About the Millennium Challenge Corporation

The Millennium Challenge Corporation (MCC) is a United States government-owned corporation responsible for the stewardship of the Millennium Challenge Account (MCA).

The MCC is:

• Purposely designed as a small corporation to promote, support and ensure accountability for the innovative foreign aid strategies it administers;
• Managed by a Chief Executive Officer appointed by the President of the United States and confirmed by the U.S. Senate;
• Overseen by a Board of Directors.

The Millennium Challenge Account

The Millennium Challenge Account (MCA) is the mechanism proposed by President George W. Bush to implement a new model for providing foreign aid to the world's developing nations.

In this new model, aid is provided to those countries that:

• Rule justly;
• Invest in their people;
• Encourage economic freedom.

Origins of Both the MCC and MCA

President Bush, calling for a "new compact for global development," proposed this new foreign aid model in 2002. In January 2004, with strong bipartisan support, the U.S. Congress established the MCC.

Congress provided nearly $1 billion in initial funding and $1.4 billion and $1.7 billion in the following years for the MCC and its assistance programs.

Key Principles

Reduce Poverty through Economic Growth

The MCC will focus specifically on promoting sustainable economic growth that reduces poverty through investments in areas such as agriculture, education, private sector development, and capacity building.

Reward Good Policy

Using objective indicators, countries will be selected to receive assistance based on their performance in governing justly, investing in their citizens, and encouraging economic freedom.

Operate as Partners

Working closely with the MCC, countries that receive MCA assistance will be responsible for identifying the greatest barriers to their own development, ensuring civil society participation, and developing an MCA program. MCA participation will require a high-level commitment from the host government. Each MCA country will enter into a public Compact with MCC that includes a multi-year plan for achieving development objectives and identifies the responsibilities of each partner in achieving those objectives.

Focus on Results

MCA assistance will go to those countries that have developed well-designed programs with clear objectives, benchmarks to measure progress, procedures to ensure fiscal accountability for the use of MCA assistance, and a plan for effective monitoring and objective evaluation of results. Programs are designed to enable sustainable progress even after the funding under the MCA Compact has ended.