Poverty Reduction Blog Tag: Businesses
Posted on October 10, 2013 by Vidya Spandana, White House Presidential Innovation Fellow
What do Africa, open data and the private sector have in common? MCC continues to champion the intersection among the three, and this month we’re excited to engage businesses in an interactive dialogue on their needs in Africa and how our data can help meet them.
Open data is information available for the public to use for any purpose, without licensing or copyright restrictions and at no cost. President Barack Obama made open data a priority in an executive order earlier this year, and MCC already leads the way in fulfilling the President’s vision for open and transparent data.
One way MCC is unlocking the potential of its data is by making it publicly available to private companies interested in doing business in Africa. Supporting private sector investment as the engine of growth is, after all, a fundamental part of MCC’s model. With the development and use of open data, we can further encourage companies to invest in our partner countries by using the publicly available data to identify business opportunities for growth and profit-making, mitigate risks or better understand market and consumer dynamics. Open data is the practical way to make business processes efficient and effective, which gives companies an incentive—and a greater degree of confidence—to invest in MCC’s partner countries.
However, availability and access to open data from developing countries—like those in Africa—is still limited. This makes it frustrating for MCC, African partner countries and businesses to realize the benefits of open data, which can drive the decisions that put communities and companies on the win-win path to growth.
In response, MCC will partner with the Initiative for Global Development (IGD), a nonprofit that understands how accelerating business growth and investment in the developing world is a key solution for reducing poverty. MCC and IGD will survey business leaders investing in Africa to figure out how they could best benefit from access to open data.
In addition to the open data survey, IGD and MCC will lead a Twitter campaign to help spread the word about open data, its benefits and uses. MCC encourages the public and private sector to participate in this initiative and learn more about how open data can benefit both business development as well as economic development in Africa.
Join MCC and IGD in the conversation on open data by following @MCCtweets and @IGDleaders on Twitter. Share your comments and questions about open data, using hashtags #Data4Africa and #OpenData.
Posted on August 20, 2012 by B. Tsolmon and L. Gerelmaa, Millennium Challenge Account-Mongolia
Severe winter air pollution in Ulaanbaatar, the capital of Mongolia, has become a major concern for the city’s 1.3 million residents, which is nearly half the country’s total population. A majority of Ulaanbaatar’s air pollution comes from districts populated with gers, traditional Mongolian houses where lower-income households live.
Women head many of these ger households. They rely on burning raw coal in inefficient stoves to heat the poorly insulated gers—a primary source of the city's air pollution, which fuels environmental and health risks and causes economic impacts. To address this concern, a facility was established within the scope of the compact's Energy and Environment Project to fund financial incentives and technical assistance for adopting cleaner, more efficient technologies for use in heating the gers.
The project’s particular and positive impact on gender issues recently gained international attention with the July 2012 visit of Melanne Verveer, U.S. Ambassador-at-Large for Global Women’s Issues, as part of a women’s empowerment conference held in Mongolia.
Ambassador Verveer paid a visit to Norovkhand and her family in the Bayanzurkh district outside Ulaanbaatar. Norovkhand obtained a subsidized energy efficient stove through MCA-Mongolia, the local entity managing compact implementation. Norovkhand, a single mother of three and a grandmother of one, shared her experiences on how much coal she has saved in using her new stove, compared with the traditional stove she used previously.
Most importantly, the energy-efficient stove, she said, simplifies routine housework since it requires less fueling, generates less ash and is easy to clean.
“It is very affordable and accessible especially for female-headed households like us, given the subsidies provided by the project,” she said.
Norovkhand’s family is also among potential beneficiaries of the hashaa (yard) plot privatization and registration activity under the compact’s Property Rights Project. With their land formally registered, Norovkhand’s family and many others will have an opportunity to access bank credit, enabling them to make more productive use of their plots.
MCA-Mongolia is tracking the longer-term impacts of increased asset ownership through its monitoring and evaluation work, which also includes a complementary qualitative survey on how increasing asset ownership among women impacts household dynamics.
To track the difference the compact is making for Mongolians at both household and national levels, a number of gender-responsive actions are underway across the program to ensure that women and men benefit equitably from the compact, which is key for sustainable development and economic growth of benefit for all.
