Poverty Reduction Blog Tag: Investment
Posted on May 10, 2013 by Daniel W. Yohannes, Chief Executive Officer
What will it take to deliver on Africa’s economic promise?
On my way to compact closeout activities in Lesotho, I had the opportunity to attend some sessions at the World Economic Forum on Africa in Cape Town to help answer that very question. The energy and excitement generated by 12 heads of state, five former presidents and over 1,000 participants from the private sector, government ministries, nongovernmental organizations, foundations, and development agencies inspired new thinking on unlocking Africa’s promise. And, I am particularly proud that MCC was able to play a part.
MCC participated in key discussions at the Forum that focused on some of the most fundamental building blocks for economic growth. We talked about strengthening land rights and governance. We highlighted the importance of policy reforms in the energy sector as key for sustaining other investments. We emphasized that helping African farmers boost trade regionally and beyond really depends on expanding their productivity to include a competitive range of diverse, high-quality products. MCC continues to be among the largest investors in African infrastructure for trade, but we first need to help equip African farmers and entrepreneurs with the necessary skills to generate the income-producing goods and services that will reach markets via the roads, bridges, ports, and airports we construct.
The World Economic Forum created a unique space to foster the kind of partnerships that can accelerate progress on these and other issues vital for Africa’s sustainable development. By partnering within the U.S. Government on a coordinated energy and trade strategy toward the continent, with African countries who know their development priorities best, and throughout the development and business community, we are working to create tangible opportunities to deliver on Africa’s promise and improve the lives of Africa’s people in meaningful and lasting ways. This commitment reverberated throughout the Forum and will continue to define MCC’s work in Africa.
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 February 15, 2013 by Daniel W. Yohannes, Chief Executive Officer
In the State of the Union address earlier this week, President Obama highlighted the urgent need to make progress in the world’s most impoverished countries. He spoke about empowering women and youth, helping communities feed and educate themselves and connecting more of the world’s poor to the opportunities of a thriving global economy. The President’s eloquent statement that “progress in the most impoverished parts of our world enriches us all” is what motivates much of MCC’s work as we partner with developing countries to reduce poverty through economic growth. Take for example the enormous strides MCC continues to make in advancing gender integration and food security for the world’s poor so that economic growth can be as inclusive and sustainable as possible.
I am also proud of the ways MCC supports the President’s agenda to boost American exports and create opportunity for American businesses. Our own economic prosperity is linked inextricably to economic prosperity around the world. MCC's goal is not only to lift poor countries out of poverty but also to create stable trading and investment partners for the United States over the long term. By making investments targeted at unlocking the constraints to growth in developing markets, MCC serves as a gateway to opportunity for local and American companies eager to invest, tap new consumers and grow. The day after the President’s State of the Union address, MCC hosted a number of private sector companies for a comprehensive discussion on finance, investment, trade, and collaboration opportunities throughout MCC partner countries.
The President also spoke about the need to “stand with citizens as they demand their universal rights, and support stable transitions to democracy.” MCC is already a strong catalyst for incentivizing policy reforms that help create an enabling environment for trade and investment. In addition, our focus on sound democratic governance and on standing up to corruption highlights MCC’s most distinctive approach to development: We only partner with those poor countries that have objectively demonstrated their commitment to sound policies focused on ruling justly, investing in their people and pursuing economic freedom.
The President’s vision for creating economic opportunity and well-being at home is furthered as we open markets and reduce poverty around the world. In pursuit of this vision, MCC will continue to contribute in tangible ways to advancing our common prosperity. By creating real change in the lives of the world’s poorest, focusing on markets of opportunity for trade, investment and job creation and supporting policy reforms that promote fundamental rights and values, we are doing our part at MCC to deliver on the President’s vision to “remember that today’s world presents not just dangers, not just threats, it presents opportunities.”
Posted on February 14, 2013 by Alice Riedel, Lesotho Deputy Resident Country Director
I had the honor of taking part in handing over the newly constructed Lesotho Blood Transfusion Services Center last month. MCC invested in the new center—which is expected to collect 5,000 blood units in 2013, compared to 3,381 in 2008—to help improve health services in Lesotho.
