WASHINGTON (Nov. 03, 2022) – The U.S. government’s Millennium Challenge Corporation (MCC) released its fiscal year (FY) 2023 country scorecards today, which include updated and new indicators to ensure the agency is using the highest quality data and methodologies available.
MCC’s scorecards are a key component in its competitive selection process that determines which countries are eligible to develop a five-year grant agreement known as a compact. This year, MCC created scorecards for 81 countries – 28 passed and 53 countries did not. MCC has made all the FY23 scorecards publicly available on the agency’s website.
Scorecards consist of a collection of 20 independent, third-party indicators that measure a country’s policy performance in the areas of economic freedom, ruling justly, and investing in people. For the FY23 scorecards, MCC revised the data source and methodology for the Natural Resource Protection indicator and replaced the Business Start-Up indicator with the Employment Opportunity indicator. The new Employment Opportunity indicator measures disability rights, forced labor, workplace discrimination, and the ability of civil society organizations to start-up.
MCC’s Board of Directors selects new partner countries annually in December based on scorecard performance, supplemental information, the opportunity to reduce poverty through economic growth, and the availability of funding. Only low- and lower-middle income countries as classified by the World Bank are eligible for MCC assistance.
Competitive Selection of MCC Partners
MCC uses a competitive, data-driven, and transparent process for determining where the agency invests to reduce poverty through economic growth. To be eligible to receive MCC funding, countries must pass at least 10 of 20 indicators, as well as both categories that MCC considers “hard hurdles” for eligibility – the Political Rights or Civil Liberties indicator, and the Control of Corruption indicator. After considering the pool of countries that have passed the scorecard, MCC’s Board of Directors makes the decision on which countries are eligible for both compact and threshold investments.
MCC’s rigorous eligibility criteria and competitive selection process create a powerful incentive for countries to reform their policies even before a dollar is spent – referred to as “The MCC Effect.” Countries around the world are using MCC’s scorecard as a road map for policy and institutional reforms to qualify for MCC funding and identify where improvements are needed to foster economic growth.
Read more about how MCC selects partner countries and access the FY 2023 scorecards. To learn more about how the new Employment Opportunity indicator is incentivizing inclusive workplaces and equal opportunities for employment visit MCC’s blog post on this new indicator.
The Millennium Challenge Corporation is an independent U.S. government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.