Poverty Reduction Blog Tag: Impact
Posted on August 9, 2013 by Eliza Keller, Public Affairs Officer
In recent years, demographic changes and the rise of new technologies have positioned youth as drivers of economic and social progress across the world. Youth are key players in MCC’s mission to reduce poverty through economic growth; through engagement in the United States and in our partner countries, MCC works to empower youth with knowledge and economic freedom.
In the United States, MCC partners with universities across the country and includes students in today’s most pressing development issues through research projects, roundtable discussions and speaking engagements. And it’s not just university students getting involved—last week, MCC hosted a group of local high school students at our Washington headquarters. The students, all starting their freshman year, learned about our innovative model and the impact of our programs and engaged in a spirited discussion on emerging trends in development assistance with MCC experts.
Many MCC-funded programs overseas involve youth through investments in education, technical and vocational training and promoting entrepreneurship. In Namibia, for example, the MCC compact includes a program for young professionals to learn a variety of skills related to working in the tourism industry, like language training, communications skills and knowledge of local plant and animal life. With this expertise, young Namibians are better equipped to enter the professional market and lead Namibia’s growing tourism industry.
Youth in today’s global economy face unprecedented challenges—and opportunities. At MCC, we work to provide youth with access to these opportunities, enabling ownership and leadership for a more prosperous future.
Posted on May 16, 2013 by Sheila Herrling, Vice President for Policy and Evaluation
On April 29th at the G8 International Conference on Open Data for Agriculture, the Millennium Challenge Corporation (MCC) unveiled a new evaluation data catalog to house all the data collected through our independent evaluations. Right now, the public can view metadata from agriculture programs in Armenia, Ghana, El Salvador, and the Philippines on the catalog at data.mcc.gov/evaluations, including descriptive statistics for surveys of an estimated 5,000 households in Armenia, 9,300 households in Ghana, 1,700 individuals in El Salvador, and 2,400 households in the Philippines.
The data catalog is designed to contain all of the information that documents and describes MCC-financed independent evaluations, including information on evaluation questions, the types of surveys conducted for the evaluation and the population of interest, questionnaires, sampling methods, and descriptive statistics for household- and individual-level data. The data catalog is fully searchable down to the variable level, allowing for comparison across datasets. In addition, as microdata for each survey is reviewed by MCC’s Disclosure Review Board and is approved for public release, the catalog will host public-use datasets and statistical analyses files for replicating the independent evaluator’s results or conducting separate analysis.
The launch of the catalog is just the beginning of a series of planned data releases. We aim to release as much of our independent evaluation data to the public as possible. We’ve developed an institutional process to enable us to do this over the coming months. It is a labor-intensive effort, but that’s a small price to pay for pushing the boundaries of transparency and accountability to get this huge stock of data into the public domain. And we are delighted to be ahead of the curve on President Obama’s just-released Executive Order on Open Data Policy.
While publishing the data is a big deal in and of itself, the really big deal will come in seeing how others use it. We know – and welcome – that it will be used as another accountability check on us and our partner governments. We hope it also will be used by other investors to learn from our experience on how to increase the impact of the dollars they invest. For example, the agricultural data we are releasing may help us better understand why some farmers adopt improved practices more quickly than others, which can lead to program improvements to maximize impact, increase incomes and expand productivity.
Still, it is the unknown uses – the things we never imagined our data could be used for – that will likely prove to be the most exciting. Finance institutions, for example, looking to spur agricultural growth may gather information needed to develop innovative new products for smallholder farmers. Companies that want to evaluate the risks and benefits of operating in certain locations may find market information that is useful for evaluating risk and catalyzing new investments. Governments and civil society organizations can also analyze this data to drive forward their own complementary development and social programs.
MCC is opening our data because it is the right thing to do: American taxpayers deserve to see this part of their investment. But we are also opening our data because it is the smart thing to do. Information and data are tremendous strategic assets. They can help us enhance policies and practices to more fully contribute to economic growth, strengthen democratic institutions, improve the impact of our work, and inspire entrepreneurship, innovation and scientific discovery in the field of development and beyond. Follow our efforts and give us your feedback!
