[Federal Register Volume 72, Number 164 (Friday, August 24, 2007)]
[Notices]
[Pages 48690-48692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-16723]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 07-09]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2008 and Countries That Would Be 
Candidates but for Legal Prohibitions

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: Section 608(d) of the Millennium Challenge Act of 2003 
requires the Millennium Challenge Corporation to publish a report that 
identifies countries that are ``candidate countries'' for Millennium 
Challenge Account assistance during FY 2008. The report is set forth in 
full below.

Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility for Fiscal Year 2008 and Countries That Would Be 
Candidates but for Legal Prohibitions

    This report to Congress is provided in accordance with section 
608(a) of the Millennium Challenge Act of 2003, 22 U.S.C. 7701, 7707(a) 
(Act).
    The Act authorizes the provision of Millennium Challenge Account 
(MCA) assistance to countries that enter into Compacts with the United 
States to support policies and programs that advance the progress of 
such countries achieving lasting economic growth and poverty reduction. 
The Act requires Millennium Challenge Corporation (MCC) to take a 
number of steps in determining the countries that will be eligible for 
MCA assistance for Fiscal Year (FY) 2008 based on a country's 
demonstrated commitment to (i) Just and democratic governance, (ii) 
economic freedom and investing in their people, and (iii) the 
opportunity to reduce poverty and generate economic growth in the 
country. These steps include the submission of reports to the 
congressional committees specified in the Act and the publication of 
notices in the Federal Register that identify:
    1. The countries that are ``candidate countries'' for MCA 
assistance for FY 2008 based on their per-capita income levels and 
their eligibility to receive assistance under U.S. law and countries 
that would be candidate countries but for specified legal prohibitions 
on assistance (Section 608(a) of the Act);
    2. The criteria and methodology that the MCC Board of Directors 
(Board) will use to measure and evaluate the relative policy 
performance of the ``candidate countries'' consistent with the 
requirements of subsections (a) and (b) of section 607 of the Act in 
order to select ``MCA eligible countries'' from among the ``candidate 
countries'' (Section 608(b) of the Act); and
    3. The list of countries determined by the Board to be ``MCA 
eligible countries'' for FY 2008, with a justification for such 
eligibility determination and selection for compact negotiation, 
including which of the MCA eligible countries the Board will seek to 
enter into MCA Compacts (Section 608(d) of the Act).
    This report is the first of three required reports listed above.

Candidate Countries for FY 2008

    The Act requires the identification of all countries that are 
candidates for MCA assistance for FY 2008 and the identification of all 
countries that would be candidate countries but for specified legal 
prohibitions on assistance. Sections 606(a) and (b) of the Act provide 
that for FY 2008 a country shall be a candidate for the MCA if it:
     Meets one of the following two income level tests:
    [cir] Has a per capita income equal to or less than the historical 
ceiling of the

[[Page 48691]]

International Development Association eligibility for the fiscal year 
involved (or $1,735 gross national income (GNI) per capita for FY 2008) 
(the ``low income category''); or
    [cir] Is classified as a lower middle income country in the then 
most recent edition of the World Development Report for Reconstruction 
and Development published by the International Bank for Reconstruction 
and Development and has an income greater than the historical ceiling 
for International Development Association eligibility for the fiscal 
year involved (or $1,736 to $3,595 GNI per capita for FY 2008) (the 
``lower middle income category''); and
     Is not ineligible to receive U.S. economic assistance 
under Part I of the Foreign Assistance Act of 1961, as amended, (the 
``Foreign Assistance Act''), by reason of the application of the 
Foreign Assistance Act or any other provision of law.
    Pursuant to section 606(c) of the Act, the Board has identified the 
following countries as candidate countries under the Act for FY 2008. 
In so doing, the Board has anticipated that prohibitions against 
assistance as applied to countries in the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 2006 (P.L. 109-102) 
(FY 2006 FOAA), as carried forward for FY 2007 by the Revised 
Continuing Appropriations Resolution, 2007 (P.L. 110-5) (FY 2007 CR), 
will again apply for FY 2008, even though the Foreign Operations, 
Export Financing and Related Programs Appropriations Act for FY 2008 
has not yet been enacted and certain findings under other statutes have 
not yet been made. As noted below, MCC will provide any required 
updates on subsequent changes in applicable legislation or other 
circumstances that affects the status of any country as a candidate 
country for FY 2008.

