The Proposed Millennium Challenge Account Selection Process: A Comment from the Open Society Institute
The Millennium Challenge Account (MCA) initiative is an important proposal that has the potential to (i) ensure that development assistance is directed to those who will use it more effectively, and (ii) create a "race to the top" by giving countries an incentive to improve their economic management and governance.

March 1, 2004

The Millennium Challenge Account (MCA) initiative is an important proposal that has the potential to (i) ensure that development assistance is directed to those who will use it more effectively, and (ii) create a “race to the top” by giving countries an incentive to improve their economic management and governance. However, as currently proposed, the MCA initiative pays inadequate attention to issues of democracy. Promotion of democracy has been a long-standing goal of U.S. foreign policy, and democracy is also both a means and end of economic development.

See The Proposed Millennium Challenge Account Selection Process: A Comment from the Open Society Institute, March 2004

This white paper modestly reconfigures the Administration’s proposed rules for MCA funding eligibility to elevate the significance of country democratic behavior. This reconfiguration eliminates undemocratic countries such as China and Vietnam, and it also expands the MCA’s population coverage ratio. In addition, the paper makes some suggestions for organizing the Millennium Challenge Corporation that emphasize transparency and local participation.

See The Millennium Challenge Accounts: Elevating the Significance of Democracy as a Qualifying Criterion, January 2003

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