Poverty Reduction Blog Tag: Sustainable Development
Posted on July 2, 2013 by Daniel W. Yohannes, Chief Executive Officer
Standing in front of a large gas-fired turbine engine supplied by General Electric—in a modern power plant owned by another American company, Symbion Power—President Barack Obama today discussed Power Africa, a groundbreaking initiative to expand power connectivity in Africa. I was pleased to witness this in Dar es Salaam, as this endeavor reaffirms the power of partnerships to make the promise of energy security a reality.
Symbion first came to Tanzania after winning two contracts through that country’s MCC compact. As you would expect from the private sector, Symbion quickly realized the economic opportunities in a growing market like Tanzania. Since arriving just a few years ago, the company has established itself, with American ingenuity and expertise, as a key player in the Tanzanian energy sector. Just last week in fact, Symbion and GE announced a partnership on yet another investment opportunity in Tanzania. This kind of growth for a U.S. company, after initially working with MCC, is a win-win for the private sector, the people of Tanzania and the United States. And, this is an excellent example of MCC funds serving as a strategic catalyst for additional private sector investment.
But MCC’s portfolio is not limited to one company. Another American company, Pike Electric of Mount Airy, North Carolina, competed for and won a contract financed by MCC to erect more than 800 kilometers of transmission and distribution lines in central Tanzania. Pike completed this project on time and on budget, as part of MCC’s larger partnership with the Tanzanian government to fund a total of nearly 3,000 kilometers of transmission and distribution lines. Millions of Tanzanians are now experiencing the benefits of reliable power. I was also in Tanzania in April to celebrate the inauguration of a 100 megawatt submarine power cable linking Zanzibar to the Tanzanian mainland. Because of this new link, more reliable power is already flowing.
According to a United Nations study, 47 countries in sub-Saharan Africa, excluding South Africa, generate about 30 gigawatts of electricity, which equals the generation capacity just in Argentina. Nearly a quarter of this capacity is not actually available, however, for a number of reasons. This means that sub-Saharan Africa has the world’s lowest electricity access rate at 24 percent; electricity access in rural areas plummets to 8 percent. To meet increasing demand, the study says that Africa’s power sector needs to install approximately 7,000 megawatts of new generation capacity annually. This translates into real market opportunities.
By working with partner countries to create well-functioning energy sectors that build institutional capacity, promote transparency and remove the legal and regulatory roadblocks for doing business, we are creating the right conditions and circumstances to attract more and more private power investments to meet the obvious demand. And, as President Obama noted, creating an enabling environment for greater private sector investment ultimately drives and sustains the economic growth that will make a meaningful difference in the lives of Africans and create real opportunities for even more American businesses like Pike Electric, Symbion Power and GE.
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 August 24, 2012 by Oliver Pierson, Resident Country Director
MCC and our counterparts at MCA-Namibia are proud to see that Namibia has been chosen to host the 10th Adventure Travel World Summit (ATWS) taking place in October 2013. The ATWS will draw around 600 delegates and many of the biggest players in the adventure travel tourism industry to Namibia to discuss industry best practices and collaborate on issues facing adventure travel.
MCA-Namibia provided support to the Namibian Ministry of Environment and Tourism in developing Namibia’s bid to host the summit. The MCC-funded tourism project in Namibia, part of the country’s overall $304.5 million compact, is focused around encouraging private investment in the tourism industry, supporting communal conservancies to establish and manage tourism enterprises, and broadening the marketing of Namibia as a tourist destination.
MCC has also worked toward increasing the capacity of Namibia’s tourism industry and improving its management by funding training courses toward the certification of Namibian tour guides. The training courses create new jobs in the sector and work to promote a skilled and educated labor force to cater to the needs of a growing tourist industry. Tourism, already Namibia’s second-most lucrative industry, has the potential to be a strong source of economic growth, helping create more jobs and reduce poverty.
