Notice2026-20704
Millennium Challenge Corporation Selection Criteria and Methodology Report for Fiscal Year 2027
Primary source
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Published
October 9, 2026
Issuing agencies
Millennium Challenge Corporation
Abstract
The Millennium Challenge Act of 2003 (the "Act"), as amended, requires the Millennium Challenge Corporation ("MCC") to publish a report that identifies the criteria and methodology that MCC intends to use to determine which candidate countries may be eligible to be considered for assistance under the Act for fiscal year 2027. The report, described in 608(b)(1) of the Act, is set forth in full below. The Act further requires the Chief Executive Officer to accept public comment for the 30-day period beginning on the date of publication in the Federal Register of the information contained in the report set forth below, and to consider such comment for purposes of determining eligible countries under section 607 of the Act.
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[Federal Register Volume 91, Number 195 (Friday, October 9, 2026)]
[Notices]
[Pages 64693-64699]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20704]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 26-10]
Millennium Challenge Corporation Selection Criteria and
Methodology Report for Fiscal Year 2027
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
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SUMMARY: The Millennium Challenge Act of 2003 (the ``Act''), as
amended, requires the Millennium Challenge Corporation (``MCC'') to
publish a report that identifies the criteria and methodology that MCC
intends to use to determine which candidate countries may be eligible
to be considered for assistance under the Act for fiscal year 2027. The
report, described in 608(b)(1) of the Act, is set forth in full below.
The Act further requires the Chief Executive Officer to accept public
comment for the 30-day period beginning on the date of publication in
the Federal Register of the information contained in the report set
forth below, and to consider such comment for purposes of determining
eligible countries under section 607 of the Act.
DATES: Comments are due by November 9, 2026.
ADDRESSES: Please send all written comments by email to
<a href="/cdn-cgi/l/email-protection#4a2e2f3c2f26253a272f243e3a25262329330a272929642d253c"><span class="__cf_email__" data-cfemail="e480819281888b9489818a90948b888d879da4898787ca838b92">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Dan Barnes, 202-521-3600,
<a href="/cdn-cgi/l/email-protection#f0949586959c9f809d959e84809f9c999389b09d9393de979f86"><span class="__cf_email__" data-cfemail="4e2a2b382b22213e232b203a3e2122272d370e232d2d60292138">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Public Comments Invited: Each year MCC solicits and considers
public comment for 30 days after publication of the country selection
criteria and methodology. To submit a public comment, send an email to
<a href="/cdn-cgi/l/email-protection#395d5c4f5c555649545c574d495655505a4079545a5a175e564f"><span class="__cf_email__" data-cfemail="5e3a3b283b32312e333b302a2e3132373d271e333d3d70393128">[email protected]</span></a>.
(Authority: 22 U.S.C. 7707(b)(2) and 22 U.S.C. 7707(c)(1))
Dated: October 6, 2026.
Brian Finkelstein,
Acting Vice President, General Counsel, and Corporate Secretary.
Millennium Challenge Corporation
Selection Criteria and Methodology Report for Fiscal Year 2027
This document explains how the Board of Directors (the Board) of
the Millennium Challenge Corporation (MCC) will identify, evaluate, and
select eligible countries for fiscal year (FY) 2027. The document
discusses the following:
(I) Which countries MCC will evaluate
(II) How the Board evaluates those countries
[[Page 64694]]
A. Overall evaluation
B. For selection of a country for a first compact
C. For selection of a country for a subsequent compact
D. For selection of a country for a concurrent compact
E. For threshold program assistance
F. A note on potential transition out of MCC's candidate pool after
initial selection
This report is provided in accordance with section 608(b) of the
Millennium Challenge Act of 2003, as amended (the Act), as more fully
described in Appendix A.
(I) Which countries are evaluated?
MCC evaluates the policy performance of all candidate countries and
statutorily-prohibited countries by dividing them into separate income
categories for the purposes of creating ``scorecards,'' which utilize
objective and quantitative data to measure countries' policy
performance on statutorily mandated criteria. These scorecard
categories are used to account for the income bias that occurs when
countries with more per capita resources perform better than countries
with fewer. Appendix B lists all candidate countries and statutorily-
prohibited countries for scorecard evaluation purposes and their income
category. In FY 2027, those scorecard evaluation income categories \1\
are:
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\1\ The first two income groups align with the definition of low
income and lower middle income countries using the historical
International Development Association (IDA) threshold published by
the World Bank. The third category was added in FY 2025 by the
passage of the Millennium Challenge Corporation Candidate Country
Reform Act and includes a subset of upper middle income countries.
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<bullet> Countries with gross national income (GNI) per capita of
$2,225 or less;
<bullet> Countries with GNI per capita between $2,226 and $4,635;
and
<bullet> Countries with GNI per capita between $4,636 and $8,105
(II) How does the Board evaluate these countries?
