11/09/2020 | Press release | Distributed by Public on 11/09/2020 11:20
WASHINGTON, D.C., November 9, 2020 - Today, the Millennium Challenge Corporation (MCC) released its fiscal year (FY) 2021 country scorecards-which consist of a collection of 20 independent, third-party indicators that measure a country's policy performance in the areas of economic freedom, ruling justly, and investing in people.
The scorecards are a key component in MCC's annual competitive selection process that determines which countries are eligible to develop a five-year grant agreement, known as a compact, with the agency. The scorecard indicators can also be used by the private sector, including businesses and investors, to inform decisions and better understand the operating environment in a specific country.
MCC selects only low- and lower-middle income countries, as classified by the World Bank, and has made the FY 2021 scorecards for these 78 countries publicly available on the agency's website.
Competitive Selection of MCC Partners
MCC's competitive selection is a data-driven, transparent process for determining where the agency invests to reduce poverty through economic growth. To be considered for an MCC compact, countries are expected to first pass MCC's scorecard, passing at least 10 of the 20 indicators, including the Political Rights or Civil Liberties indicator, and the Control of Corruption indicator. This year, 25 of the 78 countries for which MCC created scorecards passed the scorecard, while 53 countries did not.
Each December, MCC's Board of Directors selects new partner countries based on scorecard performance, supplemental information, the opportunity to reduce poverty through economic growth, and available funding.
MCC's rigorous eligibility criteria and competitive selection process creates a powerful incentive for countries to reform their policies even before a dollar is spent-referred to as 'the MCC effect.' Countries around the world are using the MCC scorecard as a road map for policy and institutional reform in order to qualify for MCC funding. The scorecard helps countries identify where improvement is needed to reduce poverty through economic growth.
The Millennium Challenge Corporation is an independent U.S. Government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to poor countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights. Learn more about MCC at www.mcc.gov.