WASHINGTON, D.C., February 10, 2020 – President Donald J. Trump delivered his Fiscal Year 2021 Budget proposal to Congress today, which included $800 million for the U.S. Government’s Millennium Challenge Corporation (MCC) to continue its work to reduce global poverty through economic growth by partnering with developing countries demonstrating a commitment to good governance.
MCC’s budget request for Fiscal Year 2021 will support the agency’s efforts around the world to promote inclusive economic growth and help people lift themselves out of poverty. MCC’s model is one of the most effective tools in U.S. foreign assistance in achieving widespread and sustainable poverty reduction in the developing world.
MCC’s model applies a private-sector approach based on selectivity, evidence-based decision-making—including transparent economic analyses—country ownership, and accountability. This approach strengthens U.S. national security, opens new markets for U.S. businesses, builds partnerships with countries of strategic importance, and maximizes each dollar spent in the fight to end poverty around the globe.
This budget request will:
- Continue the development of compact programs with Burkina Faso, Tunisia, Lesotho, Timor-Leste, Kosovo, Malawi, Indonesia, and Mozambique.
- Support the signing of MCC’s first concurrent compacts for regional integration—a transport project between Benin and Niger. This follows from the Board’s December 2019 decision to re-select four countries as eligible for concurrent compact programs for regional integration: Benin, Burkina Faso, Côte d’Ivoire, and Niger.
- Maintain MCC’s rigorous oversight model, including review of compact and threshold programs.
- Manage the annual competitive, data-driven, and transparent process of selecting countries to begin developing compact and threshold programs.
- Continue streamlining and improving upon the compact development process to leverage efficiencies and reduce timelines while maintaining and improving the quality of MCC’s programs.
- Utilize the unique evidence-based and rigorous approach to developing projects and assessing their impacts.
- Support MCC’s work in women’s economic empowerment. Through the agency’s investment model, MCC consistently works with partner countries to unlock the economic potential of women and break down financial, legal, and cultural barriers that prevent women from fully engaging in their countries’ economies.
- Develop and implement blended finance strategies to leverage private and public resources to bring a greater development impact to partner countries.
- Continue the successful implementation of the Star Report, which collects critical information throughout the lifecycle of each compact and threshold program in areas like performance, sustainability, and lessons learned.
- Establish and implement a strong and dynamic knowledge management system, business practices, and tools to systematically share and deploy learning and results internally, externally, and with our partner countries.
As MCC continues to play a leading role in U.S. foreign development, it will ensure the continued success of its programs around the world by seeking new and innovative ways to improve efficiency, increase accountability, and prioritize the inclusion of private investment throughout the life cycle of its programs. MCC’s mission to reduce poverty through economic growth creates a more stable, secure world with more opportunities for prosperity for the U.S. economy and abroad. With its cost-effective, evidence-based approach to development, MCC is a good investment for the American people.
Learn more about MCC at www.mcc.gov.