A. Overall evaluation
By statute, when evaluating candidate countries for compact
eligibility, the Board assesses (1) performance on a set of statutorily
mandated eligibility criteria; (2) the opportunity to invest in shared
prosperity, promote economic growth, and reduce poverty; and (3) the
availability of MCC funds.
(1) Policy Performance on Statutorily Mandated Eligibility Criteria
By statute, the Board relies, to the maximum extent possible, upon
the best-available objective and quantifiable policy performance
indicators. These indicators evaluate country policy performance in a
comparable, cross-country fashion. Comprised of 22 third-party
indicators in the statutory categories of ruling justly, encouraging
economic freedom, and investing in people, MCC scorecards are created
for all candidate countries and statutorily-prohibited countries.
Appendix C lists the 22 indicators that comprise the MCC scorecards and
their relationship to the statutory criteria. MCC routinely conducts
reviews of its indicators to ensure that current indicators remain
relevant, effective, and transparent in measuring the statutorily
mandated eligibility criteria, including ensuring that MCC is employing
the best data available. MCC is committed to reviewing data annually to
ensure continued alignment with statutory principles and administration
priorities. To ``pass'' most indicators on the scorecard, a country's
score on each indicator must be above the median score in its income
group (as defined above for scorecard evaluation purposes). For the
inflation, government accountability, and personal freedom indicators,
however, MCC has established minimum or maximum scores for ``passing.''
In particular, the Board considers whether a country:
<bullet> passes at least 11 of the 22 indicators,
<bullet> passes the Personal Freedom indicator; and
<bullet> passes either the Control of Corruption indicator or
Government Accountability indicator.
While satisfaction of all three aspects means a country is termed
to have ``passed'' the scorecard, the Board also considers whether the
country performs ``substantially worse'' in any one policy category
than it does on the scorecard overall.
The mandatory passing of the Personal Freedom indicator is called
the Personal Freedom ``hard hurdle'' on the scorecard, while the
mandatory passing of either the Control of Corruption or Government
Accountability indicator is called the Control of Corruption and
Accountability ``hard hurdle.'' Not passing either ``hard hurdle''
results in not passing the scorecard overall, regardless of whether at
least 11 of the 22 total indicators are passed.
<bullet> Personal Freedom ``hard hurdle:'' This hurdle sets a
minimum bar for personal freedom below which the Board will not
consider a country for compact eligibility. This indicator creates an
incentive for countries to undertake reform, recognizes the
relationship between freedom and prosperity, and holds MCC to the high
standard of working with the best governed countries.
<bullet> Control of Corruption and Accountability ``hard hurdle:''
Corruption in any country is an unacceptable tax on economic growth and
an obstacle to private sector investment. The Control of Corruption and
Accountability ``hard hurdle'' helps ensure that MCC works with
countries committed to combatting corruption and strengthening
transparent and accountable governance. When a candidate country only
passes one of the two indicators comprising the hurdle (instead of
both), the Board is provided with information that closely examines the
reason it is not passing one of the indicators to understand the
broader governance environment and trajectory of the country. This
includes consultation with U.S. Embassy officials, interagency
partners, and other experts.
A country's scorecard performance is a key factor the Board uses to
select countries for an MCC program. The Board, however, also
recognizes that even the best-available data have inherent challenges.
Data gaps, real-time events versus data lags, the absence of narratives
and nuanced detail, and other data features affect each indicator. As a
result, the Board uses its judgment to interpret policy performance as
measured by the scorecards. The Board also consults other sources of
information to enhance its understanding of country context (e.g.,
specific policy issues related to trade, U.S. business opportunities,
other U.S. engagement with the country, financial sector performance,
and security/foreign policy concerns). The Board uses its judgement on
how best to weigh such information in assessing overall policy
performance and making a final determination.
(2) The Opportunity to Advance America First Priorities and Invest in
Shared Prosperity
Beyond the scorecards, the Board considers a range of information
sources depending on the country. Examples include sources that provide
a better understanding of:
<bullet> a country's economy and business enabling environment;
<bullet> market fundamentals, trade dynamics, and opportunities to
facilitate strategic U.S. business investments and exports;
<bullet> the potential to strengthen supply chains critical to
shoring up the American industrial base including critical minerals and
reduce reliance on strategic competitors; the potential for
[[Page 64695]]
the private sector to lead investment and growth, including the
potential for an MCC program to unlock strategic investment
opportunities for interagency partners, including the International
Development Finance Corporation, the U.S Trade and Development Agency,
and the Export-Import Bank of the United States; and
<bullet> the control of corruption and rule of law.
