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  • Special Publication:  NEXT
  • February 2016

Founding Principles

MCC was founded on the following principles:

  • MCC has a single mission:  reducing poverty through economic growth.
  • Aid is more effective in countries where there is good governance, personal and economic freedom, and investment in people.
  • Country ownership of programs from the start is essential for sustainable success.  
  • Data-driven analytical rigor and a focus on outcomes should govern resource allocation, project design, and results measurement.
  • Transparency and accountability must be embedded in all aspects of the country partnership—before, during, and after the compact period.

Based on these principles, MCC’s founders established a new model for development. That model raised a number of questions about its underlying assumptions:

  • Does growth really drive poverty reduction?
  • Does good governance foster growth and development?
  • Would it be possible to find poor countries demonstrably committed to good governance?
  • Would the U.S. Government (USG) accept this discipline in selecting eligible countries?
  • Would poor countries pursue the right policies, make data-driven investment decisions, and implement projects effectively?
  • Could MCC effectively empower partner countries to “own” the design and implementation of projects?
  • Could large grants for infrastructure be deployed productively and effectively within five-year compacts?
  • Would extreme transparency backfire? Would full honesty about results—good and bad—jeopardize funding?