Posted on May 31, 2012 by Alain Diouf, MCA-Senegal Property Rights and Land Policy Director , and Kent Elbow, MCC Property Rights and Land Policy Specialist
We knew we were on to something in Senegal—that what we learned about the role customary land rights can play in alleviating poverty was worth sharing with the wider land practice community.
In recent years, many African governments have developed legislation to recognize the legitimacy of informal (mostly unwritten) customary rights to land. Governments have introduced a variety of legislative tools to formalize, protect and secure those rights. Each country brings a different approach to this, but in many instances the process helps lay the foundation for increased economic development.
Customary land rights are the starting point of any formalization initiative, which isn’t easy. We need to help contribute to economic objectives while preserving or enhancing the rights and interests of the powerless. We do this in two main ways.
The first task is to identify the holders of customary rights, which requires recognizing categories like individual and collective rights. Analyses of community resources, such as pastures and forests, need to include detailed socio-economic information. Where community land-use plans do not yet exist, we identify various interests and base our approach on the active participation of all parties in working toward a consensus on how existing rights are to be presented and preserved during the formalization process.
The Land Tenure Security Activity, funded by Senegal’s $540 million MCC compact, is working in the Senegal River Valley to determine the boundaries between agriculture and livestock while also accounting for the areas where the two overlap. MCA-Senegal will act upon some of the decisions negotiated during the first phase of the activity—such as the boundaries of cattle trails through agricultural land leading to water points—by planting trees.
The second major element of a successful formalization program is ensuring that fairness remains a dominant principle in ongoing and future land allocation. Formalization is not just identifying rights and issuing corresponding pieces of paper. Mechanisms must be developed and activated to provide for the exchange and reallocation of land rights so resources can be put to their most productive use while ensuring that rights are protected. Governance of land allocation works best when it is transparent, democratic and participatory.
The Land Tenure Security Activity in Senegal is demonstrating that existing customary land rights can be comprehensively identified and documented—if one incorporates careful design and planning, inclusive methodologies, copious work, and adequate time. It is also demonstrating that local land allocation principles and processes can be developed and recognized as legitimate if all stakeholders are given a voice in their development.
Yes, customary land rights are messy—but protecting customary land rights while moving toward a more formal land management system is both fair and economically productive. An even more fundamental goal must be to ensure that all stakeholders have a voice in the more permanent institutions of land governance. In the Senegal River Valley, land is governed at the community level, and there are positive signs that previously unheard voices are now finding a stage.
“These workshops have changed us as well as our community decision-makers,” the president of a women’s producer group said after a community workshop. “We no longer hesitate to speak our minds and address the Rural Council. This is a new situation for us.”
MCC, the Government of Senegal and MCA-Senegal are excited about the good work that has been accomplished and are committed to continuing to learn and share our learning with land practitioners facing similar challenges around the world.
Posted on May 29, 2012 by Jolyne Sanjak, Managing Director, Technical Services Division
MCC and a majority of our partner countries believe that improvements to their agricultural and rural sectors are a crucial part of lifting people out of poverty and to improving food security. MCC’s portfolio includes $4.4 billion of investments in improvements to the agricultural and rural sectors that are relevant to reducing food insecurity. This includes a substantial focus on infrastructure investments in large-scale irrigation schemes to ensure reliable access to water and improved yields, as well as roads and post-harvest storage and packaging facilities to move goods to market more efficiently.
MCC projects also invest in direct assistance to farmers with a focus on smallholders. Training activities help farmers learn about cultivating high-value yields, deal with pests and diseases and manage scarce land resources. Rural credit programs are designed to raise incomes by expanding access to credit to help purchase inputs. Land tenure projects work to create secure land rights and efficient institutions for managing land rights.
In seven years, MCC-funded projects have trained nearly 200,000 farmers and assisted more than 3,500 enterprises worldwide. Roughly 170,000 hectares under production receive MCC support through technical assistance, new or rehabilitated irrigation systems or access to agricultural inputs and credit. Land tenure projects have supported legal and regulatory reform in six countries and the formalization of land rights of more than 1 million hectares of rural land, including farmland, grazing areas and forests.
