[Federal Register Volume 77, Number 171 (Tuesday, September 4, 2012)]
[Notices]
[Pages 53917-53919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-21682]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 12-08]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2013 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 2013. The report is set forth in 
full below.


[[Page 53918]]


    Dated: August 29, 2012.
Melvin F. Williams, Jr.,
VP/General Counsel and Corporate Secretary, Millennium Challenge 
Corporation.

Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility for Fiscal Year 2013 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. 
Sec. Sec.  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 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 
(FY) 2013 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 FY 2013 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);
    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 ``eligible countries'' from among the ``candidate 
countries'' (section 608(b) of the Act); and
    The list of countries determined by the Board to be ``eligible 
countries'' for FY 2013, 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 FY 2013

    The Act requires the identification of all countries that are 
candidates for MCA assistance for FY 2013 and the identification of all 
countries that would be candidate countries but for specified legal 
prohibitions on assistance. MCC's FY 2012 Appropriations Act, enacted 
in December 2011 as part of the Consolidated Appropriations Act, 2012 
(Pub. L. 112-74) (the FY 2012 Appropriations Act), redefined low income 
candidate countries for FY 2012 \1\ as the 75 poorest countries as 
identified by the World Bank and provided that a country that changes 
in the fiscal year from low income to lower middle income (or vice 
versa) will retain its candidacy status in its former income category 
for the fiscal year and two subsequent fiscal years.
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    \1\ The changes to the Act enacted in the FY 2012 Appropriations 
Act applied specifically to the FY 2012 selection process. However, 
in advance of the FY 2013 appropriations act, the language from the 
FY 2012 Appropriations Act serves as the basis for the FY 2013 
Candidate Country Report.
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    The provisions of the FY 2012 Appropriations Act that supersede 
sections 606(a) and (b) of the Act provide that for FY 2013, a country 
shall be a candidate for MCA assistance if it:
    Meets one of the following tests:
    Has a per capita income that is not greater than the World Bank's 
lower middle income country threshold for such fiscal year ($4,035 GNI 
per capita for FY 2013); and is among the 75 lowest per capita income 
countries, as identified by the World Bank; or
    Has a per capita income that is not greater than the World Bank's 
lower middle income country threshold for such fiscal year ($4,035 GNI 
per capita for FY 2013); but is not among the 75 lowest per capita 
income countries as identified by the World Bank;

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.
    The revised candidate list for FY 2012 established the baseline of 
those countries for purposes of determining income levels. Due to the 
provisions requiring countries to retain their former income 
classification, changes from the low income to lower middle income 
categories in FY 2013 will go into effect for FY 2016. Countries 
changing from the lower middle income category to the upper middle 
income category do not retain their former income classification.
    Pursuant to section 606(c) of the Act, the Board identified the 
following countries as candidate countries under the Act for FY 2013. 
In so doing, the Board referred to the prohibitions on assistance as 
applied to countries in the Department of State, Foreign Operations, 
and Related Programs Appropriations Act, 2012, Pub. L. 112-74, Div. I. 
(the SFOAA). All section references identified as prohibitions on 
assistance to a given country are taken from Title VII of the SFOAA, 
unless another statue is identified.

Candidate Countries: Low Income Category

Afghanistan
Bangladesh
Benin
Bhutan
Bolivia
Burkina Faso
Burundi
Cambodia
Central African Republic
Chad
Comoros
Cote D'Ivoire
Congo, Democratic Republic of
Congo, Republic of the
Djibouti
Egypt, Arab Republic
Ethiopia
Gambia, The
Georgia
Ghana
Guatemala
Haiti
Honduras
India
Indonesia
Iraq
Kenya
Kiribati
Kyrgyz Republic
Lao PDR
Lesotho
Liberia
Malawi
Mauritania
Micronesia
Moldova
Mongolia
Mozambique
Nepal
Niger
Nigeria
Pakistan
Papua New Guinea
Philippines
Rwanda
Sao Tome and Principe
Senegal

[[Page 53919]]

Sierra Leone
Solomon Islands
Somalia
South Sudan
Sri Lanka
Tajikistan
Tanzania
Timor-Leste
Togo
Uganda
Uzbekistan
Vanuatu
Vietnam
Yemen
Zambia

Candidate Countries: Lower Middle Income Category

Albania
Armenia
Belize
Cape Verde
El Salvador
Guyana *
Kosovo
Marshall Islands
Morocco
Paraguay
Samoa
Tonga
Ukraine

    * According to the FY 2013 income data, Swaziland (listed under 
prohibited countries) would have moved up and out of the LIC category 
and Guyana would have moved back into the LIC category. However, due to 
the provisions in the FY 2012 Appropriations Act allowing countries to 
retain their former income classification, both countries will be held 
in their previous income classification for this year and the next two 
fiscal years.

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

    Countries that would be considered candidate countries for FY 2013, 
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 as of September 1, 
2012.

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 
measurable and substantial progress in improving human rights practices 
and implementing democratic government, and due to its status as a 
major drug-transit or major illicit drug producing country for FY 2012 
(Presidential Determination No. 2011-16 (9/15/2011)).
    Cameroon is subject to section 7031(b) regarding budget 
transparency.
    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 is subject to section 7031(b) regarding budget transparency.
    Guinea-Bissau is subject to section 7008 of the SFOAA, which 
prohibits assistance to the government of a country whose duly elected 
head of government is deposed by military coup or decree.
    Madagascar is subject to section 7008 of the 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 
7031(b) regarding budget transparency.
    Mali is subject to section 7008 of the SFOAA, which prohibits 
assistance to the government of a country whose duly elected head of 
government is deposed by military coup or decree.
    Nicaragua is subject to section 7031(b) regarding budget 
transparency.
    North Korea is subject to numerous restrictions, including section 
7007 of the SFOAA which prohibits any direct assistance to the 
government.
    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 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 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 
7043(f).
    Swaziland is subject to section 7031(b) regarding budget 
transparency.
    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 SFOAA which prohibits direct assistance, and section 7012 
of the 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.
    Zimbabwe is subject to several restrictions, including section 
7043(j)(2) 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

    Fiji is subject to section 7008 of the SFOAA, which prohibits 
assistance to the government of a country whose duly elected head of 
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 the Foreign Assistance Act or any other 
provision of law for FY 2013.

[FR Doc. 2012-21682 Filed 8-29-12; 4:15 pm]
BILLING CODE 9211-03-P