WASHINGTON, D.C., Nov. 2, 2017 – The U.S. Government’s Millennium Challenge Corporation (MCC) today released its fiscal year 2018 country scorecards – a key component in the agency’s annual competitive selection process that determines which countries are eligible to develop compacts and threshold programs. Scorecards for all 83 countries classified by the World Bank as low and lower-middle income are now publicly available on MCC’s website.
MCC’s competitive selection process is a data-driven, transparent method for determining where the agency invests to help fight poverty and drive economic growth. To be considered for an MCC compact, countries are expected to first pass MCC’s scorecard – 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. 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 83 countries MCC created scorecards for, 31 countries passed while 52 did not.
Based on scorecard performance, supplemental information, the opportunity to reduce poverty and generate economic growth, and available funding, MCC’s Board of Directors selects new partner countries each December.
Using MCC Scorecards for Investment
MCC’s scorecard indicators can also be used by businesses, investors and other donors as a tool to better understand the operating environment in a specific country. 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.
The MCC Effect
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 qualify for MCC funding. The MCC scorecard not only helps countries identify where improvement is needed but also leverage resources to drive change in support of long-term growth and poverty reduction.
MCC’s compacts focus on creating the right circumstances for businesses to invest in partner countries. The agency’s time-limited grants promote private investment to advance growth and opportunity, which in turn creates more stable, secure countries and new business and trade opportunities. Once MCC partners with a country through a compact or threshold program, investments fund projects like power, clean water, land rights and roads that help people lift themselves out of poverty.
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.