Millennium Challenge

Millennium Challenge At A Glance

View Full Data Set

The Millennium Challenge Corporation (MCC) compact was created to promote economic growth and to reduce poverty by increasing support to developing countries that are ruling justly, fostering economic freedom and investing in their citizens. 

Read more

Established in 2004, the Millennium Challenge Corporation (MCC) compact was created to promote economic growth and to reduce poverty by increasing support to developing countries that are ruling justly, fostering economic freedom and investing in their citizens. The MCC emerged amid frustration with then-existing foreign aid programs, and is based on the premise that economic development succeeds best where it is linked to free market economic and democratic policies, and where governments are committed to implementing reform measures in order to achieve such goals. The original MCC proposal, made by President George W. Bush in March 2002, sought an annual commitment of $5 billion, which has never been met. Governed by a board that includes the Secretary of State, the MCC selects countries on a competitive basis based upon policy performance, requiring selected countries to identify priorities for achieving sustainable economic growth and poverty reduction and implement them locally. Pacts last a maximum of five years, with funding committed up front, and place a strong emphasis on transparency. To date, approximately 53 percent of compact funding has gone to sub-Saharan African countries, 10 percent to North Africa and the Middle East, 11 percent to the former Soviet Union, 12 percent to Latin America and 14 percent to Asia and the Pacific. The following statistics represent the sector breakdown: 31 percent for the transport sector, mostly roads; 19 percent for agriculture; 13 percent for health, education and community services; 12 percent for water supply and sanitation; 6 percent for energy; 6 percent for governance; and 2 percent for financial services.

Program Data

User's Guide
Year: