Poverty Reduction Blog Tag: Output
Posted on August 3, 2012 by Preston Winter, Deputy Resident Country Director
The event was hosted by Santa Rosa Guachipilín, a small town situated on the newly-constructed Northern Transnational Highway, one of the key projects under the MCC-funded compact with El Salvador. The highway connects remote towns to the rest of the country and provides new economic opportunities for the residents of the Northern Zone. As part of this investment, more than 220 kilometers of road, three large bridges, and 20 smaller bridges have been rehabilitated or constructed in northern El Salvador to help improve connectivity with the rest of the country. Given the mountainous terrain, the highway also happens to be a great place for a downhill skateboarding event, drawing competitors from around Latin America and even the United States.
It was a joy to see so many Salvadorans, both young and old, enjoying the event. More than 45 skateboarders flew down the course at up to 45 mph. The highway, smoothly paved and ideal for such an event, overlooks the green mountains of the Department of Santa Ana. In between heats, we also enjoyed a variety of pupusas, local versions of shaved ice and other food that local vendors offered.
The mayor was very pleased to have such a strong turnout. Before the construction, it would have been rare to have a gathering of Salvadorans from various parts of the country, including many who had never before seen the town. Now it is only a short drive from nearby towns and major highways, opening up opportunities for visitors to enjoy the natural beauty that this region has to offer and attend unique events like this one.
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 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.
Posted on February 15, 2012 by Daniel W. Yohannes, Chief Executive Officer
I just witnessed an incredible celebration here in Ghana: thousands of people rejoicing at the opening of the long-awaited N1 highway—renamed the George Walker Bush Motorway—which links the capital, Accra, with major ports, the international airport and the country’s major agricultural regions. This has been a Ghanaian dream since 1965, and it’s finally coming true.
As I drove down the road, thousands of people that live along the road greeted us. School children celebrated. People stood on banisters to catch a better glimpse of the celebration, and crowds waved from their nearby apartments.
There was dancing and chanting. The American and Ghanaian flags swayed together. A nearby large banner read, “Thank you, America.” The celebration resonated deeply with me.
MCC helped improve a 14-kilometer stretch of the highway as part of its five-year, $547 million compact. It runs through the heart of the capital city and for decades has been clogged with people and traffic. The need to widen the highway has been in the planning 40 years, but it only became a reality thanks to the Ghana and MCC partnership. It’s not hard to see why people were so excited.
The highway project was Ghana’s largest public works project in decades, and workers labored until the final minutes of compact closeout to ensure project completion. As President John Atta Mills told the crowd, “This is not President Kufuor's compact. This is not my compact. It’s Ghana's compact.”
During closeout speeches, the chief executive officer of Ghana’s MiDA, the entity in charge of implementing Ghana’s MCC compact, said it best: “MCC is the spearhead for development.” In Ghana, we certainly are spearheading a true partnership based on goodwill, trust and collaboration.
The opening of the N1 highway is a major event in Ghana’s development and a highly visible reminder of MCC’s partnership. It’s a milestone that transcends political parties, both in the U.S. and Ghana. And most importantly, it’s a reason all Ghanaians have to celebrate.
Posted on February 7, 2012 by Daniel W. Yohannes, Chief Executive Officer
I bought lunch today for the first time from a food truck. From Washington, D.C. to Los Angeles, food trucks are transforming how this country eats, offering alternatives for every culinary appetite. In the spirit of creative entrepreneurship, Morocco’s fish vendors leveraged MCC funding to pursue a similar concept and go mobile. That country’s MCC compact is replacing donkey-drawn carts with three-wheeled, heavy-duty motorbikes equipped with insulated ice chests, empowering Moroccan fish venders to sell more fish to more consumers with a focus on quality and freshness. More than this literal parallel, I think MCC and food trucks have a lot in common. Think about it.