Candidate Countries: Low Income Category

    1. Afghanistan.
    2. Bangladesh.
    3. Benin.
    4. Bhutan.
    5. Bolivia.
    6. Burkina Faso.
    7. Burundi.
    8. Cambodia.
    9. Cameroon.
    10. Central African Republic.
    11. Chad.
    12. Comoros.
    13. Congo, Democratic Republic of the.
    14. Congo, Republic of the.
    15. Djibouti.
    16. Egypt.
    17. Eritrea.
    18. Ethiopia.
    19. Gambia, The.
    20. Georgia.
    21. Ghana.
    22. Guinea.
    23. Guinea-Bissau.
    24. Guyana.
    25. Haiti.
    26. Honduras.
    27. India.
    28. Indonesia.
    29. Iraq.
    30. Kenya.
    31. Kiribati.
    32. Kyrgyzstan.
    33. Laos.
    34. Lesotho.
    35. Liberia.
    36. Madagascar.
    37. Malawi.
    38. Mali.
    39. Mauritania.
    40. Moldova.
    41. Mongolia.
    42. Mozambique.
    43. Nepal.
    44. Nicaragua.
    45. Niger.
    46. Nigeria.
    47. Pakistan.
    48. Papua New Guinea.
    49. Paraguay.
    50. Philippines.
    51. Rwanda.
    52. Sao Tome and Principe.
    53. Senegal
    54. Sierra Leone
    55. Solomon Islands
    56. Somalia.
    57. Sri Lanka.
    58. Tajikistan.
    59. Tanzania.
    60. Timor-Leste.
    61. Togo.
    62. Turkmenistan.
    63. Uganda.
    64. Vanuatu.
    65. Vietnam.
    66. Yemen.
    67. Zambia.

Candidate Countries: Lower Middle Income Category

    1. Albania.
    2. Algeria.
    3. Angola.
    4. Armenia.
    5. Azerbaijan.
    6. Belarus.
    7. Cape Verde.
    8. Colombia.
    9. Dominican Republic.
    10. Ecuador.
    11. El Salvador.
    12. Guatemala.
    13. Jamaica.
    14. Jordan.
    15. Macedonia.
    16. Maldives.
    17. Marshall Islands.
    18. Micronesia, Federated States of.
    19. Morocco.
    20. Namibia.
    21. Peru.
    22. Samoa.
    23. Suriname.
    24. Swaziland.
    25. Tonga.
    26. Tunisia.
    27. Tuvalu.
    28. Ukraine.

Countries That Would Be Candidate Countries but for Legal Prohibitions 
That Prohibit Assistance

    Countries that would be considered candidate countries for FY 2008, 
but are ineligible to receive United States economic assistance under 
Part I of the Foreign Assistance Act by reason of the application of 
any provision of the Foreign Assistance Act or any other provision of 
law are listed below. As noted above, this list is based on legal 
prohibitions against economic assistance that apply for FY 2007 and 
that are anticipated to apply again for FY 2008.

Prohibited Countries: Low Income Category

    1. Burma is subject to numerous restrictions, including but not 
limited to section 570 of the FY 1997 Foreign Operations, Export 
Financing, and Related Programs Appropriations Act (P.L. 104-208) which 
prohibits assistance to the government of Burma until it makes progress 
on improving human rights and implementing democratic government, and 
due to its status as a major drug-transit or major illicit drug 
producing country for 2006 (Presidential Determination No. 2006-24 (9/
15/2006)) and a Tier III country under the Trafficking Victims 
Protection Act (Presidential Determination No. 2006-25 (9/26/2006)).
    2. The Cote d'Ivoire is subject to Section 508 of the FY 2006 FOAA, 
as carried forward by the FY 2007 CR, which prohibits assistance to the 
government of a country whose duly elected head of government is 
deposed by military coup or decree.
    3. Cuba is subject to numerous restrictions, including but not 
limited to Section 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism, 
provisions of the Cuban Liberty and Democratic Solidarity Act of 1996 
(P.L. 104-114), and Section 507 of the FY 2006 FOAA, as carried forward 
by the FY 2007 CR.
    4. North Korea is subject to numerous restrictions, including but 
not limited to

