MCC’s Place in the Development Community
People around the world are struggling with a range of challenges — from immediate crises like food insecurity and rapidly spreading communicable diseases to longer-term issues like inter-generational poverty and demographic change. As a result of these compounding crises and interconnected shocks, progress on reducing global poverty and inequality reversed during the COVID-19 pandemic for the first time in decades. These cross-cutting challenges have both emerged from and been accelerated by deeply rooted development concerns, such as chronic poverty, extreme weather events, and weak governance.
Yet, we know we can make rapid progress, as more than one billion people were lifted out of poverty under the Millennium Development Goals (MDGs). This led to new global goals in 2015 through the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). But despite past progress on the MDGs, the international community is only on track to achieve roughly 15 percent of SDG targets1. The United States has a leading role to play in helping to realize those goals.
The U.S. Government’s (USG) international development work is guided by the 2022 National Security Strategy (NSS) and the 2024 U.S. Strategy on Global Development. The NSS articulates the interests and goals of the United States and commits the USG to “work with allies and partners on development and the expansion of human dignity because we recognize they are integral to the security and prosperity of all Americans.” Similarly, the Strategy on Global Development notes that what we do to advance global development matters — at home and abroad. That is, building a stronger, more resilient global economy is integral to the security and prosperity of all Americans: “The United States needs and wants prosperous partners around the world and is committed to promoting inclusive and sustainable economic growth.” MCC’s mission of reducing poverty through economic growth directly supports core American interests.
The NSS informs MCC’s work in pursuing bipartisan, USG-wide foreign policy goals that have endured throughout MCC’s 20-year history. For two decades, MCC has supported bipartisan development goals and the priorities of partner countries to create a more secure, prosperous, and equitable world. Just as it did in previous Administrations, MCC will play a key role in implementing this Administration’s Strategy on Global Development. Partner countries have more options for development finance than ever before, yet MCC’s high-quality grant assistance presents a critical opportunity for U.S. global leadership. MCC is one of the largest sources of flexible USG grant financing for long-term economic development, and this allows MCC to follow the analysis and listen to country partners in determining the problem and how to solve it. MCC fills a valuable, complementary role in the USG toolkit that is distinct from other USG agencies working on development cooperation.
Importantly, the USG approach adheres to a set of best practices and demonstrated values that distinguishes it from other actors. The MCC model is a leading example of country ownership, focus on results, inclusive partnerships, transparency, and mutual accountability. MCC’s leadership has been repeatedly recognized by the international community2. With an evidence-based approach, experienced staff, and cost-effective and transparent projects, MCC ensures American tax-payer dollars are well spent. Even in a changing global environment, MCC stays true to the idea that maximizing development impact is a valuable contribution to USG foreign policy goals on behalf of the American people.
Purpose of this capstone: MCC’s mission of poverty reduction through economic growth and its cost-effective, data-driven model of doing business have contributed significantly to U.S. national interests. MCC’s record of developing high-quality infrastructure with strategic partner countries sustained by targeted and lasting policy and institutional reforms remains well-aligned with the bipartisan emphasis placed on infrastructure and economic growth by recent Administrations. As leading experts often cite MCC as one of the most effective tools in the USG foreign policy toolkit, this success presents an opportunity for the USG to have greater development impact by scaling MCC.
In celebration of MCC’s anniversary year, MCC@20, this document synthesizes the agency’s reflection on 20 years of accomplishments and lessons learned. It shares an organization-wide strategic vision based on the MCC@20 policy framework that captures institutional learning, assesses the changed global development landscape, and anticipates future challenges and solutions.