Innovation: Both MCC and food trucks are built on innovation. Food trucks offer one or two signature dishes, giving proprietors the opportunity to highlight and celebrate their innovative food specialties, which might otherwise be lost on the full restaurant menu. MCC has taken more than half a century of development practices and incorporated the most innovative principles into our model for development effectiveness, focusing simultaneously on results, country-owned solutions, accountability, and transparency.
Technologically-powered: Because of Twitter, food trucks have proliferated. Technologically-savvy customers are turning to their mobile devices and online communities to track when and where their favorite food trucks will be serving. I saw the same positive use of technology in Armenia, for example, as farmers, benefitting from MCC’s investment in the most extensive modernization of the country’s irrigation system in 30 years, use their cell phones to obtain the latest market prices for their agriculture products to maximize sales. MCC compacts increasingly are leveraging the power of technology to achieve sustainable development and increase incomes, from computerizing banks in Ghana to give rural families and businesses efficient access to financial services, to optimizing global positioning systems in Benin for accurate land mapping to provide individuals with secure title to their property, to using latest breakthroughs to grow, irrigate and harvest quality crops that both promote greater food security a
nd make farmers more competitive in the marketplace.
Customer-driven: Given the long line I stood in, I am struck by how many people are drawn to the food truck experience. There’s obvious market demand. MCC, too, is approached constantly by countries eager to reform their policies and partner with us. The partnerships we do form with a select group of poor, but well-governed, countries are based on shared responsibility and mutual accountability to achieve their homegrown development solutions.
Just as food trucks serve a cornucopia of cuisines from around the world, MCC partners span the globe in a common drive to reduce poverty through economic growth. By opening gateways to opportunity, MCC’s worldwide partnerships help local businesses and entrepreneurs thrive, so that our development dollars, ultimately, can be replaced by economic growth led by the private sector.
I am preparing to travel to Africa this month to sign MCC’s compact with Cape Verde and to mark the completion of Ghana’s MCC compact. Such milestone events in these countries will serve as opportunities to see MCC’s approach to innovation, technology and country-owned development strategies in action. Check back to read my blogs from those upcoming travels. In the meantime, please let me know if there are any food trucks in Cape Verde and Ghana I should sample.
Posted on December 1, 2011 by Daniel W. Yohannes, Chief Executive Officer, MCC
The Fourth High Level Forum on Aid Effectiveness took place this week as government leaders from over 150 countries gathered to discuss progress made on donor promises to tackle global poverty. These discussions started with the Paris Declaration in 2004, then the Accra Agenda for Action in 2008 and continued in Busan. Delegates talked about “ownership,” “mutual accountability” and “outcomes.” Ownership is about countries determining and driving their own development priorities. Mutual accountability means we work in partnership—as donor and recipient countries—to achieve development solutions and share responsibility for successes and failures. And as partners, we are committed to delivering tangible outcomes and meaningful impacts–the ultimate result of any assistance.
MCC's Sheila Herrling, Daniel W. Yohannes, and David Weld participate in discussions at this week's 4th High Level Forum on Aid Effectiveness.
Achieving results was a major theme that weaved through discussions at Busan. Results-focused aid is a shared objective. Yet, an interesting set of questions around “how” and “for whom” remains. Who defines results? How are they obtained? Do process results no longer matter? Are we measuring results for donors, for recipients or for both? MCC brings much to the table in terms of putting a results-focused assistance program into practice. As Secretary of State Hillary Rodham Clinton said in her speech at the forum’s opening ceremony, MCC is a pioneer in measuring results. Some thoughts based on our experience at MCC:
First, how we pursue a results-focused approach matters. Country ownership is bigger and deeper than consultations around a national development strategy. As MCC Vice President Sheila Herrling mentioned during Tuesday’s Results Thematic Session, a big part of that ownership is how countries include civil society in results setting and results monitoring, and how countries and donors find ways to share that information transparently and accessibly with the public. During my remarks at the Results Plenary, I stressed that inclusive, country-driven development must embrace the voices of women because we know gender equality is key to development effectiveness. Efforts to more purposefully examine how a results agenda can strengthen country systems and institutions will ultimately lead to better and more sustainable outcomes.
