[Federal Register Volume 89, Number 248 (Friday, December 27, 2024)]
[Notices]
[Pages 105635-105637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30925]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 24-12]
Report on the Selection of Eligible Countries for Fiscal Year
2025
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
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SUMMARY: This report is provided in accordance with the Millennium
Challenge Act of 2003, as amended. The report is set forth in full
below.
SUPPLEMENTARY INFORMATION: Report on the Selection of Eligible
Countries for Fiscal Year 2025.
Summary
This report is provided in accordance with section 608(d)(1) of the
Millennium Challenge Act of 2003, as amended (the Act) (22 U.S.C.
7707(d)(1)).
The Act authorizes the provision of assistance under section 605 of
the Act (22 U.S.C. 7704) to countries that enter into compacts with the
United States to support policies and programs that advance the
progress of such countries in achieving lasting poverty reduction
through economic growth and are in furtherance of the Act. The Act
requires the Millennium Challenge Corporation (MCC) to determine the
countries that will be eligible to receive assistance for the fiscal
year, based on their demonstrated commitment to just and democratic
governance, economic freedom, and investing in their people,
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as well as on the opportunity to reduce poverty through economic growth
in the country. The Act also requires the submission of reports to
appropriate congressional committees and the publication of notices in
the Federal Register that identify, among other things:
1. The countries that are ``candidate countries'' for assistance
for fiscal year (FY) 2025 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 (22 U.S.C. 7707(a)));
2. The criteria and methodology that the Board of Directors of MCC
(the Board) used to measure and evaluate the policy performance of the
``candidate countries'' consistent with the requirements of section 607
of the Act in order to determine ``eligible countries'' from among the
``candidate countries'' (section 608(b) of the Act (22 U.S.C.
7707(b))); and
3. The list of countries determined by the Board to be ``eligible
countries'' for FY 2025, with justification for eligibility
determination and selection for compact negotiation, including with
which of the eligible countries the Board will seek to enter into
compacts (section 608(d) of the Act (22 U.S.C. 7707(d))).
This is the third of the above-described reports by MCC for FY
2025. It identifies countries determined by the Board to be eligible
under section 607 of the Act (22 U.S.C. 7706) for FY 2025 with which
MCC seeks to enter into compacts under section 609 of the Act (22
U.S.C. 7708), as well as the justification for such decisions. The
report also identifies countries selected by the Board to receive
assistance under MCC's threshold program pursuant to section 616 of the
Act (22 U.S.C. 7715).
Following the passage of the MCC Candidate Country Reform Act, as
part of the National Defense Authorization Act on December 18, 2024,
MCC's Board of Directors is considering additional countries for MCC
assistance for FY 2025. Should the Board select another eligible
country, MCC will submit a report notifying Congress of such
selection(s).
Eligible Countries
The Board met on December 18, 2024, to select those eligible
countries with which the United States, through MCC, will seek to enter
into a Millennium Challenge Compact pursuant to section 607 of the Act
(22 U.S.C. 7706). The Board selected the following eligible country for
such assistance for FY 2025: Liberia. Liberia is invited by MCC to
develop a compact. The Board also selected the following previously
selected countries for compact assistance for FY 2025: Cabo Verde,
Senegal, and The Gambia. The Board did not vote on the selection of
Togo, a country previously selected for compact assistance.
Criteria
In accordance with the Act and with the ``Selection Criteria and
Methodology Report for Fiscal Year 2025'' formally submitted to
Congress on September 20, 2024, selection was based primarily on a
country's overall performance in three broad policy categories: Ruling
Justly, Encouraging Economic Freedom, and Investing in People. The
Board relied, to the fullest extent possible, upon transparent and
independent indicators to assess countries' policy performance and
demonstrated commitment in these three broad policy areas. The Board
compared countries' performance on the indicators relative to their
income-level peers, evaluating them in comparison to either the group
of countries with a GNI per capita equal to or less than $2,165, or the
group with a GNI per capita between $2,166 and $4,515.
The criteria and methodology used to assess countries, including
the methodology for the annual scorecards, are outlined in the
``Selection Criteria and Methodology Report for Fiscal Year 2025 \1\.''
Scorecards reflecting each country's performance on the indicators are
available on MCC's website at https://www.mcc.gov/who-we-select/scorecards.
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\1\ Available at https://www.mcc.gov/resources/doc/report-selection-criteria-methodology-fy25.
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The Board also considered whether any adjustments should be made
for data gaps, data lags, or recent events since the indicators were
published, as well as strengths or weaknesses in particular indicators.
Where appropriate, the Board considered additional quantitative and
qualitative information, such as evidence of a country's commitment to
fighting corruption, investments in human development outcomes, or
poverty rates. MCC has a Guide to Supplemental Information \2\
available on its website to increase transparency about the type of
supplemental information the Board uses to assess a country's policy
performance. In keeping with statutory requirements, the Board also
considered the opportunity to reduce poverty and promote economic
growth in a country, as well as the availability of appropriated funds.
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\2\ Available at https://www.mcc.gov/resources/doc/guide-to-supplemental-information.
