Fighting Corruption

Accountability is at the core of the MCC’s model and fighting corruption is a key part of our approach to poverty reduction. MCC has made controlling corruption a key indicator in selecting partner countries for compact eligibility. During the compact development process and in the implementation of its compacts, MCC—with its MCA counterparts—promotes measures to prevent and detect incidents of fraud and corruption to combat corruption before it occurs and to responsibly address problems after they emerge.

Measuring Corruption

MCC uses the World Bank Institute’s Control of Corruption indicator as part of its selection criteria to determine if a country is eligible to make a proposal for an MCA grant. Among other things, this indicator measures the frequency of “additional payments to get things done,” the effects of corruption on the business environment, “grand corruption” in the political arena, and the tendency of elites to engage in “state capture.”

MCC Policy Initiative

MCC strengthened its anti-corruption stance by adopting a comprehensive policy on the prevention, detection and remediation of fraud and corruption in the development and implementation of compacts with partner countries. The policy is available in English, French, Spanish and Portuguese.

Countries are Responding

Countries are responding to MCC's anti-corruption efforts by:

  • Passing stronger anti-corruption laws
  • Strengthening oversight institutions
  • Opening up the public policy-making process to greater scrutiny
  • Increasing corruption-related investigations and prosecutions
  • Assessing the risks of fraud and corruption during implementation of their compact projects

Policy on Prevention, Detection, and Remediation of Fraud and Corruption

MCC strengthened its anti-corruption stance by adopting a comprehensive policy on the prevention, detection and remediation of fraud and corruption in MCC operations. This policy includes:

  • principles to which MCC will adhere with respect to corruption in the threshold program, in compact development and in compact implementation;
  • definitions related to the nature of fraud and corruption in MCC operations; and,
  • actions that MCC and partner countries will undertake to enhance the capacity to prevent, detect and remediate instances of fraud and corruption.

The policy is available in English, French, Spanish and Portuguese.

Other Resources

Toolkit: MCC Fraud and Corruption Oversight Tools and Techniques Resource Guide

Working Paper: MCC’s Role in the Fight Against Corruption

In April 2007, MCC published a working paper on its anti-corruption efforts. The paper describes how MCC is fighting corruption and how it is attempting to build upon and contribute to “best practices.” As part of a broader effort to engage those working in the field of anti-corruption, MCC is currently soliciting public feedback on this paper. If you would like to submit a comment, email developmentpolicy@mcc.gov.