Posted on May 1, 2013 by Daniel W. Yohannes, Chief Executive Officer
Former U.S. Secretary of State Condoleezza Rice participated in MCC’s 2013 Forum on Global Development this past Monday and engaged in a lively discussion with Frank Sesno, the Director of the School of Media and Public Affairs at The George Washington University. Dr. Rice described the MCC model as the best combination of American interests and values. She sees this in the U.S. Government’s willingness to partner with the developing world through MCC to help countries determined to help themselves. She sees this in how MCC partners within countries, engaging directly with citizens, businesses, government ministries, and nongovernmental organizations and encouraging them to map out their own, homegrown path to development. And, she also sees MCC’s strength in catalyzing partnerships between developing countries, who motivate each other to reform their policies in order to compete and qualify for MCC funding, in what she—and so many others—aptly call the MCC Effect.
We share Secretary’s Rice affirmation of the power of partnerships. Results-focused partnerships that leverage our limited resources, amplify our intended impact and sustain the benefits of our investments have been—and will continue to be—a priority for MCC. With support from both Chevron and the United Nations Foundation, Monday’s Forum created the perfect opportunity to discuss how partnerships advance effective development and make a lasting difference in the lives of the world’s poor. More than 200 people attended as we celebrated such partnerships by recognizing the achievements of this year’s recipients of MCC’s Country Commitment Award, Corporate Award and Next Generation Award.
Mrs. Sophia Mohapi of MCA-Lesotho received MCC’s Country Commitment Award, recognizing her efforts to partner with Lesotho’s government to secure additional funding to sustain the MCC-funded investments made in health and water. Green Mountain Coffee Roasters, Inc. won MCC’s Corporate Award, recognizing this Vermont company’s strong partnerships with fair trade coffee growers in MCC partner countries that help promote food security and long-term prosperity. Jessica Matthews and Julia Silverman of Uncharted Play were presented the Next Generation Award by DC United star player Dwayne De Rosario for their SOCCKET, a clever soccer ball invention that doubles as an eco-friendly portable generator. By forging partnerships with sponsors and local implementation partners around the world, the SOCCKET creators have ensured that minutes of play can lead to hours of electricity for those families struggling off the electrical grid. These honorees demonstrate what is possible through partnering. I invite you to learn more about their stories and be inspired by their compassion and creativity to uplift the poor and vulnerable.
We were also pleased that Senator Patrick Leahy of Vermont and Deputy National Security Advisor Michael Froman could join us. Senator Leahy concluded the Forum by presenting MCC’s Corporate Award and reaffirming that partnerships are key to delivering development assistance effectively. Mr. Froman highlighted the importance of integrated and coordinated strategies, including input from MCC as well as private companies, to the Administration’s global development strategy.
What continues to resonate with me from this week’s Forum is the sheer determination and commitment by government, civil society and the private sector to do more by partnering more. This is what has made—and will continue to make—a tangible difference in the lives of the world’s poor.
Posted on March 1, 2013 by Andria Hayes-Birchler, Senior Development Policy Officer
In addition to the obvious role MCC’s scorecards play in selecting MCC’s partner countries, many people have suggested the scorecards provide an incentive for countries to reform policies, strengthen institutions and improve data quality in order to become more competitive for MCC assistance. This is referred to as the “MCC Effect.”
But does the MCC Effect really exist? And if so, how influential is it? Are there circumstances where it may be more or less influential?
Brad Parks and Zach Rice at the College of William and Mary explore these questions in a recently released paper entitled “Measuring the Policy Influence of the Millennium Challenge Corporation: A Survey Based Approach.” Parks and Rice present results of their survey of 640 MCC stakeholders, including foreign government officials, U.S. Government officials, contractors, civil society, and private sector members. For those of you disinclined to read the full 128-page report (although you should!), the authors also published a brief synopsis of their findings.
The good news for MCC? Parks and Rice find evidence to support the idea that the prospect of MCC eligibility has served as an effective incentive for policy reform. In fact, 92 percent of respondents stated that the MCC scorecards had an impact on reform efforts (ranging from “marginal impact to few important reform efforts” to “instrumental to many reform efforts”), and respondents identified 67 governments that undertook reforms to improve performance of their country on at least one of the MCC eligibility indicators.
Here’s what else the report found: The MCC Effect seems to be particularly strong in Threshold Program countries, where 68 percent of respondents from these countries reported that the MCC eligibility criteria were either “central to a few important reform efforts” or “instrumental to many important reform efforts.” Among respondents from compact countries, 64 percent reported that the MCC eligibility criteria were either “central to a few important reform efforts” or “instrumental to many important reform efforts.”
