Recognizing MCC’s ‘outstanding leadership’ in food security

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.

Visa recognized for investing in sustainable development

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.

Results for Whom?

Posted on December 1, 2011 by Daniel W. Yohannes, Chief Executive Officer, MCC

The Fourth High Level Forum on Aid Effectiveness took place this week as government leaders from over 150 countries gathered to discuss progress made on donor promises to tackle global poverty. These discussions started with the Paris Declaration in 2004, then the Accra Agenda for Action in 2008 and continued in Busan. Delegates talked about “ownership,” “mutual accountability” and “outcomes.” Ownership is about countries determining and driving their own development priorities. Mutual accountability means we work in partnership—as donor and recipient countries—to achieve development solutions and share responsibility for successes and failures. And as partners, we are committed to delivering tangible outcomes and meaningful impacts–the ultimate result of any assistance.

MCC's Sheila Herrling, Daniel W. Yohannes, and David Weld participate in discussions at this week's 4th High Level Forum on Aid Effectiveness.

Achieving results was a major theme that weaved through discussions at Busan. Results-focused aid is a shared objective. Yet, an interesting set of questions around “how” and “for whom” remains. Who defines results? How are they obtained? Do process results no longer matter? Are we measuring results for donors, for recipients or for both? MCC brings much to the table in terms of putting a results-focused assistance program into practice. As Secretary of State Hillary Rodham Clinton said in her speech at the forum’s opening ceremony, MCC is a pioneer in measuring results. Some thoughts based on our experience at MCC:

First, how we pursue a results-focused approach matters. Country ownership is bigger and deeper than consultations around a national development strategy. As MCC Vice President Sheila Herrling mentioned during Tuesday’s Results Thematic Session, a big part of that ownership is how countries include civil society in results setting and results monitoring, and how countries and donors find ways to share that information transparently and accessibly with the public. During my remarks at the Results Plenary, I stressed that inclusive, country-driven development must embrace the voices of women because we know gender equality is key to development effectiveness. Efforts to more purposefully examine how a results agenda can strengthen country systems and institutions will ultimately lead to better and more sustainable outcomes.

Second, focusing on outcomes and impact is absolutely the right approach. That said, we should not lose sight of monitoring and evaluating policy reforms and intermediate targets, which help us establish the path to outcomes and impact. At MCC, we embrace an innovative “continuum of results” — tracking, measuring and publicly communicating results along the entire lifecycle of each country-determined program we fund, from inputs, to outputs, to policy reforms, and ultimately to measurable outcomes for beneficiaries. We count interim milestones met along the way because each one brings us a step closer to reaching the program goal. MCC’s continuum of results also includes post-program impact evaluations to help us improve accountability, determine if observed outcomes are attributable to MCC’s investments and to learn whether programs were designed correctly. Because MCC’s continuum of results is built on transparency and critical learning, it becomes a tool for assessing what works and does not work in development and what can be improved for the future.

Third, the question of “results for whom” got a lot of play in Busan. To be accountable to their own citizens, partner countries must answer this often difficult question and demonstrate how development resources are used and what results they achieve. As we discuss our drive for positive results, we must never lose sight of what an actual result means for ordinary men and women around the world. Ayesha Otibo, the chairwoman of a farmer-based organization comprised of 50 female rice processors in Ghana, received training on ways to develop her business and increase crop production. Ghanaian pineapple farmers, like Tony Botchway, used MCC support to seek new markets. Andre Soui-Guidi, a business owner in Benin, is now able to access credit in order to expand his operations and create more jobs for his fellow citizens. At the same time, we cannot and should not ignore the fact that results matter also for the taxpayers of donor countries who, even during these challenging economic times, want to continue funding for development. Our ability to demonstrate that their investments are paying off—that developing countries are improving governance and democratic rights, assistance is reaching the poor, and investments are yielding positive returns--is critical to sustaining strong development cooperation.

Lastly, international events like Busan tend to focus on what hasn’t been achieved. That’s fine in terms of accountability and the need to keep progressing toward commitments. But, let’s remember the real advancements made, including by the United States. Major U.S. development efforts—from the multilateral development banks, to Feed the Future, to Partnership for Growth, to MCC—all emphasize inclusive, country-led, outcomes-focused approaches. For MCC’s part, we look forward to continuing our work to break new ground in advancing and innovating on development effectiveness, and putting principles in this area into practice.

Participating in the U.S. Delegation to HLF4: A First for Partnership for Growth

Posted on December 1, 2011 by Daniel W. Yohannes, Chief Executive Officer, MCC, and Rajiv Shah, Administrator, U.S. Agency for International Development

This post first appeared on DipNote, the official blog of the U.S. Department of State, on November 30, 2011.
 

Under an initiative called Partnership for Growth, the United States, El Salvador, Ghana, Philippines and Tanzania are pioneering a new approach to long-term, sustainable development.

PFG is designed to transform the character and conduct of our bilateral relationships with a select group of high-performing lower-income countries poised to be this generation's emerging markets. The initiative aims to improve coordination, leverage private investment, and focus political commitment to accelerate and sustain broad-based economic growth. With mechanisms in place to hold us accountable for more effective, efficient development results, PFG puts President Obama's Presidential Policy Directive on Global Development into action.

Today marked the first time we have convened a meeting with the United States and all four PFG partners. The setting is especially significant: we are all gathered in Busan, South Korea for the Fourth High Level Forum on Aid Effectiveness. Throughout our meetings, we have focused extensively on ways to deliver meaningful results, ensure mutual accountability and empower country ownership.

State Department Counselor and Chief of Staff Cheryl Mills led the meeting with El Salvador Foreign Minister Hugo Martinez, Ghanaian Deputy Minister of Finance and Economic Planning Fiifi Kwetey, Philippine Minister of Finance Cesar Purisima, and Tanzanian Minister of Finance Mustafa Haidi Mkulo. After addressing the High Level Forum, Secretary Clinton was also able to join us.

We partnered with these countries based on their demonstrated commitment to democratic principles and good governance, their sound policy performance, their potential for continued economic growth, and their track record of cooperation with the United States.

The PFG is an attempt to approach development differently than we have done in the past. PFG is not about more aid; rather it is about fostering a mature economic partnership to unlock a country's growth potential. Together, we analyze the binding constraints to growth, prioritize a set of clear, measurable actions, and work to overcome those barriers through five-year action plans. Along the way, we review our progress through a formal evaluation process or in more informal meetings, as we did today.

Our PFG partners are all at different stages of this process and have unique insights to share. We had frank discussions about the challenges each country faces, and how the U.S. government can improve coordination to assist these countries in strengthening long-term economic growth. We applaud El Salvador, Ghana, Philippines, and Tanzania for their commitment to taking the difficult steps required through the PFG, and look forward to continuing our close collaboration in the months ahead.

The session represented exactly why we have come to Busan this week: to take a hard look at our efforts, identify areas for strengthened coordination, and -- ultimately -- improve our ability to deliver effective development assistance.

Dr. Rajiv Shah serves as Administrator of the U.S. Agency for International Development (USAID), and Daniel W. Yohannes is the Chief Executive Officer of the Millennium Challenge Corporation (MCC).