The selection of Namibia, the first African country to host the ATWS, will highlight Namibia’s tourism industry and ideally foster opportunities to build on MCC-funded work in this key sector and drive new private sector investments in tourism.
For more information about the Namibia Compact, visit www.mcc.gov/namibia.
Posted on August 20, 2012 by B. Tsolmon and L. Gerelmaa, Millennium Challenge Account-Mongolia
Severe winter air pollution in Ulaanbaatar, the capital of Mongolia, has become a major concern for the city’s 1.3 million residents, which is nearly half the country’s total population. A majority of Ulaanbaatar’s air pollution comes from districts populated with gers, traditional Mongolian houses where lower-income households live.
Women head many of these ger households. They rely on burning raw coal in inefficient stoves to heat the poorly insulated gers—a primary source of the city's air pollution, which fuels environmental and health risks and causes economic impacts. To address this concern, a facility was established within the scope of the compact's Energy and Environment Project to fund financial incentives and technical assistance for adopting cleaner, more efficient technologies for use in heating the gers.
The project’s particular and positive impact on gender issues recently gained international attention with the July 2012 visit of Melanne Verveer, U.S. Ambassador-at-Large for Global Women’s Issues, as part of a women’s empowerment conference held in Mongolia.
Ambassador Verveer paid a visit to Norovkhand and her family in the Bayanzurkh district outside Ulaanbaatar. Norovkhand obtained a subsidized energy efficient stove through MCA-Mongolia, the local entity managing compact implementation. Norovkhand, a single mother of three and a grandmother of one, shared her experiences on how much coal she has saved in using her new stove, compared with the traditional stove she used previously.
Most importantly, the energy-efficient stove, she said, simplifies routine housework since it requires less fueling, generates less ash and is easy to clean.
“It is very affordable and accessible especially for female-headed households like us, given the subsidies provided by the project,” she said.
Norovkhand’s family is also among potential beneficiaries of the hashaa (yard) plot privatization and registration activity under the compact’s Property Rights Project. With their land formally registered, Norovkhand’s family and many others will have an opportunity to access bank credit, enabling them to make more productive use of their plots.
MCA-Mongolia is tracking the longer-term impacts of increased asset ownership through its monitoring and evaluation work, which also includes a complementary qualitative survey on how increasing asset ownership among women impacts household dynamics.
To track the difference the compact is making for Mongolians at both household and national levels, a number of gender-responsive actions are underway across the program to ensure that women and men benefit equitably from the compact, which is key for sustainable development and economic growth of benefit for all.
Posted on August 3, 2012 by Molly Glenn, Deputy Resident Country Director
This June, I traveled to Pissila, in the Sanmatega province of Burkina Faso. I was there to attend the closing ceremony for the Burkinabé Response to Improve Girls’ Chances to Succeed (BRIGHT) II Project, funded through the MCC compact with Burkina Faso. Speaking with students, teachers and parents participating in the BRIGHT II Project, I truly experienced firsthand the benefits of MCC’s investment.
The BRIGHT program is a collaborative effort of the United States and Burkina Faso to improve rates of children’s primary school attendance, completion, and promotion to secondary schools. To date, the program, including work performed under the MCC compact, has educated over 27,000 students, including 16,000 girls, and has built 132 primary schools across 10 provinces. The numbers are impressive—but they don’t tell the whole story.
In Pissila, the success and visibility of the BRIGHT program was evident from the high-level participation at the well-attended closing ceremony. The Prime Minister of Burkina Faso, Luc Adolphe Tiao; the Minister of Education and Literacy, Koumba Boly; and U.S. Ambassador Thomas Dougherty were all on hand to share in the celebration. Officials from MCC, USAID, and Plan International were also present. The stars of the show, however, were the 500 students from the BRIGHT school of Pissila, who were as proud as could be to show off their school and accomplishments.