Second, focusing on outcomes and impact is absolutely the right approach. That said, we should not lose sight of monitoring and evaluating policy reforms and intermediate targets, which help us establish the path to outcomes and impact. At MCC, we embrace an innovative “continuum of results” — tracking, measuring and publicly communicating results along the entire lifecycle of each country-determined program we fund, from inputs, to outputs, to policy reforms, and ultimately to measurable outcomes for beneficiaries. We count interim milestones met along the way because each one brings us a step closer to reaching the program goal. MCC’s continuum of results also includes post-program impact evaluations to help us improve accountability, determine if observed outcomes are attributable to MCC’s investments and to learn whether programs were designed correctly. Because MCC’s continuum of results is built on transparency and critical learning, it becomes a tool for assessing what works and does not work in development and what can be improved for the future.
Third, the question of “results for whom” got a lot of play in Busan. To be accountable to their own citizens, partner countries must answer this often difficult question and demonstrate how development resources are used and what results they achieve. As we discuss our drive for positive results, we must never lose sight of what an actual result means for ordinary men and women around the world. Ayesha Otibo, the chairwoman of a farmer-based organization comprised of 50 female rice processors in Ghana, received training on ways to develop her business and increase crop production. Ghanaian pineapple farmers, like Tony Botchway, used MCC support to seek new markets. Andre Soui-Guidi, a business owner in Benin, is now able to access credit in order to expand his operations and create more jobs for his fellow citizens. At the same time, we cannot and should not ignore the fact that results matter also for the taxpayers of donor countries who, even during these challenging economic times, want to continue funding for development. Our ability to demonstrate that their investments are paying off—that developing countries are improving governance and democratic rights, assistance is reaching the poor, and investments are yielding positive returns--is critical to sustaining strong development cooperation.
Lastly, international events like Busan tend to focus on what hasn’t been achieved. That’s fine in terms of accountability and the need to keep progressing toward commitments. But, let’s remember the real advancements made, including by the United States. Major U.S. development efforts—from the multilateral development banks, to Feed the Future, to Partnership for Growth, to MCC—all emphasize inclusive, country-led, outcomes-focused approaches. For MCC’s part, we look forward to continuing our work to break new ground in advancing and innovating on development effectiveness, and putting principles in this area into practice.
Posted on December 1, 2011 by Daniel W. Yohannes, Chief Executive Officer, MCC, and Rajiv Shah, Administrator, U.S. Agency for International Development
This post first appeared on DipNote, the official blog of the U.S. Department of State, on November 30, 2011.
Under an initiative called Partnership for Growth, the United States, El Salvador, Ghana, Philippines and Tanzania are pioneering a new approach to long-term, sustainable development.
PFG is designed to transform the character and conduct of our bilateral relationships with a select group of high-performing lower-income countries poised to be this generation's emerging markets. The initiative aims to improve coordination, leverage private investment, and focus political commitment to accelerate and sustain broad-based economic growth. With mechanisms in place to hold us accountable for more effective, efficient development results, PFG puts President Obama's Presidential Policy Directive on Global Development into action.
Today marked the first time we have convened a meeting with the United States and all four PFG partners. The setting is especially significant: we are all gathered in Busan, South Korea for the Fourth High Level Forum on Aid Effectiveness. Throughout our meetings, we have focused extensively on ways to deliver meaningful results, ensure mutual accountability and empower country ownership.
State Department Counselor and Chief of Staff Cheryl Mills led the meeting with El Salvador Foreign Minister Hugo Martinez, Ghanaian Deputy Minister of Finance and Economic Planning Fiifi Kwetey, Philippine Minister of Finance Cesar Purisima, and Tanzanian Minister of Finance Mustafa Haidi Mkulo. After addressing the High Level Forum, Secretary Clinton was also able to join us.
