many others, recognize, without question, that educating girls is crucial to a country’s long-term economic development. 

There is no question that the road ahead will be challenging for Liberia, but the country continues to make significant strides in demonstrating a commitment to policy reform and responsible leadership under President Johnson Sirleaf that made our Threshold Program partnership possible in the first place.  We look forward to working with the Government of Liberia and USAID, the U.S. Government agency that will administer the Threshold Program, to ensure the delivery of results that will improve the policy environment in the targeted sectors and contribute to the long-term growth and prosperity of the people of Liberia.

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.

MCC progress unfolding in Niger

Posted on June 3, 2009 by Ken Hackett, Member of MCC's Board of Directors and President of Catholic Relief Services

During a recent trip to Niger, I had the opportunity and privilege of meeting with those coordinating this West African country’s MCC Threshold Program. I came away impressed with their energy and dedication as they work in a challenging environment.

Niger is one of the poorest countries in the world, ranking near the bottom of the United Nations’ Human Development Index. It has bounced from drought to coup to famine for centuries. Nonetheless, its people persevere with dignity and fortitude in this country nearly twice the size of Texas.

And the MCC, in partnership with the government and people of Niger, have identified an important way to foster long-term progress and sustainable development: promoting the education of girls. Building upon its innovative program in Burkina Faso, the Niger Threshold Program is funding the IMAGINE (Improve the Education of Girls in Niger) project, which includes the building of 68 ““girl friendly”” schools in seven regions throughout the country. These school complexes will include three-classroom buildings with sufficient desks for all students, separate latrines for boys and girls, a water source, housing for female teachers and a school canteen.

Throughout the developing world, there are many obstacles that prevent children, especially girls, from going to school. Those barriers include long walking distances from school, hunger, early and forced marriages, and time-consuming chores at home. The result is that the cycle of poverty is continued over generations. Conversely, education is a powerful tool in fighting poverty, unleashing the potential of a whole segment of the population unaccustomed to having the opportunity to earn their own livelihoods. Research shows that providing girls one extra year of education beyond the average can boost eventual wages by 10-20 percent.

Over the long term, we believe that these kinds of programs aimed at improving the education of girls will lead to increased food security. This is because girls in school receive the knowledge and develop the skills that will enable them to better manage resources for themselves and their families.

Better education for girls also contributes to improvements in the nutrition, health and education of future generations. This knowledge will bolster other assistance efforts being carried out by organizations like my own, Catholic Relief Services. For example, we are implementing a nationwide effort in Niger to encourage the use of mosquito nets to prevent malaria. Better educated women will be more likely to see the benefits of using the nets and will make sure their families do so.