The international community came together in 2015 to adopt 17 Sustainable Development Goals (SDGs) to replace and improve on the expiring Millennium Development Goals.
The SDGs represent the culmination of years of collaborative input from countries and organizations around the world, including MCC staff, on new, ambitious goals to:
- End poverty and improve lives globally
- Focus on inclusive economic growth
- Create effective, accountable institutions to sustain and accelerate development progress more broadly, and
- Demand more and better use of data to achieve and measure the SDGs.
MCC’s emphasis on catalyzing inclusive economic growth and its focus on evidence-based decision-making and transparency are helping to drive international efforts to achieve the 17 interconnected Global Goals.
The world has seen impressive progress in global development, and more than one billion people have been lifted out of extreme poverty since 1990. Sustaining—and accelerating—this progress in the next 15 years will require a concerted global effort to ensure that growth continues to improve the lives of the world’s poor.
MCC supports effective and accountable institutions as a means for achieving the type of inclusive growth required to reduce poverty and improve lives. In fact, MCC research shows that the relatively well-governed countries we partner with tend to be countries where growth is shared.
And when we design projects with our partners, we work to promote economic growth that reaches the poor. Together, we conduct a joint constraints to growth analysis that helps us focus on the biggest constraints to private investment and unlock the greatest economic potential. And before we move forward, our economists and experts analyze potential projects to determine how they will impact different socio-economic segments of the country – so we invest where the return will be greatest.
Leveraging the Private Sector
MCC works to eliminate obstacles and reduce risks in our partner countries to encourage business investment, accelerate economic growth and alleviate poverty. The growth in private-sector resources available to developing countries is one of the most encouraging development storylines of the past 15 years. According to the European Report on Development released by the European Commission and several EU countries, private finance increased fivefold between 2002 and 2011, from roughly $1 trillion to nearly $5 trillion. This private investment is critical to meeting the estimated multi-trillion-dollar price tag of the SDGs.
In Benin, Ghana and Jordan, MCC’s $1.1 billion in investments are expected to catalyze nearly $5 billion in private funding. Moving forward, MCC is committing $70 million in grants—$52 million in Africa alone—to support public-private partnerships in our compacts through a Public-Private Partnership (P3) Platform. Announced summer 2015, this commitment is expected to generate $1 billion in private-sector investments.
Mobilizing Domestic Resources
Government resources in developing countries—already totaling more than $5.5 trillion, according to the European Report on Development—can be significant drivers of development. By assisting governments in reforming their procurement processes, MCC and its partner countries work together to increase domestic resources and mobilize them for development.
In Indonesia, MCC is supporting procurement reform to help the Indonesian government achieve significant savings in their official spending—savings that are being reinvested in development initiatives like child nutrition.
The Global Partnership for Sustainable Development Data, or the Global Data Partnership, was launched on the sidelines of the 70th United Nations General Assembly and is mobilizing a range of data producers and users—including governments, companies, civil society, data scientists and international organizations—to harness the data revolution to achieve and measure the Global Goals. Working together, the U.S. and other Global Data Partnership contributors are addressing barriers that prevent greater access and use of development data.
MCC is a leader in evidence-based decision making and transparency. MCC’s new partnership with PEPFAR is helping to increase the availability and quality of development-related data in selected countries. And, as part of our Data2x commitment—a partnership with the Hewlett Foundation and the UN Foundation to advance gender equality—MCC and other donors are increasing the amount of gender data we release and helping to improve international data transparency standards.
MCC is also a founding partner of the Governance Data Alliance, a collaborative effort by governance data producers, consumers, and funders to improve the quality, availability, breadth, and use of governance data. The Alliance is identifying and sharing best practices for governance data production, building feedback loops with data users to drive production of more relevant and useful data, and driving down the time and cost of producing data, with a platform for collaboration among data producers.