And among respondents from candidate countries—which have never received a single dollar in MCC assistance—41 percent reported that the MCC eligibility criteria were either “central to a few important reform efforts” or “instrumental to many important reform efforts.”
According to the paper, development stakeholders recognize the MCC scorecard as an influential policy assessment. When asked to identify the three most influential external assessments of government performance from a list of 18 options, respondents repeatedly identified the Millennium Challenge Account eligibility criteria and the United Nations Millennium Development Goals.
MCC is delighted to see such strong indications of the MCC Effect in the survey data. As the Center for Global Development points out, these findings are based on the perceptions of MCC stakeholders and additional work is needed to ground-truth these perceptions. MCC recently released an issue brief on the MCC Effect , which outlines how MCC defines the MCC effect, highlights additional findings from the Parks and Rice survey and lists illustrative examples of the MCC Effect in action.
We welcome additional examples and empirical research on the topic from MCC stakeholders, independent evaluators and academics; please e-mail me to share or request additional information.
Posted on December 12, 2012 by Courtney Engelke , Director
Many people in the United States and Mongolia refer to Mongolia’s Energy and Environment Project as “the stoves program.” While it is true that the project has successfully supported consumer purchases of more than 90,000 stoves in Ulaanbaatar, did you know that it also supported the purchase of nearly 25,000 other energy-efficient appliances like insulation, vestibules and energy efficient homes? Did you know that the project also supported small grants for greening and air quality research and the replacement of 15 heat only boilers at 10 student and residential sites throughout the city, representing more than 8 megawatts of heating capacity? And did you know that approximately $6.6 million of the project budget is dedicated to infrastructure and other support for the 50-megawatt wind farm now under construction at Salkhit Mountain?
The project recognized early on that it would not be able to resolve the capital city’s air pollution problem by itself, so we planned to make additional contributions beyond stoves in an effort to demonstrate what works. The Energy and Environment Project intends to provide a short term “bridge” to longer term solutions, such as developing a commercial market for energy efficient products, which we hope might be brought about through the application and enforcement of standards, certification and labeling policies, competition, and affordable finance, and providing more permanent housing and municipal infrastructure.
On my most recent visit to Mongolia, I confirmed that 15 heat only boilers were replaced with more efficient technologies and wet scrubbers to control particulate emissions. I also visited the expanded and upgraded Nalaikh substation, and confirmed the installation of a fiber optic cable that links that substation to the National Dispatching Center control system. I was also pleased to see the first three of 31 General Electric turbines installed at the very windy Salkhit site—a major step toward making the planned wind farm a reality.
The Energy and Environment Project will connect the wind farm to the national grid and train electrical dispatchers to manage variable power with the help of a dispatch training simulator. These achievements would have been impossible without the concerted cooperation of MCA-Mongolia, its consultants, contractors, the Ulaanbaatar government, the national grid company, the national dispatching center, and Clean Energy LLC, the sponsor of the Salkhit wind farm.
Each time I visit Mongolia, I increasingly see the positive impact that stoves are having on air quality and the daily lives of Ulaanbaatar’s poor. What I had not seen until this trip was the project’s larger-scale emissions control initiatives, such as the replacement of the boilers and progress toward the displacement of approximately 50 megawatts of thermal generation that will result from the Salkhit wind farm. As our experience has shown, controlling emissions at the household level in the ger districts is an incredible challenge. Single source solutions represented by heat-only boilers and the Salkhit wind farm demonstrate opportunities to control and reduce air pollution at greater scale, which we hope will help Mongolia more rapidly achieve and sustain its air quality goals.
Posted on December 6, 2012 by Howard W. Buffett, Executive Director, The Howard G. Buffett Foundation
The role of philanthropy is changing for the better, and with the October 24th release of its first five impact evaluations, the Millennium Challenge Corporation (MCC) is helping lead that change. For too long, funding for development – both private and public – has not been held accountable on measuring real impact. There are many reasons for this. It can be challenging, time-consuming and expensive to determine precisely which elements of complex aid packages are reducing poverty, and it can be even more difficult to justify investing in building evidence for what works when resources are scarce and the development need is so great. Any philanthropist constantly faces this tension, and we have found that it becomes tempting to look only at easily measurable activities like farmer training or direct measures of success like improving farmer yields – areas where we can directly observe how we are addressing poverty. The truth is, this approach both inhibits creative solutions and confines long-term decision-making. In the end, until we know what really works and why, we are destined to repeat the mistakes of the past and run the risk of missing enormous opportunities to build support for the real “game changers.”
