WASHINGTON, D.C., November 1, 2019 – The U.S. Government’s Millennium Challenge Corporation (MCC) today released its fiscal year 2020 country scorecards – 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 its people.
MCC scorecards are a key component in the agency’s annual competitive selection process that determines which countries are eligible to develop compacts – grant investments that last 5-years. The scorecard indicators can also be used by businesses, investors, and the private sector to inform investment decisions and better understand the operating environment in a specific country.
Scorecards for 77 countries classified by the World Bank as low and lower-middle income are now publicly available on MCC’s website.
Competitive Selection of MCC Partners
MCC’s competitive selection process is a data-driven, transparent method for determining where the agency invests to reduce poverty through driving economic growth. To be considered for an MCC compact, countries are expected to first pass MCC’s scorecard. The tool represents one of the many ways MCC is distinctive in how it works to combat poverty through economic growth around the world. This year, of the 77 countries MCC created scorecards for, 25 countries passed while 52 did not.
Based on scorecard performance, supplemental information, the opportunity to reduce poverty through generating economic growth, and available funding, MCC’s Board of Directors selects new partner countries each December.
MCC’s rigorous eligibility criteria and competitive selection process have created a powerful incentive for countries to reform their policies even before a dollar is spent – dubbed “the MCC effect.” Countries around the world are using the MCC scorecard as a road map for policy and institutional reform in order to be eligible for MCC funding. The scorecard helps countries identify where improvement is needed to support long-term growth and poverty reduction. In addition, many countries view their ability to perform well on MCC’s scorecard as a seal of approval, signaling to the private sector that the country is open for business and investment.
MCC’s time-limited grants promote private investment to advance economic growth and opportunity, which in turn creates more stable, secure countries and new business and trade opportunities. Over the last 15 years, MCC has signed 37 compacts with 29 countries worth more than $13 billion. These compacts are expected to benefit nearly 190 million people around the world.
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 poor countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights. Learn more about MCC at www.mcc.gov.