Just last month, our commitment to food security received high praise from the Chicago Council on Global Affairs, an independent, nonpartisan organization. MCC received an “outstanding” evaluation in The 2012 Progress Report on U.S. Leadership in Global Agricultural Development, a thorough study of how the U.S. Government is performing in its commitment to improve food security and support agricultural development in regions with the greatest levels of rural poverty and hunger.
“The Millennium Challenge Corporation has demonstrated outstanding leadership in agricultural development in its role as the largest U.S. Government provider of funding for agriculture and food security infrastructure in Sub-Saharan Africa and South Asia,” the report said. “It has increased its capacity to disburse funds and complete agreements in a timely fashion.”
The report chose Ghana, one of our partner countries, for a case study of U.S. Government development efforts. It labeled the U.S. Government's actions there as “outstanding” and said the MCC compact's “vital work in agriculture has laid a solid foundation for expanded Feed the Future activities.” The MCC compact also supported innovation in applying land tenure law in Ghana by demonstrating an approach to formally recording rural land rights in the context of strong customary practices.
As project results continue to come in, MCC remains committed to learning and being held accountable for how well these program outputs translate into increased incomes and well-being for program beneficiaries. MCC currently has 16 independent impact evaluations underway to address questions such as the impact of our programs on increased productivity, investment in high-value agriculture and business and marketing opportunities. Ultimately, these evaluations are designed to measure and better understand our impact on incomes and poverty reduction. Just as MCC contributed its leadership and technical skill to the State Department and USAID as the Feed the Future Initiative was developed and moved into implementation, we see our rigorous approach to monitoring progress and evaluating impacts as a source of learning for the whole U.S. Government. Learning from our programs can also contribute lessons for donors worldwide.
At MCC, we are proud of our investments and inspired by the changes we are seeing in people’s lives as a result of our compacts. At the same time, we are humbled by the gravity of poverty and the level of food insecurity in our partner countries, fully realizing that true poverty reduction and economic growth are not easy tasks. They will continue to require full attention and support, including using better evidence as we gain it, to improve and promote effective programs.
This recent report is both an endorsement of MCC’s seven years of work in this field and also a reminder of the urgent need for continued investments in agriculture and food security programs around the world.
Posted on May 9, 2012 by Jonathan Brooks, Managing Director for Europe, Asia, Pacific, and Latin America
A community irrigation system created with the help of MCC’s compact with Honduras recently received international recognition—the latest example of how MCC’s investments provide a model for sustainable poverty growth in our partner countries.
The Cosechas de Agua rainwater harvesting project, developed through the compact’s Agricultural Public Goods Grant Facility and managed by CHF International, received the Latin American prize for innovative water management projects in the face of climate change at the World Water Forum in Marseille, France, on March 15.
Cosechas de Agua harvests rainwater for use in irrigation in the arid southern municipalities of Nacaome, Langue, Goascorán, and Aramecina. It captures rainwater and then uses a system of hydraulic works, dams and pipelines to store and distribute the water to fields. The project aims to introduce complementary irrigation systems for 188 agricultural producers over 98 hectares of land, intended to increase their income.
Access to irrigation and other support through the compact was intended to allow farmers to diversify their crops, increase their yields and expand their access to new customers nationally, regionally and internationally.
The $50,000 prize—sponsored by the Mexican national water authority Conagua, the FEMSA Foundation, the Inter-American Development Bank, and the Water Center for Latin America and the Caribbean—will be used to develop the project over the next three years. Cosechas de Agua officials will also be invited to present progress on the system's economic, social and environmental impacts at the next World Water Forum in March 2015.
The Agricultural Public Goods Grant Facility was part of the $68 million Rural Development Project, which sought to increase the productivity and business skills of farmers who operate small- and medium-size farms, as well as their employees. The project is expected to help more than 357,000 people over the next 20 years and raise their household incomes by $53 million.
Posted on April 25, 2012 by Daniel W. Yohannes, Chief Executive Officer
This post first appeared on Visa Viewpoints, the official blog of Visa Inc., on April 25, 2012.
Since 2004, the Millennium Challenge Corporation has been leading the fight against global poverty. As an innovative and independent U.S. development assistance agency, we are changing the conversation on how best to deliver smart assistance by focusing on good policies, country-owned development solutions and results. Our success rests in large part on our ability to forge successful partnerships for sustainable development. This means partnering with countries around the world, civil society, non-governmental organizations, the private sector, and other government agencies.