Where applicable, the Board also considers MCC's own experience and
ability to work with a country to promote investments that provide
mutual benefit, including by considering MCC's core areas of expertise
and skills versus a country's needs, and MCC's capacity to work with a
country.
This information provides greater clarity regarding the opportunity
for MCC investments to advance the foreign policy objectives described
in the National Security Strategy of the United States and make America
safer, stronger, and more prosperous.
(3) The Availability of MCC Funds
The Board considers the availability of funds when evaluating
countries. This includes consideration of MCC's pipeline of countries
in program development, implementation, and closure. Consequently, the
Board factors in MCC's overall portfolio when making its selection
decisions given current and projected funding availability.
* * *
The following subsections describe how the Board applies each of
these three statutorily-mandated factors to: selection of countries for
compacts, selection of countries for subsequent compacts, selection of
countries for the threshold program, and selection of countries for
concurrent compacts. A note follows on considerations for countries
that might transition out of MCC's candidate pool after initial
selection.
B. Evaluation for Selection of a Country for a First Compact
When selecting countries for a compact, the Board looks at the
statutorily-mandated aspects described in the previous section,
including a country's performance on the MCC scorecard, evidence of a
country's commitment to working in areas that advance shared
prosperity, including by ensuring a positive enabling environment for
economic growth and private sector investment (including specifically
strategic investment and export opportunities for U.S. businesses), and
the availability of funding.
At a minimum, the Board considers whether a country passes its
scorecard. Where applicable, previous threshold program information is
also considered. For those countries currently developing or
implementing a threshold program, the Board examines the progress the
country has made toward substantial implementation.
C. Evaluation for Selection of a Country for a Subsequent Compact
Section 609(l) of the Act authorizes MCC to enter into ``one or
more subsequent Compacts. . . after the expiration of the existing
Compact.'' MCC does not consider the eligibility of a country for a
subsequent compact until 18 months before the existing compact's end
date. Selection for a subsequent compact is not automatic and is
intended for countries that (1) exhibit successful performance on their
previous compact(s); (2) exhibit improved policy performance on the
eligibility criteria assessed by the scorecard during the partnership;
and (3) exhibit a commitment to further sector reform.
(1) Successful implementation of the previous compact(s)
To evaluate any previous compact's success, the Board examines
whether the compact succeeded within its budget and time limits, in
particular by looking at three aspects of each compact program:
<bullet> The degree to which there is evidence of strong political
will and management capacity;
<bullet> The degree to which the country has exhibited commitment
and capacity to achieve program results; and
<bullet> The degree to which the country has implemented the
compact in accordance with MCC's core policies and standards.
Appendix D provides details regarding the information types
examined and sources used.
(2) Improved policy performance
The Board also expects the country to improve its overall policy
performance on the eligibility criteria assessed by the scorecard
during the partnership and to pass the scorecard in the year of
selection for the subsequent compact. The Board considers the
trajectory of a country's overall policy performance on key indicators
over time.
While the Board expects the country to be passing its scorecard,
the Board also examines other sources of information to understand the
nuance and reasons behind scorecard performance over time. The Board
also consults other information sources to look at policy performance
over time in areas not covered by the scorecard, but that the Board
deems to be important (such as trade, strategic U.S. business
opportunities, supply chains critical for domestic manufacturing
including critical minerals, and foreign policy concerns).
(3) A commitment to further sector reform
The Board expects subsequent compacts to endeavor to tackle policy
reforms necessary to unlock an identified constraint to economic
growth. Consequently, the Board considers MCC's own experience during
the previous compact in considering how committed the country is to
advancing investments in shared prosperity and economic growth. This
includes assessing:
<bullet> The country's delivery of policy reform during the
previous compact (as described above);
<bullet> Expectations of the country's ability and willingness to
continue sector policy reform;
<bullet> The opportunity to invest in shared prosperity and advance
America First priorities (as outlined in A.2 above);
<bullet> The prior compact's relative success overall (as discussed
above), and how well future funding can be leveraged for impact, given
the country's experience in the previous compact.
D. Evaluation for Concurrent Compacts
Section 609(k) of the Act authorizes MCC to enter into one
additional concurrent compact with a country if one or both of the
compacts with the country is for the purpose of regional economic
integration, increased regional trade, or cross-border collaboration.
The fundamental criteria and process for the selection of countries
for such compacts remains the same as those for the selection of
countries for non-concurrent compacts: countries continue to be
evaluated and selected individually, as described in sections II.A,
II.B, II.C, and II.F.
