April 2, 2008
MCC Announces Today that GE has Entered into an MOU with the Agency to Promote Sustainable EconomicDevelopment
New York, NYâ€“ The Millennium Challenge Corporation (MCC) and General Electric Company today signed a Memorandum of Understanding (MOU) outlining a framework for future collaboration to help some of the world’s poorest countries find long-term economic solutions to their most critical challenges. The agreement was signed by MCC’s CEO Ambassador John Danilovich and GE Vice Chairman and Chief Financial Officer, Keith Sherin.
Designed to foster sustainable international development in partner countries, this MOU capitalizes on the strengths, expertise, and experience of both organizations’ work worldwide. The MOU outlines and identifies possible areas of cooperation, such as leveraging MCC funds through innovative financing structures and providing expertise and offering technologies to MCC partner countries in vital sectors including energy, water, health, transportation, and the environment. Additionally, the MOU examines opportunities to support corporate social responsibility, corporate governance and institutional capacity building, and environmental sustainability.
MCC’s large-scale grants to developing countries are designed to reduce poverty through economic growth, paving the way for accelerated, sustainable engagement by the private sector in countries where it is most needed. MCC investments provide the private sector with a point of entry to initiate or expand their own commercial activities. Complementary activities by businesses enhance the sustainability and the development impact of MCC projects.
Ambassador Danilovich noted, "This groundbreaking agreement is an example of how the private sector can help partner countries tackle systemic poverty through smart, innovative solutions to economic development. I am pleased to see that an industry leader, like GE, is taking steps that will significantly deepen the impact of MCC assistance—and the taxpayer dollars it represents. We hope other companies will follow in GE’s footsteps in establishing a strong business voice in fighting global poverty in close cooperation with governments, civil society and business partners worldwide.â€
"GE applauds MCC’s novel approach to foreign assistance, requiring clear metrics and a selective eligibility process, targeting only those countries that are serious about key tenets of development,â€ said Keith Sherin, Vice Chairman and Chief Financial Officer at GE. "As GE positions itself for unprecedented growth in the emerging markets and offers solutions to solve some of the world’s biggest problems, collaboration with the MCC is a natural next step to fuel economic development in many of these areas. By engaging the private sector, MCC is able to bring additional resources to address important issues, such as global warming, water scarcity, disease, and soaring energy demand that have a direct impact on the future development in these countries.â€
The Millennium Challenge Corporation (MCC), a United States government agency designed to work with developing countries, is based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth and elimination of extreme poverty. MCC has signed Millennium Challenge compacts with 16 countries totaling $5.5 billion. For more information about MCC, visit www.mcc.gov.
GE (NYSE: GE) is Imagination at Work—a diversified technology, media and financial services company focused on solving some of the world’s toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company’s Web site at www.ge.com.