One lesson we know for sure: Assistance alone is not enough. What will be enough to tip the scale toward sustainable growth is the innovation and investment driven by the private sector. The private sector creates jobs and new products. The private sector is where entrepreneurs are born and thrive. And, the growth, investment, trade, and business generated by the private sector will help lift people out of poverty.
Today, the Millennium Challenge Corporation convenes our first Forum on Global Development. This will be a unique occasion for visionaries and practitioners in international development to meet, exchange ideas and honor three outstanding awardees for their work on gender integration, investment and innovation.
On behalf of MCC, I am proud that we will recognize Visa as the recipient of our first Corporate Award for demonstrating exemplary commitment to eradicating poverty in the developing world. We are impressed with Visa’s commitment to advancing financial inclusion by leveraging its core business along with innovation, strategic partnerships and financial literacy. We applaud Visa’s public-private partnership with the Government of Rwanda, including the extensive Charter of Collaboration as well as partnerships with organizations such as Women’s World Banking and GSMA mWomen, to advance financial access for women and their efforts to bring financial literacy education to millions of people worldwide.
In the global fight against financial exclusion and poverty, no single organization has all the answers. But through innovative solutions from—and partnerships among—governments, the private sector and civil society, we are making a difference.
Posted on April 6, 2012 by Patrick Fine, Vice President for Compact Operations
Nampula Province in central Mozambique is 2,200 kilometers north of the capital Maputo, about the distance from the East Coast to the Mississippi River. The countryside is marked by granite domes that tower hundreds of feet off the lush plains and by isolated mountains that rise up in surreal silhouettes worthy of artist Shane Devries. The land is not heavily populated, and villages are simple collections of traditional thatched-roof rondavels plastered with mud from ubiquitous conical ant hills. Rural electrification has not yet reached most of these villages, roads are simple dirt tracks, most people still fetch water from rivers, and boys stand by the roadside holding out bags of freshly shelled cashews for sale.
You can see signs of growing prosperity, including the results of MCC’s $506 million partnership with Mozambique: Our investment has helped build hundreds of village water points; pave major routes to facilitate agriculture, mining and commerce; and upgrade and expand straining municipal water and sanitation systems.
A year ago, these projects were seriously behind schedule and over budget, causing MCC and the Government of Mozambique to create an action plan to overhaul the approach for completing the work within the five-year deadline. I was impressed by the way Mozambique’s management authority, MCA-Mozambique, had consistently met its implementation milestones since the revised plan was adopted in March 2011.
Last week, with only 18 months remaining in the compact, I visited Nampula to get a firsthand view of what is being accomplished.
I was encouraged by the road and water system construction underway and came away with increased confidence that Mozambique will complete its work on time. In one rural community down a narrow 13 kilometer dirt track, I inaugurated a new borehole and water pump that serves 700 community members and will eliminate the need for women and children to spend up to two hours a day fetching water.
In the town of Nampula, I witnessed the distribution of property titles that give people secure property rights for the first time. The ceremony took place in an open neighborhood square where local officials called out names; the property owners came forward from the large crowd, signed a ledger and took their titles. At the end of the ceremony a number of people started to angrily call out, demanding their titles. The officials explained that the titles would be distributed each day that week. I found this spontaneous demonstration of the demand to have a title a reassuring indication of the value of MCC’s investment.
While my focus was on the MCC-financed projects, what really caught my attention was the extraordinary economic opportunity in Mozambique. Already, Mozambique exports electricity from the largest hydroelectric dam in Africa, and it still has unexploited capacity. A Portuguese contractor working on the MCC road project drove up in a Ford Ranger and had American-manufactured scientific equipment in its materials lab. Recently an American company, Anadarko Petroleum Corporation, announced it had discovered one of the world’s largest reserves of natural gas off the northern coast; the center of the country holds huge deposits of coal, and as more exploration takes place it is very likely that other minerals will be found in commercial quantities. Anadarko has plans to invest approximately $20 billion over the next five years! A Brazilian mining company is already shipping coal and has announced a $6 billion expansion.
I see all sorts of opportunities, from village hardware stores, hair salons and groceries to the suppliers and services that new investments in mining will require. Seen in this light, American investments in basic infrastructure are prescient. And a U.S. company is the supervising engineer on the drainage activity in Nampula city—where one of the main customers and beneficiaries of the new water system is Coca-Cola.
