MCC is unique in that it makes large grant investments in growth and poverty reduction, but only in relatively well-governed countries with demonstrated economic need. This means that MCC is selective in where it works and that support for just and democratic governance is built into the agency’s DNA. Moreover, a strong country-led model means these investments are designed in partnership with country governments to deliver for their people, to whom they are ultimately accountable. These principles are evident in:
- MCC’s approach to selecting country partners,
- MCC’s program development and implementation process, and
- the ongoing success of MCC partner countries.
Selecting Partner Countries Committed to Ruling Justly
MCC’s statute requires eligibility criteria that assess candidate country commitment to the principles of good governance. MCC uses a transparent, data-driven process to select partner countries that evaluates policy performance in a number of areas, as summarized on MCC’s country scorecards, which are comprised of twenty indicators developed by independent, third-party institutions. In the “Ruling Justly” category of the scorecard, MCC has indicators that explicitly measure a country’s commitment to principles of good governance—Political Rights, Civil Liberties, Freedom of Information, Rule of Law, Government Effectiveness, and Control of Corruption. Good performance in these areas is critical to passing MCC’s scorecard and receiving MCC assistance.
In addition to its requirement that countries must pass the Control of Corruption indicator and half of the 20 indicators in order to pass the scorecard overall, MCC has a “democratic rights” hurdle. Countries must pass either the Political Rights or the Civil Liberties indicator in addition to the other requirements to pass MCC’s scorecard. This requirement reflects the weight MCC’s Board and Congressional stakeholders have historically placed on political rights and civil liberties and sends a clear message to potential partner countries regarding the importance of democracy to good governance.
Strengthening Good Governance through Program Development and Implementation
MCC’s approach to reducing poverty—creating incentives for reform and respecting existing domestic actors and processes—contributes to the long-term deepening of existing governance institutions.A core principle of MCC’s approach to development is its country ownership model, whereby MCC partners with eligible country governments to design and implement programs that are aligned with a country’s own development priorities.
In doing so, MCC helps country partners deliver tangible results for their people, based on the needs and aspirations they have voiced to their governments.
MCC also requires transparency in how these programs are implemented to ensure citizen and civil society participation, and requires programs to adhere to domestic legal and constitutional requirements. Together, these aspects of MCC’s program implementation model reinforce good governance institutions and processes.
Ongoing Expectations of Good Governance
Throughout the life of an MCC partnership, countries are expected to maintain their commitment to the principles of good governance that underpin MCC’s statutorily mandated eligibility criteria, including the key policy areas captured on the MCC scorecard. Many MCC partner countries have taken steps to strengthen the fight against corruption, increase transparency, engage in political dialogue and reform during the course of their partnership with MCC to ensure good governance, peace, and prosperity. However, if a country demonstrates a significant policy reversal, MCC may issue a warning, suspend, or terminate eligibility for assistance.