October 1, 2007
MCC Announces Reorganization to Focus Agency on Compact Implementation
Washington, D.C. — Citing the Millennium Challenge Corporation’s strong success in developing its foreign assistance Compacts, MCC CEO John Danilovich today announced a major restructuring to shift the agency’s focus to compact implementation.
“To meet our mission, MCC has had to work, first and foremost, with partner countries to develop viable programs that will reduce poverty and stimulate economic growth,” Ambassador Danilovich said. “And in our short time in existence we have done exactly that. Now it is time to shift our focus and speed implementation of those Compacts, while at the same time recognizing the continued importance compact development will have for our agency.”
MCC’s accomplishments, particularly in the last two years, have been significant and 14 agreements are now in various stages of implementation. Within eight months, MCC’s portfolio will include 18 signed Compacts and commitments totaling more than $6.4 billion.
“With this success, we now enter a new phase of our evolution,” Ambassador Danilovich said. “By necessity, compact development has been at the core of our efforts. Over the long term, however, our core activity must ultimately focus on compact implementation. This reorganization will help us to achieve our goal—to implement Compacts that will deliver sustainable improvements in the lives of the poor.”
As a first step, two existing departments, Operations and Accountability, will be integrated and restructured to form two new departments, one focused on compact development and the other focused on compact implementation.
The agency’s new structure will achieve both greater speed and quality of compact implementation by:
- Achieving staff efficiencies and streamlining the decision-making processes through a reorganization of roles and responsibilities in Washington.
- Decentralizing responsibility of compact implementation to MCC’s resident country directors and partner countries’ accountable entities, while providing the necessary support and oversight from Washington.
- Identifying and mitigating risks associated with implementation.
The new Department for Compact Implementation will include both regional and functional experts working on integrated teams to achieve common goals. This department will be separated into two divisions, one for Africa and the other for Eurasia and Latin America.
“I am also very happy to announce today that Darius Mans, currently the Managing Director for Africa, will be the new Vice President for Compact Implementation,” Ambassador Danilovich said. “And two other Managing Directors from Operations will become Deputy Vice Presidents. Jonathan Bloom will be in charge of the Africa division and Frances Reid will be in charge of the Eurasia and Latin America division.”
“John Hewko has done an extraordinary job as Vice President for the Operations Department having successfully negotiated 14 Compacts. I have asked him to run the newly created Compact Development Department. Darius Teter, now Managing Director for Asia and the Pacific, will become his Deputy Vice President,” Ambassador Danilovich said.
“I am very pleased to announce that Chuck Sethness, now head of the Accountability Department, will assume the new role of Senior Investment Counselor. In this position, Chuck will continue to be an integral part of MCC’s success by ensuring the quality of MCC’s Compacts,” Ambassador Danilovich continued. Mr. Sethness’ responsibilities will include advising the CEO directly and providing an independent analysis of the opportunities, risks and quality of MCC’s investments.
“I have made these decisions after consultations with members of the MCC Board of Directors, interested parties on Capitol Hill and others in the development community,” Ambassador Danilovich added. “There is a tremendous amount of interest in seeing MCC succeed, and I feel with the changes underway, the agency will be on the best foot possible to do exactly that.”
Millennium Challenge Corporation, a U.S. government agency 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 good governance, economic freedom, and investments in people that promote economic growth.