April 29, 2008
MCC Unveils ERR Analysis Tool at Center for Global Development Symposium
Washington, DC – In a standing-room only event hosted by Center for Global Development (CGD), the Millennium Challenge Corporation (MCC) unveiled its Economic Rates of Return (ERR) analysis, a form of cost-benefit analysis that estimates the net impact of project investments. MCC incorporates this methodology as a cornerstone of its due diligence process when it reviews compact proposals from eligible countries.
Demonstrating its continued commitment to transparency, MCC recently launched this groundbreaking tool, on its website, www.mcc.gov. This public web feature explains how ERR analysis is conducted and how its results are used to guide MCC and its partner countries in their project investment decisions. By posting the actual analysis online, MCC is inviting interested observers to review the economic rationale of each project and to experiment with an interactive feature that allows users to change key parameters.
The event featured a keynote presentation by MCC Chief Economist Franck Wiebe, who introduced the new web resource. Following the presentation, CGD Senior Fellow Steve Radelet moderated a discussion between three distinguished panelists including: Asma Lateef, Director at Bread for the World Institute, Manuela Ferro, Manager, Country Economics, Operations Policy and Country Services at the World Bank, and Franck Wiebe. The panelists engaged in a wide ranging discussion about how technical analysis can be used to enhance aid effectiveness and the interconnections between economic rates of return analysis and targeted beneficiary analysis in estimating development impact.
To learn more about MCC’s ERR analysis, read the fact sheet by clicking http://www.mcc.gov/documents/factsheet-042808-err.pdf
The Millennium Challenge Corporation, a U.S. government corporation designed to work with developing countries, 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. For more information about MCC, visit www.mcc.gov.