[[Page 48692]]

section 620A of the Foreign Assistance Act which prohibits assistance 
to governments supporting international terrorism and Section 507 of 
the FY 2006 FOAA, as carried forward by the FY 2007 CR.
    5. Sudan is subject to numerous restrictions, including but not 
limited to Section 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism, Section 
512 of the FY 2006 FOAA, as carried forward by the FY 2007 CR, and 
section 620(q) of the Foreign Assistance Act, both of which prohibit 
assistance to countries in default in payment to the U.S. in certain 
circumstances, section 508 of the FY 2006 FOAA, as carried forward by 
the FY 2007 CR, which prohibits assistance to a country whose duly 
elected head of government being deposed by military coup or decree, 
and section 569 of the FY 2006 FOAA, as carried forward by the FY 2007 
CR.
    6. Syria is subject to numerous restrictions, including but not 
limited to 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism, sections 
507 and 512 of the FY 2006 FOAA, as carried forward by the FY 2007 CR, 
and section 620(q) of the Foreign Assistance Act which prohibit 
assistance to countries in default in payment to the U.S. in certain 
circumstances.
    7. Uzbekistan's central government is subject to section 586 of the 
FY 2006 FOAA, as carried forward by the FY 2007 CR, which requires that 
funds appropriated for assistance to the central government of 
Uzbekistan may be made available only if the Secretary of State 
determines and reports to the Congress that the government is making 
substantial and continuing progress in meeting its commitments under a 
framework agreement with the United States.
    8. Zimbabwe is subject to section 620(q) of the Foreign Assistance 
Act and section 512 of the FY 2006 FOAA, as carried forward by the FY 
2007 CR, which prohibit assistance to countries in default in payment 
to the United States in certain circumstances.

Prohibited Countries: Lower Middle Income Category

    1. Republika Srpska, which is part of the country of Bosnia and 
Herzegovina, is subject to section 561 of the FY 2006 FOAA, as carried 
forward by the FY 2007 CR, which prohibits assistance to any country, 
entity, or municipality whose competent authorities have failed, as 
determined by the Secretary of State, to take necessary and significant 
steps to implement its international legal obligations with respect to 
the International Criminal Tribunal for the former Yugoslavia.
    2. China is not eligible to receive economic assistance from the 
United States, absent special authority, because of concerns relative 
to China's record on human rights.
    3. The Fiji Islands are subject to section 508 of the FY 2006 FOAA, 
as carried forward by the FY 2007 CR, which prohibits assistance to the 
government of a country whose duly elected government is deposed by 
military coup or decree.
    4. Iran is subject to numerous restrictions, including but not 
limited to Section 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism and 
section 507 of the FY 2006 FOAA, as carried forward by the FY 2007 CR.
    5. Thailand is subject to section 508 of the FY 2006 FOAA, as 
carried forward by the FY 2007 CR, which prohibits assistance to the 
government of a country whose duly elected government is deposed by 
military coup or decree.
    Countries identified above as candidate countries, as well as 
countries that would be considered candidate countries but for the 
applicability of legal provisions that prohibit U.S. economic 
assistance, may be the subject of future statutory restrictions or 
determinations, or changed country circumstances, that affect their 
legal eligibility for assistance under Part I of the Foreign Assistance 
Act by reason of application of Foreign Assistance Act or any other 
provision of law for FY 2008. MCC will include any required updates on 
such statutory eligibility that affect countries' identification as 
candidate countries for FY 2008, at such time as it publishes the 
Notices required by sections 608(b) and 608(d) of the Act or at other 
appropriate times. Any such updates with regard to the legal 
eligibility or ineligibility of particular countries identified in this 
report will not affect the date on which the Board is authorized to 
determine eligible countries from among candidate countries which, in 
accordance with section 608(a) of the Act, shall be no sooner than 90 
days from the date of publication of this report.

    Dated: August 20, 2007.
Henry Pitney,
Acting General Counsel, Millennium Challenge Corporation.
 [FR Doc. E7-16723 Filed 8-23-07; 8:45 am]
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