[Federal Register Volume 79, Number 164 (Monday, August 25, 2014)]
[Notices]
[Pages 50704-50706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-20045]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 14-05]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2015 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 2015. The report is set forth in 
full below.

    Dated: August 19, 2014.
Thomas G. Hohenthaner,
Acting VP/General Counsel and Corporate Secretary, Millennium Challenge 
Corporation.

Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility for Fiscal Year 2015 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 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 determining the 
countries that will be eligible for MCA assistance for fiscal year (FY) 
2015 based on (a) 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; and (c) the availability of 
funds to MCC. 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 2015 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 2015, 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 2015

    The Act requires the identification of all countries that are 
candidates for MCA assistance for FY 2015 and the identification of all 
countries that would be candidate countries but for specified legal 
prohibitions on assistance. Under the terms of the Act, sections 606(a) 
and (b) set forth the two income tests countries must satisfy to be 
candidates for MCA assistance.\1\ However for FY 2014, those categories 
are defined by MCC's FY 2014 appropriations act, the Department of 
State, Foreign Operations, and Related Programs Appropriations Act, 
2014, Public Law 113-76, Div. K (the FY 2014 SFOAA). Specifically, the 
FY 2014 SFOAA used the same definitions that have been used since the 
FY 2012 appropriations act and defines low income candidate countries 
as the 75 poorest countries as identified by the World Bank and 
provided that a country that changes during 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. Assuming these definitions will be used again 
in FY 2015, MCC is using them for purposes of this report.\2\
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    \1\ Sections 606(a) and (b) of the Act provide that a country 
will be a candidate for MCA assistance if it (1) has a per capita 
income equal to or less than the historical ceiling of the 
International Development Association eligibility for the fiscal 
year involved (the ``low income category'') or (2) 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 (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.
    \2\ If the language relating to the definition of low income 
candidate countries is not enacted or is changed for MCC's FY 2015 
appropriations act, MCC will revisit the selection process once the 
FY 2015 appropriations act is enacted and will conduct the selection 
process in accordance with the Act and applicable provisions for FY 
2015.
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    Under the redefined categories, a country will be a candidate for 
MCA assistance for FY 2015 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 ($4,125 GNI 
per capita for FY 2015); and is among the 75

[[Page 50705]]

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 ($4,125 GNI 
per capita for FY 2015); 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.
    Due to the provisions requiring countries to retain their former 
income classification for three fiscal years, changes from the low 
income to lower middle income categories or vice versa for FY 2015 will 
go into effect for FY 2018. Countries transitioning to the upper middle 
income category do not retain their former income classification.\3\
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    \3\ In FY 2014, the World Bank revised its estimates for Iraq's 
gross domestic product per capita and more than doubled its previous 
estimate. This caused Iraq to transition from a low income country 
to an upper middle income country without the benefit of gradual 
reclassification. The removal of Iraq from the both the low income 
and lower middle income categories means that, as a result, there 
are only 74 low income countries for FY 2015.
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    Pursuant to section 606(c) of the Act, the Board identified the 
following countries as candidate countries under the Act for FY 2015. 
In so doing, the Board referred to the prohibitions on assistance to 
countries for FY 2014 under the FY 2014 SFOAA.

Candidate Countries: Low Income Category

Afghanistan
Bangladesh
Benin
Bhutan
Burkina Faso
Burundi
Cameroon
Central African Republic
Chad
Comoros
Congo, Democratic Republic of
Congo, Republic of the
Cote d'Ivoire
Djibouti
Egypt \4\
Ethiopia
Gambia, The
Georgia
Ghana
Guatemala
Guinea
Guinea-Bissau
Haiti
Honduras
India
Indonesia
Kenya
Kiribati
Kyrgyz Republic
Laos
Lesotho
Liberia
Madagascar
 Malawi
Mali
Mauritania
Micronesia
Moldova
Mongolia
Mozambique
Nepal
Nicaragua
Niger
Nigeria
Pakistan
Papua New Guinea
Philippines
Rwanda
Sao Tome and Principe
Senegal
Sierra Leone
Solomon Islands
Somalia
South Sudan
Sri Lanka
Swaziland
Tajikistan
Tanzania
Timor-Leste
Togo
Uganda
Uzbekistan
Vanuatu
Vietnam
Yemen
Zambia
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    \4\ MCA assistance to Egypt would be provided to the extent it 
is deemed to be consistent with the law.
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Candidate Countries: Lower Middle Income Category

Armenia
Cabo Verde
El Salvador
Guyana
Kosovo
Morocco
Paraguay
Samoa
Ukraine

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

    Countries that would be considered candidate countries for FY 2015 
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. This list is based on legal prohibitions against 
economic assistance that apply as of July 22, 2014.

Prohibited Countries: Low Income Category

    Bolivia is subject to foreign assistance restrictions pursuant to 
section 706(3) of the Foreign Relations Authorization Act, 2003 (Pub. 
L. 107-228), relating to international drug control certification 
procedures.
    Burma is subject to foreign assistance restrictions, including 
restrictions pursuant 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 governance.
    Cambodia is subject to foreign assistance restrictions pursuant to 
section 7043(c)(2) of the SFOAA, which prohibits assistance to the 
central government of Cambodia unless the Secretary of State makes 
certain certifications relating the government of Cambodia's 
investigation into recent parliamentary elections in Cambodia.
    Eritrea is subject to foreign assistance restrictions, including 
restrictions due to its status as a Tier III country under the 
Trafficking Victims Protection Act of 2000, as amended, 22U.S.C. 7101 
et seq.
    North Korea is subject to foreign assistance restrictions, 
including restrictions pursuant to section 7007 of the SFOAA, which 
prohibits direct assistance to the government of North Korea.
    Sudan is subject to foreign assistance restrictions, including 
restrictions pursuant to section 7042(j) of the SFOAA, which prohibits 
assistance to the government of Sudan.
    Syria is subject to foreign assistance restrictions, including 
restrictions pursuant to section 7007 of the SFOAA, which prohibits 
direct assistance to the government of Syria.
    Zimbabwe is subject to foreign assistance restrictions, including 
restrictions pursuant to section 7042(n) of the SFOAA, which prohibits 
assistance (except for health and education, and macroeconomic growth 
assistance) for the central government of Zimbabwe unless the Secretary 
of State determines that the government of Zimbabwe is implementing 
transparent fiscal policies, including public disclosure of revenues 
from the extraction of natural resources.
    Countries identified above as candidate countries, as well as 
countries that would be considered candidate

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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 2015.

[FR Doc. 2014-20045 Filed 8-20-14; 8:45 am]
BILLING CODE 9211-03-P