I learned firsthand about MCC’s work when I served in government, and I often find myself gaining new insights from their experiences. Their recent release of the analysis of their impact evaluation is one of those moments. In fact, of the five impact evaluations just released, The Howard G. Buffett Foundation’s interests overlap with four of them: we also do smallholder farming training in El Salvador, Nicaragua, Honduras, and Ghana. Given the scale at which MCC works, we contacted them to learn as much as we could from their experience.
MCC has some important lessons for the development community – other U.S. agencies, donors, multinational corporations working in emerging markets, and philanthropies alike stand to learn a great deal. In the recently released “Impact Evaluations of Agriculture Projects,” part of MCC’s compelling Principles into Practice series, they have identified five key maxims that should be taken into account by all of us:
- Define early the program logic and objectives of the evaluation, and how to integrate the two.
- Engage early and communicate often.
- Foster joint ownership by aligning incentives.
- Match evaluation methodology and program design.
- Focus on long-term impacts but be prepared to show early results.
Gaining these important insights has taken time, expertise and resiliency. As MCC has been bold to admit, in a refreshingly forthright and transparent fashion, it also takes occasional failures. As our foundation has learned, mistakes are unavoidable, but they only truly become mistakes when you fail to learn from them. Our foundation has spent the last 15 years and over $300 million across more than 70 countries, and we have made our fair share of errors along the way. Without rigorous evaluations to understand why goals are not always fully achieved, we can miss out on learning from those mistakes and miss the opportunity to share that learning with others.
MCC’s first set of independent impact evaluations raises some interesting questions about training farmers and how to measure the most important impact we all want to achieve: fostering prosperity and improving livelihoods. For example, in the three projects where MCC’s investments in training and improved inputs led to increased farmer incomes, these increases did not also result in increased income for the household as a whole. How can this be true? MCC has several theories: small farmer households typically derive income from a number of sources and it may be that increased farm income reduces the pressure to produce income elsewhere; it may be a data collection problem where current measures of household income are not accurately capturing reality; or it may be some other reason. MCC does not yet have a definitive answer, but by identifying the question, they can better guide their analysis of existing data and improve the data collection for the pipeline of project evaluations that are in process to find the answer. This will in turn inform program design, which will help all of us investing in farmer training. MCC’s approach and knowledge base has already encouraged our foundation to make a larger investment in agriculture in El Salvador, and it has informed the design of a new initiative that we are beginning in Ghana.
Learning lessons in the absence of a strong evaluation mechanism is a painful, time-consuming and expensive way to learn, but it is not uncommon in development. By focusing on learning as much as we have focused on doing, we can all become smarter, more efficient and more focused on ideas that actually have more lasting impact in the long run. That’s why MCC’s approach is effective: they invest in accountability and transparency upfront so they can learn faster and improve their work more quickly and cost-effectively over the long-run. By sharing that knowledge with all of us, we all have the opportunity to learn.
This transparency and honesty sets an example for our sector, and we all stand to benefit by being more efficient in our investments. MCC’s first five impact evaluations are a landmark step toward smarter, better and more accountable development around the world –and at a time when it could not be needed more.
Posted on August 24, 2012 by Oliver Pierson, Resident Country Director
MCC and our counterparts at MCA-Namibia are proud to see that Namibia has been chosen to host the 10th Adventure Travel World Summit (ATWS) taking place in October 2013. The ATWS will draw around 600 delegates and many of the biggest players in the adventure travel tourism industry to Namibia to discuss industry best practices and collaborate on issues facing adventure travel.
MCA-Namibia provided support to the Namibian Ministry of Environment and Tourism in developing Namibia’s bid to host the summit. The MCC-funded tourism project in Namibia, part of the country’s overall $304.5 million compact, is focused around encouraging private investment in the tourism industry, supporting communal conservancies to establish and manage tourism enterprises, and broadening the marketing of Namibia as a tourist destination.
MCC has also worked toward increasing the capacity of Namibia’s tourism industry and improving its management by funding training courses toward the certification of Namibian tour guides. The training courses create new jobs in the sector and work to promote a skilled and educated labor force to cater to the needs of a growing tourist industry. Tourism, already Namibia’s second-most lucrative industry, has the potential to be a strong source of economic growth, helping create more jobs and reduce poverty.
