Testimony (As Submitted)
Read a copy of Ambassador Danilovich’s testimony submitted for the record.
Washington, DC Ambassador John Danilovich, CEO of the Millennium Challenge Corporation, today appeared before the House Appropriations Subcommittee on State, Foreign Operations and Related Programs to discuss MCCs funding needs for Fiscal Year 2008.
During the hearing Danilovich outlined MCCs progress in achieving its mission to reduce global poverty through sustainable economic growth and justification for the $3 billion funding request.
This level of funding is necessary, Danilovich said, both to meet the existing demand of countries already in the Compact pipeline and to maintain the motivational MCC incentive effect critical for countries taking on the hard work of policy reform. Furthermore, we must continue to assist countries on the threshold of Compact eligibility address specific policy weaknesses.
Based on the American ideals of compassion for those in need, accountability and responsibility, our innovative model awards development assistance to partner countries that practice sound policies, support good governance, invest in the health and education of their citizens and promote economic freedom, Danilovich testified. Our partner countries must be actively pursuing their own development by identifying and implementing strategies for poverty reduction and economic growth. We demand nothing less than measurable and tangible results to make poverty reduction both sustainable and transformative.
MCC is committed to yielding a maximum return on the funding requested, first and foremost by insisting on results. Danilovich also stressed that MCC is accelerating compact implementation and continuing its performance-based approach to aid by using objective and transparent indicators.
The CEO explained that committing the total amount of a grant award up-front reinforces the incentives offered to good performers. However, to make sure implementation generates results and that good performance is sustained, MCC disburses actual funds only as performance benchmarks are met and maintained over time.
Danilovich discussed how MCC is focusing on human development and investments in people, including projects that foster health, education and skills expanding human capabilities. MCC is working to raise the standard of living and directly impact the quality of life in some of the poorest areas of the world.
Millennium Challenge Corporation, a U.S. government corporation designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth and elimination of extreme poverty.