About the Indicators for Fiscal Year 2014

To select countries as eligible for Millennium Challenge Account funding, the Millennium Challenge Corporation assesses the degree to which the political, social and economic conditions in a country promote broad-based sustainable economic growth. MCC uses third-party indicators to identify countries with policy environments that will allow Millennium Challenge Account funding to be effective in reducing poverty and promoting economic growth. MCC evaluates performance in three areas—ruling justly, investing in people and encouraging economic freedom —using quantitative policy indicators. The following is a list of the indicators used by MCC in fiscal year 2014:

Ruling Justly

  • Civil liberties (Freedom House)
  • Political rights (Freedom House)
  • Control of corruption (World Bank/Brookings Institution Worldwide Governance Indicators)
  • Government effectiveness (World Bank/Brookings Institution Worldwide Governance Indicators)
  • Rule of law (World Bank/Brookings Institution Worldwide Governance Indicators)
  • Freedom of information (Freedom House / FRINGE Special/ Open Net Initiative)

Investing in People

  • Immunization rates (World Health Organization and UNICEF)
  • Public expenditure on health (World Health Organization)
  • Girls’ education (UNESCO)
    • Primary education completion (Scorecard LICs)
    • Secondary education enrollment (Scorecard LMICs)
  • Public expenditure on primary education (UNESCO and national sources)
  • Child health (CIESIN and YCELP)
  • Natural resource protection (CIESIN and YCELP)

Encouraging Economic Freedom

  • Business start-up (IFC)
  • Land rights and access (IFAD and IFC)
  • Trade policy (Heritage Foundation)
  • Regulatory quality (World Bank/Brookings Institution Worldwide Governance Indicators)
  • Inflation (IMF WEO)
  • Fiscal policy (IMF WEO)
  • Access to credit (IFC)
  • Gender in the economy (IFC)

Supplemental information will also be used for fiscal year 2014; sources that may be used include the disabilities component of the U.S. Department of State’s Human Rights Report, the Extractive Industry Transparency Initiative, Transparency International’s Corruption Perceptions Index, the Global Integrity Report, and others.

For more information on the process MCC uses to select eligible countries, the indicators, and individual country scores, please go to the Selection Criteria section of MCC’s website at www.mcc.gov.