A Message from Secretary of State Michael R. Pompeo
The United States has been – and always will be – a force for good around the world. The Millennium Challenge Corporation (MCC) continues our historic legacy through its core mission of reducing poverty through private sector-led economic growth and promoting American values.
The MCC reflects America’s longstanding commitment to partnership by helping countries to determine their greatest needs. We design solutions together, creating local employment in the process. Our approach stands in contrast with that of other countries, like China, that encourage unsustainable debt and create dependencies that erode national sovereignty.
The MCC uses an innovative model based on the principles of inclusiveness, transparency, and innovation. It sets a high standard for effective development assistance and stewardship of taxpayer resources, puts the onus on partner countries to drive success and promote shared values, and partners with countries that value democratic rights, the rule of law, sovereignty, and women’s economic empowerment. In doing so, the MCC helps create a more secure and equitable world for all.
The MCC delivers results that touch people’s lives. It helps nations build electrical transmission lines. It creates transport infrastructure and develops long-term sources of water supply. The MCC gives people the skills they need to get better jobs. The MCC shows that accountability, transparency, data-driven decision making, and cost-effective projects lead to the results countries need.
These partnerships of results preserve freedom and push back against corrupt and authoritarian regimes. Prosperous states can better share the burden of confronting common threats. States that evolve from being recipients of development assistance to being robust trading partners generate greater economic opportunities for both countries.
The MCC is an exemplar of America’s commitment to help countries achieve prosperity through self-reliance. We will continue to lead that vital mission, to the benefit of our own citizens and the world.
Sincerely,
Michael R. Pompeo
Secretary of State
A Message from Chief Executive Officer Sean Cairncross
MCC was created with broad bipartisan support to apply a new model for foreign assistance –one built on lessons of development experience and founded on the principles of transparency and accountability. Fiscal year 2019 marked MCC’s 15th year of driving innovative growth and accountable results within its partner countries around the world. Since our inception in 2004, we have continued to employ a private-sector approach in each of our programs, combining development expertise with rigorous analysis to maximize each dollar spent in our efforts to reduce poverty through economic growth and open new markets for U.S. businesses around the globe.
It is an incredible honor to serve as Chief Executive Officer of the Millennium Challenge Corporation, leading such a talented and remarkable staff dedicated to such an important mission. Fiscal year 2019 was full and rewarding for MCC – we expanded our leadership abroad, formed new and exciting strategic partnerships, focused our strategic direction, and produced measurable results for beneficiaries around the world on behalf of the American people.
In the course of its existence, MCC has signed 37 compacts with 29 countries, worth more than $13 billion. These compacts are expected to benefit nearly 190 million people worldwide by boosting economies, building key infrastructures, and empowering citizens through stronger social and democratic rights. MCC’s 15th year in operation closed on a successful note, with major milestones achieved during fiscal year 2019. A few of these are highlighted below:
Launch of the Women’s Global Development and Prosperity (W-GDP) Initiative
MCC is a key partner in the Women’s Global Development and Prosperity (W-GDP) initiative, which the White House launched in February 2019 under the leadership of Advisor to the President Ivanka Trump. This is the first whole-of-government approach to prioritize the critical role of women in driving economic success and stability in nations around the world. Women’s economic empowerment has been a pillar for MCC since its inception, and the W-GDP initiative has been a tool to consolidate the U.S. government efforts in this important area. We are already seeing the impact of this collaboration – MCC and Advisor Trump worked closely with the Government of Morocco for the December 2019 adoption and implementation of legal reforms to land rights that aim to boost women’s economic empowerment. Similarly, Côte d’Ivoire passed new laws in July 2019 to strengthen women’s rights as part of the government’s ongoing efforts to improve the country’s performance on MCC’s scorecard.
I also had the chance to see the impact of our work on women’s economic empowerment firsthand when I visited Malawi in August 2019. I met with women who have successfully lifted themselves out of poverty with sustainable skills learned through MCC’s first compact with Malawi, such as electrical engineering students earning degrees through an MCC-sponsored scholarship.
