[Federal Register Volume 84, Number 188 (Friday, September 27, 2019)]
[Notices]
[Pages 51180-51182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20977]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 19-06]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2020 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 2020. The report is set forth in 
full below.

    Dated: September 23, 2019.
Brian Finkelstein,
Acting General Counsel.

Report on Countries that are Candidates for Millennium Challenge 
Compact Eligibility for Fiscal Year 2020 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

[[Page 51181]]

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) 2020 
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:

 The countries that are ``candidate countries'' for FY 2020 
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 2020, 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 2020

    The Act requires the identification of all countries that are 
candidate countries for FY 2020 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 2020 if it

 has a per capita income that is not greater than the World 
Bank's lower middle income country threshold for such fiscal year 
($3,995 gross national income per capita for FY 2020);
 is among the 75 countries identified by the World Bank as 
having the lowest per capita income; and
 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 2020 if it

 has a per capita income that is not greater than the World 
Bank's lower middle income country threshold for such fiscal year 
($3,995 gross national income per capita for FY 2020);
 is not among the 75 countries identified by the World Bank as 
having the lowest per capita income; and
 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 2020, a country 
with per capita income changes from FY 2019 to FY 2020 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 2020 and two subsequent fiscal years (FY 
2021 and FY 2022). 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 2020. 
In so doing, the Board referred to the prohibitions on assistance to 
countries for FY 2019 under the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2019 (FY 2019 
SFOAA).

Candidate Countries: Low Income Category

1. Afghanistan
2. Angola
3. Bangladesh
4. Benin
5. Bhutan *
6. Burkina Faso
7. Cabo Verde
8. Cameroon
9. Central African Republic
10. Chad
11. C[ocirc]te d'Ivoire
12. Djibouti
13. Egypt
14. Eswatini
15. Ethiopia
16. Gambia, The *
17. Ghana
18. Guinea
19. Guinea-Bissau
20. Haiti
21. Honduras
22. India
23. Indonesia
24. Kenya
25. Kiribati
26. Kyrgyzstan
27. Laos
28. Lesotho
29. Liberia
30. Madagascar
31. Malawi
32. Mali
33. Micronesia, Federated States of
34. Moldova
35. Morocco
36. Mozambique
37. Nepal
38. Niger
39. Nigeria
40. Pakistan
41. Papua New Guinea *
42. Philippines
43. Republic of the Congo
44. Rwanda
45. S[atilde]o Tom[eacute] and Principe
46. Senegal
47. Sierra Leone
48. Solomon Islands
49. Somalia
50. Tajikistan
51. Tanzania
52. Timor-Leste
53. Togo
54. Uganda
55. Ukraine
56. Uzbekistan
57. Vanuatu
58. Vietnam
59. Yemen
60. Zambia
     
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    * Bhutan, The Gambia, and Papua New Guinea were included on the 
list of Tier 3 countries in the 2019 Trafficking in Persons Report. 
If the President determines to withhold non-humanitarian nontrade-
related assistance to such countries under section 110 of the 
Trafficking Victims Protection Act of 2000, each would no longer be 
a candidate country for FY 2020.
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Candidate Countries: Lower Middle Income Category

1. Mongolia
2. El Salvador
3. Tunisia

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

    Countries that would be considered candidate countries for FY 2020 
but are

[[Page 51182]]

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 19, 2019.

Prohibited Countries: Low Income Category

[ssquf] Bolivia is ineligible to receive foreign assistance 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.
[ssquf] Burma is ineligible to receive foreign assistance, including 
due to concerns relative to its record on human rights.
[ssquf] Burundi is ineligible to receive foreign assistance due to its 
status as a Tier 3 country under the Trafficking Victims Protection Act 
of 2000 (22 U.S.C. 7101 et seq.).
[ssquf] Cambodia is ineligible to receive foreign assistance pursuant 
to section 7043(b)(1)(A) of the FY 2019 SFOAA, 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.
[ssquf] Comoros is ineligible to receive foreign assistance due to its 
status as a Tier 3 country under the Trafficking Victims Protection Act 
of 2000 (22 U.S.C. 7101 et seq.).
[ssquf] Democratic Republic of Congo is ineligible to receive foreign 
assistance due to its status as a Tier 3 country under the Trafficking 
Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).
[ssquf] Eritrea is ineligible to receive foreign assistance, including 
due to its status as a Tier 3 country under the Trafficking Victims 
Protection Act of 2000 (22 U.S.C. 7101 et seq.).
[ssquf] Mauritania is ineligible to receive foreign assistance due to 
its status as a Tier 3 country under the Trafficking Victims Protection 
Act of 2000 (22 U.S.C. 7101 et seq.).
[ssquf] Nicaragua is ineligible to receive foreign assistance pursuant 
to section 7047(c) of the FY 2019 SFOAA, 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.
[ssquf] North Korea is ineligible to receive foreign assistance, 
including pursuant to section 7007 of the FY 2019 SFOAA, which 
prohibits direct assistance to the government of North Korea.
[ssquf] South Sudan is ineligible to receive foreign assistance, 
including pursuant to section 7042(f) of the FY 2019 SFOAA, which 
prohibits (with limited exceptions) assistance to the central 
government of South Sudan.
[ssquf] Sudan is ineligible to receive foreign assistance, including 
pursuant to section 7042(g) of the FY 2019 SFOAA, which prohibits (with 
limited exceptions) assistance to the government of Sudan.
[ssquf] Syria is ineligible to receive foreign assistance, including 
pursuant to section 7007 of the FY 2019 SFOAA, which prohibits direct 
assistance to the government of Syria.
[ssquf] Zimbabwe is ineligible to receive foreign assistance, including 
pursuant to section 7042(h)(2) of the FY 2019 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 2020.

[FR Doc. 2019-20977 Filed 9-24-19; 11:15 am]
BILLING CODE 9211-03-P