Washington, D.C.—The U.S. Government’s Millennium Challenge Corporation (MCC) Chief Executive Officer Daniel W. Yohannes today appeared before the U.S. Senate Foreign Relations Committee to discuss President Obama’s Fiscal Year 2012 budget request for MCC. Mr. Yohannes was joined by Rajiv Shah, Administrator of the United States Agency for International Development (USAID), at the hearing.
President Obama delivered his FY 2012 budget proposal to Congress in February, including $1.125 billion for MCC to continue its mission to reduce poverty through economic growth.
In his testimony before the Committee, Mr. Yohannes discussed MCC’s unique approach to international development and its commitment to transparency, accountability and selectivity in the countries that it works with.
"The President’s new development policy is built around the core policies of economic growth, sustainability, country ownership, transparency, and results,â€ stated Mr. Yohannes. "These same principles have guided MCC since its creation in 2004, when Democrats and Republicans came together to pioneer a new vision for development.â€
Since its creation, MCC has partnered with 22 countries, investing nearly $8 billion in the fight against poverty. MCC celebrated its first compact closeouts last year, when its programs in Honduras and Cape Verde ended, and will close out compacts with five more countries in 2011.
The President’s FY 2012 budget request would enable MCC to sign compacts with Georgia and Ghana, as well as fully fund a new compact with Indonesia. These nations have been selected as MCC partners because their sound policies provide a solid foundation for growth and measurable development results, and they present real opportunities to bolster American interests by providing tangible assistance for poverty reduction through economic growth in Africa, Eurasia, and Asia.
Mr. Yohannes added, "MCC investments look to remove constraints to growth so that the private sector will invest and flourish. These investments are helping to build a foundation for U.S. exports and increased business activity, which will mean increased growth and job opportunities here at home. By building the next generation of emerging economies and developing strong and capable partners, we are helping to not only reduce poverty around the world, but are helping to make Americans more secure.â€
MCC investments are expected to benefit more than 171 million people in the poorest countries around the world, raising incomes by $12.3 billion over the life of current investments.
You may find Mr. Yohannes’ prepared testimony here.
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Millennium Challenge Corporation, a U.S. Government agency designed to work with developing countries, is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth. For more information, please visit http://www.mcc.gov.