But far more important than market opportunities created by individual MCC-financed projects are the market opportunities that will open up for U.S. goods and services if Mozambique’s economy takes off. Road-building and mining equipment, chemicals and a spectrum of products and services will be needed to build this economy. Now is the time for U.S. companies to invest in establishing a presence in the country so that they can be competitive.
The government is implementing business-friendly reforms—such as the MCC financed land reform program—and there is a still-untapped entrepreneurial spirit among the youth. Mozambique’s economy has already been growing at nearly 8 percent per year over the past several years and is on the verge of an economic era that could transform its villages and create prosperity and opportunities not only for one of the world’s poorest populations but for the companies and individuals intrepid enough to join an economy just taking off.
I left Mozambique with the impression that almost everything is in place for it to become the next big growth economy in Africa.
Posted on March 30, 2012 by Daniel Yohannes , Chief Executive Officer
Today’s release of MCC’s 2011 Annual Report, appropriately titled Gateway to Opportunity, captures the milestones of the past year and articulates clear priorities moving forward. In the report, you can read about the significant strides we have made in delivering results, forging partnerships with countries and civil society, and championing policy reforms to create opportunities for sustainable economic growth in some of the world’s poorest countries. This foundation allows us now to expand our work not just to help poor countries rise out of poverty and break the cycle of aid dependency but also to create stable trading and investment partners for the United States, which means more jobs here at home.
By incentivizing the right policy conditions and generating an enabling environment for growth, MCC builds a Gateway to Opportunity for American businesses interested in exporting to or doing business in these next generation emerging markets as they climb out of poverty. Because of this, MCC’s mission is key to Secretary of State Clinton’s 21st century economic statecraft and President Obama’s efforts to put in place an American economy that is “built to last.” MCC is pushing the envelope on development effectiveness and sustainability through our commitment to transparency, accountability, results, policy reform, and country-driven solutions.
MCC’s approach has not gone unnoticed. A November 2011 Fortune Magazine article concludes that MCC “certainly gives the taxpayer real bang for the buck.” A recent MarketWatch commentary by Thomas Kostigen arguing for a robust MCC budget sums up the impact best: “MCC deserves its fair share so the U.S. can gain its fair share in the emerging markets. The global impact of these investments comes back to us all in the form of food, jobs, more open markets for trade, and doing good and right by others. It’s a boomerang effect.”
We agree, and we’re committed to showcasing even more investment and procurement opportunities for U.S. businesses in the months ahead to ensure the full “boomerang effect” of positive impact for the world’s poor as well as American businesses and workers.
In Zambia, MCC’s newest compact brings clean water and improved sanitation and drainage services to more than one million residents
Posted on March 26, 2012 by Raja Kaul, MCC Resident Country Director, Zambia
Last Thursday, the MCC Board of Directors approved a $355 million compact with Zambia that focuses on the water sector in Lusaka. MCC investments are expected to have a significant impact on the lives of more than one million Lusaka residents by improving their health and economic productivity and helping the country reduce poverty on a sustainable basis. Fittingly, the Board’s decision fell on the annual UN-designated World Water Day.
This single-sector compact aims to address one of the Zambia’s most binding constraints to economic growth through infrastructure investment in the rapidly urbanizing capital city of Lusaka. It is designed to reduce the incidence and prevalence of water-related disease, decrease the number of productive days lost due to disease and time to collect water, lower costs of water and new sanitation, and reduce flood losses for businesses and residential homes.
In addition to investments in water supply, sanitation and drainage infrastructure, MCC’s integrated investment will also support the government’s ongoing water sector reform efforts by strengthening responsible institutions. The investment is expected to significantly benefit Lusaka’s poor, as 73 percent of the more than one million Zambian beneficiaries currently have incomes below $2 per day.
The Zambia compact will promote key MCC corporate priorities, including gender and social integration, environmental and social impact assessments, and private sector development. In the Zambia compact, social and gender integration is prioritized, and activities are designed to extend project benefits to women and vulnerable groups.
