WASHINGTON (Nov. 09, 2021) – The U.S. government’s Millennium Challenge Corporation (MCC) released its fiscal year (FY) 2022 country scorecards today.
MCC’s scorecards are a key component in its competitive selection process that determines which countries are eligible to develop a five-year grant agreement known as a compact. This year, MCC created scorecards for 81 countries – 28 passed and 53 countries did not. MCC has made all the FY22 scorecards publicly available on the agency’s website.
Scorecards consist of 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 people. Businesses, investors, and the private sector can also use the scorecard indicators to inform investment decisions and better understand the operating environment in a specific country.
MCC’s Board of Directors selects new partner countries annually in December based on scorecard performance, supplemental information, the opportunity to reduce poverty through economic growth, and the availability of funding. Only low- and lower-middle income countries as classified by the World Bank are eligible for MCC assistance.
Competitive Selection of MCC Partners
MCC uses a competitive, data-driven, and transparent process for determining where the agency invests to reduce poverty through economic growth. To be eligible to receive MCC funding, countries must pass at least 10 of our 20 indicators, as well as both categories that MCC considers “hard hurdles” for eligibility – the Political Rights or Civil Liberties indicator, and the Control of Corruption indicator. After considering the pool of countries that have passed the scorecard, MCC’s Board of Directors makes the decision on which countries to select for compact investments.
MCC’s rigorous eligibility criteria and competitive selection process creates a powerful incentive for countries to reform its policies even before a dollar is spent – referred to as “The MCC Effect.” Countries around the world are using MCC’s scorecard as a road map for policy and institutional reforms to qualify for MCC funding and identify where improvements are needed to foster economic growth.
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 countries that meet rigorous standards for good governance, fighting corruption, and respecting democratic rights.
Listen to MCC’s Podcast On Development, Episode 7 discussing MCC’s Scorecards.