Millennium Challenge Act: Difference between revisions

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The '''Millenium Challenge Act of 2003''' established the U.S. [[Millenium Challenge Corporation]], as a stimulus to effective [[foreign assistance]], judged for effectiveness in improving governance, economic freedom and human capital development. "MCC’s mission is to reduce global poverty through the promotion of sustainable economic growth." <ref name=CFR>{{citation
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The '''Millennium Challenge Act of 2003''' established the U.S. mechanism for meeting the [[Millennium Development Goals]] of the United Nations. It created the U.S. Millennium Challenge Corporation (MCC) to administer targeted  [[foreign assistance]], judged for effectiveness in improving governance, economic freedom and human capital development. "MCC’s mission is to reduce global poverty through the promotion of sustainable economic growth." <ref name=CFR>{{citation
  | title = Millennium Challenge Act of 2003
  | title = Millennium Challenge Act of 2003
  | year = 2003
  | year = 2003
  | publisher = [[Council on Foreign Relations]]
  | publisher = Council on Foreign Relations
  | url =http://www.cfr.org/publication/16232/millennium_challenge_act_of_2003.html }}</ref>  
  | url =http://www.cfr.org/publication/16232/millennium_challenge_act_of_2003.html }}</ref>


While it was an innovative method to overcome the limitations of some of the lending policies of organizations such as the World Bank, putting the responsibility on the recipient country rather than the aid agency to define and execute the programs being funded, it has had problems with execution, as a unilateral U.S. program, and even conflicting with other U.S. programs. <ref name=AAC>{{citation
==Role in democracy promotion==
  | title = America at the Crossroads: Democracy, Power, and the Neoconservative Legacy
MCC is often seen as one of the [[democracy promotion]] activities of the United States, based on the assumption that strengthening governance and economic institutions is a prerequisite for democracy.
 
While it was an innovative method to overcome the limitations of some of the lending policies of organizations such as the World Bank, putting the responsibility on the recipient country rather than the aid agency to define and execute the programs being funded. <ref name=Radelet2003>{{citation
| title = Challenging Foreign Aid: A Policymaker's Guide to the Millennium Challenge Account
| author = Steven Radelet
| date = May 1, 2003 | url = http://www.cgdev.org/content/publications/detail/2920/?print=1&id=2920&datatype=5
| publisher = Center for Global Development}}</ref> Within the [[George W. Bush Administration]], it has had problems with execution, as a unilateral U.S. program, and even conflicting with other U.S. programs. <ref name=AAC>{{citation
  | title = America at the Crossroads
  | author = [[Francis Fukuyama]]
  | author = [[Francis Fukuyama]]
  | publisher = Yale University Press | year = 2006
  | publisher = Yale University Press | year = 2006
  | isbn = 0300113994}},pp. 147-148</ref>
  | isbn = 0300113994}}, pp. 147-153</ref>
==Role in democracy promotion==
MCC is often seen as one of the [[democracy promotion]] activities of the United States, based on the assumption that strengthening governance and economic institutions is a prerequisite for democracy.
==Eligibility==
==Eligibility==
(1) IN GENERAL.—In addition to countries described in subsection (a), a country shall be
Eligible countries are designated as lower middle income country in the then most recent edition of the
a candidate country for purposes of eligibility for assistance for fiscal year 2006 or a
subsequent fiscal year if the country—
(A) is classified as a lower middle income country in the then most recent edition of the
World Development Report for Reconstruction and Development published by the
World Development Report for Reconstruction and Development published by the
[[International Bank for Reconstruction and Development]] and has an income greater than the
[[International Bank for Reconstruction and Development]] and has an income greater than the
historical ceiling for International Development Association eligibility for the fiscal year
historical ceiling for International Development Association eligibility for the fiscal year
involved; and
involved.
(B) meets the requirements of subsection (a)(1)(B).