Since its inception in 1993, World Water Day has served to spotlight the global challenge to provide safe water and sanitation services to those living in poverty. So far, MCC has invested $793 million in WASH-related projects in nine partner countries, and MCC’s compacts with Cape Verde, Jordan, and Mozambique, like Zambia, focus primarily on water sector development. Our growing WASH portfolio reflects our partner countries’ recognition of the important role of access to clean, affordable, and reliable water in promoting economic growth.
For more information on MCC’s water and sanitation projects, visit www.mcc.gov/water.
Posted on February 29, 2012 by Jason Bauer, Director, Private Sector Development
Two weeks ago, Ghana successfully completed its five-year MCC compact, a $547 million program designed to improve the agriculture and transportation sectors. Over one million Ghanaians will benefit from the compact. In early 2011, the MCC Board of Directors selected Ghana as eligible to develop a new compact. As part of this compact development process, the Government of Ghana has initiated broad-based consultations with representatives from civil society and the private sector.
On January 24, 2012, MCC partnered with the Initiative for Global Development and the Corporate Council on Africa to host a forum for business firms – some already active in West Africa, some newcomers to opportunities in the region. The forum’s program was designed to help MCC and the Government of Ghana identify opportunities, obstacles, and solutions to private sector participation in Ghana’s power sector. More than 60 participants representing more than 20 companies across the power value chain participated in the day-long session.
Government of Ghana officials, including from the Ministry of Energy, spoke in an open forum about the types of private sector participation Ghana is most interested in attracting. A number of potential investors shared their views, both in group settings and individual meetings, about Ghana’s constraints to foreign investment. Participants also recommended concrete actions the Government of Ghana could take within the proposed new compact to alleviate those constraints.
This event is just one example of MCC’s efforts to enhance engagement with the private sector during program development. Feedback from attendees was encouraging; one noted that it was the first time his company, a U.S.-based energy firm, had engaged with a donor and partner government during the process of defining a proposed grant program.
Once the Government of Ghana completes the concept paper for its proposed second-generation compact, the MCC Board of Directors will review project proposals and vote on compact approval. We look forward to further engaging the private sector to incorporate its innovation, capacity building, capital and expertise to the MCC compact development process.
Posted on February 15, 2012 by Daniel W. Yohannes, Chief Executive Officer
I just witnessed an incredible celebration here in Ghana: thousands of people rejoicing at the opening of the long-awaited N1 highway—renamed the George Walker Bush Motorway—which links the capital, Accra, with major ports, the international airport and the country’s major agricultural regions. This has been a Ghanaian dream since 1965, and it’s finally coming true.
As I drove down the road, thousands of people that live along the road greeted us. School children celebrated. People stood on banisters to catch a better glimpse of the celebration, and crowds waved from their nearby apartments.
There was dancing and chanting. The American and Ghanaian flags swayed together. A nearby large banner read, “Thank you, America.” The celebration resonated deeply with me.
MCC helped improve a 14-kilometer stretch of the highway as part of its five-year, $547 million compact. It runs through the heart of the capital city and for decades has been clogged with people and traffic. The need to widen the highway has been in the planning 40 years, but it only became a reality thanks to the Ghana and MCC partnership. It’s not hard to see why people were so excited.
The highway project was Ghana’s largest public works project in decades, and workers labored until the final minutes of compact closeout to ensure project completion. As President John Atta Mills told the crowd, “This is not President Kufuor's compact. This is not my compact. It’s Ghana's compact.”
During closeout speeches, the chief executive officer of Ghana’s MiDA, the entity in charge of implementing Ghana’s MCC compact, said it best: “MCC is the spearhead for development.” In Ghana, we certainly are spearheading a true partnership based on goodwill, trust and collaboration.
The opening of the N1 highway is a major event in Ghana’s development and a highly visible reminder of MCC’s partnership. It’s a milestone that transcends political parties, both in the U.S. and Ghana. And most importantly, it’s a reason all Ghanaians have to celebrate.
Posted on February 7, 2012 by Daniel W. Yohannes, Chief Executive Officer
I bought lunch today for the first time from a food truck. From Washington, D.C. to Los Angeles, food trucks are transforming how this country eats, offering alternatives for every culinary appetite. In the spirit of creative entrepreneurship, Morocco’s fish vendors leveraged MCC funding to pursue a similar concept and go mobile. That country’s MCC compact is replacing donkey-drawn carts with three-wheeled, heavy-duty motorbikes equipped with insulated ice chests, empowering Moroccan fish venders to sell more fish to more consumers with a focus on quality and freshness. More than this literal parallel, I think MCC and food trucks have a lot in common. Think about it.
