OSI Issues Public Comment on U.S. Millennium Challenge Account Criteria

In March 2002, President Bush announced the establishment of the Millennium Challenge Account (MCA), a new approach to development assistance that would increase U.S. foreign aid to poor nations by 50 percent—resulting in a $5 billion annual increase in assistance over current levels by 2006.

OSI strongly supports MCA's underlying premise that foreign assistance is most effective when countries have ownership over funds, civil society and the private sector are engaged at the strategic level, and governments are committed to achieving measurable results. But to be credible as an incentive-based approach, it is critical that the Millennium Challenge Corporation (MCC)—the government agency that will administer the aid program—exercises careful judgment in selecting eligible countries that truly merit enhanced assistance.

The MCC is currently in the midst of a 30-day public comment period on its criteria and methodology for MCA country selection. OSI's primary concerns focus on 1) data sources and grouping, 2) median flexibility, 3) a "hard" corruption indicator, 4) elevating the role of gender, and 5) ensuring transparency in the country selection process.

OSI's full comments may be found in the PDF below.

Need help downloading a file or playing a clip? Click here.