Section 609(k) also requires as a precondition for a concurrent
compact that the Board determine that the country is making
``considerable and demonstrable progress in implementing the terms of
the existing Compact and supplementary agreements thereto.'' This
statutory requirement is consistent with prior Board practice regarding
the selection of a country for a non-concurrent compact. For a country
where a concurrent compact is contemplated, the Board will take into
account whether there is clear evidence of success, as relevant to the
phase of the current compact. Among other
[[Page 64696]]
information, the Board will examine the evaluation criteria described
in Section II.C.1 above.
In addition to providing information to the Board so it can make
its determination regarding the country's progress in implementing its
current compact, MCC provides the Board with additional information
relating to the potential for regional economic integration, increased
regional trade, or cross-border collaboration for any country being
considered for a concurrent compact. This information may include items
such as:
<bullet> The current state of a country's regional integration,
such as common financial and political dialogue frameworks, integration
of productive value chains, and cross-border flows of people, goods,
and services.
<bullet> The current and potential level of trade between a country
and its neighbors, including analysis of trade flows and unexploited
potential for trade, and an assessment of the extent and significance
of tariff and non-tariff barriers, including information regarding the
patterns of trade.
<bullet> The potential gains from cross-border cooperation between
a country and its neighbors to alleviate bilateral and regional
bottlenecks to economic growth, such as through physical infrastructure
or coordinated policy and institutional reforms.
E. Evaluation for Threshold Program Assistance
The Board also evaluates countries for participation in the
threshold program. Threshold programs provide assistance to candidate
countries exhibiting a significant commitment to meeting the criteria
described in the previous subsections but failing to meet such
requirements. Specifically, in examining a candidate country's policy
performance, the opportunity to advance shared prosperity and unlock
economic growth, and available funds, the Board will consider whether a
country appears to be on a trajectory to becoming viable for compact
eligibility in the medium or short term.
F. A Note on Potential Transition out of MCC's Candidate Pool After
Initial Selection
Some candidate countries may have a high enough per capita income
or a high growth rate that implies there is a chance they could
transition out of MCC's candidate pool during the life of an MCC
partnership. It is not possible to accurately predict if or when such a
transition may occur.
Nonetheless, such countries may have more resources at their
disposal for funding their own growth. As a result, in addition to
using the regular selection criteria described in the previous
sections, the Board will use its discretion to assess both the need and
the opportunity presented by partnering with such a country, in order
to ensure that MCC's scarce grant funds are directed appropriately.
Accordingly, if a candidate country with a high probability of
transitioning out of MCC's candidate pool is under consideration for
selection, the Board will examine additional data and information
related to:
<bullet> Whether the country faces significant challenges accessing
other sources of development financing (such as international capital,
domestic resources, and other donor assistance) and, if so, whether MCC
grant financing would be an appropriate tool;
<bullet> Whether there is a clear and strategic opportunity for MCC
to assist the country through investments that spur economic growth and
shared prosperity, including unlocking strategic U.S. private sector
opportunities, securing critical minerals, or advancing other strategic
priorities;
<bullet> Whether the country demonstrates particularly strong
policy performance; and
<bullet> Whether MCC can reasonably expect that the country would
contribute a significant amount of funding to the compact.
Should a country eventually transition out of MCC's candidate pool
during compact development, continuing compact development beyond that
point would then be at the Board's discretion.
Appendix A: Statutory Basis for This Report
This report to Congress is provided in accordance with section
608(b) of the Millennium Challenge Act of 2003, as amended (the
Act), 22 U.S.C. 7707(b).
Section 605 (22 U.S.C. 7704) of the Act authorizes the provision
of assistance to countries that enter into a Millennium Challenge
Compact with the United States to support policies and programs that
advance the progress of such countries in achieving lasting economic
growth and poverty reduction. The Act requires MCC to take a number
of steps in selecting countries for compact assistance for FY 2027
based on the countries' demonstrated commitment to just and
democratic governance, economic freedom, and investing in their
people, MCC's opportunity to generate economic growth in the country
and reduce poverty, and the availability of funds. These steps
include the submission of reports to the congressional committees
specified in the Act and publication of information in the Federal
Register that identify:
(1) The countries that are ``candidate countries'' for
assistance for FY 2027 based on per capita income levels and
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 MCC's Board of Directors
(Board) will use to measure and evaluate policy performance of the
candidate countries consistent with the requirements of subsections
(a) and (b) of section 607 of the Act (22 U.S.C. 7706) 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 2027, with justification for
eligibility determination and selection for compact negotiation,
including those eligible countries with which MCC will seek to enter
into compacts (section 608(d) of the Act; 22 U.S.C. 7707(d)).
This report satisfies item 2 above.
Appendix B: Lists of all Candidate Countries and Statutorily-Prohibited
Countries for Evaluation Purposes
Income Groups for Scorecards
Since MCC was created, it has relied on the World Bank's gross
national income (GNI) per capita income data (Atlas method) and the
historical ceiling for eligibility as set by the World Bank's
International Development Association (IDA) to divide countries into
separate income categories for purposes of creating scorecards.
