MCC looks at several elements in choosing selection indicators. The agency favors indicators that:
- Are developed by an independent third party,
- Have an analytically rigorous methodology and utilize objective, high-quality data,
- Are publicly available,
- Have broad country coverage,
- Are comparable across countries,
- Are policy-linked, measuring factors that governments can influence,
- Have a clear theoretical or empirical link to economic growth and poverty reduction,
- Are appropriately consistent in results from year to year
This table lists the indicators used to determine country eligibility for MCC program assistance.
Use of Supplemental Information
MCC’s Board of Directors may also consider other quantitative and qualitative information in making country eligibility decisions. The Board uses supplemental information to enhance its understanding of a country’s policy performance relative to its peers and MCC’s ability to reduce poverty and generate economic growth in a country.
There are elements of the eligibility criteria set out in MCC’s legislation for which there is either limited quantitative information or no well-developed performance indicator. In these cases MCC may turn to supplemental sources for assessments of these policy issues. In addition, the board may consider whether there are data gaps or lags in particular indicators that can be addressed by supplemental information.
Supplemental information used by MCC may include (but is not limited to) reports like:
- The U.S. Department of State’s Human Rights Report
- The U.S. Department of State’s Trafficking in Persons Report
- Transparency International’s Corruption Perceptions Index
- Bertelsmann Transformation Index Report
- Freedom House’s Freedom in the World Report
- The World Bank’s World Development Indicators
- The World Bank’s Doing Business Report
- The World Economic Forum’s Global Competitiveness Report