We arrived early on Thursday morning to enthusiastic cheers and waves from students of all ages. Three large tents were set up at the center of the school, flanked by new classrooms, offices and teacher housing. Boys and girls, waving American and Burkinabé flags and proudly wearing their school shirts displaying the BRIGHT II emblem, greeted the prime minister and U.S. ambassador as they arrived. The atmosphere radiated with excitement and joy; students and teachers alike were proud that their school had been selected to host such an event.
The moving speeches and lively performances diverted our attention from the hot Burkina Faso sun and 100+ degree temperatures. Enthralling music and traditional dances had the whole crowd applauding, especially for the youngest dancer in a local troupe who was able to shake the prime minister’s hand. Later, Celia Ella Kafando, a fifth-grader, courageously took to the podium to make a speech on behalf of the students of Pissila.
Though her head barely reached the top of the podium, Celia spoke with a clear and strong voice, thanking MCC and the American people for building her school. To the visible enjoyment of the prime minister, the education minister (one of Burkina Faso’s two female ministers) and the region’s governor (also a woman), Celia shared that many of her fellow students aspired to become governors and ministers thanks to their education. Everyone smiled when the prime minister and education minister were given the “key” to the school, a beautiful, symbolic oversized key made by Burkinabe bronze workers.
The prime minister’s speech was unexpectedly touching and honest. Speaking directly to the students, he admitted that school was not always easy, recognizing that most of them had to move away from home, learn a new language (though French is the official language, over 60 languages are spoken in Burkina Faso) and—perhaps the most universal problem of all—wake up early to get to class. He encouraged the students not to give up and to follow their dreams. Ambassador Dougherty echoed these sentiments in his speech, stating, “We hope each and every BRIGHT school graduate will have success in realizing their potential in the years to come.”
Though two more years remain until the compact’s end, it was encouraging to see such a successful closeout of this project. The Government of Burkina Faso has pledged to maintain the schools and remain committed to supporting girls’ education. In the words of Prime Minister Tiao, “The American people can trust us. We will take care to meet the challenges of underdevelopment.”
For more information about the Burkina Faso Compact, visit www.mcc.gov/burkinafaso.
Posted on July 30, 2012 by Steve Kaufmann, Chief of Staff
While visiting our compact work sites in Senegal last week, I was struck by the ways in which water can both take and support life. My first site visit took me to the village of Ndioum, where MCC is working with MCA-Senegal to build a 160 meter bridge over the Doué River. Now, to get from their homes to their fields, many of the residents must take either pirogues (small canoe-like boats) or a ferry which runs infrequently and is often under repair. Tragically, fatal accidents can occur when pirogues tip due to strong currents or poor weight distribution.
After surveying the work site, my colleagues and I struck up conversation with two village elders. The elders explained that they have been waiting for over 25 years for a bridge to be built. While we were speaking, a young boy named Masseck joined our conversation. He was excited for the bridge to be completed; he told us that his older brother had drowned while crossing the river, and he didn’t want to lose another family member. We knew the river was dangerous, but Masseck’s story reminded us of the urgency of completing construction of the Ndioum Bridge. It will not only save lives, but will improve access to the fertile lands across the river and help farmers get their crops to market.
As we were touring the site, a man approached our car and asked if he could take us to visit the old irrigation pump in the Ngallenka area. We agreed, and upon arrival, our new friend, Mamadou Alanane Hame, began to speak passionately about his experience working with MCC.
Mr. Hame emphasized the participatory decision-making process that allowed him, as an expected beneficiary, to voice his opinions on the project. He remembered that during compact consultations, community members had talked about the importance of irrigation to help assure food security in the region. Now, with improved means to bring critical water to agricultural fields, the local population will plant crops and boost their yields. This unsolicited praise provided strong reinforcement for the importance of MCC’s transparent practices and our commitment to listening to beneficiaries and our partner countries.
Reflecting on my trip, the importance of water is more striking than ever. The agricultural viability of the Sahel, a zone that extends the entire width of Africa from Senegal in the west to Eritrea in the east, is rapidly decreasing as desertification claims an increasingly large amount of previously fertile land every year. As the inhabitants of the Sahel find themselves at greater risk of famine, the difference between food security and insecurity can be the difference between life and death.
