2004 Press Releases

U.S. Millennium Challenge Corporation Names Countries Eligible to Receive Funds

May 11, 2004

Freetown
Contact: PAO Kevin Green
Tel: 226481

On May 6, the Board of Directors of the United States’ Millennium Challenge Corporation (MCC), a $1 billion USD funding source, met and selected 16 countries eligible to apply for Millennium Challenge Account (MCA) assistance in fiscal year 2004.  MCC is a newly created U.S. Government corporation designed to provide direct budget support to the governments of some of the poorest countries in the world.  MCA is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote economic growth.

Among the sixteen selected countries are five from West Africa: Benin, Cape Verde, Ghana, Mali and Senegal, with the other countries being Armenia, Bolivia, Georgia, Honduras, Lesotho, Madagascar, Mongolia, Mozambique, Nicaragua, Sri Lanka and Vanuatu.

In making its determinations, the Board considered both the past and current policy performance of the candidate countries in the areas of governing justly, investing in their own people and promoting economic freedom.  The degree to which a country seriously fights corruption is a critical element to qualify for MCA funds.  
   
The Board also approved a “Threshold Country” program, which will be directed toward a limited number of candidate countries that have not met the requirements for MCA eligibility but demonstrate a significant commitment to meeting the requirements for eligibility.  The Threshold Country program will provide an added incentive to countries that are committed to reform, and will be used to assist such countries in making further progress towards becoming eligible for MCA assistance in future years. 

In his remarks during the board meeting, Secretary of State Colin Powell said, “This is a historic day for the Millennium Challenge Corporation. The President’s vision has come to pass, and today’s decision by the board of Directors is a major step in implementing the vision of the MCC.”

The United States is committed to the MCA as an innovative approach to delivering foreign aid. Congress has appropriated $1 billion for the MCA for this fiscal year, and President Bush has requested $2.5 billion for next fiscal year. Further information on MCA is available on the internet website www.mca.gov.