Innovation: Both MCC and food trucks are built on innovation. Food trucks offer one or two signature dishes, giving proprietors the opportunity to highlight and celebrate their innovative food specialties, which might otherwise be lost on the full restaurant menu. MCC has taken more than half a century of development practices and incorporated the most innovative principles into our model for development effectiveness, focusing simultaneously on results, country-owned solutions, accountability, and transparency.
Technologically-powered: Because of Twitter, food trucks have proliferated. Technologically-savvy customers are turning to their mobile devices and online communities to track when and where their favorite food trucks will be serving. I saw the same positive use of technology in Armenia, for example, as farmers, benefitting from MCC’s investment in the most extensive modernization of the country’s irrigation system in 30 years, use their cell phones to obtain the latest market prices for their agriculture products to maximize sales. MCC compacts increasingly are leveraging the power of technology to achieve sustainable development and increase incomes, from computerizing banks in Ghana to give rural families and businesses efficient access to financial services, to optimizing global positioning systems in Benin for accurate land mapping to provide individuals with secure title to their property, to using latest breakthroughs to grow, irrigate and harvest quality crops that both promote greater food security a
nd make farmers more competitive in the marketplace.
Customer-driven: Given the long line I stood in, I am struck by how many people are drawn to the food truck experience. There’s obvious market demand. MCC, too, is approached constantly by countries eager to reform their policies and partner with us. The partnerships we do form with a select group of poor, but well-governed, countries are based on shared responsibility and mutual accountability to achieve their homegrown development solutions.
Just as food trucks serve a cornucopia of cuisines from around the world, MCC partners span the globe in a common drive to reduce poverty through economic growth. By opening gateways to opportunity, MCC’s worldwide partnerships help local businesses and entrepreneurs thrive, so that our development dollars, ultimately, can be replaced by economic growth led by the private sector.
I am preparing to travel to Africa this month to sign MCC’s compact with Cape Verde and to mark the completion of Ghana’s MCC compact. Such milestone events in these countries will serve as opportunities to see MCC’s approach to innovation, technology and country-owned development strategies in action. Check back to read my blogs from those upcoming travels. In the meantime, please let me know if there are any food trucks in Cape Verde and Ghana I should sample.
Posted on October 23, 2011 by Daniel W.Yohannes , Chief Executive Officer
My travels as MCC CEO bring me to many memorable places, but it’s the people who inspire me the most. Nicolas Kinsou Ahouandjiinou is one such person who I met in the Beninese village of Djeregbe.
Nicolas was born in Djeregbe and his father was a traditional healer in the village. Nicolas earned degrees from the University of Benin and the Institute of Tropical Agriculture in Nigeria, and had been travelling the world as an agronomist. One day, more than 20 years ago, Nicolas’s father called him home with a request: use your degrees to adapt the use of native medicinal plants to the modern world.
During their conversation, Nicholas’s father gave him a 200-page notebook that contained his acquired knowledge of the medicinal properties of West African plants, including eucalyptus, lemongrass, laurel, chayote, and ginger. Paging through the notebook, Nicolas knew that he had to return to Djeregbe to realize his father’s dream.
After years of research and trial and error, Nicholas invented a process -- which he believes to be the first of its kind -- to mix the essential oils of traditional African medicinal plants with water to produce a flavored, bottled water. Having successfully mixed oil and water, and devised a way to modernize his father’s age-old practices, Nicholas then faced one more challenge: inadequate access to capital to grow his business, DETAREN SARL.
That’s where MCC came in. With grant support from our Access to Financial Services Project, DETAREN SARL purchased new machinery to produce and bottle the water. According to Nicolas, production has already increased from 1,200 to 8,000 bottles a day. The flavored water, which Nicolas named “Eau Noble,” is now sold in Benin and limited quantities are exported to Nigeria, Burkina Faso, Niger, and Togo. With his new capacity, Nicolas plans to double his staff to 15, and increase sales by expanding his distribution network to all of West Africa.