MCC has reason to be proud for investing in over 30,000 hectares of irrigated land in Senegal, which is expected to directly benefit more than 250,000 individuals. In partnership with MCA-Senegal and the residents of Ndioum and the Ngallenka area, MCC is implementing water and infrastructure projects that will help to save lives, promote economic growth and reduce poverty.
For more information about the Senegal Compact, visit www.mcc.gov/senegal.
Posted on June 18, 2012 by Jon Anderson , Mali Resident Country Director
For the past five years, MCC has worked with Malian organizations on an ambitious and integrated program to develop more than 5,000 hectares of irrigated land in Mali's Alatona zone. The country-led project included large scale irrigation works, road improvements, rural infrastructure, investments in education and health, land reform and titling, rural financial services, and other activities designed to help almost 650,000 people.
I have lived in Mali for more than 18 years, and I can attest to the meaningful impact the project has had on beneficiaries’ lives.
However in May 2012, the MCC Board of Directors approved termination of the Mali Compact due to an undemocratic change in government and Mali’s non-compliance with MCC’s eligibility criteria. MCC and MCA-Mali are in the process of winding up the projects in Alatona and Bamako, and the compact will be terminated on or before August 31—sooner than would have been the case.
It was a very tough decision to make, but MCC works only with countries that uphold the principles of democratic governance and the rule of law. The military coup and recent events in Mali are in contradiction with those principles. Nevertheless we shouldn’t lose sight of the lives our projects impacted. One resident of the Alatona region, Aburu Sabu Sangare, was so grateful for the work we accomplished in his area that he put his thoughts down on paper in the local language and found a way to pass it along to the U.S. Government.
I wanted to share the letter with you to provide a sense of the accomplishments, the importance, the goodwill, and, frankly, the transformation the Mali Compact helped create.
Thank you MCA-Mali – by Aburu Sabu Sangare
When considering effort, perseverance and keeping one’s word, quality work is better than talk. There is currently a large American organization helping Mali to put an end to poverty, difficulty and suffering in a place called Alatona. Every strong person, give your best effort; every weak person, give your best effort! As for them [MCA-Mali], they have completed what was in their power to do. May God assist us.
In 2007, MCA-Mali sent interviewers to come to our region to ask questions in each village. From door to door, they asked questions of each family. They got along very well with all the inhabitants. No conflict arose between the interviewers and the interviewees. No one argued and the work was peaceful, pleasant, and joyful, without any bad feelings.
After these inquiries, they brought excavators and vehicles. All this equipment arrived and went out to work all over the area. Some machines removed trees. Other machines dug canals. Other vehicles were brought to transport workers back and forth, or to transport rocks and earth to build houses. They recruited masons and brick makers. We were included in the offers of work. When they had gotten the workers, they chose skilled people that they made supervisors. They would say, “Look, see the correct way to do the work, do it like this.” So the work began and the brick makers made good money. They too thank MCA-Mali. The village chiefs are the first in thanking MCA-Mali because they are very, very happy. They say thank you because MCA-Mali gave everyone equal treatment.
Even the Fulfulde teachers benefitted. They gained more learning and much wealth. Anyone you saw who could operate motors or vehicles was happy. Itinerant traders were the happiest of all. They say that no one benefitted from the MCA-Mali project more than they did. They said that even if you had a whole warehouse of food, you would sell it all because there was such abundance of workers. Even goats, sheep and cattle were selling well. Chicken were being bought up more quickly than anything else. Even animal merchants recognized the change in the economy and so did the boat and canoe operators.
The brick makers and builders thank MCA-Mali for giving them baseball caps, shoes, and gloves for the work. When the machines and vehicles started working, they made pile after pile of dirt. These piles were in every direction in the Alatona region. There were so many machines and so many people you could not tell what there were more of. Some people dared to say that Alatona had become Paradise.