The selection of Namibia, the first African country to host the ATWS, will highlight Namibia’s tourism industry and ideally foster opportunities to build on MCC-funded work in this key sector and drive new private sector investments in tourism.
For more information about the Namibia Compact, visit www.mcc.gov/namibia.
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 August 3, 2012 by Molly Glenn, Deputy Resident Country Director
This June, I traveled to Pissila, in the Sanmatega province of Burkina Faso. I was there to attend the closing ceremony for the Burkinabé Response to Improve Girls’ Chances to Succeed (BRIGHT) II Project, funded through the MCC compact with Burkina Faso. Speaking with students, teachers and parents participating in the BRIGHT II Project, I truly experienced firsthand the benefits of MCC’s investment.
The BRIGHT program is a collaborative effort of the United States and Burkina Faso to improve rates of children’s primary school attendance, completion, and promotion to secondary schools. To date, the program, including work performed under the MCC compact, has educated over 27,000 students, including 16,000 girls, and has built 132 primary schools across 10 provinces. The numbers are impressive—but they don’t tell the whole story.
In Pissila, the success and visibility of the BRIGHT program was evident from the high-level participation at the well-attended closing ceremony. The Prime Minister of Burkina Faso, Luc Adolphe Tiao; the Minister of Education and Literacy, Koumba Boly; and U.S. Ambassador Thomas Dougherty were all on hand to share in the celebration. Officials from MCC, USAID, and Plan International were also present. The stars of the show, however, were the 500 students from the BRIGHT school of Pissila, who were as proud as could be to show off their school and accomplishments.
We arrived early on Thursday morning to enthusiastic cheers and waves from students of all ages. Three large tents were set up at the center of the school, flanked by new classrooms, offices and teacher housing. Boys and girls, waving American and Burkinabé flags and proudly wearing their school shirts displaying the BRIGHT II emblem, greeted the prime minister and U.S. ambassador as they arrived. The atmosphere radiated with excitement and joy; students and teachers alike were proud that their school had been selected to host such an event.
The moving speeches and lively performances diverted our attention from the hot Burkina Faso sun and 100+ degree temperatures. Enthralling music and traditional dances had the whole crowd applauding, especially for the youngest dancer in a local troupe who was able to shake the prime minister’s hand. Later, Celia Ella Kafando, a fifth-grader, courageously took to the podium to make a speech on behalf of the students of Pissila.
Though her head barely reached the top of the podium, Celia spoke with a clear and strong voice, thanking MCC and the American people for building her school. To the visible enjoyment of the prime minister, the education minister (one of Burkina Faso’s two female ministers) and the region’s governor (also a woman), Celia shared that many of her fellow students aspired to become governors and ministers thanks to their education. Everyone smiled when the prime minister and education minister were given the “key” to the school, a beautiful, symbolic oversized key made by Burkinabe bronze workers.
The prime minister’s speech was unexpectedly touching and honest. Speaking directly to the students, he admitted that school was not always easy, recognizing that most of them had to move away from home, learn a new language (though French is the official language, over 60 languages are spoken in Burkina Faso) and—perhaps the most universal problem of all—wake up early to get to class. He encouraged the students not to give up and to follow their dreams. Ambassador Dougherty echoed these sentiments in his speech, stating, “We hope each and every BRIGHT school graduate will have success in realizing their potential in the years to come.”
Though two more years remain until the compact’s end, it was encouraging to see such a successful closeout of this project. The Government of Burkina Faso has pledged to maintain the schools and remain committed to supporting girls’ education. In the words of Prime Minister Tiao, “The American people can trust us. We will take care to meet the challenges of underdevelopment.”
For more information about the Burkina Faso Compact, visit www.mcc.gov/burkinafaso.
Posted on July 30, 2012 by Steve Kaufmann, Chief of Staff
While visiting our compact work sites in Senegal last week, I was struck by the ways in which water can both take and support life. My first site visit took me to the village of Ndioum, where MCC is working with MCA-Senegal to build a 160 meter bridge over the Doué River. Now, to get from their homes to their fields, many of the residents must take either pirogues (small canoe-like boats) or a ferry which runs infrequently and is often under repair. Tragically, fatal accidents can occur when pirogues tip due to strong currents or poor weight distribution.
