Report on the Selection of Eligible Countries for Fiscal Year 2021
| Citation | 85 FR 84374 |
| Record Number | 2020-28491 |
| Published date | 28 December 2020 |
| Section | Notices |
| Court | Millennium Challenge Corporation |
Federal Register, Volume 85 Issue 248 (Monday, December 28, 2020)
[Federal Register Volume 85, Number 248 (Monday, December 28, 2020)]
[Notices]
[Pages 84374-84375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28491]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 20-10]
Report on the Selection of Eligible Countries for Fiscal Year
2021
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
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SUMMARY: This report is provided in accordance with the Millennium
Challenge Act of 2003, as amended. The report is set forth in full
below.
Authority: Section 608(d)(2) of the Millennium Challenge Act of
2003, as amended, 22 U.S.C. 7707(d)(2) (the Act).
Dated: December 18, 2020.
Brian Finkelstein,
Acting VP/General Counsel and Corporate Secretary.
Report on the Selection of Eligible Countries for Fiscal Year 2021
Summary
This report is provided in accordance with section 608(d)(1) of the
Millennium Challenge Act of 2003, as amended (the Act) (22 U.S.C.
7707(d)(1)).
The Act authorizes the provision of assistance under section 605 of
the Act (22 U.S.C. 7704) to countries that enter into compacts with the
United States to support policies and programs that advance the
progress of such countries in achieving lasting poverty reduction
through economic growth, and are in furtherance of the Act. The Act
requires the Millennium Challenge Corporation (MCC) to determine the
countries that will be eligible to receive assistance for the fiscal
year, based on their demonstrated commitment to just and democratic
governance, economic freedom, and investing in their people, as well as
on the opportunity to reduce poverty through economic growth in the
country. The Act also requires the submission of reports to appropriate
congressional committees and the publication of notices in the Federal
Register that identify, among other things:
1. The countries that are ``candidate countries'' for assistance
for fiscal year (FY) 2021 based on their per-capita income levels and
their eligibility to receive assistance under U.S. law, and countries
that would be candidate countries, but for specified legal prohibitions
on assistance (section 608(a) of the Act (22 U.S.C. 7707(a)));
2. The criteria and methodology that the Board of Directors of MCC
(the Board) used to measure and evaluate the policy performance of the
``candidate countries'' consistent with the requirements of section 607
of the Act in order to determine ``eligible countries'' from among the
``candidate countries'' (section 608(b) of the Act (22 U.S.C.
7707(b))); and
3. The list of countries determined by the Board to be ``eligible
countries'' for FY 2021, with justification for eligibility
determination and selection for compact negotiation, including with
which of the eligible countries the Board will seek to enter into
compacts (section 608(d) of the Act (22 U.S.C. 7707(d))).
This is the third of the above-described reports by MCC for FY
2021. It identifies countries determined by the Board to be eligible
under section 607 of the Act (22 U.S.C. 7706) for FY 2021 with which
the MCC will seek to enter into compacts under section 609 of the Act
(22 U.S.C. 7708), as well as the justification for such decisions. The
report also identifies countries selected by the Board to receive
assistance under MCC's threshold program pursuant to section 616 of the
Act (22 U.S.C. 7715).
Eligible Countries
The Board met on December 15, 2020 to select those eligible
countries with which the United States, through MCC, will seek to enter
into a Millennium Challenge Compact pursuant to section 607 of the Act
(22 U.S.C. 7706). The Board selected the following eligible country for
such assistance for FY 2021: Sierra Leone. The Board also selected the
following previously selected countries for compact assistance for FY
2021: Benin, Burkina Faso, C[ocirc]te d'Ivoire, Malawi, Mozambique,
Niger, Timor-Leste, and Tunisia.
Criteria
In accordance with the Act and with the ``Report on the Criteria
and Methodology for Determining the Eligibility of Candidate Countries
for Millennium Challenge Account Assistance in Fiscal Year 2021''
formally submitted to Congress on September 15, 2020, selection was
based primarily on a country's overall performance in three broad
policy categories: Ruling Justly, Encouraging Economic Freedom, and
Investing in People. The Board relied, to the fullest extent possible,
upon transparent and independent indicators to assess countries' policy
performance and demonstrated commitment in these three broad policy
areas. The Board compared countries' performance on the indicators
relative to their income-level peers, evaluating them in comparison to
either the group of countries with a GNI per capita equal to or less
than $1,945, or the group with a GNI per capita between $1,946 and
$4,045.
The criteria and methodology used to assess countries on the annual
scorecards are outlined in the ``Report on the Criteria and Methodology
for Determining the Eligibility of Candidate Countries for Millennium
Challenge Account Assistance for Fiscal Year 2021.'' \1\ Scorecards
reflecting each country's performance on the indicators are available
on MCC's website at https://www.mcc.gov/who-we-select/scorecards.
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\1\ Available at https://www.mcc.gov/resources/doc/report-selection-criteria-methodology-fy21.
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The Board also considered whether any adjustments should be made
for data gaps, data lags, or recent events since the indicators were
published, as well as strengths or weaknesses in particular indicators.
Where appropriate, the Board took into account additional quantitative
and qualitative information, such as evidence of a country's commitment
to fighting corruption, investments in human development outcomes, or
poverty rates. In keeping with legislative directives, the Board also
considered the opportunity to reduce poverty and promote economic
growth in a country, in light of the overall information available, as
well as the availability of appropriated funds.
