Aid Effectiveness

Since its creation in 2004, MCC has been advancing and accelerating the conversation on aid effectiveness. Through rigorous oversight and monitoring, MCC countries are held accountable to high standards of both governance and project implementation throughout their MCC partnership. As a result, MCC’s country-led model produces investments that are sustainable and effectively spend aid dollars. By coupling this model with an evidence-based approach to country and project selection, MCC helps to foster democracy and open markets, generating a strong return on U.S. investment and new economic opportunities for American businesses.

Effective development assistance is built on four shared principles, as laid out by the Global Partnership for Effective Development Cooperation:

  1. Country ownership of development priorities;
  2. Focus on results;
  3. Inclusive partnerships for development;
  4. Transparency and accountability between partners and among stakeholders.

At MCC, these principles translate into country-owned and country-led results, the mobilization of inclusive domestic investments and private-sector partnerships, and mutual accountability and transparency.

Country Ownership

Development investments are more effective and sustainable when they reflect a countries own priorities and strengthen a governments accountability to its citizens. At MCC, country ownership is embodied in the agency’s country partnerships. MCC’s partner country governments take the lead in setting priorities for MCC investments and implementing MCC-funded programs, in close consultation with their citizens and civil society. This keeps governments accountable to their citizens and stakeholders.

Focus on Results

MCC is a results-driven agency committed to delivering systemic impact from its investments. Across its entire investment portfolio, MCC’s results are collected, measured and reported throughout and beyond the project lifecycle—from policy reforms countries make to become eligible for MCC funding, to interim outputs and outcomes as programs mature, to post-program impacts on poverty reduction and economic growth. This framework defines MCC’s approach to results, and it includes a focus on sustainable development outcomes and a commitment to utilizing the tools needed to effectively assess performance.

A focus on results also means accepting that projects may sometimes fall short. MCC’s commitment to transparency and accountability means making all results public—both positive and negative—and learning from them to improve performance in the future.

Inclusive Partnerships for Development

The Millennium Challenge Corporation’s ambition is to more fully utilize partnerships to respond to the changing landscape of poverty to increase the scale, impact, and sustainability of our operations and our investments. MCC aims to create an environment conducive for collaboration among national and local governments, the private sector, civil society, and non-governmental organizations. MCC’s work becomes more effective when we support partnerships with organizations and investors that share our interests in reducing poverty through economic growth.

Transparency and Accountability

MCC is a leader in transparency across the development community. MCC’s public website provides access to criteria for country selection as well as scorecards explaining candidate countries’ performance on these criteria. MCC publishes spreadsheets that show five-year compact budgets and financial data, economic rates of return calculations, performance indicator tracking tables and impact evaluation summaries for MCC-funded projects. Data on beneficiary analyses are also available. MCC posts copies of all signed compact grant agreements, quarterly status reports on worldwide programs, information on program-related procurement opportunities, and copies of reports and notices provided to the U.S. Congress. MCC publishes all of its evaluation data to a publicly accessible website: The catalog contains anonymized metadata and microdata from rigorous independent evaluations. The release of this data is intended to facilitate broader use of the data, above and beyond the scope of the independent evaluations that produced this data. MCC also holds open data challenges to promote the use of these data resources among students and researchers.

Within MCC’s investments, transparency and mutual accountability play an important role in the reforms and projects implemented by partner countries. MCC encourages partner country governments and businesses to adopt transparent practices that increase accountability to citizens, civic organizations, and other development partners.