After surveying the work site, my colleagues and I struck up conversation with two village elders. The elders explained that they have been waiting for over 25 years for a bridge to be built. While we were speaking, a young boy named Masseck joined our conversation. He was excited for the bridge to be completed; he told us that his older brother had drowned while crossing the river, and he didn’t want to lose another family member. We knew the river was dangerous, but Masseck’s story reminded us of the urgency of completing construction of the Ndioum Bridge. It will not only save lives, but will improve access to the fertile lands across the river and help farmers get their crops to market.
As we were touring the site, a man approached our car and asked if he could take us to visit the old irrigation pump in the Ngallenka area. We agreed, and upon arrival, our new friend, Mamadou Alanane Hame, began to speak passionately about his experience working with MCC.
Mr. Hame emphasized the participatory decision-making process that allowed him, as an expected beneficiary, to voice his opinions on the project. He remembered that during compact consultations, community members had talked about the importance of irrigation to help assure food security in the region. Now, with improved means to bring critical water to agricultural fields, the local population will plant crops and boost their yields. This unsolicited praise provided strong reinforcement for the importance of MCC’s transparent practices and our commitment to listening to beneficiaries and our partner countries.
Reflecting on my trip, the importance of water is more striking than ever. The agricultural viability of the Sahel, a zone that extends the entire width of Africa from Senegal in the west to Eritrea in the east, is rapidly decreasing as desertification claims an increasingly large amount of previously fertile land every year. As the inhabitants of the Sahel find themselves at greater risk of famine, the difference between food security and insecurity can be the difference between life and death.
MCC has reason to be proud for investing in over 30,000 hectares of irrigated land in Senegal, which is expected to directly benefit more than 250,000 individuals. In partnership with MCA-Senegal and the residents of Ndioum and the Ngallenka area, MCC is implementing water and infrastructure projects that will help to save lives, promote economic growth and reduce poverty.
For more information about the Senegal Compact, visit www.mcc.gov/senegal.
Posted on June 14, 2012 by Sheila Herrling, Vice President for Policy and Evaluation
If imitation is the greatest form of flattery, MCC should be very flattered by changes happening in Morocco. CEO Daniel Yohannes and I just finished a visit to Morocco to see progress under MCC's $697.5 million compact in agriculture, artisanal fisheries and artisan development. Throughout our visit, one message rang loud and clear: MCC’s approach is changing the way Morocco does business.
At MCC, we talk a lot about a continuum of results, whereby we track the impact of our investments from policy reform and changed business practices to inputs, outputs and, eventually, outcomes largely measured through income gains for program beneficiaries. While we saw representations of the larger outputs achieved to date, we heard something equally interesting but harder to measure--that the Government of Morocco is applying the MCC model--transparency, accountability, results-focus, and standard-setting--to its own operations. Some quick examples cited by government officials:
• The Minister of Agriculture and Maritime Fisheries described the Morocco Compact’s Fruit Tree Productivity Project as the Government of Morocco’s model for farmer aggregation, one of two key pillars in its own agricultural development strategy or “Green Morocco Plan.” Like MCC, the Government of Morocco has committed to making agriculture an even greater growth engine in the country by focusing on the organization and professional development of farmers as a principal tool.
• The Minister of Finance and Economy applied MCC’s model when recently presenting the Government of Morocco’s first ever citizen-driven budget. In fact, he credited MCC on several occasions for inspiring participative public consultation in the design and implementation of newer Moroccan government programs.
• The Minister of Handicrafts is bringing MCC's high standards on social and environmental impact assessment to bear in broader Government of Morocco investments.
While we won't know the full impact of MCC's investments until some time after the end of the compact, in the meantime, it was gratifying to hear that MCC’s model is fast becoming the model of choice across the Government of Morocco.
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 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.
Posted on March 29, 2012 by Jonathan Brooks, Managing Director for Europe, Asia, Pacific, and Latin America
Although MCC's compact with Armenia closed at the end of September, the U.S. Embassy in Yerevan is ensuring the lessons we learned during our five-year partnership can improve the country’s future development projects.
The embassy’s new MCC Resource Center makes information regarding MCC’s $177 million investment available as a reference for future U.S. Government development projects, Armenians from the diaspora interested in building upon compact projects and others. The center includes an array of documents like farmer-training maps, public outreach documents, quarterly bulletins, and training materials.
The MCC Resource Center also provides embassy staff and visitors with information on MCA-Armenia’s successor, the Foreign Financed Projects Management Center (FFPMC). An FFPMC team led the compact development process, and we are pleased that they are involved again by helping monitor MCC’s investments over the next few years.