MCC has provided DETAREN SARL, and other members of the GATID consortium it has joined, with the assets and credibility they need to gain the attention of financial institutions like Bank of Africa and Oikocredit, which are working with the consortium to provide credit. Nicolas knows that access to credit is essential to growing his business and realizing his dreams -- and the dreams of his father.
Nicolas’s story shows that the entrepreneurial spirit is alive and well in Benin. DETAREN SARL exemplifies the transformation that is happening all over Africa as old traditions give rise to new ways of thinking and new ways of doing business. MCC is proud to be working with entrepreneurs and innovators like Nicolas who are trailblazing Africa’s path to prosperity in the 21st century.
Posted on January 25, 2011 by Courtney Engelke , Director, and Burak Inanc, Deputy Resident Country Director Mongolia
Wintertime air pollution in Ulaanbaatar, Mongolia is among the worst in the world. In Ulaanbaatar, the coldest capital city in the world, coal-fired heating and cooking stoves in traditional “ger” (or circular felt) dwellings emit a toxic brew of pollution. While Mongolia is becoming an increasingly attractive investment and tourist destination, businesspeople and tourists generally steer clear of the capital city during winter months, in part because of the pervasive air pollution. Unfortunately, the over 600,000 residents living in Ulaanbaatar’s “ger districts” don’t have that option.
MCA-Mongolia’s Energy and Environment Project (EEP) aims to reduce air pollution by providing financial incentives to encourage residents to become more energy efficient and use lower-emission heating devices and stoves. In December, the EEP launched an Affordable Energy Efficiency Home Design Contest to spur innovation in modern housing.
The EEP also hosted an International Energy Efficiency Exhibition to introduce energy-efficient products to consumers. This exhibition, the second held since the project’s inception, included nearly 50 domestic and international suppliers from the United States, Korea, and Turkey, among other nations. The event also served to increase the pipeline of innovative and appropriate products that are being considered for financial support by the EEP.
The EEP Project Director, the Ministry of Mineral Resources and Energy, and the City Government’s Air Quality Office opened the exhibition with impassioned remarks about the importance of clean energy to the health and well-being of city residents. A group of popular Mongolian rock singers then performed an original “clean air” song, penned for the occasion, to fervent applause. Suppliers enthusiastically exhibited energy-efficient home products, energy-efficient building materials, ger home insulation, electric heaters, liquefied petroleum gas heaters, pellet heaters, and air filtration systems to consumers who were eager to listen and learn. Compelling photos documenting the impact of air pollution from a student competition were on display, and awards were announced for the photos and a related essay contest.
Perhaps most inspiring, however, was the strength of the public and private-sector collaboration to find affordable solutions to this serious public health problem. The wide variety of products and ideas on display was encouraging—the prospects for sustainable market-based solutions appear to be growing by the day.
The Energy and Environment Project has added some of the products showcased in the exhibition to its analytical pipeline, and some of the producers have now organized to advocate for energy efficiency. At the same time, MCC is working hard to support MCA-Mongolia in its efforts—and we can’t seem to stop humming that Mongolian “clean air” song.
Posted on February 12, 2010 by Daniel W. Yohannes, Chief Executive Officer
President Obama’s fiscal year 2011 International Affairs budget includes a $1.28 billion request for MCC. With so many important domestic and international priorities competing for limited resources during these challenging economic times, we all have to be prepared to make tough choices. Given limited resources, we will not be able to fund all the projects we would like to, but this is a solid request that allows MCC to continue to contribute to global poverty reduction in a meaningful way. Secretary of State Hillary Rodham Clinton recently reminded us in her speech on development that helping the world’s poor bolsters America’s own security and prosperity.
I invite you to read our budget justification to Congress, which explains how we intend to add to our portfolio of results moving forward. With Congress’s support for the President’s MCC budget request, we will be able to pursue partnerships with Malawi, Indonesia, and Zambia, with the hope of signing compacts with each of these countries. Moreover, the fiscal year 2011 budget request will allow MCC to pursue a second compact with Cape Verde, a first in MCC’s history.
I am looking forward to appearing before the House Appropriations Subcommittee to explain MCC’s progress to date and how support for the fiscal year 2011 budget will allow us to deepen our impact in the fight against global poverty.
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