February 5, 2007
Millennium Challenge Corporation Statement on FY 2008 Budget Request
Download the PDF of MCC’s 2008 budget justification.
Washington, D.C.Today, Millennium Challenge Corporation CEO Ambassador John Danilovich released this statement after President Bush submitted the fiscal year 2008 Budget to Congress. The Budget requests $3 billion for the Millennium Challenge Account, which is managed by the Millennium Challenge Corporation (MCC).
MCC had a banner year in 2006. We now have 11 Compacts and 11 Threshold programs in place totaling $3.3 billion to reduce poverty through economic growth. It is imperative that MCC receive the Presidents request for fiscal year 2008 to continue our innovative approach to development assistance and to build on our early success. With this funding, we can support developing countries that have demonstrated their commitment to reform in order to qualify for MCC assistance.
At a lower level of funding, MCC will need to turn away some countries that have developed proposals designed to assist the poorsuch as microfinance programs that help women as well as water, irrigation, and transportation systems that enable farmers to participate in the local economy and get their products to market more efficiently. An inability to respond to proposals from partner countries because of funding cuts would also undermineperhaps irreparablythe incentive MCC assistance provides to countries to enact major political, social, and economic reforms to qualify for and remain in the MCC program.
We look forward to working with Congress to realize the Presidents goals for MCC to bring hope and opportunity to the worlds poor. This not only reflects the generosity of the American people, but by stimulating sustained economic growth and encouraging good governance, it also enhances U.S. security and promotes freedom and democracy throughout the world.
Since its inception three years ago, MCC has signed Compacts totaling $3 billion with eleven partner countries: Madagascar, Cape Verde, Honduras, Nicaragua, Georgia, Armenia, Vanuatu, Benin, Ghana, Mali, and El Salvador. These Compacts are in various stages of implementation. MCC is actively engaging with other eligible countries to assist them in Compact development and implementation.
Additionally, under its Threshold Program, MCC has committed nearly $300 million to help another 11 countries improve governance, root out corruption, and make social investments in the health and education of their citizens, particularly girls and children.
Millennium Challenge Corporation (MCC), a U.S. government corporation designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth