Notice2021-27955
Report on the Selection of Eligible Countries for Fiscal Year 2022
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Published
December 23, 2021
Issuing agencies
Millennium Challenge Corporation
Abstract
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).
Full Text
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<title>Federal Register, Volume 86 Issue 244 (Thursday, December 23, 2021)</title>
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[Federal Register Volume 86, Number 244 (Thursday, December 23, 2021)]
[Notices]
[Pages 73004-73006]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27955]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 21-13]
Report on the Selection of Eligible Countries for Fiscal Year
2022
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 20, 2021.
Thomas G. Hohenthaner,
Acting VP/General Counsel and Corporate Secretary.
Report on the Selection of Eligible Countries for Fiscal Year 2022
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) 2022 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 2022, 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
2022. It identifies countries determined by the Board to be eligible
under section 607 of the Act (22 U.S.C. 7706) for FY 2022 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 14, 2021 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 countries
for such assistance for FY 2022: Belize and Zambia. The Board also
selected the following previously selected countries for compact
assistance for FY 2022: Benin, Burkina Faso, C[ocirc]te d'Ivoire,
Indonesia, Lesotho, Malawi, Mozambique, Niger, Sierra Leone, and Timor-
Leste.
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 2022''
formally submitted to Congress on September 29, 2021, 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
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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 $1,965, or the
group with a GNI per capita between $1,966 and $4,095.
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 2022.'' \1\ Scorecards
reflecting each country's performance on the indicators are available
on MCC's website at <a href="https://www.mcc.gov/who-we-select/scorecards">https://www.mcc.gov/who-we-select/scorecards</a>.
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\1\ Available at <a href="https://www.mcc.gov/resources/doc/report-selection-criteria-methodology-fy22">https://www.mcc.gov/resources/doc/report-selection-criteria-methodology-fy22</a>.
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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 leverage public and private resources in support of
development.
This was the fourth 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 thirteenth 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 prior 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 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
related webpages \3\ regarding how MCC assesses performance on the
Access to Credit, Land Rights and Access, and Business Start-Up
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 <a href="https://www.mcc.gov/resources/doc/guide-to-supplemental-information">https://www.mcc.gov/resources/doc/guide-to-supplemental-information</a>.
\3\ Available at <a href="https://www.mcc.gov/blog/entry/blog-101921-financial-inclusion">https://www.mcc.gov/blog/entry/blog-101921-financial-inclusion</a> (Access to Credit and Land Rights and Access)
and <a href="https://www.mcc.gov/who-we-select/indicators/doing-business-indicators-fy22">https://www.mcc.gov/who-we-select/indicators/doing-business-indicators-fy22</a> (Business Start-Up).
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In addition, this is the sixth 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, two candidate countries under
section 606(a) of the Act (22 U.S.C. 7705(a) were newly selected for
assistance under section 607 of the Act (22 U.S.C. 7706): Belize and
Zambia. 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).
Belize: Belize offers MCC the opportunity to engage with a country
that is committed to democratic governance but that faces rising
poverty rates, significant challenges to economic growth, and
vulnerability to external shocks. Belize meets the scorecard criteria,
passing 13 of 20 indicators overall in FY 2022, with strong performance
on both the Control of Corruption and Democratic Rights ``hard
hurdles.'' By selecting Belize for a compact, MCC will support the
government's efforts to strengthen economic growth to reduce poverty
and address the development challenges facing the country.
Zambia: Zambia's recent democratic transition and demonstrated
commitment to pursuing critical economic and democratic governance
reforms contributed to the Board's decision to select Zambia for a
subsequent compact. Zambia passes the scorecard in FY 2022, passing 15
of 20 indicators overall, including both the Control of Corruption and
Democratic Rights ``hard hurdles.'' By selecting Zambia for a compact,
MCC can support the government's efforts to make key economic and
governance reforms, reduce poverty and strengthen economic growth, and
address the country's pressing development challenges.
Countries Selected To Continue Compact Development
Ten of the countries selected for compact assistance for FY 2022
were previously selected for FY 2021. Indonesia, Lesotho, Malawi,
Mozambique, Sierra Leone, and Timor-Leste were selected to continue
developing ``domestic'' 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 2022 was based on an assessment of their policy
performance since their prior selection.
Although the Board reselected Benin, it endorsed MCC's
determination to significantly reduce the portion of the planned
regional investment that would be made in Benin through a concurrent
compact due to Benin's multi-year decline in its commitment to the
principles that underpin MCC's eligibility criteria, including the core
principles of democratic governance.
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Countries Selected To Receive Threshold Program Assistance
The Board did not newly select any countries to receive threshold
program assistance for FY 2022.
Countries Selected To Continue Developing Threshold Programs
The Board selected Kenya and Kiribati to continue developing
threshold programs. Selection of these countries for FY 2022 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 <a href="https://www.mcc.gov/who-we-select/suspension-or-termination">https://www.mcc.gov/who-we-select/suspension-or-termination</a>.
[FR Doc. 2021-27955 Filed 12-21-21; 11:15 am]
BILLING CODE 9211-03-P
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