The country’s former blood transfusion center was too small; it lacked proper equipment and operated from a rented property in Maseru that was not designed to provide transfusion services. The new center, part of MCC’s five-year, $363 million compact with Lesotho, provides a dedicated central facility for collecting and processing blood to supply nearby hospitals.
MCC also invested in a mobile blood collection vehicle that will collect and transfer blood to the new center for screening.
“The new center is a huge achievement for the Ministry of Health,” said Maleqhoa Nyopa, manager of the Lesotho Blood Transfusion Service.“We have been struggling to implement our activities effectively,” Nyopa said. “Now that we have been given this new building, which is bigger than the one we have been using, our work is going to improve tremendously. The building is large enough to allow us to store as much blood as possible, which will help save lives.”
In addition to this center, the compact’s Health Sector Project is designed to mitigate the negative economic impacts of poor maternal health, HIV/AIDS, tuberculosis, and other diseases. MCC is strengthening Lesotho’s health care system through the construction of up to 138 health centers spread across the country, hospital outpatient departments, staff housing, and a central laboratory and residences to accommodate National Health Training College students.
The infrastructure investments are so numerous and complex and cover such a vast geographic area, that it can be difficult to remember the real impact in the lives of individual Basotho. A colleague’s friend who works in a hospital in Lesotho recently shared with me some of the challenges of managing the blood supply here. He told me that having enough blood to serve all patients is extremely challenging because of the testing required, given the 24 percent rate of HIV prevalence. He is confident that the new blood center, along with blood drives, will alleviate some of these challenges.
I am proud to be part of an initiative that is helping improve health care in Lesotho in practical ways like making sure that there is adequate blood supply when a woman needs an emergency operation while giving birth. We are leaving behind tangible results.
Posted on December 21, 2012 by Randy Wood, Senegal deputy resident country director
The brightly dressed men on horseback caught my attention first, but then I saw the man leading a camel to the front of the stage.
I was in Ndioum, in northern Senegal, where the Prime Minister Abdoul Mbaye and U.S. Ambassador Lewis Lukens were celebrating the groundbreaking ceremony for the construction of a new bridge built with MCC investments. This is part of MCC’s rehabilitation of two national roads that will create reliable, cost-effective and time-saving means of transporting locally produced agricultural products, as well as stimulate domestic and trans-border traffic and commerce.
The sun was high overhead the Sahel, and there was dust in the air.
Few projects are as breathtaking as the construction of a bridge: Where once rural farmers and their families struggled to cross a swollen river to access schools, hospitals and other services, soon they’ll simply walk across a new bridge. Revolutionary! But the most revolutionary changes are sometimes the simplest: The Ndioum Bridge will not only link one of Senegal’s richest agricultural areas to the mainland, but it also will link the people of the area known as the Ile à Morphile to the rest of their country. It’s a riverine island, with branches of the Senegal River flowing around both sides of the island’s fertile fields.
In finally providing the people of Ndioum with a bridge, MCC is helping fulfill a promise made to the people of Ndioum more than 40 years ago.
It’s a promise the people have waited patiently to see become a reality. The horsemen and the camel herder weren’t elaborate props for the event; they were residents of Ndioum with their steeds, turned out in their finest traditional clothing to witness the groundbreaking and express their gratitude for the work and perseverance that led to overcoming Ndioum’s isolation after so many years.
It’s easy to lose perspective in the paperwork of making these projects a reality: the reports, the collaborative process, the endless email, the calendars and contracts, and the elaborate, technical terms of reference. But then you look up, and hundreds and hundreds of people have come out under the hot noonday sun in a swoon of emotion to express their gratitude for the project, and you realize that it’s not just a project and some deadlines. It’s a bit of infrastructure that is going to revolutionize the lives of Senegal’s poorest.
In two short years, the people of Ndioum won’t need to wait for the wooden canoe to take them across the river, won’t need to worry about flash floods roiling the river’s muddy surface and won’t need to worry if they need a doctor in the middle of the night.
That’s revolutionary. And that’s why we’re here.