We partnered with these countries based on their demonstrated commitment to democratic principles and good governance, their sound policy performance, their potential for continued economic growth, and their track record of cooperation with the United States.
The PFG is an attempt to approach development differently than we have done in the past. PFG is not about more aid; rather it is about fostering a mature economic partnership to unlock a country's growth potential. Together, we analyze the binding constraints to growth, prioritize a set of clear, measurable actions, and work to overcome those barriers through five-year action plans. Along the way, we review our progress through a formal evaluation process or in more informal meetings, as we did today.
Our PFG partners are all at different stages of this process and have unique insights to share. We had frank discussions about the challenges each country faces, and how the U.S. government can improve coordination to assist these countries in strengthening long-term economic growth. We applaud El Salvador, Ghana, Philippines, and Tanzania for their commitment to taking the difficult steps required through the PFG, and look forward to continuing our close collaboration in the months ahead.
The session represented exactly why we have come to Busan this week: to take a hard look at our efforts, identify areas for strengthened coordination, and -- ultimately -- improve our ability to deliver effective development assistance.
Dr. Rajiv Shah serves as Administrator of the U.S. Agency for International Development (USAID), and Daniel W. Yohannes is the Chief Executive Officer of the Millennium Challenge Corporation (MCC).
Posted on October 23, 2011 by Daniel W.Yohannes , Chief Executive Officer
My travels as MCC CEO bring me to many memorable places, but it’s the people who inspire me the most. Nicolas Kinsou Ahouandjiinou is one such person who I met in the Beninese village of Djeregbe.
Nicolas was born in Djeregbe and his father was a traditional healer in the village. Nicolas earned degrees from the University of Benin and the Institute of Tropical Agriculture in Nigeria, and had been travelling the world as an agronomist. One day, more than 20 years ago, Nicolas’s father called him home with a request: use your degrees to adapt the use of native medicinal plants to the modern world.
During their conversation, Nicholas’s father gave him a 200-page notebook that contained his acquired knowledge of the medicinal properties of West African plants, including eucalyptus, lemongrass, laurel, chayote, and ginger. Paging through the notebook, Nicolas knew that he had to return to Djeregbe to realize his father’s dream.
After years of research and trial and error, Nicholas invented a process -- which he believes to be the first of its kind -- to mix the essential oils of traditional African medicinal plants with water to produce a flavored, bottled water. Having successfully mixed oil and water, and devised a way to modernize his father’s age-old practices, Nicholas then faced one more challenge: inadequate access to capital to grow his business, DETAREN SARL.
That’s where MCC came in. With grant support from our Access to Financial Services Project, DETAREN SARL purchased new machinery to produce and bottle the water. According to Nicolas, production has already increased from 1,200 to 8,000 bottles a day. The flavored water, which Nicolas named “Eau Noble,” is now sold in Benin and limited quantities are exported to Nigeria, Burkina Faso, Niger, and Togo. With his new capacity, Nicolas plans to double his staff to 15, and increase sales by expanding his distribution network to all of West Africa.
MCC has provided DETAREN SARL, and other members of the GATID consortium it has joined, with the assets and credibility they need to gain the attention of financial institutions like Bank of Africa and Oikocredit, which are working with the consortium to provide credit. Nicolas knows that access to credit is essential to growing his business and realizing his dreams -- and the dreams of his father.
Nicolas’s story shows that the entrepreneurial spirit is alive and well in Benin. DETAREN SARL exemplifies the transformation that is happening all over Africa as old traditions give rise to new ways of thinking and new ways of doing business. MCC is proud to be working with entrepreneurs and innovators like Nicolas who are trailblazing Africa’s path to prosperity in the 21st century.
Posted on August 22, 2011 by Valeria R. McFarren , Implementation Communications Officer
The Port of Cotonou is often described as the lungs of Benin: It breathes in revenue that gives life to Benin’s economy. In fact, 50 percent of Benin’s state income and 85 percent of all customs income originates there.