Anyone who was able came here, people said that you can get anything you want in Alatona, so much good had come to this place. People who had moved away came back, people who had been traveling came back, people who had emigrated to other countries came back. In fact, after the MCA-Mali project came, even visitors would say that they grew up here. Who did this work? The big American organization called MCC.
Please bear with me, as I have more to tell. After this work was done, they showed us things that made us glad. They invited us to come get plow oxen and plows. Next, they gave us donkey carts, taught us how to plant rice and gave us money for food while we got training. Thank you MCA-Mali for moving us to our new villages in your vehicles and giving us the reimbursement for moving costs. We received good houses, good bathrooms, clean water, schoolhouses, a meeting hall, storehouses for rice and onions, as well as a drainage system. Thank you, MCA-Mali. Firewood was transported and new trees planted. MCA also built markets in the Alatona region.
Thank you MCA-Mali for achieving something that makes all Malians happy. Everyone you hear talking says, “Wow! It’s really great!” Thank you MCA-Mali for all the money you gave. Thank you MCA-Mali for giving five hectares that a person can live on permanently. Two hectares come with a free land title: one must pay only the water fees, not the price of the land. For three hectares, you must pay for both the land and the water fees. One hectare can be farmed both in rainy season and hot season. Thank you MCA-Mali for giving us lots of three different kinds of fertilizer.
Thank you MCA-Mali for giving gardens to the women, along with fertilizer, seeds, hoes, and picks. Thank you MCA-Mali for giving the men lots of onions, and, on top of that, the money needed for working and sacks for the onions.
When MCA-Mali came, we saw things that astonished us because we are country folk. We are not used to machines that knock down trees. We are not used to machines that dig. We are not used to machines that pick up dirt and load it in a truck. We are not used to machines that enter a pit to swallow dirt and come back out and pour it on the ground. We are not used to machines that crawl like lizards. We are not used to earth-piling machines. We are not used to machines that lift metal. We are not used to machines that plow. We are not used to earth-swallowing machines. We are not used to machines that show the road. We are not used to machines that tell whether work is straight or crooked. We are not used to machines that sort things. We are not used to machines that see what has passed. We are not used to machines that sink into the water to scoop mud and move it onto the dry ground.
Thank you MCA-Mali for helping the poor; this continued to when it was time to start farming. They brought money for plowing. They brought money for planting. They brought money for weeding. They brought money for cutting the rice for harvest. All the things I have listed in this letter. On top of all that, they sent experts to explain how to do the work.
The project began in Welingara, Feto, Beeli, Toule B, Toule A, and Tennde in 2008. In 2010 these six villages were farming. And in 2011 Seekadaayi, Sammbawere, Madiina, Danngeere Kaaje, Tchili Kura, Tchili Koro, Seekadahaara, Daande Salaamu, Wuro Daayi, Wotoro Danga, Wuro Yaladi, Ndukala, Sabere Nooda, Wuro Musa, and Dungel. And in 2012 the villages of Feyi 1, Feyi 2, Feyi 3, Tomoni, Motoni, Nencela, Masabougou, Yirwawere, Marabawere, Baaba Neega, Dangere Baaba, and Ndoojiriwere cultivated rice and it grew very well.
Many people bought large motorcycles. People bought cattle, sheep and goats from Feto to Masabougou (the villages at either end of the project area). Each home you visit you think is better than the one before, because you find contentment and happiness and joy and calm and peace and laughter and people eating food they like and as much as they want. How can we say thanks to MCA-Mali who have done something the likes of which has never been seen in Mali since independence? If we have said such things, it is because we have never before seen any project like MCA-Mali. I, the author of this letter, was born in 1961. If I said these things it is because I myself have seen them; and I too, I say thank you, MCA-Mali. We weren’t getting anything until this great gift came. All of Mali knows this: a project has come to Mali. There is no child, no elder, no woman, no man who did not benefit from this project. That’s in all of Mali. And for us, all we can say is “May God repay you.”
Thank you, MCA-Mali, for keeping your promises.
