The Millennium Challenge Account : An Early Appraisal

Abstract

This chapter presents Millennium Challenge Account (MCA) program and operations of Millennium Challenge Corporation (MCC) by way of background. MCC is a government corporation, operating much like a private-sector business. As originally conceived, MCA would gradually ramp up funding to $5 billion annually, in effect nearly doubling the existing 'core' US foreign assistance budget. MCC's Threshold Program assists countries deemed MCA-ineligible but showing commitment to MCA objectives. The MCA authorizes assistance to candidate countries to help them achieve eligibility in subsequent years. Although much has been made of the use of indicators as an objective way for MCC to determine country eligibility, MCC has wide discretion in including or excluding countries from MCA. Given the restrictive budgetary climate, considerable disagreement exists over the merits of signing smaller compacts with many countries or larger compacts with only a few. Ambassador John Danilovich highlighted MCC's role to ensure aid dollars have a transformative impact. One important pillar of the MCA program is country ownership.