Democracy

MCC partners with select poor countries committed to good governance, from fighting corruption to respecting democratic rights. One of MCC’s core principles is that aid is most effective in countries with a sound commitment to accountable and democratic governance. This is evident in:

  • MCC’s approach to selecting countries,
  • the compact development and implementation process, and
  • the ongoing success of MCC partner countries.

Selecting Partner Countries Committed to Democratic Rights

MCC uses a transparent, data-driven process to choose partner countries that assesses policy performance in a number of areas, as summarized on MCC’s scorecards, which are compromised of twenty indicators developed by independent, third-party institutions. In the “Ruling Justly” category, MCC has indicators that explicitly measure a country’s commitment to democratic principles—Political Rights, Civil Liberties, and Freedom of Information  as well as indicators that measure Rule of Law, Government Effectiveness, and Control of Corruption. Good performance in these areas is critical to passing MCC’s scorecard and receiving MCC assistance.

On top of its requirement that countries must pass the Control of Corruption indicator and half of the 20 indicators in order to pass the scorecard overall, MCC has a “democratic rights” hurdle. Countries must pass either the Political Rights or the Civil Liberties indicator in addition to the other requirements in order to pass MCC’s scorecard. This requirement reflects the weight MCC places on political rights and civil liberties and sends a clear message to potential partner countries regarding the importance of democracy to good governance.

Deepening Democracy through Compact Development and Implementation

MCC’s approach to reducing poverty—creating incentives for reform and respecting existing domestic actors and processes—contributes to the long-term deepening of already existing democratic institutions.

MCC’s compacts are designed to reduce poverty through economic growth, but they also strengthen democratic institutions and processes in three important ways:

  • Partner countries must maintain a meaningful, public consultative process throughout the development of a compact and its implementation.
  • Compact programs must adhere to domestic legal or constitutional requirements, such as ratifying the compact or notifying the legislature as appropriate, and funds received through the compact must be reflected in the national budget.
  • Compact implementation must be transparent.

Ongoing Expectations of Democratic Governance

Throughout the life of an MCC partnership, countries are expected to maintain their commitment to democratic rights, as well as other policy areas captured on the MCC scorecard. Many MCC partner countries have undergone successful elections, transfers of power, and expansions of political or civil rights during the course of their partnership with MCC. However, if a country demonstrates a significant policy reversal, MCC may issue a warning, suspend, or terminate eligibility for assistance.