Thank you, MCA-Mali, for doing good work.
Thank you, MCA-Mali, for this expensive gift.
Thank you, MCA-Mali, for making Malians ID cards free of charge.
Thank you, MCA-Mali, for making land titles free of charge.
I, Aburu Sabu Sangare, wrote this letter. I come from Nenchela and was born in 1961 in the place called Alatona.
Posted on June 18, 2012 by Alicia Phillips Mandaville, Director, Development Policy
One of the positive (if unanticipated) side effects of making changes to the MCC scorecard last year was the volume of interaction our team had with colleagues in other parts of the U.S. Government who are also interested in using indicator data for decision making. While it’s the large raw data producers posting to data.gov that come to mind when people think about data and the government, there are small offices all over the foreign affairs community using—or investigating how to use—global indicator data for internal decision making. After several months of one-on-one conversations with folks at the State Department, Peace Corps and USAID about these different efforts, we thought it made sense to actually gather everyone together.
So we did. A couple of weeks ago, some 20-30 U.S. Government colleagues hunkered down for a few hours at MCC and spent the morning introducing our own data practices to each other. While we (of course) spent some time noting the finer points of being “the data people” inside agencies that may not always love what the data says, it was a really productive morning.
Each of our offices has hit some similar challenges: What do you do when you can’t find globally comparable data? How does data interact with the judgment of human beings? What happens when the data shows decline that no one expected? How do I make findings come to life for decision makers? Why is it so hard to convince people that statistical noise is manageable but not eradicable? And we’ve gone about addressing them in some very different ways. Even hearing how different offices have had to explain the rationale behind data-driven decision making to their colleagues was illuminating.
This was an initial meeting, meant to get to know each other and identify common challenges and interests. Judging from the questions and calls for follow-up conversations, I feel confident that at least some of us will gather again soon. And that’s good news for collective U.S. Government learning on the ins and outs of evidence-based decision making about foreign assistance.
Score: plus one for the data people.
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 May 2, 2012 by Alicia Phillips Mandaville, Director, Development Policy
[Disclaimer: In a burst of what passes for social media genius in her own mind, your author is taking blatant advantage of both International Press Freedom Day and today’s rather intense Twitter debate on open data to shamelessly promote MCC’s freedom of information index. #MCCFOI #pressfreedom #opendata #shamelessplug ]
The Millennium Challenge Corporation is unapologetically keen on open data, which should be no surprise. Our annual partner country selection process not only relies on third-party data but also creates and publishes country scorecards displaying countries’ relative policy performance across three broad areas: good governance, social investments and economic policy. To date, MCC’s Board of Directors has approved more than $9 billion in compact investments in 25 countries that were identified using a public, data driven selection system. We like data—and we like openness.
Last year, MCC took this one step further. In an effort to incorporate emerging policy areas and new data developed since MCC was established in 2004, we updated the scorecard system. We found creative methodologies and new datasets from the Open Net Initiative and FRINGE Special, which focused on tracking Internet filtering and freedom of information laws, respectively. Combining this data with Freedom House’s assessments of freedom of the press, MCC created a freedom of information indicator.
To our knowledge, the freedom of information indicator represents one of the first efforts to publish a transparent ranking of low- and low-middle-income countries’ commitment to enable or allow information to move freely in society. This was an exciting advance for us; understanding the role governments play in restricting or facilitating information flows can shape how we understand the political and economic environment in these countries. Political scientists know that citizens’ access to information is a key part of accountable government, while economists point to the role of information in efficient market function.
We fully recognize that a first step is just that—a first. We welcome critique and analysis of what practical steps would improve the index. For more information on the methodologies used to assess freedom of the press, Internet freedom and freedom of information laws, please see the Freedom of Information section of our Guide to the Indicators and let us know what you think. 140 or fewer characters with the #MCCFOI hashtag would be nice. Lengthier, complex thoughts would be even better.
