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Fighting Corruption

MCC’s model of reducing poverty through economic growth is based on a set of core principles — good governance, country ownership, a focus on results, and transparency — and fighting corruption is a key part of that approach. MCC has made controlling corruption a key indicator in selecting partner countries for compact eligibility. During the development and implementation of its compacts, MCC and its country team partner organizations promote measures to prevent and detect fraud and corruption before they occur, and to responsibly address any problems after they emerge.

Measuring Corruption

MCC uses the World Bank’s Worldwide Governance Indicators’ Control of Corruption indicator as part of its selection criteria to determine if a country is eligible to propose a compact. This indicator measures the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as “capture” of the state by elites and private interests. It also measures the strength and effectiveness of a country’s policy and institutional framework to prevent and combat corruption. Among other things, this indicator measures:
  • the frequency of additional payments to get things done
  • the effects of corruption on the business environment
  • grand corruption in the political arena, and
  • the tendency of elites to engage in state capture.
For more information on this indicator, what it measures, and how MCC uses this information in decision making, consult the documentation for MCC’s Control of Corruption Indicator.

Policy on Prevention, Detection, and Remediation of Fraud and Corruption

MCC strengthened its anti-corruption stance by adopting a comprehensive policy on the prevention, detection and remediation of fraud and corruption in the development and implementation of compacts with partner countries. This policy includes:
  • principles to which MCC will adhere with respect to corruption in the threshold program, in compact development and in compact implementation;
  • definitions related to the nature of fraud and corruption in MCC operations; and,
  • actions that MCC and partner countries will undertake to enhance the capacity to prevent, detect and remediate instances of fraud and corruption.
The policy is available in English, French and Spanish.

Other Resources