Posted on November 30, 2012 by Marcel Ricou, Program Officer
About 23 percent of Lesotho’s population is infected with HIV/AIDS, one of the highest prevalence rates in the world. In response, MCC has invested $122 million in health infrastructure and to strengthen Lesotho’s health systems. A major portion of the Health Sector Project focuses on rehabilitating 138 health centers across the country, all of which play a pivotal role in providing primary health care to local communities. MCC’s investments leverage those from other donor and U.S. Government programs, including the President’s Emergency Plan For AIDS Relief, the Centers for Disease Control and Prevention, and the Global Fund to Fight AIDS, Tuberculosis and Malaria.
Program officer Marcel Ricou shows us how MCC and the Government of Lesotho are working together to combat HIV/AIDS.
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 July 17, 2012 by B. Tsolmon, MCA gender specialist and focal point, and L. Gerelmaa, MCA gender specialist and focal point
MCA-Mongolia’s commitment to gender integration in its compact has received praise on both sides of the Pacific.
We represented MCA-Mongolia at the inaugural MCC Forum on Global Development in April for receiving the Country Commitment Award. To commemorate this achievement, the Mongolian prime minister hosted a high-profile event in May to celebrate the accomplishment in our country as well.
“We can now witness a tangible impact on the lives of thousands of Mongolians as a result of the compact,” Prime Minister Sükhbaataryn Batbold said at the event at the Ministry of Foreign Affairs and Trade of Mongolia in Ulaanbaatar.
Not only are stakeholders in the U.S. now aware of the positive strides we’ve made with gender integration, but also ministers, cabinet members, and members of the public and press who attended the event in Ulanbaataar.
A compact beneficiary, Javzan T., shared her experiences and expressed her gratitude to MCC and MCA-Mongolia. Javzan T. is a single mother of eight who benefitted from the compact’s Property Rights Project by having exclusive rights to lease more than 600 hectares of rangeland.
“It is a great opportunity for us to develop our livestock business,” she said. “I would like to express my appreciation to the American people, who have stretched their helping hands to us from such a far place.”
We are very proud to champion the integration of gender considerations across a wide range of operational areas in the Mongolia Compact, including program implementation, communications and monitoring and evaluation. We conducted gender trainings with our program implementation units and contractors and established points of contact on gender issues in each unit. These measures are being reflected in more equitable benefits and have resulted in greater land ownership among women, herder training tailored to both women’s and men’s needs, and health interventions that are mindful of women’s and men’s needs in our communities.
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 June 7, 2012 by Daniel W. Yohannes , Chief Executive Officer
I am in Jordan, one of the world's driest countries, where severe water scarcity impacts every aspect of daily life.
I met with Fatima Ali, a widow, whose entire income is spent on rent. The water pipes to Fatima's home leak and the wastewater pipes overflow regularly. When water does flow in, Fatima uses old paint cans to store it because she does not have proper water storage containers. Fatima's neighbor, Sulaiman Ali (no relation to Fatima), has similar challenges. The diabetic father of three lacks proper water storage capabilities, and the inconsistent water supply makes operating his dialysis equipment extremely difficult.
MCC's $275 million compact with the Government of Jordan is designed to address some of these challenges.
Through the repair and replacement of broken or leaking pipes and the installation of proper water storage tanks, MCC will increase water availability and quality in poor neighborhoods like the one where Fatima and Sulaiman live. MCC's grant will also extend modern sewers to urban neighborhoods, improving wastewater collection and decommissioning the use of cesspits.
Today, I presided over the signing of a critical private sector agreement, a major step toward expanding the As Samra wastewater treatment plant. Originally built with help from the U.S. Agency for International Development, the As Samra wastewater treatment plant, once completed, will be one of the largest in the region. Approximately half of the financing for this expansion is being provided through private sector partners, proving once again that when governments create the right atmosphere for investment, the private sector will respond.
Together, these activities will benefit approximately 3 million Jordanians. For Fatima and Sulaiman, it means a better quality of life. For MCC, it means economic growth and development for a critical partner country in the Middle East. Truly, when water flows, prosperity follows.
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.
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.
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