What is the Millennium Challenge Corporation?
The Millennium Challenge Corporation (MCC) is an independent United States Government corporation, established in January 2004. It is overseen by a board, which is composed of the Secretary of State, the Secretary of Treasury, the U.S. Trade Representative, the Administrator of USAID, four representatives of the private sector appointed by the President of the United States and confirmed by the U.S. Senate, as well as the General Director, who leads the daily work of this Corporation.
What is MCC’s goal?
The Millennium Challenge Corporation aims at helping the developing countries, based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people, thus bringing about the reduction of poverty through economic growth. For further information, visit the website: www.mcc.gov
What aid programs does the MCC fund?
The Millennium Challenge Corporation provides two types of aid programs: compact agreements and threshold agreements.
What is a compact agreement?
A Compact is a multi-year agreement between the Millennium Challenge Corporation and an eligible country to fund specific programs targeted at reducing poverty and stimulating economic growth. Until now, the MCC has approved 18 such agreements, for a total value of $ 6.3 billion.
Which is the selection methodology for countries eligible for the Compact Status?
Developing countries, grouped according to income per capita, are evaluated based on 17 independent indicators falling under three categories: Ruling Justly, Investing in People, and Encouraging Economic Freedom. Their selection is determined by a level of progress that is above the group’s average in the above categories. Assessments take place once a year.
Where do the data for the 17 indicators come from?
The data for such assessment are gathered from reports prepared by a large number of international institutions that are globally recognized, as well as on internal reports of the eligible countries.
What is a Threshold Program?
The MCC Threshold Programs aid countries that are close to meeting the criteria and become eligible for the Compact status. 19 countries have until now benefitted from these programs, with an aid totaling in USD 440 million.
How do Threshold Programs work?
Threshold Programs are based on a state mutual agreement. The U.S. Agency for International Development (USAID) is the primary agency overseeing the implementation of these programs. Other U.S. agencies may also be involved in providing assistance for the implementation of these programs. Consultancy American companies specialized in international development implement these threshold programs on the field.
When did the MCC Threshold Program start in Albania?
The first stage of the Millennium Challenge Corporation Albania Threshold Agreement started implementation on September 2006 and terminated on October 2008. Building upon its success, the MCC decided to continue on a second stage, which has started this January.
What results were achieved during the first stage of MCC Albania Threshold Program?
The establishment of the National Registration Center, electronic public procurement and e-tax services are some of the first stage’s successes, with a value of USD 13.85 million. It contributed to reduce corruption and increase transparency and efficiency in services offered to the public for business registration, public procurement and tax administration, through legislative enhancement and IT solutions.
Which are the objectives of the MCC Threshold Program’s second stage?
The MCC Threshold Program II (MCCA2), with a value of USD 15.7 million, aims at strengthening the rule of law, reducing corruption and increasing the public oversight through IT-based solutions and technical assistance, thus improving the business climate in Albania.
Which are the areas in which the MCCA2 focuses its work?
MCCA2 is composed of six components, divided as per engagement areas: administrative court, tax administration, business licensing, territory planning, civic society and private sector engagement, and assistance to investigate corruption. The subcontracted American company Chemonics International implements the first five components, whereas the U.S. Department of Justice and the office of prosecutorial development assistance (OPDAT) in Tirana implement the sixth one.