These categories are used to account for the income bias that occurs
when countries with more per capita resources perform better than
countries with fewer. Using the historical IDA eligibility ceiling
for the scorecard evaluation groups ensures that the poorest
countries compete with their income level peers and are not compared
against countries with more resources to mobilize. Following the
passage of the Millennium Challenge Corporation Candidate Country
Reform Act in FY 2025, MCC began grouping the countries newly added
into the income pool by this legislation (countries with GNI per
capita above the World Bank's lower middle income/upper middle
income country threshold but below the threshold for initiating the
International Bank for Reconstruction and Development (IBRD)
graduation process) in a third group to maintain this principle of
countries competing with their income peers.
In FY 2027, MCC will continue to use the historical IDA
classifications for eligibility and the lower middle income/upper
middle income country threshold to categorize countries in groups
for purposes of FY 2027 scorecard comparisons:
<bullet> Countries with GNI per capita equal to or less than
IDA's historical ceiling for eligibility (i.e., $2,225 for FY 2027);
<bullet> Countries with GNI per capita above IDA's historical
ceiling for eligibility but below the World Bank's lower middle
income/upper middle income country threshold (i.e., $2,226 and
$4,635 for FY 2027); and
[[Page 64697]]
<bullet> Countries with GNI per capita above the World Bank's
lower middle income/upper middle income country threshold but below
the threshold for initiating the IBRD graduation process (i.e.,
$4,636 and $8,105 for FY 2027).
The list of countries for FY 2027 scorecard assessments is set
forth below:
Countries With GNI per Capita of $2,225 or Less
1. Afghanistan
2. Benin
3. Burkina Faso
4. Burma
5. Burundi
6. Cameroon
7. Central African Republic
8. Chad
9. Comoros
10. Congo, Dem. Rep.
11. Dem. People's Republic of Korea
12. Eritrea
13. Ethiopia
14. Gambia, The
15. Guinea
16. Guinea-Bissau
17. Haiti
18. Kenya
19. Lao PDR
20. Lesotho
21. Liberia
22. Madagascar
23. Malawi
24. Mali
25. Mauritania
26. Mozambique
27. Nepal
28. Niger
29. Nigeria
30. Pakistan
31. Rwanda
32. Senegal
33. Sierra Leone
34. Solomon Islands
35. Somalia
36. South Sudan
37. Sudan
38. Syrian Arab Republic
39. Tajikistan
40. Tanzania
41. Timor-Leste
42. Togo
43. Uganda
44. Yemen, Rep.
45. Zambia
Countries With GNI per Capita Between $2,226 and $4,635
1. Angola
2. Bangladesh
3. Bhutan
4. Bolivia
5. Cambodia
6. Congo, Rep.
7. Cote d'Ivoire
8. Djibouti
9. Egypt, Arab Rep.
10. Eswatini
11. Ghana
12. Honduras
13. India
14. Kiribati
15. Kyrgyz Republic
16. Lebanon
17. Morocco
18. Namibia
19. Nicaragua
20. Papua New Guinea
21. Sao Tome and Principe
22. Tunisia
23. Uzbekistan
24. Vanuatu
25. Venezuela
26. Zimbabwe
Countries With GNI per Capita Between $4,636 and $8,105
1. Algeria
2. Azerbaijan
3. Belize
4. Botswana
5. Cabo Verde
6. Colombia
7. Ecuador
8. El Salvador
9. Equatorial Guinea
10. Fiji
11. Gabon
12. Guatemala
13. Indonesia
14. Iran, Islamic Rep.
15. Iraq
16. Jamaica
17. Jordan
18. Kosovo
19. Libya
20. Micronesia, Fed. States
21. Moldova
22. Mongolia
23. Paraguay
24. Philippines
25. Samoa
26. South Africa
27. Sri Lanka
28. Suriname
29. Thailand
30. Tonga
31. Turkmenistan
32. Ukraine
33. Vietnam
Statutorily-Prohibited Countries
1. Afghanistan
2. Burkina Faso
3. Burma
4. Chad
5. Dem. People's Republic of Korea
6. Eritrea
7. Iran
8. Mali
9. Nicaragua
10. Niger
11. South Sudan
12. Sudan
13. Zimbabwe
Appendix C: Indicator Definitions
The following indicators will be used to measure candidate
countries' demonstrated commitment to the criteria found in section
607(b) of the Act. The indicators are intended to assess the degree
to which the political and economic conditions in a country serve to
promote broad-based sustainable economic growth and reduction of
poverty and thus provide a sound environment for the use of MCC
funds. The indicators are not goals in themselves; rather, they are
proxy measures of policies that are linked to broad-based economic
growth. The indicators were selected based on (i) their relationship
to the statutorily defined eligibility criteria; (ii) the number of
countries they cover; (iii) transparency and availability; and (iv)
relative soundness and objectivity. Where possible, the indicators
are developed by independent sources.
