Rethinking U.S. Foreign Assistance Blog

 

MCC Reinstates Niger’s Threshold Program; Two Board Seats Still Vacant

July 3, 2011


The big news out of last week’s Millennium Challenge Corporation (MCC) Board of Directors meeting: MCC reinstates Niger’s threshold program.  In addition, the review of MCC’s selection process is underway, but there is still no news on filling the two vacant public board seats.

Niger’s Threshold Program Reinstated:

The reinstatement of a previously suspended MCC program is a first for the agency. As previewed before the meeting, Niger’s $23 million threshold program was suspended in December 2009 following former President Mamadou Tandja’s unconstitutional bid to remain in office beyond his second term. Tandja was subsequently ousted, and democratically-elected Mahamadou Issoufou has been leading Niger for four months.

The reinstated program completes the arc of a nice MCC story whereby the agency selected a country for relatively good policy performance, suspended aid following a stark decline in policy and practice, and has now restored a program based on demonstrated (not just promised) policy and governance improvements.

According to the MCC, Niger’s reinstated threshold program will take into account important feedback and lessons learned from the MCC’s first threshold programs. Consequently, the reinstated program will not just pick up where the old agreement left off; rather it will likely be redesigned, in part to incorporate MCC’s new approach to threshold programs. Any redesign, however, would have to go back to the board for approval. I’m curious to learn more about USAID’s role in the new program and whether a new, longer clock will start ticking if and when a redesign is approved.

Selection Review:

MCC staff also highlighted the upcoming review of how the agency uses the seventeen third-party policy indicators to select countries eligible for MCC assistance. We cover most of the details, and give a sneak peak of our own review in process, here.

Two Board Members Still MIA:

Finally (and disappointingly), there was no word on progress to fill the two remaining public board seats.

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3 Responses to “MCC Reinstates Niger’s Threshold Program; Two Board Seats Still Vacant”

  1. It is a good story, with a nice arc. Generally, we would like to think that the US government would be the first and strongest to lend a hand to a fragile state trying to keep on the path of democracy.

    I’m wondering about the roughly 6-month lag between the successful election transitioning back to democratic rule, and MCC board meeting which reinstated the program. Any hope that the response could have been faster?

  2. Good question Matt. The MCC Board meets quarterly so the June meeting that reinstated Niger’s threshold program was the first since Issoufou took office in April.

  3. Sarah Jane Staats :

    Matt: Also important to note that the MCC is (and should) focus on proven policy performance, not just promises, so the time lag actually allows them to see a little more of what is, or isn’t, occurring.

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