Notice2023-28044
Report on the Selection of Eligible Countries for Fiscal Year 2024
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 20, 2023
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 88 Issue 243 (Wednesday, December 20, 2023)</title>
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[Federal Register Volume 88, Number 243 (Wednesday, December 20, 2023)]
[Notices]
[Pages 88127-88129]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-28044]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 23-09]
Report on the Selection of Eligible Countries for Fiscal Year
2024
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 2024.
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
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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) 2024 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 2024, 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
2024. It identifies countries determined by the Board to be eligible
under section 607 of the Act (22 U.S.C. 7706) for FY 2024 with which
MCC seeks 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 13, 2023, 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 2024: Cabo Verde. Cabo Verde is invited by MCC
to develop a compact for the purposes of regional economic integration.
The Board also selected the following previously selected countries for
compact assistance for FY 2024: C[ocirc]te d'Ivoire, Senegal, Sierra
Leone, The Gambia, Togo, 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 2024''
formally submitted to Congress on September 13, 2023, 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 $2,145, or the group with a GNI per capita between $2,146 and
$4,465.
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 Determining the Eligibility of
Candidate Countries for Millennium Challenge Account Assistance for
Fiscal Year 2024.'' \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-fy24">https://www.mcc.gov/resources/doc/report-selection-criteria-methodology-fy24</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 considered 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
Education Expenditures and Girls' Lower Secondary Education Completion
Rate scorecard indicators. In keeping with statutory requirements, 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/education-expenditure-indicator">https://www.mcc.gov/who-we-select/indicator/education-expenditure-indicator</a> (Education Expenditures), <a href="https://www.mcc.gov/who-we-select/indicator/girls-lower-secondary-education-completion-rate-indicator">https://www.mcc.gov/who-we-select/indicator/girls-lower-secondary-education-completion-rate-indicator</a> (Girls' Lower Secondary Education
Completion Rate) and <a href="https://www.mcc.gov/blog/entry/blog-101723-mcc-girls-education">https://www.mcc.gov/blog/entry/blog-101723-mcc-girls-education</a> (both indicators).
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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 well-governed countries
with demonstrated development need. 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 sixth 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 fifteenth 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. 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
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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 eighth year in which the Board considered
an explicitly higher bar for countries close to the upper end of the
candidate pool. The Board looked 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 as
eligible for assistance under section 607 of the Act (22 U.S.C. 7706):
Cabo Verde. Cabo Verde is invited by MCC to develop a compact for the
purposes of regional economic integration.
Cabo Verde: Cabo Verde has consistently passed the scorecard for
over a decade and has some of the highest Control of Corruption and
Democratic Rights scores of any MCC partner. The government was a
committed partner during its prior MCC programs and has consistently
expressed deep interest in renewing its partnership with MCC. While
Cabo Verde has made strides in reducing poverty, recent progress has
been hampered by global events and external shocks. MCC's Board
selected Cabo Verde for a regional compact as a result of its strong
commitment to democracy, its economic development needs and lingering
poverty, and the potential opportunities to strengthen regional
economic integration and trade in West Africa with a committed and
engaged former MCC partner.
Countries Selected To Continue Compact Development
Six of the countries selected as eligible for compact assistance
for FY 2024 were previously selected for FY 2023. C[ocirc]te d'Ivoire
(regional), Senegal (regional), Sierra Leone, The Gambia, Togo, and
Zambia were selected to continue developing compacts. Selection of
these countries for FY 2024 was based on an assessment of their policy
performance since their prior selection and their progress in
developing programs with MCC.
Countries Selected To Receive Threshold Program Assistance
The Board selected Tanzania and the Philippines to receive
threshold program assistance for FY 2024, leveraging MCC's new
authority to pursue threshold programs after compacts for countries
that have experienced set-backs, but are now on a positive governance
trajectory.
Tanzania: A former MCC compact partner, Tanzania offers MCC the
opportunity to engage with a country that faces significant challenges
to economic growth and that is demonstrating a trajectory of reform.
While Tanzania does not pass the MCC scorecard in FY 2024 due to not
passing the Democratic Rights ``hard hurdle,'' it passes the Control of
Corruption ``hard hurdle,'' and passes 15 of 20 indicators overall.
Since taking office in 2021, President Hassan has taken some steps to
strengthen democratic governance, including restoring some media
freedoms and political rights for opposition groups and initiating a
process to identify other key democratic and constitutional reforms. By
selecting Tanzania for a threshold program, MCC will work with the
government to undertake policy and institutional reforms to address the
country's development needs while also encouraging further democratic
progress and the advancement of human rights.
Philippines: A former MCC compact partner, the Philippines passes
11 of 20 indicators on the MCC scorecard in FY 2024, including both
Democratic Rights indicators, but does not pass the scorecard because
it fails the Control of Corruption indicator in the 50th percentile
(countries must score above the 50th percentile to pass). President
Ferdinand Marcos Jr., elected in May 2022, has committed to advancing
critical reforms, pledged to increase transparency, and strengthened
judicial independence and the prosecution of human rights violations.
By selecting the Philippines for a threshold program, MCC can support
the government to undertake policy and institutional reforms to address
the country's development needs while also encouraging further progress
on advancing labor and human rights and combatting corruption.
Country Selected To Continue Developing a Threshold Program
The Board selected Mauritania to continue developing a threshold
program. Selection of Mauritania for FY 2024 was based on its continued
commitment to strengthening its policy performance since its prior
selection, particularly in its fight against trafficking in persons and
hereditary slavery, and its progress toward 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 15, 2023.
Peter E. Jaffe,
Vice President, General Counsel, and Corporate Secretary.
[FR Doc. 2023-28044 Filed 12-18-23; 8:45 am]
BILLING CODE 9211-03-P
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