—A candidate country should be considered to be an eligible country for purposes of
A candidate country should be considered to be an eligible country if the Board determines that the country has demonstrated a commitment to:
this section if the Board determines that the country has demonstrated a commitment to—
*just and democratic governance, including a demonstrated commitment to:
*just and democratic governance, including a demonstrated commitment to—
**promote political pluralism, equality, and the rule of law;
**promote political pluralism, equality, and the rule of law;
**respect human and civil rights, including the rights of people with disabilities;
**respect [[human rights|human]] and [[civil rights]], including the rights of people with disabilities;
**protect private property rights;
**protect private property rights;
**encourage transparency and accountability of government; and
**encourage transparency and accountability of government; and
**combat corruption;
**combat [[corruption]];
*economic freedom, including a demonstrated commitment to economic policies that—
*economic freedom, including a demonstrated commitment to economic policies that—
**encourage citizens and firms to participate in global trade and international capital
**encourage citizens and firms to participate in global trade and [[financial system|international capital   markets]];
markets;
**promote private sector growth and the sustainable management of natural resources; strengthen market forces in the economy; and
**promote private sector growth and the sustainable management of natural resources;
vstrengthen market forces in the economy; and
**respect worker rights, including the right to form [[labor union]]s; and
**respect worker rights, including the right to form [[labor union]]s; and
*investments in the people of such country, particularly women and children, including
*investments in the [[human capital]] of the country, particularly women and children, including programs that
programs that—
**promote broad-based [[primary education]]; and
**promote broad-based [[primary education]]; and
**strengthen and build capacity to provide quality [[public health]] and reduce [[child
**strengthen and build capacity to provide quality [[public health]] and reduce [[child mortality]].
mortality]].


==Needs it does not cover==
==Needs it does not cover==
Line 47: Line 45:
was focused on the “good performers,” weak states were understandably
was focused on the “good performers,” weak states were understandably
left out of the conversation—and in this case, their absence underscored
left out of the conversation—and in this case, their absence underscored
the dearth of strategic thinking on the challenges they posed. <ref name=PTB>{{citation
the dearth of strategic thinking on the challenges they posed. <ref name=OTB>{{citation
  | publisher = Commission on Weak States and US National Security
  | publisher = Commission on Weak States and US National Security
  | editor = [[Stuart Eizenstat]], Co-Chair; Congressman John Edward Porter, Co-Chair; Jeremy Weinstein, Project Director
  | editor = [[Stuart Eizenstat]], Co-Chair; Congressman John Edward Porter, Co-Chair; Jeremy Weinstein, Project Director

Latest revision as of 12:01, 19 March 2024

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The Millennium Challenge Act of 2003 established the U.S. mechanism for meeting the Millennium Development Goals of the United Nations. It created the U.S. Millennium Challenge Corporation (MCC) to administer targeted foreign assistance, judged for effectiveness in improving governance, economic freedom and human capital development. "MCC’s mission is to reduce global poverty through the promotion of sustainable economic growth." [1]

Role in democracy promotion

MCC is often seen as one of the democracy promotion activities of the United States, based on the assumption that strengthening governance and economic institutions is a prerequisite for democracy.

While it was an innovative method to overcome the limitations of some of the lending policies of organizations such as the World Bank, putting the responsibility on the recipient country rather than the aid agency to define and execute the programs being funded. [2] Within the George W. Bush Administration, it has had problems with execution, as a unilateral U.S. program, and even conflicting with other U.S. programs. [3]

Eligibility

Eligible countries are designated as lower middle income country in the then most recent edition of the World Development Report for Reconstruction and Development published by the International Bank for Reconstruction and Development and has an income greater than the historical ceiling for International Development Association eligibility for the fiscal year involved.

A candidate country should be considered to be an eligible country if the Board determines that the country has demonstrated a commitment to:

  • just and democratic governance, including a demonstrated commitment to:
    • promote political pluralism, equality, and the rule of law;
    • respect human and civil rights, including the rights of people with disabilities;
    • protect private property rights;
    • encourage transparency and accountability of government; and
    • combat corruption;
  • economic freedom, including a demonstrated commitment to economic policies that—
    • encourage citizens and firms to participate in global trade and international capital markets;
    • promote private sector growth and the sustainable management of natural resources; strengthen market forces in the economy; and
    • respect worker rights, including the right to form labor unions; and
  • investments in the human capital of the country, particularly women and children, including programs that

Needs it does not cover

MCA became a flagship of the Center for Global Development's operations. Yet because the MCA was focused on the “good performers,” weak states were understandably left out of the conversation—and in this case, their absence underscored the dearth of strategic thinking on the challenges they posed. [4]

References

  1. ↑ Millennium Challenge Act of 2003, Council on Foreign Relations, 2003
  2. ↑ Steven Radelet (May 1, 2003), Challenging Foreign Aid: A Policymaker's Guide to the Millennium Challenge Account, Center for Global Development
  3. ↑ Francis Fukuyama (2006), America at the Crossroads, Yale University Press, ISBN 0300113994, pp. 147-153
  4. ↑ Stuart Eizenstat, Co-Chair; Congressman John Edward Porter, Co-Chair; Jeremy Weinstein, Project Director, ed. (8 June 2004), On the Brink: Weak States and US National Security, Commission on Weak States and US National Security
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