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 March 1, 2012 by Cassandra Q. Butts, Senior Advisor
Grade school students and teachers of the Bacjao Elementary School in Balangiga, Samar welcome MCC and MCA-Philippines teams on February 28, 2012. The public school is a recipient of two classrooms from the KALAHI-CIDSS project implemented by the Department of Social Welfare and Development.
I was in the province of Leyte in the Philippines on Tuesday to witness the signing of a Memorandum of Understanding by the municipality of Alang-Alang to begin participating in an innovative approach to development called Kalahi-CIDSS, which is included in the country’s MCC compact. Kalahi-CIDSS is a community-based approach to development that makes beneficiaries active participants in the selection, design and implementation of development projects that they believe are best for their communities.
While Kalahi-CIDSS isn't original to MCC—the program originally was funded in the Philippines by the World Bank—MCC's investment of $120 million will double the size and scale of the program and make it available to communities like Alang-Alang for the first time. MCC is also adding innovations in areas such as gender integration and environmental assessment, impact evaluation and engineering standards that will enhance the value of the program to beneficiaries as well as improve the sustainability of outcomes.
The hope is that Alang-Alang will find the same success with the program as the municipality of Balangiga experienced when it used Kalahi-CIDSS to build schools, a retaining wall to protect against typhoon flooding, a community road, and a bridge. Viscuso de Lira, the mayor of Balangiga, describes the Kalahi-CIDSS program as galvanizing community engagement in a way that had not been achieved before and building community support for sustaining projects that are the product of their own initiative and sweat equity.
MCC and the Millennium Challenge Account-Philippines are further using Kalahi-CIDSS to empower communities in a coordinated campaign against trafficking in persons, seeking to educate Kalahi-CIDSS communities as well as other communities impacted by our road project in the Samar region on preventing this global crime.
Kalahi-CIDSS is not only building and empowering communities but also promoting the principles of transparency and accountability in how development resources are used. This approach can be critical in improving local government at all levels of engagement.
Posted on February 28, 2012 by Tom Campbell, Senior Director
I served as a panelist today at an event MCC co-hosted with the World Wildlife Fund that focused on strategies, implementation and lessons learned from promoting community-driven approaches to natural resource management and eco-tourism in Namibia. We discussed the ways the Government of Namibia is involving the community in a wide-ranging approach to attract tourists while safeguarding the environment.
MCC hosted this event because of its compact with Namibia: a five-year, $305 million investment that is creating business opportunities and jobs in rural Namibia. Our focus today was the compact’s Tourism Project, which seeks to grow the tourism industry in northern communal areas and increase the income of households living in these communal areas.
To do this, MCC is working closely with Namibia’s Ministry of Environment and Tourism (MET), conservancies and the private sector to improve the management and infrastructure of Etosha National Park, enhance the marketing of Namibian tourism and develop conservancies’ capacity to sustainably manage their natural resources, attract investments in ecotourism and develop tourism skills.
Three examples illustrate our efforts:
Etosha Management and Infrastructure: MCC and MCA-Namibia are working with the Ministry of Environment and Tourism on reforms that will offer tourists a better product, encouraging longer stays and boosting revenues to the ministry and conservancies. MCC is also working with the Government of Namibia to open the western half of Etosha to tourism, which should also help attract additional tourists and revenue.
Conservancy Ecotourism Development: MCC and MCA-Namibia are helping conservancies increase their roles and benefits from tourism, generally through joint ventures with the private sector. MCA-Namibia has contracted with the World Wildlife Fund to provide technical assistance and training to 31 conservancies with high tourism potential. MCC funds are also being used for grants to leverage private sector investment in new tourism businesses. Through these partnerships, conservancies and the private sector develop agreements that lead to increased revenue and employment for the conservancies.
Two community joint venture lodges have already received partial grants, and we hope the compact will lead to as many as seven new lodges.
Marketing Namibian Tourism: To promote Namibia as an attractive tourism destination and to increase the number of tourists to the country, the Namibia Tourism Board has launched a redesigned website.
The Namibian delegation that attended today’s event are in Washington as part of the marketing campaign focused on increasing the number of American businesses that market vacations to Namibia, as well as increasing the number of tourists from the United States and Canada. This effort is already showing results: More than 120 travel agencies now offer trips to Namibia, up from 106 agencies at the beginning of the compact.
If you visit Namibia, you can be assured that your money is contributing to community-driven approaches that help increase incomes for some of the country’s poorest people.
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