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Contributions from
the Column
Monitor
Tsunami relief: Too much of a good thing
Merits and limts of contract farming
EU sugar regime: Double-edged pledge
Afghanistan’s drug cultivation at a record high
US government agency assesses Millenium Challenge Account
More votes for emerging nations at IMF
Oil: World Bank and Chad reach agreement
Slow progress in fight against desertification
Private sector: Making money in peace
10/2006
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US government agency assesses Millennium Challenge Account
The Millennium Challenge Account (MCA), the US aid programme for countries that practise good governance, is generally heading in the right direction, but, according to the US Government Accountability Office (GAO), it is showing weaknesses in assessing economies of candidate countries and evaluating projects. The GAO carried out a review for the US Congress. In order to apply for MCA funds, countries must submit a project plan to the Millennium Challenge Corporation (MCC). The MCC checks whether the proposed projects serve the cause of fighting poverty, and proposes improvements. The reviewers say that sometimes such assessments were based on data and assumptions that did not sufficiently reflect the socio-economic reality of the countries concerned. Accordingly, they doubt the projects will actually achieve the aspired goals. Two of the four countries that have received MCA assistance to date – Cape Verde and Madagascar – were not even consulted by the MCC. Therefore, they could not understand the results of the MCC assessment. The GAO is also critical of the MCC not yet having in place a system to evaluate approved projects.
Apart from the African countries of Cape Verde and Madagascar, Honduras in Central America and Georgia in Eastern Europe have received MCA funds. In the meantime, five other countries have qualified for disbursements: Armenia, Benin, Ghana, Nicaragua and Vanuatu. According to the GAO, Congress has approved $ 4.2 billion since the MCA was founded in 2004, of which the MCC has pledged $ 1.5 billion to eligible countries and disbursed $ 22.4 million. (ell)
Link:
The GAO review: http://www.gao.gov/new.items/d06805.pdf
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