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Millennium Challenge Corporation, United States of America

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Selection Indicators

MCC looks at several elements in choosing selection indicators. They include:

  • Development by a third party,
  • Linkage to policies that the government can influence within a two to three year horizon,
  • Linkage—theoretically or empirically—to economic growth and poverty reduction,
  • Use of an analytically rigorous methodology and objective and high-quality data,
  • Broad country coverage and comparability across countries,
  • Consistency in results from year to year

This table, sortable by indicator, category, and source,  lists the indicators used to determine country eligibility for MCC program assistance.

Selection Indicators
Indicator Category Source
Access to Credit Indicator Economic Freedom
  • International Finance Corporation
Business Start-Up Indicator Economic Freedom
  • International Finance Corporation
Child Health Indicator Investing in People
  • Columbia/Yale
Civil Liberties Indicator Ruling Justly
  • Freedom House
Control of Corruption Indicator Ruling Justly
  • World Bank/Brookings Institution
Fiscal Policy Indicator Economic Freedom
  • International Monetary Fund
Freedom of Information Indicator Ruling Justly
  • Freedom House
  • Fringe
Gender in the Economy Indicator Economic Freedom
  • World Bank
Girls’ Primary Education Completion Rate Indicator Investing in People
  • UNESCO
Girls’ Secondary Education Enrollment Ratio Indicator Investing in People
  • UNESCO
Government Effectiveness Indicator Ruling Justly
  • World Bank/Brookings Institution
Health Expenditures Indicator Investing in People
  • World Health Organization
Immunization Rates Indicator Investing in People
  • WHO/UNICEF
Inflation Indicator Economic Freedom
  • International Monetary Fund
Land Rights and Access Indicator Economic Freedom
  • International Fund for Agricultural Development
  • International Finance Corporation
Natural Resource Protection Investing in People
  • Columbia/Yale
Political Rights Indicator Ruling Justly
  • Freedom House
Primary Education Expenditures Indicator Investing in People
  • UNESCO
Regulatory Quality Indicator Economic Freedom
  • World Bank/Brookings Institution
Rule of Law Indicator Ruling Justly
  • World Bank/Brookings Institution
Trade Policy Indicator Economic Freedom
  • The Heritage Foundation
Voice and Accountability Indicator Ruling Justly
  • World Bank/Brookings Institution

Use of Supplemental Information

MCC’s Board of Directors may also take into account other quantitative and qualitative information. The Board uses supplemental information to inform its understanding of a country’s policy performance relative to its peers, and MCC’s ability to reduce poverty and generate economic growth in a country.

There are elements of the eligibility criteria set out in MCC’s legislation for which there is either limited quantitative information or no well-developed performance indicator, so MCC may turn to supplemental sources for assessments of these policy issues. In addition, the Board may consider whether there are data gaps or lags in particular indicators that can be addressed by supplemental information.

Supplemental information used by MCC may include (but is not limited to):

  • The U.S. Department of State’s Human Rights Report
  • The U.S. Department of State’s Trafficking in Persons Report
  • Transparency International’s Corruption Perceptions Index
  • Global Integrity Report
  • Freedom House’s Countries at the Crossroads
  • The World Bank’s World Development Indicators
  • The World Bank’s Doing Business Report
  • The World Economic Forum’s Global Competitiveness Report

Indicator Data Gathered From National Sources


The data for three of indicators used in the MCA selection process have been gathered directly from the governments of the 99 candidate countries and the 14 countries that would be candidate countries if they were not prohibited from receiving foreign assistance. This data was gathered in August and September 2006 with the assistance of U.S. embassies.

Read

  • Guide to the Indicators and the Selection Process, FY 2012
    Report
  • MCC’s Findings in the Search for an Education Indicator
    Issue Brief
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