Millennium Challenge Act: Difference between revisions

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The '''Millenium Challenge Act of 2003''' established the U.S. mechanism for meeting the [[Millenium Development Goals]] of the United Nations. It created the U.S. Millenium 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
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>


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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.
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, it has had problems with execution, as a unilateral U.S. program, and even conflicting with other U.S. programs. <ref name=AAC>{{citation
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 = America at the Crossroads: Democracy, Power, and the Neoconservative Legacy
| title = Challenging Foreign Aid: A Policymaker's Guide to the Millennium Challenge Account
  | author = [[Francis Fukuyama]]
| 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
  | publisher = Yale University Press | year = 2006
  | publisher = Yale University Press | year = 2006
  | isbn = 0300113994}},pp. 147-148</ref>
  | isbn = 0300113994}}, pp. 147-153</ref>
==Eligibility==
==Eligibility==
Eligible countries are designated as lower middle income country in the then most recent edition of the
Eligible countries are designated as lower middle income country in the then most recent edition of the
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A candidate country should be considered to be an eligible country  if the Board determines that the country has demonstrated a commitment to:
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—
*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 rights|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;
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**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  markets;
**encourage citizens and firms to participate in global trade and [[financial system|international capital  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; strengthen 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 programs that
*investments in the [[human capital]] of the country, particularly women and children, including 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 mortality]].
**strengthen and build capacity to provide quality public health and reduce [[child mortality]].


==Needs it does not cover==
==Needs it does not cover==
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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
Line 48: Line 53:
  | title = On the Brink: Weak States and US National Security}}</ref>
  | title = On the Brink: Weak States and US National Security}}</ref>
==References==
==References==
{{reflist|2}}
{{reflist|2}}[[Category:Suggestion Bot Tag]]

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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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