The port is also a gateway to landlocked West African countries. Ninety percent of all imports arrive through the port, with approximately 54 percent of them destined for hinterland countries such as Burkina Faso, Mali, and Niger. However, high shipping costs, low efficiency, and poor logistical facilities have limited the Port of Cotonou from becoming an even more important trade route, affecting its competitiveness as a springboard to neighboring countries. In 2006, the Millennium Challenge Corporation (MCC) and the Government of Benin, in recognition that an efficient port is a driver of GDP growth, embarked on an investment program of $188 million in port improvements. This $188 million project is part of Benin’s $307 million MCC compact.
I was in Benin two weeks ago visiting the port, and was impressed by the size and magnitude of this MCC/MCA-Benin project. To design and implement major infrastructure improvements and tackle institutional reform in Benin’s only port – within MCC’s five-year timeline – is a significant undertaking.
As the project concludes, port improvements will surely be visible, but all the sweat, tears, and hard work behind it may be forgotten. This is my tribute to process: a behind-the-scenes look at the Port of Cotonou.
- According to independent reports from the International Finance Corporation, around 450 people were employed for port reconstruction over the last two years.• 360,000 tons of rocks were hauled in to extend the jetty, a structure used to prevent the build-up of sediment in the port, by 300 meters. This barrier significantly reduces the amount of sand in the port entrance channel area, reducing maintenance costs for dredging of the port. Construction was completed in December 2010, six months ahead of schedule.
- The railway from Cotonou to Parakou, which had been non-functional for six years, was put back to work bringing rocks for construction to the port. This required approximately 30 trips.
- Most of the rocks were supplied by truck. Approximately 100 to 120 trucks per day were loaded with rocks, each weighing one to three tons, and made the 150-kilometer trip from the quarry to the port.
- Three teams of trained divers were brought in to install scour protection at the base of the new quay wall. This protects the sea floor from forming destabilizing holes and ensures that more boats can continue using the port.
- One and half months of construction took place underwater.
- Rigorous safety protocols and environmental safeguards were in place—several months of staff time were dedicated to providing educational briefings about construction safety hazards and HIV/AIDS awareness.
- Approximately 150,000 tons of concrete were used to build the three-foot-thick quay walls, parking areas, and over five kilometers of roads, including a three-kilometer road around the port.
- In coordination with the MCC/MCA-Benin project, the Government of Benin successfully negotiated a concession agreement with the French company Bolloré, who will manage a new container terminal at the port’s new quay for 25 years after the compact ends. The agreement includes $200 million in concession fees during the first eight years of operation, and investment in operating equipment and civil works of $256 million over the life of the concession.
- Dredging the port is almost complete. This project will increase the depth of the port basin from 12 meters to 15 meters, allowing up to 250-meter-long container vessels access to the new quay berth. Bigger boats mean more containers per boat, increasing volume of imports and exports.
MCC always operates with the bottom line in mind: How does this port contribute to economic growth? The answer is that a more efficient, higher capacity, and safer port reduces ships’ waiting time at anchor, waiting time at berth, and customs clearance times, which reduces shipping costs. For imports, this reduces the cost of goods to Benin and its neighbors. For exports, the reduction in shipping costs and time makes Benin – and its neighbors using the port -- more competitive and spurs their growth.
According to Henning Stehli, the port advisor hired by MCA-Benin, approximately 50,000 people earn a living off the port, both directly and indirectly. A few examples include fishermen, truckers, longshoremen, those buying and selling goods, and those involved in insurance and security. For instance, the dockers tend to be responsible not only for their immediate families but also those who live with them: children, parents, siblings, and extended families. Each docker’s income maintains a household of an average of 10 people. Even being conservative with figures, Henning sees at least half a million Beninese depending on the port for survival on a daily basis.
Henning sums it up nicely: “The MCC gift came to the right place... It is having and will have a great impact. However, excellent management is needed – the Government of Benin must gift its people back by making sure they take care and make good use of this investment.”
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