The Board sees the selection decision as an annual opportunity to
determine where MCC funds can be most effectively used to support
poverty reduction through economic growth in relatively well-governed,
poor countries. The Board carefully considers the appropriate nature of
each country partnership--on a case-by-case basis--based on factors
related to poverty reduction through economic growth, the
sustainability of MCC's investments, and the country's ability to
attract and
[[Page 84375]]
leverage public and private resources in support of development.
This was the third year the Board considered the eligibility of
countries for concurrent compacts. In addition to the considerations
for compact eligibility detailed above, the Board considered whether a
country being considered for a concurrent compact is making
considerable and demonstrable progress in implementing the terms of its
existing compact.
This was the twelfth year the Board considered the eligibility of
countries for subsequent compacts, as permitted under section 609(l) of
the Act. MCC's engagement with partner countries is not open-ended, and
the Board is deliberate when selecting countries for follow-on
partnerships, particularly regarding the higher bar applicable to
subsequent compact countries. In making these selection decisions, the
Board considered--in addition to the criteria outlined above--the
country's performance implementing its first compact, including the
nature of the country's partnership with MCC, the degree to which the
country has demonstrated a commitment and capacity to achieve program
results, and the degree to which the country has implemented the
compact in accordance with MCC's core policies and standards. To the
greatest extent possible, these factors were assessed using pre-
existing monitoring and evaluation targets and regular quarterly
reporting. This information was supplemented with direct surveys and
consultation with MCC staff responsible for compact implementation,
monitoring, and evaluation. MCC published a Guide to Supplemental
Information \2\ and a related web page \3\ regarding how MCC assesses
performance on the Access to Credit, Business Start-Up, and Land Rights
and Access indicators on the scorecard, in order to increase
transparency about the type of supplemental information the Board uses
to assess a country's policy performance. The Board also considered a
country's commitment to further sector reform, as well as evidence of
improved scorecard policy performance.
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\2\ Available at https://www.mcc.gov/resources/doc/guide-to-supplemental-information.
\3\ Available at https://www.mcc.gov/who-we-select/indicators/doing-business-indicators-fy21.
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In addition, this is the fifth year where the Board considered an
explicit higher bar for those countries close to the upper end of the
candidate pool, looking closely in such cases at a country's access to
development financing, the nature of poverty in the country, and its
policy performance.
Countries Newly Selected for Compact Assistance
Using the criteria described above, one candidate country under
section 606(a) of the Act (22 U.S.C. 7705(a) was newly selected for
assistance under section 607 of the Act (22 U.S.C. 7706): Sierra Leone.
In accordance with section 609(k) of the Act, no candidate countries
were newly selected to explore development of a concurrent compact
program under section 607 of the Act (22 U.S.C. 7706).
Sierra Leone: Sierra Leone has been an engaged and committed
partner in the threshold program, consistently demonstrating a
willingness to adopt challenging reforms. It is also a remarkable
example of the ``MCC Effect'', having strengthened its scorecard
performance substantially through sustained reform efforts spanning two
administrations. Sierra Leone passes the scorecard for the second year
in a row in FY 2021, passing 13 indicators overall with strong
performance on both the Democratic Rights and Control of Corruption
``hard hurdles.'' The country also took steps to strengthen its
investment climate this year, including acceding to the New York
Convention on the Recognition and Enforcement of Foreign Arbitral
Awards. By selecting Sierra Leone for a compact, MCC will support the
government's efforts to strengthen economic growth to reduce poverty.
Countries Selected to Continue Compact Development
Eight of the countries selected for compact assistance for FY 2021
were previously selected for FY 2020. Malawi, Mozambique, Timor-Leste,
and Tunisia were selected to continue developing bilateral compacts.
Benin, Burkina Faso, C[ocirc]te d'Ivoire, and Niger were selected to
continue developing concurrent compacts for the purpose of regional
integration. Selection of these countries for FY 2021 was based on
their continued or improved policy performance since their prior
selection.
Countries Selected To Receive Threshold Program Assistance
The Board selected Kiribati to receive threshold program
assistance.
Kiribati: Kiribati offers MCC the opportunity to engage with a
country that faces significant challenges to economic growth. Kiribati
is a strong scorecard performer, having consistently met the scorecard
criteria, and passes 13 of 20 indicators in FY 2021. It passes the
Control of Corruption hard hurdle and demonstrates some of the highest
democratic rights scores of any MCC candidate country. Kiribati has
been an important United States partner in the central Pacific since a
treaty of friendship was signed in 1979, and this threshold program
will build upon that relationship.
Countries Selected To Continue Developing Threshold Programs
The Board selected Ethiopia, The Gambia, and Kenya to continue
developing threshold programs. Selection of these countries for FY 2021
was based on their continued performance since their prior selection.
Ongoing Review of Partner Countries' Policy Performance
The Board emphasized the need for all partner countries to maintain
or improve their policy performance. If it is determined during compact
implementation that a country has demonstrated a significant policy
reversal, MCC can hold it accountable by applying MCC's Suspension and
Termination Policy.\4\
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\4\ Available at https://www.mcc.gov/who-we-select/suspension-or-termination.
[FR Doc. 2020-28491 Filed 12-21-20; 4:15 pm]
BILLING CODE 9211-03-P