Ruling Justly
1. Control of Corruption: An index of surveys and expert
assessments that rate countries on: ``grand corruption'' in the
political arena; the frequency of petty corruption; the effects of
corruption on the business environment; and the tendency of elites
to engage in ``state capture,'' among other things. Pass: Score must
be above the median score for the income group.
2. Government Accountability: Independent experts rate countries
on government accountability and transparency; freedom from
domination by the military, foreign powers, totalitarian parties,
religious hierarchies, and economic oligarchies; the prevalence of
free and fair electoral processes; and political pluralism and
participation of all stakeholders, among other things. Pass: Score
must be above the minimum score of 17 out of 40.
3. Personal Freedom: Independent experts rate countries on their
freedom of expression and belief; association and organizational
rights; rule of law and human rights, including religious freedom;
and economic rights, among other things. Pass: Score must be above
the minimum score of 25 out of 60.
4. Freedom of Information: Measures the legal and practical
steps taken by a government to enable or allow information to move
freely through society; this includes measures of press freedom,
national freedom of information laws, and freedom of speech as
measured by the extent to which a country is shutting down social
media or the internet. Pass: Score must be above the median score
for the income group.
5. Government Effectiveness: An index of surveys and expert
assessments that rate countries on the quality of public service
provision; civil servants' competency and independence from
political pressures; and the government's ability to plan and
implement sound policies, among other things. Pass: Score must be
above the median score for the income group.
6. Rule of Law: An index of surveys and expert assessments that
rate countries on the extent to which the public has confidence in
and abides by the rules of society; the incidence and impact of
violent and nonviolent crime; the effectiveness, independence, and
predictability of the judiciary; the protection of property rights;
and the enforceability of contracts, among other things. Pass: Score
must be above the median score for the income group.
Encouraging Economic Freedom
1. Business Start-Up: An index that rates countries on the time
and cost of complying with all procedures officially required for an
entrepreneur to start up and formally operate an industrial or
commercial business as well as the overall business environment in a
country. Pass: Score must be above the median score for the income
group.
[[Page 64698]]
2. Inflation: The most recent average annual change in consumer
prices. Pass: Score must be 15 percent or less.
3. Regulatory Quality: An index of surveys and expert
assessments that rate countries on the burden of regulations on
business; price controls; the government's role in the economy; and
foreign investment regulation, among other areas. Pass: Score must
be above the median score for the income group.
4. Trade Policy: A measure of a country's openness to
international trade based on weighted average tariff rates and non-
tariff barriers to trade. Pass: Score must be above the median score
for the income group.
5. Women in the Economy: An index that measures the extent to
which laws provide men and women equal capacity to generate income
or participate in the economy, including factors such as the
capacity to access institutions, get a job, register a business,
sign a contract, open a bank account, choose where to live, to
travel freely, property rights protections, and protections against
domestic violence, among others. Pass: Score must be above the
median score for the income group.
6. Property and Land Rights: An index that rates countries on
the extent to which the institutional, legal, and market framework
provides secure land tenure and access to land in rural areas and
the extent to which all individuals have the right to private
property in practice and in law, including measures of intellectual
property rights, risk of expropriation, and the quality of contract
enforcement. Pass: Score must be above the median score for the
income group.
7. Access to Credit: An index that ranks countries based on
access and use of formal and informal financial services as measured
by the number of bank branches and ATMs per 100,000 adults and the
share of adults that have an account at a formal or informal
financial institution. Pass: Score must be above the median score
for the income group.
8. Employment Opportunity: Measures the rights of people to
work. Pass: Score must be above the median score for the income
group.
9. International Market Access: Measures a country government's
commitment to the free movement of capital, citizen access to
international capital markets, and the barriers to global market
access through import or export controls. Pass: Score must be above
the median score for the income group.
10. Market Competitiveness: Measures a country government's
commitment to strengthening market forces in the economy by
promoting a business environment that allows for innovation and open
competition while limiting expropriation, and monopolies. Pass:
Score must be above the median score for the income group.
Investing in People
1. Health Expenditures: Total current expenditures on health by
government (excluding funding sourced from external donors) at all
levels divided by GDP. Pass: Score must be above the median score
for the income group.
2. Chronic Disease: An indicator measuring the prevalence of
chronic diseases. Measures the likelihood of dying between ages 30
and 70 due to cardiovascular disease, cancer, diabetes, or chronic
respiratory disease. Pass: Score must be above the median score for
the income group.
