[Federal Register Volume 76, Number 173 (Wednesday, September 7, 2011)]
[Notices]
[Pages 55419-55421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-22882]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 11-07]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2012 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 2012. The report is set forth in 
full below.

    Dated: September 1, 2011.
Melvin F. Williams, Jr.,
Vice President/General Counsel and Corporate Secretary, Millennium 
Challenge Corporation.

Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility for Fiscal Year 2012 and Countries That Would Be 
Candidates but for Legal Prohibitions

Summary

    This report to Congress is provided in accordance with section 
608(a) of the Millennium Challenge Act of 2003, as amended, 22 U.S.C. 
7701, 7707(a) (the ``Act'').
    The Act authorizes the provision of Millennium Challenge Account 
(MCA) assistance for countries that enter into a Millennium Challenge 
Compact with the United States to support policies and programs that 
advance the progress of such countries to achieve lasting economic 
growth and poverty

[[Page 55420]]

reduction. The Act requires the Millennium Challenge Corporation (MCC) 
to take a number of steps in selecting countries with which MCC will 
seek to enter into a compact, including (a) determining the countries 
that will be eligible for MCA assistance for fiscal year 2012 (FY12) 
based on a country's demonstrated commitment to (i) Just and democratic 
governance, (ii) economic freedom, and (iii) investments in its people; 
and (b) considering 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:
    The countries that are ``candidate countries'' for MCA assistance 
for FY12 based on per capita income levels and 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);
    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 determine ``MCA eligible countries'' from among the 
``candidate countries'' (section 608(b) of the Act); and
    The list of countries determined by the Board to be ``MCA eligible 
countries'' for FY12, identification of such countries with which the 
Board will seek to enter into compacts, and a justification for such 
eligibility determination and selection for compact negotiation 
(section 608(d) of the Act).
    This report is the first of three required reports listed above.

Candidate Countries for FY12

    The Act requires the identification of all countries that are 
candidates for MCA assistance for FY12 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 FY12 a country shall be a candidate for the MCA if it:
    Meets one of the following two income tests:
    Has a per capita income equal to or less than the historical 
ceiling of the International Development Association eligibility for 
the fiscal year involved (or $1,915 gross national income (GNI) per 
capita for FY12) (the ``low income category''); or
    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 $1,916 to $3,975 GNI per capita for FY12) (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 FY12. In 
so doing, the Board has anticipated that prohibitions against 
assistance as applied to countries in the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2010 (Div. F, Pub. 
L. 111-117) (the ``FY 2010 SFOAA''), will again apply for FY12, even 
though the Department of State, Foreign Operations, and Related 
Programs Appropriations Act for FY12 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 affect the status of 
any country as a candidate country for FY12. All section references 
identified as prohibitions on assistance to a given country are taken 
from the FY 2010 SFOAA as carried over by the Full-Year Continuing 
Appropriations Act, 2011 (Div. B, Pub. L. 112-10) unless another statue 
is identified.

Candidate Countries: Low Income Category

Afghanistan, Bangladesh, Benin, Bolivia, Burkina Faso, Burundi, 
Cambodia, Cameroon, Chad, Comoros, Cote D'Ivoire, Djibouti, 
Ethiopia, Gambia, The; Ghana, Guinea, Haiti, Honduras, India, Kenya, 
Kyrgyz Republic, Lao PDR, Lesotho, Liberia, Malawi, Mali, Moldova, 
Mongolia, Mozambique, Nepal, Nicaragua, Niger, Nigeria, Pakistan, 
Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Solomon 
Islands, Somalia, Tajikistan, Tanzania, Timor-Leste, Togo, Uganda, 
Vietnam, Zambia

Candidate Countries: Lower Middle Income Category

Angola, Armenia, Belize, Bhutan, Cape Verde, Congo, Republic of the; 
Egypt, Arab Republic; El Salvador, Fiji, Georgia, Guatemala, Guyana, 
Indonesia, Iraq, Kiribati, Kosovo, Marshall Islands, Morocco, 
Paraguay, Philippines, Samoa, Sri Lanka, Swaziland, Tonga, Tuvalu, 
Ukraine, Vanuatu

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

    Countries that would be considered candidate countries for FY12, 
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 fiscal year 
2011 and that are anticipated to apply again for FY12.

