Notice2022-27345
Report on the Selection of Eligible Countries for Fiscal Year 2023
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 16, 2022
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.
Full Text
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<title>Federal Register, Volume 87 Issue 241 (Friday, December 16, 2022)</title>
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[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Notices]
[Pages 77143-77145]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27345]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 22-17]
Report on the Selection of Eligible Countries for Fiscal Year
2023
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.
SUPPLEMENTARY INFORMATION:
Report on the Selection of Eligible Countries for Fiscal Year 2023
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) 2023 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 2023, 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
2023. It identifies countries determined by the Board to be eligible
under section 607 of the Act (22 U.S.C. 7706) for FY 2023 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 8, 2022 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 2023: Senegal, The Gambia, and Togo. The
Board also selected the following previously selected countries for
compact assistance for FY 2023: C[ocirc]te d'Ivoire, Mozambique, Sierra
Leone, and Zambia.
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 2023''
formally submitted to Congress on September 27, 2022, 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 $2,045, or the group with a GNI per capita between $2,046 and
$4,255.
The criteria and methodology used to assess countries, including
the methodology for the annual scorecards, are outlined in the ``Report
on the Criteria and Methodology for
[[Page 77144]]
Determining the Eligibility of Candidate Countries for Millennium
Challenge Account Assistance for Fiscal Year 2023''.\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-fy23">https://www.mcc.gov/resources/doc/report-selection-criteria-methodology-fy23</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. MCC published a Guide to Supplemental Information \2\ to
increase transparency about the type of supplemental information the
Board uses to assess a country's policy performance. MCC also published
web pages \3\ regarding how MCC assesses performance on the new
Employment Opportunity and revised Natural Resource Protection
scorecard indicators. 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.
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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/who-we-select/indicator/employment-opportunity">https://www.mcc.gov/who-we-select/indicator/employment-opportunity</a> and <a href="https://www.mcc.gov/blog/entry/blog-101422-scorecard-indicator-employment">https://www.mcc.gov/blog/entry/blog-101422-scorecard-indicator-employment</a> (Employment Opportunity) and
<a href="https://www.mcc.gov/who-we-select/indicator/natural-resource-protection">https://www.mcc.gov/who-we-select/indicator/natural-resource-protection</a> (Natural Resource Protection).
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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 fifth year the Board considered the eligibility of
countries for concurrent compacts, as permitted under section 609(k) of
the Act. 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 fourteenth 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. While the Board did not select any new
countries for subsequent compacts for FY 2023, the Board considered--in
addition to the criteria outlined above--a 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
are assessed using pre-existing monitoring and evaluation targets and
regular quarterly reporting. This information is supplemented with
direct surveys and consultation with MCC staff responsible for compact
implementation, monitoring, and evaluation. MCC published a Guide to
the Program Surveys \4\ regarding the information collected and
assessed for any country with an existing or prior compact or threshold
program to ensure transparency about the type of information the Board
considers regarding a country's performance on MCC programs, as
relevant. 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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\4\ Available at <a href="https://www.mcc.gov/resources/doc/guide-to-program-surveys-fy23">https://www.mcc.gov/resources/doc/guide-to-program-surveys-fy23</a>.
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In addition, this is the seventh 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): The Gambia
and Togo.
The Gambia: The Gambia has been a strong partner for MCC on its
current $25 million threshold program and is continuing to strengthen
its democracy following the landmark 2016 elections. The Gambia passes
the MCC scorecard for the fifth consecutive year in Fiscal Year 2023,
passing 14 of 20 indicators overall, including the Control of
Corruption and Democratic Rights ``hard hurdles.'' Selecting The Gambia
for a compact will allow MCC to deepen its partnership with a country
that is demonstrating a clear commitment to MCC's eligibility criteria
and to support the Government of The Gambia's efforts to strengthen
economic and democratic governance and address its pressing development
needs.
Togo: Togo is an engaged MCC partner and has markedly accelerated
implementation of its $35 million threshold program over the past year.
Togo has also made efforts to strengthen its policy performance on the
MCC scorecard over a number of years. In Fiscal Year 2023, Togo passes
the scorecard for the seventh consecutive year, passing 14 of 20
indicators overall, with strong performance on the Control of
Corruption ``hard hurdle.'' While the Government of Togo has overseen
critical economic reforms, its performance on the Democratic Rights
indicators on the MCC scorecard has declined in recent years, and it
does not pass the Political Rights indicator. Selecting Togo for a
compact will provide MCC the opportunity to continue partnering with a
motivated government that is pursuing policies to reduce poverty and
spur economic growth but is facing critical development challenges.
Country selected for a concurrent compact: In accordance with
section 609(k) of the Act, one candidate country was newly selected to
explore development of a concurrent compact for purposes of regional
integration under section 607 of the Act (22 U.S.C. 7706): Senegal.
Senegal: Senegal is a dedicated MCC partner and is currently
implementing a $550 million compact focused on the power sector.
Senegal has consistently met MCC's scorecard criteria and in Fiscal
Year 2023, it passes 14 of 20 indicators overall, with strong
performance on the Control of Corruption and Democratic Rights ``hard
hurdles.'' Senegal presents a substantial opportunity to explore
potential investments that could promote regional economic integration,
increased regional trade, or cross-border collaboration, particularly
given its geographic location and ties to key regional organizations.
By selecting Senegal for a
[[Page 77145]]
concurrent regional compact, MCC can support efforts to strengthen
economic growth, reduce poverty, and address development challenges
facing both the country, and the wider region.
Countries Selected To Continue Compact Development
Four of the countries selected for compact assistance for FY 2023
were previously selected for FY 2022. Mozambique, Sierra Leone, and
Zambia were selected to continue developing compacts. C[ocirc]te
d'Ivoire was selected to continue developing a concurrent compact for
purposes of regional integration. Selection of these countries for FY
2023 was based on an assessment of their policy performance since their
prior selection and their progress in developing programs with MCC.
Country Selected To Receive Threshold Program Assistance
The Board selected Mauritania to receive threshold program
assistance for FY 2023.
Mauritania: Mauritania offers MCC the opportunity to engage with a
country that faces significant challenges to economic growth and that
is demonstrating a trajectory of reform on the MCC scorecard. While
Mauritania does not pass the MCC scorecard in FY 2023 due to not
passing the Democratic Rights ``hard hurdle,'' it passes the Control of
Corruption ``hard hurdle,'' passes 10 of 20 indicators overall, and has
taken steps to improve its performance in recent years. Mauritania's
2019 elections marked its first peaceful transfer of power and provided
a further impetus to the country's gradual reform process and efforts
to strengthen democratic governance, fight corruption, undertake
economic reforms, and address longstanding human rights issues
including trafficking in persons and hereditary slavery. By selecting
Mauritania for threshold program assistance, MCC can engage with the
Government of the Islamic Republic of Mauritania to continue efforts to
strengthen its policy performance, make critical policy and
institutional reforms, and address the country's development needs for
the people of Mauritania.
Country Selected To Continue Developing Threshold Programs
The Board selected Kiribati to continue developing a threshold
program. Selection of Kiribati for FY 2023 was based on its continued
strong policy performance since its prior selection and its progress
developing its threshold program.
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.\5\
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\5\ 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>.
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Authority: 22 U.S.C. 7707(d)(2)).
Dated: December 13, 2022.
Thomas G. Hohenthaner,
Acting VP/General Counsel and Corporate Secretary.
[FR Doc. 2022-27345 Filed 12-13-22; 4:15 pm]
BILLING CODE 9211-03-P
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