A Message from Dana J. Hyde
MCC is a small but critical piece of the global response to end poverty. This strategic plan provides a blueprint as we embark upon the agency’s next chapter to achieve our singular mission: poverty reduction through economic growth.
MCC’s founding principles established a new model for development and the innovative approach supported the agency’s single mission of poverty reduction through economic growth. Still, at MCC’s creation in 2004, the new model raised questions.
A Model Validated
The MCC model has shown that sustained and inclusive growth is the most powerful engine of poverty reduction. Selectivity works, reform can be incentivized, major infrastructure projects can be built in five years, and data-driven rigor and transparency helps.
Results and Lessons Learned
As a learning institution, MCC is committed to achieving and measuring results, taking accountability for its results, transparency in reporting results, and learning from the evidence and self-assessments to improve future programs.
The New Landscape of Poverty and Development
The landscape of poverty and development has changed considerably since 2004, from the geographic distribution of poverty and the way it is measured and defined, to the proven value of regional integration and innovations in financing and technology.
Implications for MCC
The changes in the landscape of poverty and development as well as the MCC’s lessons learned and results gathered over the last 12 years present important implications to MCC.
New Strategic Directions
MCC effectively addressed early challenges and made the model work in practice as well as in theory. The focus going forward should be to reinforce and deepen the model and expand its impact and reach, rather than to change or weaken its core attributes.
Goal 1: Opportunities
MCC will deepen analytical support at the front end of compacts to help countries pursue better growth quality which includes better poverty reduction returns, more inclusion, and more sustainable growth opportunities for the poor.
Goal 2: Incentives
Countries have been motivated to undertake difficult reforms in response to MCC’s selection criteria and ability to combine policy and project discussions. To make better use of this advantage, MCC should focus more on reforms with greater systemic impact.
Goal 3: Leverage
MCC should broaden and deepen public and private partnerships with the right countries for more impact and leverage, taking the model to new high-poverty areas, and helping countries collaborate on building dynamic regional markets.
Goal 4: Measurement
By helping others build data-driven decision-making systems, incorporate and improve gender data, invest in knowledge feedback, measure impact, and scale evidence-based development innovations, MCC will take its results and data leadership to the next level.
Goal 5: World-Class
MCC should maximize internal efficiency and productivity by maintaining and motivating a world class, high functioning staff, and by investing in institutional strength, including a business culture of dynamism and strong and flexible management systems.