[Federal Register Volume 80, Number 164 (Tuesday, August 25, 2015)]
[Notices]
[Pages 51609-51611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20878]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 15-01]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2016 and Countries That Would Be 
Candidates But For Legal Prohibitions

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: Section 608(a) 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 2016. The report is set forth in 
full below.

    Dated: August 18, 2015.
Maame Ewusi-Mensah Frimpong,
VP/General Counsel and Corporate Secretary, Millennium Challenge 
Corporation.

Report on Countries That Are Candidates for Millennium Challenge 
Compact Eligibility for Fiscal Year 2016 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 assistance for global 
development through the Millennium Challenge Corporation (MCC) 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 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 countries for 
fiscal year (FY) 2016 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) 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 FY 2016 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 2016, identification of such countries with which 
the Board will seek to enter into compacts, and a justification for 
such eligibility

[[Page 51610]]

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 2016

    The Act requires the identification of all countries that are 
candidate countries for FY 2016 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 candidate 
countries.\1\ However for FY 2015, those categories are defined by 
MCC's FY 2015 appropriations act, the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2015, Pub L. 113-
235, Div. J (the FY 2015 SFOAA). Specifically, the FY 2015 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 2016, 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 country for purposes of eligibility 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 2016 
appropriations act, MCC will revisit the selection process once the 
FY 2016 appropriations act is enacted and will conduct the selection 
process in accordance with the Act and applicable provisions for FY 
2016.
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    Under the redefined categories, a country will be a candidate 
country for FY 2016 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 
gross national income per capita for FY 2016); 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 ($4,125 
gross national income per capita for FY 2016); 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 2016 will 
go into effect for FY 2019. 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. There is a similar situation for FY 2016 with 
Mongolia, which has now graduated to upper middle income status as 
well, after having been a low income candidate country as recently 
as FY 2015. The removal of Iraq and Mongolia from the low income and 
lower middle income categories means that there are only 73 low 
income countries for FY 2016 (eight of which are legally 
prohibited).
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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 2016. 
In so doing, the Board referred to the prohibitions on assistance to 
countries for FY 2015 under the FY 2015 SFOAA.

Candidate Countries: Low Income Category

Afghanistan
Bangladesh
Benin
Bhutan
Burkina Faso
Burundi
Cambodia
Cameroon
Central African Republic
Chad
Comoros
Congo, Democratic Republic of
Congo, Republic of the
Cote d'Ivoire
Djibouti
Egypt
Ethiopia
Gambia
Georgia
Ghana
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Honduras
India
Indonesia
Kenya
Kiribati
Kyrgyz Republic
Lao PDR
Lesotho
Liberia
Madagascar
Malawi
Mali
Mauritania
Micronesia
Moldova
Mozambique
Nepal
Nicaragua
Niger
Nigeria
Pakistan
Papua New Guinea
Philippines
Rwanda
Sao Tome and Principe
Senegal
Sierra Leone
Solomon Islands
Somalia
Sri Lanka
Tajikistan
Tanzania
Timor Leste
Togo
Uganda
Uzbekistan
Vanuatu
Vietnam
Yemen
Zambia

Candidate Countries: Lower Middle Income Category

Armenia
Cabo Verde
El Salvador
Kosovo
Morocco
Samoa
Swaziland
Ukraine

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

    Countries that would be considered candidate countries for FY 2016, 
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

[[Page 51611]]

provision of law are listed below. This list is based on legal 
prohibitions against economic assistance that apply as of July 21, 
2015.

Prohibited Countries: Low Income Category

    Bolivia is subject to foreign assistance restrictions pursuant to 
section 706(3) of the Foreign Relations Authorization Act, Fiscal Year 
2003 (Pub. L. 107-228), regarding adherence to obligations under 
international counternarcotics agreements and other counternarcotics 
measures.
    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.
    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 (22 U.S.C. 7101 et seq.).
    North Korea is subject to foreign assistance restrictions, 
including restrictions pursuant to section 7007 of the FY 2015 SFOAA, 
which prohibits direct assistance to the government of North Korea.
    South Sudan is subject to foreign assistance restrictions pursuant 
to section 7042(j)(2) of the FY 2015 SFOAA, which prohibits, with 
limited exceptions, assistance to the central government of South Sudan 
until the Secretary of State certifies and reports to Congress that 
such government is taking steps to provide access for humanitarian 
organizations; end the use of child soldiers; support a cessation of 
hostilities agreement; protect freedoms of expression, association, and 
assembly; reduce corruption related to the extraction and sale of oil 
and gas; and establish democratic institutions, including accountable 
military and police forces under civilian authority.
    Sudan is subject to foreign assistance restrictions, including 
restrictions pursuant to section 7042(k) of the FY 2015 SFOAA, which 
prohibits (with limited exceptions) assistance to the government of 
Sudan.
    Syria is subject to foreign assistance restrictions, including 
restrictions pursuant to section 7007 of the FY 2015 SFOAA, which 
prohibits direct assistance to the government of Syria.
    Zimbabwe is subject to foreign assistance restrictions, including 
restrictions pursuant to section 7042(m)(2) of the FY 2015 SFOAA, which 
prohibits (with limited exceptions) assistance for the central 
government of Zimbabwe unless the Secretary of State certifies and 
reports to Congress that the rule of law has been restored, including 
respect for ownership and title to property, and freedoms of 
expression, association, and assembly.
    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 2016.
[FR Doc. 2015-20878 Filed 8-19-15; 4:15 pm]
 BILLING CODE 9211-03-P