[Federal Register Volume 83, Number 172 (Wednesday, September 5, 2018)]
[Notices]
[Pages 45143-45145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19196]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 18-11]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2019 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 2019. The report is set forth in 
full below.

    Dated: August 30, 2018.
Jeanne M. Hauch,
VP/General Counsel and Corporate Secretary.

Report on Countries That Are Candidates for Millennium Challenge 
Compact Eligibility for Fiscal Year 2019 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) 2019 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 to the 
congressional committees specified in the Act and publication in the 
Federal Register of reports on the following:
    [cir] The countries that are ``candidate countries'' for FY 2019 
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);
    [cir] 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
    [cir] The list of countries determined by the Board to be 
``eligible countries'' for FY 2019, 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 2019

    The Act requires the identification of all countries that are 
candidate countries for FY 2019 and the identification of all countries 
that would be candidate countries but for specified legal prohibitions 
on assistance. Under sections 606(a) and (b) of the Act, candidate 
countries must qualify as low income or lower middle income countries 
as defined in the Act.
    Specifically, a country will be a candidate country in the low 
income category for FY 2019 if it:
    [cir] Has a per capita income that is not greater than the World 
Bank's lower middle income country threshold for such fiscal year 
($3,895 gross national income per capita for FY 2019);

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    [cir] Is among the 75 countries identified by the World Bank as 
having the lowest per capita income; and
    [cir] Is not ineligible to receive United States 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.
    A country will be a candidate country in the lower middle income 
category for FY 2019 if it:
    [cir] Has a per capita income that is not greater than the World 
Bank's lower middle income country threshold for such fiscal year 
($3,895 gross national income per capita for FY 2019);
    [cir] Is not among the 75 countries identified by the World Bank as 
having the lowest per capita income; and
    [cir] Is not ineligible to receive United States economic 
assistance under part I of the Foreign Assistance Act by reason of the 
application of the Foreign Assistance Act or any other provision of 
law.
    Under section 606(c) of the Act as applied for FY 2019, a country 
with per capita income changes from FY 2018 to FY 2019 such that the 
country would be reclassified from the low income category to the lower 
middle income category or vice versa will retain its income status in 
its former category for FY 2019 and two subsequent fiscal years (FY 
2020 and FY 2021). A country that has transitioned to the upper middle 
income category does not qualify as a candidate country.
    Pursuant to section 606(d) of the Act, the Board identified the 
following countries as candidate countries under the Act for FY 2019. 
In so doing, the Board referred to the prohibitions on assistance to 
countries for FY 2018 under the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2018.

Candidate Countries: Low Income Category

Afghanistan
Angola
Bangladesh
Benin
Bhutan
Burkina Faso
Burundi
Cabo Verde
Cameroon
Central African Republic
Chad
Comoros
Congo, Democratic Republic of the
Congo, Republic of the
C[ocirc]te d'Ivoire
Djibouti
Egypt
Eswatini (formerly Swaziland)
Ethiopia
Gambia, The
Ghana
Guinea
Guinea-Bissau
Haiti
Honduras
India
Indonesia
Kenya
Kiribati
Kyrgyzstan
Laos
Lesotho
Liberia
Madagascar
Malawi
Mali
Mauritania
Micronesia, Federated States of
Moldova
Morocco
Mozambique
Nepal
Niger
Nigeria
Pakistan
Papua New Guinea
Philippines
Rwanda
S[atilde]o Tom[eacute] and Principe
Senegal
Sierra Leone
Solomon Islands
Somalia
Sri Lanka
Tajikistan
Tanzania
Timor-Leste
Togo
Uganda
Ukraine
Uzbekistan
Vanuatu
Vietnam
Yemen
Zambia

Candidate Countries: Lower Middle Income Category

El Salvador
Georgia
Kosovo
Mongolia
Tunisia

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

    Countries that would be considered candidate countries for FY 2019 
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 26, 2018.

Prohibited Countries: Low Income Category

    Bolivia is ineligible to receive foreign assistance pursuant to 
section 706(3) of the Foreign Relations Authorization Act, Fiscal Year 
2003 (P.L. 107-228), regarding adherence to obligations under 
international counternarcotics agreements and other counternarcotics 
measures.
    Burma is ineligible to receive U.S. economic assistance, absent 
special authority, because of concerns relative to its record on human 
rights.
    Cambodia is ineligible to receive foreign assistance pursuant to 
section 7043(b)(1) of the FY 2018 Appropriations Act, which restricts 
assistance to the Government of Cambodia unless the Secretary of State 
certifies that the Government of Cambodia is taking effective steps to 
strengthen regional security and stability and respect the rights and 
responsibilities enshrined in the Constitution of the Kingdom of 
Cambodia.
    Eritrea is ineligible to receive foreign assistance, including due 
to its status as a Tier III country under the Trafficking Victims 
Protection Act of 2000 (22 U.S.C. 7101 et seq.).
    The central Government of Nicaragua is ineligible to receive 
foreign assistance pursuant to section 7070(c) of the FY 2018 
Appropriations Act, which prohibits assistance for the central 
government of a country that the Secretary of State determines has 
recognized the independence of, or has established diplomatic relations 
with, the Russian occupied Georgian territories of Abkhazia and 
Tskhinvali Region/South Ossetia.
    North Korea is ineligible to receive foreign assistance, including 
pursuant to section 7007 of the FY 2018 Appropriations Act, which 
prohibits direct assistance to the government of North Korea.
    South Sudan is ineligible to receive foreign assistance, including 
pursuant to section 7042(h)(2) of the FY 2018 Appropriations Act, 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 effective steps to 
end hostilities and pursue good faith negotiations for a political 
settlement of the conflict; provide access for humanitarian 
organizations; end the recruitment and use of child soldiers; protect 
freedoms of expression, association, and assembly; reduce

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corruption related to the extraction and sale of oil and gas; establish 
democratic institutions; establish accountable military and police 
forces under civilian authority; and investigate and prosecute 
individuals credibly alleged to have committed gross violations of 
human rights, including at the Terrain compound in Juba, South Sudan on 
July 11, 2016.
    Sudan is ineligible to receive foreign assistance, including 
pursuant to section 7042(i) of the FY 2018 Appropriations Act, which 
prohibits (with limited exceptions) assistance to the government of 
Sudan.
    Syria is ineligible to receive foreign assistance, including 
pursuant to section 7007 of the FY 2018 Appropriations Act, which 
prohibits direct assistance to the government of Syria.
    Zimbabwe is ineligible to receive foreign assistance, including 
pursuant to section 7042(j)(2) of the FY 2018 Appropriations Act, 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 2019.

[FR Doc. 2018-19196 Filed 8-30-18; 4:15 pm]
 BILLING CODE 9211-03-P