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A Strategy for MCC's Future

The Millennium Challenge Corporation (MCC) was created in 2004 to pioneer a new approach to poverty reduction—firmly grounded in the best evidence and aimed at expanding the frontiers of development effectiveness.  Over a decade later, MCC has a track record that validates the efficacy of this model, but it also has learned, and adapted to, many important lessons along the way.  This document charts a course for deepening and expanding impact and meeting the challenges of the new landscape of global poverty and development. It lays out new directions, five specific goals, and priority actions that MCC will pursue, building on its proven model and founding principles.  By following this strategy, MCC will seek to achieve greater leverage and results from the use of its resources, partner consistently and catalytically with the private sector and other key development actors, and continue to drive innovations in development effectiveness in the development community.

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.

Founding Principles

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.