Selection Process

The MCC Board of Directors selects countries as eligible for MCC assistance that demonstrate a commitment to just and democratic governance, investing in people, and economic freedom, using the following four-step process.

  1. Identify Candidate Countries

    To be a candidate for MCC assistance, countries must be classified as either low income or lower middle income by the World Bank and not be prohibited from receiving assistance by federal law. Only candidate countries may be selected as eligible to develop a compact or threshold program.
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  2. Establish Country Selection Criteria & Methodology

    The selection criteria and methodology are the rules by which the Board of Directors determines a country’s eligibility. The Board considers scorecard indicator performance, the opportunity to reduce poverty and generate economic growth, and the availability of funds.
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  3. Publish Country Scorecards

    The Country Scorecard consolidates an individual country’s scores for each of the policy indicators MCC uses to determine eligibility for its assistance programs. Each country identified in the Candidate Country Report has a scorecard.
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  4. Select Countries

    The Board of Directors selects eligible countries for MCC program assistance, typically in December of each year. The selected countries, if they agree to participate, then develop a Compact or Threshold Program Proposal with MCC.
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Step 1: Identify Candidate Countries

To be a candidate for MCC program assistance, countries must

  • Not exceed certain per-capita, annual income levels;
  • Not be subject to any number of U.S. sanctions.

The World Bank sets the income levels annually in early July. A country must be classified as a low income country or lower middle-income country to be a candidate.

The MCC Chief Executive Officer submits a report to Congress that lists the candidate countries. By law, this report must be submitted to the appropriate congressional committees and published in the Federal Register not later than 90 days before the MCC Board selects compact eligible countries. This report is referred to as the annual Candidate Country Report.

 

This report identifies countries that are “candidate countries” for MCA assistance for FY21 based on per capita income levels and eligibility to receive assistance under U.S. law.

Step 2: Publish Country Selection Criteria and Methodology

The country selection criteria and methodology are the rules and measures by which the Board of Directors determines a country’s eligibility for MCC assistance.

In determining country eligibility, the Board considers:

  • A country’s performance on the scorecard indicators;
  • The opportunity to reduce poverty and generate economic growth within a country; and the
  • Availability of funds.

In addition, for countries that are candidates for subsequent compact selection, the Board considers each country’s performance implementing its prior compact, including country progress toward achieving that compact’s results, the nature of the country partnership with MCC, and the degree to which the country has implemented the compact in accordance with MCC’s core policies and standards. When considering a country for a subsequent compact, the Board also takes into consideration evidence of improved scorecard policy performance and a commitment to sectoral reform. The types of additional information the Board considers beyond the scorecards can also be found in the Guide to Supplemental Information.

The MCC Chief Executive Officer submits a report to Congress that describes these criteria and the methodology. By law, this report must be submitted to the appropriate congressional committees and published in the Federal Register not later than 60 days before the MCC Board selects compact eligible countries. This report is referred to as the annual Selection Criteria and Methodology Report.

 

Accept Public Comment

Each year MCC solicits and considers public comment regarding the country selection criteria and methodology. The comment period for FY 2021 selection is closed.

This report identifies the criteria and methodology MCC uses to determines countries that are eligible for MCA assistance for FY21.

The following guide illustrates the types of supplemental information taken into consideration by MCC and its Board when selecting countries for threshold programs, initial compacts, or subsequent compacts.

Step 3: Issue Country Scorecards and Scorebook

The Country Scorecard consolidates an individual country’s scores for each of the policy indicators MCC uses to determine eligibility for its assistance programs. Each country identified in the Candidate Country Report has a scorecard. MCC also produces scorecards for countries that are subject to international or U.S. sanctions, but do not exceed the per-capita income requirement. These scorecards rank countries against their income peers on 20 indicators measuring a commitment to just and democratic governance, investments in its people, and economic freedom.

Individual country scorecards are available by fiscal year in the Country Scorecard section and are also published as a Country Scorebook. A description of how MCC constructs the scorecard indicators can be found in MCC’s Guide to the Indicators.

Download a compendium of the fiscal year 2021 scorecards with introductory text about the indicators and how to interpret the scores.

MCC’s Board assesses individual country commitment to ruling justly, investing in people, and economic freedom using policy indicators compiled into country scorecards.

Step 4: Select Countries to Develop a Compact or Threshold Program

The Board of Directors selects eligible countries for MCC program assistance, typically in December of each year.

In determining country eligibility, the Board considers three factors:

  • A country’s policy performance;
  • The opportunity to reduce poverty and generate economic growth within a country; and the
  • Availability of funds.

The selected countries, if they agree to participate, then develop a Compact Proposal with MCC.

This report includes a list of countries determined by the MCC Board to be “eligible” for FY 2020– with justification for eligibility and selection for compact negotiation – and the eligible countries with which the board will seek to enter into compacts.