|MCC at a GlanceThe Millennium Challenge Corporation (MCC) is an innovative and independent U.S. foreign assistance agency that is helping lead the fight against global poverty. Created by the U.S. Congress in 2004 with strong bipartisan support, MCC is changing the conversation on how best to deliver smart U.S. foreign assistance by focusing on good policies, country ownership and results.MCC forms partnerships with some of the world’s poorest countries, but only those committed to good governance, economic freedom and investments in their citizens.MCC provides these well-performing countries with large-scale grants to fund country-led solutions for reducing poverty through sustainable economic growth. MCC grants are designed to complement other U.S. and international development programs, as well as create an enabling environment for private sector investment. There are two primary types of MCC grants: compacts and Threshold Programs.Compacts are multi-year agreements between the Millennium Challenge Corporation and a country to fund specific programs targeted at reducing poverty and stimulating economic growth.
Threshold Programs are smaller-scale grants awarded to countries that may not qualify for compact funding but are firmly committed to improving policy performance.
MCC is led by a Chief Executive Officer and is governed by a nine-member board of directors. The MCC Board is comprised of the MCC CEO, the Secretary of State, the Secretary of the Treasury, the U.S. Trade Representative, the USAID Administrator, and four private sector representatives.
What is distinctive about MCC?
MCC is a prime example of smart U.S. Government assistance in action, benefitting both developing countries and American taxpayers through:
- Competitive selection: MCC’s Board examines a country’s performance on 20 independent and transparent policy indicators and selects countries based on policy performance.
- Country-led solutions: MCC requires selected countries to identify their priorities for achieving sustainable economic growth and poverty reduction. Countries develop their MCC proposals in broad consultation within their society; MCC then works in close partnership to help countries refine programs.
- Country-led implementation: When a country is awarded an MCC compact, it sets up a local accountable entity to manage and oversee all aspects of implementation. Monitoring of funds is rigorous, transparent and often managed through independent fiscal agents.
- Focus on results: MCC is committed to producing results and ensuring that the American people are getting a good return on their investment. MCC employs technically rigorous, systematic and transparent methods of projecting, tracking and evaluating the impacts of its programs.
What is MCC achieving?
MCC has approved almost $9.8 billion in compacts and Threshold Programs worldwide. These grants support projects in multiple sectors, including:
- agriculture and irrigation
- transportation infrastructure
- (roads, bridges, ports)
- water supply and sanitation
- access to healthcare services
- finance and enterprise
- anticorruption initiatives
- property rights and land policy
- access to education
Results to date include:
Nearly 200,000 farmers have been trained, 3,580 enterprises assisted and $80 million in agriculture and rural loans disbursed.
- More than 1,390 kilometers of roads are complete in eight countries, and almost 2,900 kilometers of roads are under construction in 13 countries.
- More than 200,000 students are participating in MCC-funded educational activities. More than 3,651 instructors have been trained in four countries, and nearly 800 educational facilities constructed in six countries.
- Almost 100,000 households have access to an improved water supply, and more than 5,400 households have access to improved sanitation.
MCC’s compacts and Threshold Programs are promoting growth opportunities, raising standards of living and creating a more prosperous future for some of the world’s poorest people.