WASHINGTON, D.C., Nov. 22, 2016 – The U.S. Government’s Millennium Challenge Corporation (MCC) recently released its fiscal year 2017 scorecards – a key component in the agency’s annual competitive selection process that determines which countries will receive MCC development funds – and Liberia once again passed the scorecard.
Liberia passed 10 of the 20 indicators on the FY 2017 scorecard, including maintaining good performance on both hard hurdles – the Democratic Rights and Control of Corruption. Additionally, Liberia saw improvements on the Civil Liberties and Political Rights indicators.
“The passage of the scorecard once again shows a strong commitment from the Government of Liberia to reducing poverty through broad-based and sustainable economic growth,” said U.S. Ambassador to Liberia Christine Elder.
Added Kateri Clement, Resident Country Director in Liberia for the Millennium Challenge Corporation, “We also recognize the important efforts by the government to create a scorecard committee that works with government institutions on the indicators.”
The $257 million MCC Liberia Compact was signed in October 2015 and entered into force in January 2016. The compact seeks to address two binding constraints to economic growth in Liberia: lack of access to reliable and affordable electricity and inadequate road infrastructure. The compact includes funding for the rehabilitation of the Mt. Coffee Hydroelectric Plant, development of a training center for technicians in the electricity sector, support for the creation of an independent energy sector regulator and support for the development of a nationwide road maintenance framework.
MCC and the Scorecard
MCC’s competitive selection process is a data-driven, transparent method for determining where the agency invests its development dollars. To be considered for MCC funding, countries must first pass MCC’s scorecard – a collection of 20 independent, third-party indicators that measure a country’s policy performance in the areas of economic freedom, investing in its people, and ruling justly. Even after a country has been selected for compact or threshold eligibility, MCC regularly reviews its partner countries’ policy performance throughout the development and implementation of a compact or threshold program. The tool represents one of the many ways MCC is distinctive in how it works to combat poverty through economic growth around the world. This year, of the 82 countries MCC created scorecards for, 33 countries passed while 49 did not pass. Scorecards for all 82 low and lower-middle income countries, as classified by the World Bank, are now available.
MCC partners only with select countries committed to basic principles like fighting corruption and respecting democratic rights – including the rights of women.
Once MCC partners with a country through a compact or threshold program, investments go toward projects like power, clean water, land rights and roads that lead to economic growth and help people lift themselves out of poverty.