3. Child Health: An index made up of three indicators: (i)
access to improved water, (ii) access to improved sanitation, and
(iii) child (ages 1-4) mortality. Pass: Score must be above the
median score for the income group.
4. Natural Resource Protection: Assesses a country government's
commitment to preserving biodiversity and natural habitats,
responsibly managing ecosystems and fisheries, and engaging in
sustainable agriculture. Pass: Score must be above the median score
for the income group.
5. Workforce Development: An indicator measuring education
within the workforce. This indicator measures the proportion of
youth and adults enrolled in training, non-formal education, and
formal education in the last 12 months. Pass: Score must be above
the median score for the income group.
6. Girls' Education:
a. Girls' Primary Completion Rate: The number of female students
enrolled in the last grade of primary education minus repeaters
divided by the population in the relevant age cohort (gross intake
ratio in the last grade of primary). Countries with a GNI/capita of
$2,225 or less are assessed on this indicator. Pass: Score must be
above the median score for the income group.
b. Girls' Lower Secondary Completion Rate: Countries with a GNI/
capita between $2,226 and $4,635 are assessed on the number of
female pupils that have completed the last grade of lower secondary
education divided by the population within three to five years of
the intended age of completion, expressed as a percentage of the
total population of females in the same age group. Pass: Score must
be above the median score for the income group.
c. Girls' Upper Secondary Completion Rate: Countries with a GNI/
capita of between $4,636 and $8,105 are assessed on the number of
female pupils that have completed the last grade of upper secondary
education divided by the population within three to five years of
the intended age of completion, expressed as a percentage of the
total population of females in the same age group. Pass: Score must
be above the median score for the income group.
Relationship to Statutory Criteria
Within each policy category, the Act sets out a number of
specific selection criteria. A set of objective and quantifiable
policy indicators is used to inform eligibility decisions for
assistance and to measure the relative performance by candidate
countries against these criteria. Performance against each of these
criteria is assessed by at least one of the objective indicators.
Most are addressed by multiple indicators. The specific indicators
appear in parentheses next to the corresponding criterion set out in
the Act. MCC's statute specifically directs the agency to take into
account and assess the role of women and girls across these policy
criteria, where appropriate.
Section 607(b)(1): Just and democratic governance, including a
demonstrated commitment to--
(A) promote political pluralism, equality and the rule of law
(Government Accountability, Personal Freedom, Rule of Law, and Women
in the Economy);
(B) respect human and civil rights, including the rights of
people with disabilities (Government Accountability, Personal
Freedom, Women in the Economy, Employment Opportunity, and Freedom
of Information);
(C) protect private property rights (Personal Freedom,
Regulatory Quality, Rule of Law, and Property and Land Rights, Women
in the Economy);
(D) encourage transparency and accountability of government
(Government Accountability, Personal Freedom, Freedom of
Information, Control of Corruption, Rule of Law, Government
Effectiveness, and Employment Opportunity);
(E) combat corruption (Control of Corruption, Government
Accountability, Personal Freedom, Rule of Law, and Freedom of
Information); and
(F) the quality of civil society enabling environment (Personal
Freedom, Freedom of Information, Employment Opportunity, and Rule of
Law).
Section 607(b)(2): Economic freedom, including a demonstrated
commitment to economic policies that--
(A) encourage citizens and firms to participate in global trade
and international capital markets (International Market Access,
Inflation, Trade Policy, and Regulatory Quality);
(B) promote private sector growth (Market Competitiveness,
Inflation, Business Start-Up, Property and Land Rights, Access to
Credit, Women in the Economy, and Regulatory Quality);
(C) strengthen market forces in the economy (Market
Competitiveness, Business Start-Up, Inflation, Trade Policy,
Property and Land Rights, Access to Credit, and Regulatory Quality);
and
(D) respect worker rights, including the right to form labor
unions (Employment Opportunity, Personal Freedom, and Women in the
Economy).
Section 607(b)(3): Investments in the people of such country,
particularly women and children (Women in the Economy), including
programs that--
(A) promote broad-based primary education (Girls' Primary
Education Completion Rate, Girls' Lower Secondary Education
Completion Rate, Workforce Development, and Employment Opportunity);
(B) strengthen and build capacity to provide quality public
health and reduce child mortality (Chronic Disease, Health
Expenditures, and Child Health); and
(C) promote the protection of biodiversity and the transparent
and sustainable management and use of natural resources (Natural
Resource Protection).