Prohibited Countries: Low Income Category

    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 (Pub. 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 2009 (Presidential Determination No. 
2009-30 (9/15/2009)).
    Central African Republic was ranked a Tier III country in the 2010 
Trafficking in Persons Report and, subject to a forthcoming 
Presidential determination, will be subject to restrictions as of 
October 1, unless the President determines the government has 
subsequently come into compliance with trafficking in persons 
requirements or that continuation of assistance is in the national 
interest.
    Dem. Republic of the Congo was ranked a Tier III country in the 
2010 Trafficking in Persons Report and, subject to a forthcoming 
Presidential determination, will be subject to restrictions as of 
October 1, unless the President determines the government has 
subsequently come into compliance with trafficking in persons 
requirements or that continuation of assistance is in the national 
interest.
    Eritrea is subject to restrictions due to its status as a Tier III 
country under the Trafficking Victims Protection Act, as amended, 22 
U.S.C. sections 7101 et seq.
    Guinea-Bissau was ranked a Tier III country in the 2010 Trafficking 
in Persons Report and, subject to a forthcoming Presidential 
determination, will be subject to restrictions as of October 1, unless 
the President

[[Page 55421]]

determines the government has subsequently come into compliance with 
trafficking in persons requirements or that continuation of assistance 
is in the national interest.
    Madagascar is subject to section 7008 of the FY 2010 SFOAA, which 
prohibits assistance to the government of a country whose duly elected 
head of government is deposed by military coup or decree and also 
section 7086(c) of the FY 2010 SFOAA regarding budget transparency.
    Mauritania was ranked a Tier III country in the 2010 Trafficking in 
Persons Report and, subject to a forthcoming Presidential 
determination, will be subject to restrictions as of October 1, unless 
the President determines the government has subsequently come into 
compliance with trafficking in persons requirements or that 
continuation of assistance is in the national interest.
    North Korea is subject to numerous restrictions, including section 
7007 of the FY 2010 SFOAA which prohibits any direct assistance to the 
government.
    Papua New Guinea was ranked a Tier III country in the 2010 
Trafficking in Persons Report and, subject to a forthcoming 
Presidential determination, will be subject to restrictions as of 
October 1, unless the President determines the government has 
subsequently come into compliance with trafficking in persons 
requirements or that continuation of assistance is in the national 
interest.
    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 
7012 of the FY 2010 SFOAA 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 7008 of the FY 
2010 SFOAA, which prohibits assistance to the government of a country 
whose duly elected head of government is deposed by military coup or 
decree, and section 7070(f) of the FY 2010 SFOAA.
    Uzbekistan's central government is subject to section 7076(a) of 
the FY 2009 SFOAA, which is largely incorporated by reference and 
carried forward by section 7075 of the FY 2010 SFOAA. This restriction 
states that funds (other than expanded international military education 
and training funds) may be made available for assistance to the central 
government of Uzbekistan 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.
    Yemen was ranked a Tier III country in the 2010 Trafficking in 
Persons Report and, subject to a forthcoming Presidential 
determination, will be subject to restrictions as of October 1, unless 
the President determines the government has subsequently come into 
compliance with trafficking in persons requirements or that 
continuation of assistance is in the national interest.
    Zimbabwe is subject to several restrictions, including section 
7070(i)(2) of the FY 2010 SFOAA which prohibits assistance (except for 
macroeconomic growth assistance) to the central government of Zimbabwe, 
unless the Secretary of State determines and reports to Congress that 
the rule of law has been restored in Zimbabwe.

Prohibited Countries: Lower Middle Income Category

    Micronesia, Fed. Sts. was ranked a Tier III country in the 2010 
Trafficking in Persons Report and, subject to a forthcoming 
Presidential determination, will be subject to restrictions as of 
October 1, unless the President determines the government has 
subsequently come into compliance with trafficking in persons 
requirements or that continuation of assistance is in the national 
interest.
    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, section 
7007 of the FY 2010 SFOAA which prohibits direct assistance, and 
section 7012 of the FY 2010 SFOAA 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.
    Turkmenistan was ranked a Tier III country in the 2010 Trafficking 
in Persons Report and, subject to a forthcoming Presidential 
determination, will be subject to restrictions as of October 1, unless 
the President determines the government has subsequently come into 
compliance with trafficking in persons requirements or that 
continuation of assistance is in the national interest.
    The 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 the Foreign Assistance Act or any other 
provision of law for FY12. MCC will include any required updates on 
such statutory eligibility that affect countries' identification as 
candidate countries for FY12, 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 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.

[FR Doc. 2011-22882 Filed 9-6-11; 8:45 am]
BILLING CODE 9211-03-P