MCC actively engages with the private sector throughout the development and implementation of its threshold and compact programs to spur economic growth in partner countries. By holding its partner countries accountable to high standards of good governance and capitalizing on private investment and expertise, MCC is delivering development results and creating new opportunities for U.S. firms in frontier markets.
Incentivizing Reforms
The “MCC effect” refers to the positive impact of MCC’s rigorous commitment to sound policies beyond the agency’s direct development investments in partner countries. MCC’s selection criteria encourage countries to reform policies, strengthen institutions and improve data quality in order to boost their performance in the areas of economic freedom, ruling justly and investing in their people, as measured by the MCC scorecard.Côte d’Ivoire, a regional economic hub in West Africa, is a good example of the MCC effect. After receiving a passing score on only five of 20 policy indicators in 2013, the Government of Côte d’Ivoire adopted MCC’s scorecard as its road map for reform and established an interministerial committee to develop and implement those reforms. After Côte d’Ivoire passed MCC’s scorecard in 2015, MCC’s Board designated the country as eligible to develop a compact, which was approved in September 2017. The country’s concerted effort demonstrates the impact MCC’s model and scorecard have in driving policy change globally, even before a single dollar of taxpayer money is spent. Good performance on the MCC scorecard signals to the private sector that MCC’s partners are open for business.