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Compacts are five-year agreements between MCC and an eligible country to fund specific programs targeted at reducing poverty and stimulating economic growth.

MCC’s unique model for the development of compact programs reflects the principles that shaped the agency’s creation in 2004. These include the principle of country ownership, a belief that assistance is most effective when built on a partnership (or “compact”) in which recipient countries assume greater responsibility for their own economic development.

MCC’s compact development process also reflects principles of transparency and accountability. In compact development, MCC invests considerable effort in gathering or generating useful data, evidence or other information to inform decisions; incorporating lessons learned; identifying clear, measurable objectives for each investment project; building monitoring and evaluation approaches directly into the design of each investment project and compact program; and assessing likely impacts and reporting actual results.