Selection Process

The MCC Board of Directors selects countries as eligible for MCC assistance that demonstrate a commitment to just and democratic governance, investing in people, and economic freedom, using the following four-step process.

1. Identify Candidate Countries

   To be a candidate for MCC assistance, countries must be classified as either low income or lower middle income by the World Bank and not be prohibited from receiving assistance by federal law. Only candidate countries may be selected as eligible to develop a compact or threshold program. Jump to section 

2. Establish Country Selection Criteria & Methodology

   The selection criteria and methodology are the rules by which the Board of Directors determines a country’s eligibility. The Board considers scorecard indicator performance, the opportunity to reduce poverty and generate economic growth, and the availability of funds. Jump to section 

3. Publish Country Scorecards

   The Country Scorecard consolidates an individual country’s scores for each of the policy indicators MCC uses to determine eligibility for its assistance programs. Each country identified in the Candidate Country Report has a scorecard. Jump to section 

4. Select Countries

   The Board of Directors selects eligible countries for MCC program assistance, typically in December of each year. The selected countries, if they agree to participate, then develop a Compact or Threshold Program Proposal with MCC. Jump to section 

Step 1: Identify candidates

To be a candidate for MCC program assistance, countries must

• Not exceed certain per-capita, annual income levels;
• Not be subject to any number of U.S. sanctions.

The World Bank sets the income levels annually in early July. A country must be classified as a low income country or lower middle-income country to be a candidate.

The MCC Chief Executive Officer submits a report to Congress that lists the candidate countries. By law, this report must be submitted to the appropriate congressional committees and published in the Federal Register not later than 90 days before the MCC Board selects compact eligible countries. This report is referred to as the annual Candidate Country Report.

Step 2: Publish Country Selection Criteria and Methodology

In determining country eligibility, the Board considers:

• A country’s performance on the scorecard indicators;
• The opportunity to reduce poverty and generate economic growth within a country; and the
• Availability of funds.

The MCC Chief Executive Officer submits a report to Congress that describes these criteria and the methodology. By law, this report must be submitted to the appropriate congressional committees and published in the Federal Register not later than 60 days before the MCC Board selects compact eligible countries. This report is referred to as the annual Selection Criteria and Methodology Report.

Public Comment

Step 3: Issue Country Scorecards and Scorebook

Individual country scorecards are available by fiscal year in the Country Scorecard section and are also published as a Country Scorebook. A description of how MCC constructs the scorecard indicators can be found in MCC’s Guide to the Indicators.

Step 4: Select Countries to Develop a Compact or Threshold Program

In determining country eligibility, the Board considers three factors:

• A country’s policy performance;
• The opportunity to reduce poverty and generate economic growth within a country; and the
• Availability of funds.