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The Board sees the selection decision as an annual opportunity to
determine where MCC funds can be most effectively used to support
poverty reduction through economic growth in well-governed countries
with demonstrated development need. The Board carefully considers the
appropriate nature of each country partnership--on a case-by-case
basis--based on factors related to poverty reduction through economic
growth, the sustainability of MCC's investments, and the country's
ability to attract and leverage public and private resources in support
of development.
This was the seventh year the Board considered the eligibility of
countries for concurrent compacts, as permitted under section 609(k) of
the Act. In addition to the considerations for compact eligibility
detailed above, the Board considered whether a country being considered
for a concurrent compact is making considerable and demonstrable
progress in implementing the terms of its existing compact.
This was the sixteenth year the Board considered the eligibility of
countries for subsequent compacts, as permitted under section 609(l) of
the Act. MCC's engagement with partner countries is not open-ended, and
the Board is deliberate when selecting countries for follow-on
partnerships, particularly regarding the higher bar applicable to
subsequent compact countries. The Board considered--in addition to the
criteria outlined above--a country's performance implementing its prior
compact, including the nature of the country's partnership with MCC,
the degree to which the country has demonstrated a commitment and
capacity to achieve program results, and the degree to which the
country implemented the compact in accordance with MCC's core policies
and standards. To the greatest extent possible, these factors are
assessed using pre-existing monitoring and evaluation targets and
regular quarterly reporting. This information is supplemented with
direct surveys and consultation with MCC staff responsible for compact
implementation, monitoring, and evaluation. MCC has a Guide to the
Program Surveys \3\ available on its website regarding the information
collected and assessed for any country with an existing or prior
compact or threshold program to ensure transparency about the type of
information the Board considers
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regarding a country's performance on MCC programs, as relevant. The
Board also considered a country's commitment to further sector reform,
as well as evidence of improved scorecard policy performance.
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\3\ Available at https://www.mcc.gov/resources/doc/guide-to-the-program-surveys/.
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Countries Newly Selected for Compact Assistance
Using the criteria described above, one candidate country under
section 606(a) of the Act (22 U.S.C. 7705(a) was newly selected as
eligible for assistance under section 607 of the Act (22 U.S.C. 7706):
Liberia. Liberia is invited by MCC to develop a compact.
Liberia: A prior compact partner, Liberia passes the scorecard for
the third consecutive year in FY 2025. One of the world's poorest
countries, Liberia is a politically stable democracy that has seen two
decades of peace since the second civil war ended in 2003. General
elections held in late 2023 were free, fair, competitive, and peaceful,
and the new government has committed to prioritize reforms to boost the
economy, advance national reconciliation efforts, and strengthen the
fight against corruption. MCC's Board selected Liberia as eligible to
develop a subsequent compact in recognition of the progress the country
has made to strengthen its scorecard performance and pursue economic
and democratic governance reforms. The selection provides MCC the
opportunity to develop a program that could significantly impact the
lives of the Liberian people through a committed and engaged former MCC
partner.
Countries Selected To Continue Compact Development
Three of the countries selected as eligible for compact assistance
for FY 2025 were previously selected for FY 2024. Cabo Verde
(regional), Senegal (regional), and The Gambia were selected to
continue developing compacts. Selection of these countries for FY 2025
was based on an assessment of their policy performance since their
prior selection and their progress in developing programs with MCC. The
Board deferred a vote on the selection of Togo to continue developing a
compact to provide the Government of Togo additional time to strengthen
the protection of democratic rights and fundamental freedoms as it
implements its new constitution and transitions to a new system of
government next year. In making its decision to defer a vote, the Board
discussed the importance of the Government of Togo taking meaningful
action to address MCC's concerns regarding the country's constitutional
change process and restrictions on fundamental freedoms. The Board may
revisit its decision over the course of 2025 as more information
becomes available.
Country Selected To Receive Threshold Program Assistance
The Board did not newly select any countries to receive threshold
program assistance for FY 2025.
Countries Selected To Continue Developing Threshold Programs
The Board selected Philippines and Tanzania to continue developing
threshold programs.
Selection of Philippines for FY 2025 was based on its commitment to
strengthening its policy performance, protections for human rights and
fundamental freedoms, and anti-corruption efforts since its prior
selection and its progress developing its threshold program.
Selection of Tanzania for FY 2025 recognized the progress that has
been made in developing a threshold program. However, in making the
selection the Board expressed concern that the November 27 local
elections were a missed opportunity to open political space and advance
democratic reforms. The Board also noted with concern reports of
disappearances, political violence, and restrictions on peaceful
assembly and press freedoms and urges the Government of Tanzania to
protect democratic freedoms as the country prepares for national
elections in 2025.
Ongoing Review of Partner Countries' Policy Performance
The Board emphasized the need for all partner countries to maintain
or improve their policy performance. If it is determined during program
implementation that a country has demonstrated a significant policy
reversal, MCC can hold it accountable by applying MCC's Suspension and
Termination Policy.\4\
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\4\ Available at https://www.mcc.gov/who-we-select/suspension-or-termination.
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(Authority: 22 U.S.C. 7707(d)(2))
Dated: December 19, 2024.
Peter E. Jaffe,
Vice President, General Counsel, and Corporate Secretary.
[FR Doc. 2024-30925 Filed 12-20-24; 11:15 am]
BILLING CODE 9211-03-P