The Compacts between the MCC and partner countries will establish multiyear programs that involve significant up-front commitments by countries, which will commit to continued policies and actions that promote growth, and by the MCC, which will commit to deliver a significant level of financial assistance. These commitments by the MCC and partner countries will permit the countries to achieve measurable objectives that lead to economic growth and poverty reduction.
MCC allocation and funding decisions will be driven by the quality of each country’s proposal rather than by the number of eligible countries that submit proposals. MCC may not finalize Compacts with all eligible countries if the programs proposed do not meet MCC standards. But where we can successfully negotiate a Compact, it is important that the MCC be able to provide substantial funding. Being among the largest providers of assistance in a country will allow the MCC to be an effective incentive, to command the attention needed for breakthrough country proposals, and to galvanize the political will essential to success.
In order to underscore this commitment, the MCC plans to fully fund multiyear Compacts at a magnitude that would make it either the largest or second largest donor on average in country. In an analysis earlier this year, the GAO [General Accounting Office] estimated that, with a funding level of $3.5 billion, the MCC could fully fund three-year Compacts in 8 to 13 countries.