Appendix D: Subsequent and Concurrent Compact Considerations
MCC reporting and data in the following chart are used to assess
threshold program performance, compact performance of MCC compact
countries nearing the end of compact implementation (i.e., within 18
months of compact end date), or for current MCC compact countries
under consideration
[[Page 64699]]
for a concurrent compact, where appropriate. Some reporting used for
assessment may contain sensitive information and adversely affect
implementation or MCC-partner country relations. This information is
therefore for MCC's internal use and is not made public. However,
key implementation information is summarized in compact status and
results reports that are published quarterly on MCC's website under
MCC country programs (<a href="http://www.mcc.gov/where-we-work">www.mcc.gov/where-we-work</a>) and monitoring and
evaluation (<a href="http://www.mcc.gov/our-impact/m-and-e">www.mcc.gov/our-impact/m-and-e</a>) web pages.
For completed compacts, additional information is used to assess
compact performance and is found in a country's ``Star Report.'' The
Star Report captures key information to provide a framework for
results and improve the ability to disseminate learning and evidence
throughout the lifecycle of an MCC investment from selection to
final evaluation. For each compact and threshold program, evidence
is collected on performance indicators, evaluation results,
partnerships, sustainability efforts, and learning, among other
elements.
In addition to the Star Reports, MCC also surveys staff on
topics related to the quality of the partnership during design and
implementation of programs, progress toward program results, a
partner country's commitment to undertaking policy and institutional
reforms, and compliance with MCC standards. Additional information
on the survey can be found in the Guide to the Program Surveys:
<a href="https://www.mcc.gov/resources/doc/guide-to-the-program-surveys/">https://www.mcc.gov/resources/doc/guide-to-the-program-surveys/</a>.
----------------------------------------------------------------------------------------------------------------
Topic MCC reporting/ data source Published documents
----------------------------------------------------------------------------------------------------------------
COUNTRY PARTNERSHIP <bullet> Quarterly <bullet> Quarterly results published
Political Will implementation reporting as ``Table of Key Performance
<bullet> Status of major conditions <bullet> Quarterly results Indicators'' (available by country):
precedent reporting <a href="https://www.mcc.gov/itt">https://www.mcc.gov/itt</a>.
<bullet> Program oversight/ <bullet> MCC Star Reports <bullet> Star Reports (available by
implementation country): https://www.mcc.gov/
o project restructures starreport/.
o partner response to accountable
entity capacity issues
<bullet> Political independence of the
accountable entity
Management Capacity
<bullet> Project management capacity
<bullet> Project performance
<bullet> Level of MCC intervention/
oversight
<bullet> Relative level of resources
required
PROGRAM RESULTS <bullet> Indicator tracking <bullet> Monitoring and Evaluation
Financial Results tables Plans (available by country): https://
<bullet> Commitments--including <bullet> Quarterly financial www.mcc.gov/meplan/.
contributions to compact and threshold reporting <bullet> Quarterly results published
funding <bullet> Quarterly as ``Table of Key Performance
<bullet> Disbursements implementation reporting Indicators'' (available by country):
Project Results <bullet> Quarterly results <a href="https://www.mcc.gov/itt">https://www.mcc.gov/itt</a>.
<bullet> Output, outcome, objective reporting <bullet> Star Reports (available by
targets <bullet> Impact evaluations country): https://www.mcc.gov/
<bullet> Accountable entity commitment <bullet> MCC Star Reports starreport/.
to `focus on results'
<bullet> Accountable entity cooperation
on impact evaluation
<bullet> Percent complete for process/
outputs
<bullet> Relevant outcome data
<bullet> Details behind target delays
Target Achievements
ADHERENCE TO STANDARDS <bullet> Audits (GAO and OIG) <bullet> Published OIG and GAO audits
<bullet> Fraud and corruption <bullet> Quarterly <bullet> Star Reports (available by
<bullet> Procurement implementation reporting country): https://www.mcc.gov/
<bullet> Program closure <bullet> MCC Star Reports starreport/.
<bullet> IFC Performance Standards
<bullet> Monitoring and evaluation
<bullet> All other legal provisions
COUNTRY SPECIFIC <bullet> Quarterly <bullet> Quarterly results published
Sustainability implementation reporting as ``Table of Key Performance
<bullet> Implementation entity <bullet> Quarterly results Indicators'' (available by country):
<bullet> MCC investments reporting <a href="https://www.mcc.gov/itt">https://www.mcc.gov/itt</a>.
Role of private sector or other donors <bullet> MCC Star Reports <bullet> Star Reports (available by
<bullet> Trajectory of private sector country): https://www.mcc.gov/
involvement going forward starreport/.
<bullet> Other relevant investors/
investments
<bullet> Other donors/programming
<bullet> Status of related reforms
----------------------------------------------------------------------------------------------------------------
[FR Doc. 2026-20704 Filed 10-8-26; 8:45 am]
BILLING CODE 9211-03-P
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