Washington — Millennium Challenge Corporation CEO Daniel W. Yohannes appeared before the House Committee on Foreign Affairs today to discuss President Barack Obama’s fiscal year 2014 budget request for MCC.
President Obama has requested $898.2 million for MCC to continue fighting global poverty through economic growth. The budget request for fiscal year 2014 is expected to support new compacts with Liberia, Morocco, Niger, Sierra Leone, and/or Tanzania, as well as Threshold Programs with Guatemala and Nepal.
“These five countries, together home to over 100 million people, are some of the world’s poorest, but each has taken concrete steps to improve governance and become eligible for MCC assistance,” Yohannes told the committee. “Together, they represent an extraordinary opportunity to reduce poverty and advance the interests of the United States.”
Yohannes also discussed MCC’s focus on fighting poverty through economic growth in countries that have demonstrated a commitment to ruling justly, investing in their citizens, and economic freedom.
Yohannes added that, through their efforts to quality for MCC assistance by engaging in good governance and enacting reforms, the five countries are examples of the “MCC Effect.” MCC’s selection criteria provide incentives for countries to adopt sound policies and strengthen democratic institutions in order to become eligible for MCC assistance.
Since its creation in 2004, MCC has signed 26 compacts totaling more than $9.6 billion, and these investments are projected to benefit nearly 174 million people worldwide.
“MCC programs are creating opportunities in poor communities around the world,” Yohannes said. “Transportation networks are stimulating trade and commerce with regional impact. Projects in land security, food security, energy security, and water security are helping connect the poor to economic growth and opportunity. MCC-inspired reforms are empowering women, strengthening property rights, advancing civil rights, and promoting democratic principles. And American businesses are seeing new opportunities to invest and profit.”
Read Yohannes’ testimony for the record here.