To further incorporate women’s economic empowerment into our work, in fiscal year 2019 MCC expanded its Gender in the Economy indicator on our scorecards from 10 issue areas to 40 issue areas. This indicator uses the World Bank’s Women, Business, and the Law data to more fully incorporate all aspects of women’s economic empowerment.
MCC and the BUILD Act
The BUILD Act, signed into law by President Trump in October 2018, is bipartisan legislation that provides for the establishment of the U. S. International Development Finance Corporation (DFC) to facilitate private-sector investment in developing countries, extending the impact of U.S. foreign assistance and contributing to foreign policy objectives and making it easier for American businesses and institutional investors to work in developing economies. In fiscal year 2019, MCC played an active role in the interagency discussions regarding BUILD Act operationalization, offered insights, and data from the MCC portfolio, and started discussions about potential areas for future collaboration. MCC’s expertise in conducting economic analysis, leveraging private sector investment, and incentivizing policy and institutional reforms positions the agency to make significant contributions to the overall impact of the BUILD Act. Further, MCC’s expertise contributes to the ability of U.S. foreign assistance to create jobs, expand markets, and reduce poverty through economic growth. It is expected that MCC will remain a strategic development partner to the DFC in fiscal year 2020, and in years to come, to maximize development impact, and maintain global leadership in development and blended finance.
Partnerships
MCC remains committed to leveraging partnerships to amplify our impact around the world, including creating new opportunities for private sector investment and blended finance. The impact of partnerships on our compacts cannot be overstated. For example, in Georgia, our $140 million second compact—which closed out in July 2019—leveraged $19 million in additional funds from the private sector, U.S. Embassy, and Government of Georgia contributions.
Our private sector partnerships have also had significant impact in MCC’s compact in El Salvador, which launched the country’s first full-scale Public Private Partnership to enable the Government of El Salvador to tap private capital to finance, develop, and manage key infrastructure needed to increase productivity and private investment. The activity saw the completion of $126.5 million in private investment under the El Salvador Investment Challenge. A second Public Private Partnership was also recently launched for a $19 million street lighting and video-surveillance project for 143 kilometers of highway to be awarded in June 2020. The compact’s Investment Climate Project enables the Government of El Salvador to better partner with the private sector, providing critical infrastructure and public services. This project is expected to attract up to $450 million of private investment.
Compact Closeouts and New Eligibilities in Fiscal Year 2019
During fiscal year 2019, the MCC Board of Directors (the Board) selected Indonesia, Malawi, and Kosovo as eligible for compact programs, and Ethiopia and the Solomon Islands as eligible for threshold programs. MCC also made progress on its new regional authority, as part of the AGOA and MCA Modernization Act signed by President Trump in April 2018, authorizing MCC to enter into concurrent compacts to promote cross-border economic integration, trade, and collaboration. MCC’s fiscal year 2019 program highlights also include Board approval for a $480 million compact with Sri Lanka, the entry-into-force of our $525 million compact in Côte d’Ivoire, and the signing of MCC’s $35 million Togo Threshold Program. MCC oversaw the successful closures of its compact and threshold program partnerships with Zambia, Honduras, and Georgia.
Our programs support more stable, secure countries with innovative, accountable investments. Our model stands in stark contrast to competing, debt-driven models. I will continue to maintain MCC’s model, its strong record of transparent, data-driven results and its clear bipartisan support, all while advancing MCC's mission to reduce poverty through economic growth.
Board of Directors: Fiscal Year 2019
The MCC Board of Directors (the “Board”) comprises five government officials and four individuals from the private sector who are appointed by the President with the advice and consent of the Senate. The Board meets quarterly.
Michael R. Pompeo, Chair Secretary of State
Steven T. Mnuchin, Vice Chair Secretary of the Treasury
Robert E. Lighthizer U.S. Trade Representative
Mark A. Green Administrator, U.S. Agency for International Development
Sean Cairncross MCC Chief Executive Officer
Alexander (Ander) Crenshaw Former U.S. Representative
Mike Johanns Former U.S. Senator and Secretary of Agriculture
George Marcus Founder and Chairman of Marcus & Millichap Company
Susan McCue President of Message Global LLC