Given that these early regional efforts are still at an early stage and that the MCC has limited room for manoeuvre this year to take over many new countries, we do not expect the Board to select new countries for regional investments. But we will probably see some changes in the current group. This year again, the five countries selected over the past year pass the scorecard. But MCC will likely remove Ghana from its stake. The Agency recently announced that it would cut a $190 million tranche of funding for Ghana`s existing bilateral pact focused on the energy sector. This measure was taken in response to the Ghanaian government`s decision to terminate its concession with a private electricity operator, contrary to one of the terms of the pact. While the regional pact would be a separate investment, the Congress, in assigning a new regional authority to the MCC, made it clear that countries could only benefit from regional agreements if they «made significant and demonstrable progress in implementing the terms of the existing pact.» The nine countries that have reached the thresholds and moved to pacts are Burkina Faso, Indonesia, Jordan, Liberia, Malawi, Moldova, the Philippines, Tanzania and Zambia. CRS, Millennium Challenge Corporation, RL32427, April 2018. Ghana is implementing a bilateral pact and is part of the group of West African countries working on a regional pact. However, as has already been said, it is unlikely that the government will decide not to meet a condition of the bilateral pact to continue participating in the regional group. If MCC believes that a country could be a promising compact partner in the future, but wants to know more about the evolution of the country`s political performance or see how a partnership could unfold before making a significant commitment, it can use the threshold program.
Typically, MCC`s threshold program choices are countries that are on a reform trajectory (that did not yet have a pact) that either 1) inconsistently resist the scorecard, or 2) have not yet succeeded, but are close. No new countries are filling out this invoice this year. The board will almost certainly agree to continue developing emerging programs with Ethiopia and Solomon Islands – both initially selected last year – but we don`t expect new countries to be selected. These patterns in the data indicate that developing country governments are not being led by the U.S. government to implement reforms that they did not want to implement otherwise. On the contrary, it would appear that the MCC effect works through «sympathetic interlocutors» in low- and low-income countries, who see the prospect of the MCC`s budgetary sound management label – and access to hundreds of millions of dollars in flexible U.S. government aid – as an opportunity to collect domestic reform efforts and neutralize opposition to reform. Related Content Global Development Disrupted Global Evolution: Results of a Survey of 93 Executives George Ingram and Kristin M. Lord Tuesday, March 26, 2019 Future Development Why developing countries with weak institutions are stuck and how foreign actors Bradley Parks, Mark Buntaine and Benjamin Buch can help Wednesday, July 26, 2017 Future development Will China`s development projects pave the way for inclusive growth? Bradley Parks Tuesday, September 11, 2018 In April 2018, the AGOA and MCA Modernization Act mcc gave the power to enter into simultaneous pacts to promote cross-border economic integration, trade and cooperation.
. . .