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Constraints Analysis

MCC’s evidence-based approach to its investments begins with a mutual understanding of a country’s main growth challenges. During the first phase of the compact or threshold program development process, MCC and the selected partner country, jointly conduct a constraints-to-growth analysis (CA). This analysis identifies the constraints to private investment and entrepreneurship that are most binding to economic growth in the country. The results of this analysis enable the country, together with MCC, to select activities most likely to contribute to sustainable, poverty-reducing growth.

Why Use Constraints Analysis?

MCC’s CA approach builds on the pioneering work of economists Ricardo Hausmann, Dani Rodrik and Andrès Velasco (HRV). As HRV point out, all developing countries face significant economic and development challenges, but these challenges do not all equally restrict growth. Prioritizing constraints is important since a country’s implementation capacity, political space, and financial resources to address these challenges are scarce and valuable. A particular strength of HRV‘s “growth diagnostic” methodology, as compared with other tools, is its recognition that every country is different. The tool, which MCC and other practitioners have refined through experience, is designed to sift through available evidence to identify country-specific binding constraints.

Constraints Analyses

Published Report Country Program
February 28, 2024 Zambia 2022 Constraints Analysis Zambia Proposed Compact
December 1, 2023 Malawi 2020 Constraints Analysis Malawi Transport and Land Compact
December 1, 2023 Lesotho 2018 Constraints Analysis Lesotho Health and Horticulture Compact
December 1, 2023 Solomon Islands Constraints Analysis Solomon Islands Threshold Program
December 1, 2023 Timor Leste Constraints Analysis Timor-Leste Compact
December 1, 2023 Indonesia 2019 Constraints Analysis Indonesia Infrastructure and Finance Compact
December 1, 2023 Belize 2022 Constraints Analysis Belize Proposed Compact
April 1, 2022 Tunisia Constraints Analysis Tunisia Compact
April 1, 2022 Sierra Leone Constraints Analysis Sierra Leone Proposed Compact
January 6, 2021 Ethiopia Constraints Analysis
September 8, 2020 Guatemala Constraints Analysis Guatemala Threshold Program
June 2, 2020 Burkina Faso 2020 Constraints Analysis Burkina Faso Compact II
February 19, 2020 Togo Constraints Analysis Togo Threshold Program
September 11, 2019 Côte d’Ivoire 2015 Constraints Analysis Côte d'Ivoire Compact Côte d’Ivoire Proposed Regional Compact
December 7, 2017 Kosovo Constraints Analysis Kosovo Threshold Program
September 20, 2017 Sri Lanka Constraints Analysis Sri Lanka Compact
March 1, 2017 Senegal Constraints Analysis Senegal Power Compact
August 18, 2016 Mongolia Constraints Analysis Mongolia Water Compact
October 20, 2015 Morocco Growth Diagnostic Morocco Employability and Land Compact
March 12, 2014 Sierra Leone Constraints Analysis Sierra Leone Threshold Program
January 20, 2014 Niger Constraints Analysis Niger Compact
January 6, 2014 Nepal Growth Diagnostic Nepal Compact
November 14, 2013 Liberia Constraints Analysis Liberia Compact
August 6, 2013 Análisis de Restricciones a la Economía de Honduras Honduras Threshold Program
August 5, 2013 Honduras Constraints Analysis Honduras Threshold Program
July 31, 2012 Analyse des Contraintes a l'Investissement Prive et a la Croissance Economique au Benin Benin Power Compact
August 1, 2011 Ghana Power Compact Constraints Analysis Ghana Power Compact
July 19, 2011 El Salvador 2011 Constraints Analysis El Salvador Investment Compact
July 1, 2011 Georgia II Compact Constraints Analysis Georgia Compact II
June 2, 2011 Philippines Compact Constraints Analysis Philippines Compact
January 1, 2011 Zambia Constraints Analysis Zambia Compact
January 1, 2011 Tanzania II Compact Constraints Analysis
July 22, 2010 Cabo Verde 2010 Constraints Analysis Cabo Verde Compact II
January 1, 2010 Malawi Constraints Analysis Malawi Compact
January 1, 2010 Indonesia Constraints Analysis Indonesia Compact
October 19, 2008 Moldova Constraints Analysis Moldova Compact
April 30, 2008 Senegal Constraints Analysis Senegal Compact
March 2, 2008 Jordan Constraints Analysis Jordan Compact
May 2, 2007 Mozambique Constraints Analysis Mozambique Compact