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 April 4, 2012 by Daniel W. Yohannes , Chief Executive Officer
As Senegal today celebrates the 52nd anniversary of its independence, I just returned from the inauguration of the country’s new president, Macky Sall. Last Thursday, I was honored to receive a call from the White House asking me, on behalf of President Obama, to lead the official U.S. delegation attending his inauguration. Ambassador Johnnie Carson, the Assistant Secretary of State for African Affairs, and General Carter Ham, Commander of U.S. Africa Command, joined me on the delegation, which was rounded out on the ground by our U.S. Ambassador to Senegal and Guinea-Bissau, Lewis Lukens.
The delegation represented agencies which carry out the three “D”s of U.S. foreign policy: diplomacy, defense and development. We share these interests with Senegal, our longstanding ally. Our delegation joined world leaders from across Africa, Europe and beyond to witness the historic inauguration of Senegal’s fourth president. Pride, promise and peace—and a celebratory mood—pervaded the historic transfer of power from former President Wade to President Sall. It was an important moment to witness, and our delegation’s presence affirmed the strong ties of cooperation and friendship between Senegal and the United States.
The inauguration ceremony uptown was well-attended; the chairs and aisles were full. Spectators filled the streets afterward as President Sall met former President Wade at the presidential palace, bringing downtown traffic to a halt. While the delegation presented congratulations on behalf of President Obama, the Senegalese were congratulating each other. One Senegalese would greet another with “felicitations,” French for “congratulations,” to which the other would respond “ño ko bokk,” which means “it [this peaceful democratic transition] is ours collectively to share.” Several Senegalese shared with me their disappointment that this election was viewed as unusually calm, because they think peaceful elections should be the norm, and until they are, much work needs to be done.
In fact, Senegal’s festive occasion unfortunately did not garner as much press attention as the crisis unfolding in neighboring Mali. What a sharp contrast between the march toward democracy and the regression from it. On the one hand, thousands had gathered to celebrate Senegal’s commitment to a strong and mature democracy and to a peaceful and orderly transfer of power, where the needs of the nation and its citizens trump the agenda of individual politicians. On the other hand, the seizure of power by elements of the military in Mali was an unconstitutional, anti-democratic action, which the U.S. Government and the international community have condemned and which prompted MCC to halt operations in the country.
Both in his public speeches and our bilateral meeting, President Sall reiterated Senegal’s commitment to good governance, transparency, economic opportunity, and food security, which align with the country’s MCC compact. These are the same priorities I heard from the Senegalese people as I met with small groups of private sector and civil society representatives.
Although a short trip, Assistant Secretary Carson and Ambassador Lukens joined me to meet briefly with the team implementing our compact. We commended the team’s ongoing work and congratulated them for launching the first work tenders, signaling the end of the design phase and the beginning of the works phase. We reminded the team to stay on top of its game as so many people in the regions of Casamance and St. Louis are counting on the construction of the MCC-financed roads and irrigation infrastructure to unlock agricultural productivity and deliver greater access to markets and services.
Our partnerships thrive with countries committed to democratic governance and the rule of law, and what I saw unfold in Senegal is proof of this commitment. We are encouraged that the Sall administration has prioritized the full implementation of Senegal’s MCC compact. The people of Senegal deserve and expect nothing less. Let’s continue this work that transcends politics and personalities and belongs to the people of Senegal, eager to replace poverty with prosperity and continue forward on a path to greater economic progress.
Posted on March 30, 2012 by Daniel Yohannes , Chief Executive Officer
Today’s release of MCC’s 2011 Annual Report, appropriately titled Gateway to Opportunity, captures the milestones of the past year and articulates clear priorities moving forward. In the report, you can read about the significant strides we have made in delivering results, forging partnerships with countries and civil society, and championing policy reforms to create opportunities for sustainable economic growth in some of the world’s poorest countries. This foundation allows us now to expand our work not just to help poor countries rise out of poverty and break the cycle of aid dependency but also to create stable trading and investment partners for the United States, which means more jobs here at home.
