Financial Times

Countries eligible for new U.S. aid to be selected in May

The board of directors of the new U.S. Millennium Challenge Corporation (MCC) will select in May the first countries to be invited to develop proposals to receive its aid, according to Alan Larson, under secretary of state and interim MCC chief executive officer (CEO).

Selection will be based on demonstrated commitment to good governance, economic freedom and investing in people, Larson said (last week) outlining the criteria for selecting countries eligible to receive aid through the Millennium Challenge Account (MCA).

He added that the MCA approach to development emphasizes lasting economic growth and poverty reduction, according to a statement issued through the US embassy in Colombo.

The MCA is an incentive-based supplement to other U.S. aid programs administered by the MCC, a new government corporation designed to ensure accountability by beneficiary governments for measurable results, according to an MCC report.

Awards of MCA funds will be based on a country's overall performance as determined by 16 transparent indicators, Larson said. In addition, the MCC board may consider whether any adjustments are needed for gaps or unavailable data or if a country performs "substantially below average" on any one indicator, he said.

Other factors, such as a country's performance in ensuring the rights of people with disabilities, labor standards, and environmental protection, also will be considered, Larson said.

Among the MCA eligibility criteria for countries during the current fiscal year are eligibility for assistance from the World Bank's lending arm, the International Development Association; a per capita income of $1,415 or less; and no prohibition on receiving U.S. aid.

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