[Federal Register Volume 85, Number 179 (Tuesday, September 15, 2020)]
[Notices]
[Pages 57253-57255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20250]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 20-06]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2021 and Countries That Would Be 
Candidates But for Legal Prohibitions

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: 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 2021. The report is set forth in full below.

    Authority: Section 608(a) of the Millennium Challenge Act of 
2003, as amended, 22 U.S.C. 7701, 7707(a) (the Act).

    Dated: September 9, 2020.
Jeanne M. Hauch,
VP/General Counsel and Corporate Secretary.

Report on Countries That Are Candidates for Millennium Challenge 
Compact Eligibility for Fiscal Year 2021 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) 2021 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:

[[Page 57254]]

     The countries that are ``candidate countries'' for FY 2021 
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 2021, 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 2021

    The Act requires the identification of all countries that are 
candidate countries for FY 2021 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 2021 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 
($4,045 gross national income per capita for FY 2021);
 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 2021 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 
($4,045 gross national income per capita for FY 2021);
 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 2021, a country 
with per capita income changes from FY 2020 to FY 2021 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 2021 and two subsequent fiscal years (FY 
2022 and FY 2023). 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 2021. 
In so doing, the Board referred to the prohibitions on assistance to 
countries for FY 2020 under the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2020 (Div. J., 
Pub. L. 116-94) (FY 2020 SFOAA).

Candidate Countries: Low Income Category

1. Angola
2. Bangladesh
3. Benin
4. Bhutan
5. Bolivia
6. Burkina Faso
7. Cabo Verde
8. Cameroon
9. Central African Republic
10. Chad
11. C[ocirc]te d'Ivoire
12. Democratic Republic of the Congo
13. Djibouti
14. Egypt
15. Eswatini
16. Ethiopia
17. Gambia, The
18. Ghana
19. Guinea
20. Guinea-Bissau
21. Haiti
22. Honduras
23. India
24. Kenya
25. Kiribati
26. Kyrgyz Republic
27. Laos
28. Liberia
29. Madagascar
30. Malawi
31. Mali
32. Mauritania
33. Micronesia, Federated States of
34. Moldova
35. Mongolia
36. Morocco
37. Mozambique
38. Nepal
39. Niger
40. Nigeria
41. Pakistan
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

Candidate Countries: Lower Middle Income Category

1. El Salvador
2. Sri Lanka \1\
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    \1\ Section 7044(e) of the FY 2020 SFOAA provides that, subject 
to exceptions for certain categories of assistance, funds 
appropriated by the SFOAA for assistance for the central Government 
of Sri Lanka may be made available only if the Secretary of State 
makes certain certifications regarding actions taken by the 
Government of Sri Lanka and reports to the Committees on 
Appropriations. If this certification is not issued, Sri Lanka will 
not be a candidate country for FY 2021.
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3. Tunisia

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

    Countries that would be considered candidate countries for FY 2021 
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 19, 2020.

Prohibited Countries: Low Income Category

    [ssquf] Afghanistan 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] 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

[[Page 57255]]

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)(2)(A) of the FY 2020 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] 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] Lesotho 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 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] North Korea is ineligible to receive foreign assistance, 
including pursuant to section 7007 of the FY 2020 SFOAA, which 
prohibits direct assistance to the government of North Korea.
    [ssquf] Papua New Guinea 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] South Sudan is ineligible to receive foreign assistance, 
including pursuant to section 7042(h) of the FY 2020 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(i) of the FY 2020 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 2020 SFOAA, which 
prohibits direct assistance to the government of Syria.
    [ssquf] Zimbabwe is ineligible to receive foreign assistance, 
including pursuant to section 7042(j)(2) of the FY 2020 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.

Prohibited Countries: Lower Middle Income Category

    [ssquf] Algeria 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.).
    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 2021.
[FR Doc. 2020-20250 Filed 9-14-20; 8:45 am]
BILLING CODE 9211-03-P