By incentivizing the right policy conditions and generating an enabling environment for growth, MCC builds a Gateway to Opportunity for American businesses interested in exporting to or doing business in these next generation emerging markets as they climb out of poverty. Because of this, MCC’s mission is key to Secretary of State Clinton’s 21st century economic statecraft and President Obama’s efforts to put in place an American economy that is “built to last.” MCC is pushing the envelope on development effectiveness and sustainability through our commitment to transparency, accountability, results, policy reform, and country-driven solutions.
MCC’s approach has not gone unnoticed. A November 2011 Fortune Magazine article concludes that MCC “certainly gives the taxpayer real bang for the buck.” A recent MarketWatch commentary by Thomas Kostigen arguing for a robust MCC budget sums up the impact best: “MCC deserves its fair share so the U.S. can gain its fair share in the emerging markets. The global impact of these investments comes back to us all in the form of food, jobs, more open markets for trade, and doing good and right by others. It’s a boomerang effect.”
We agree, and we’re committed to showcasing even more investment and procurement opportunities for U.S. businesses in the months ahead to ensure the full “boomerang effect” of positive impact for the world’s poor as well as American businesses and workers.
Posted on March 29, 2012 by Jonathan Brooks, Managing Director for Europe, Asia, Pacific, and Latin America
Although MCC's compact with Armenia closed at the end of September, the U.S. Embassy in Yerevan is ensuring the lessons we learned during our five-year partnership can improve the country’s future development projects.
The embassy’s new MCC Resource Center makes information regarding MCC’s $177 million investment available as a reference for future U.S. Government development projects, Armenians from the diaspora interested in building upon compact projects and others. The center includes an array of documents like farmer-training maps, public outreach documents, quarterly bulletins, and training materials.
The MCC Resource Center also provides embassy staff and visitors with information on MCA-Armenia’s successor, the Foreign Financed Projects Management Center (FFPMC). An FFPMC team led the compact development process, and we are pleased that they are involved again by helping monitor MCC’s investments over the next few years.
In Zambia, MCC’s newest compact brings clean water and improved sanitation and drainage services to more than one million residents
Posted on March 26, 2012 by Raja Kaul, MCC Resident Country Director, Zambia
Last Thursday, the MCC Board of Directors approved a $355 million compact with Zambia that focuses on the water sector in Lusaka. MCC investments are expected to have a significant impact on the lives of more than one million Lusaka residents by improving their health and economic productivity and helping the country reduce poverty on a sustainable basis. Fittingly, the Board’s decision fell on the annual UN-designated World Water Day.
This single-sector compact aims to address one of the Zambia’s most binding constraints to economic growth through infrastructure investment in the rapidly urbanizing capital city of Lusaka. It is designed to reduce the incidence and prevalence of water-related disease, decrease the number of productive days lost due to disease and time to collect water, lower costs of water and new sanitation, and reduce flood losses for businesses and residential homes.
In addition to investments in water supply, sanitation and drainage infrastructure, MCC’s integrated investment will also support the government’s ongoing water sector reform efforts by strengthening responsible institutions. The investment is expected to significantly benefit Lusaka’s poor, as 73 percent of the more than one million Zambian beneficiaries currently have incomes below $2 per day.
The Zambia compact will promote key MCC corporate priorities, including gender and social integration, environmental and social impact assessments, and private sector development. In the Zambia compact, social and gender integration is prioritized, and activities are designed to extend project benefits to women and vulnerable groups.
Since its inception in 1993, World Water Day has served to spotlight the global challenge to provide safe water and sanitation services to those living in poverty. So far, MCC has invested $793 million in WASH-related projects in nine partner countries, and MCC’s compacts with Cape Verde, Jordan, and Mozambique, like Zambia, focus primarily on water sector development. Our growing WASH portfolio reflects our partner countries’ recognition of the important role of access to clean, affordable, and reliable water in promoting economic growth.
For more information on MCC’s water and sanitation projects, visit www.mcc.gov/water.
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