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November 16, 2005
Management Changes at the MCC
Posted by Sheila Herrling at 02:37 PM
Today, the MCC announced its new management team and what it is calling a streamlined structure. Some changes make a lot of sense, like merging the threshhold program with the selection criteria and development policy folks under the same department. And the new Department of Accountability(strategically, a great name!) houses the cross cutting issue experts who, by nature of being in a separate department, will hopefully be a hurdle for the country operations teams in terms of demonstrating the poverty reduction and social impact of Compacts as well as improvements in country public expenditure management systems leveraged with MCC assistance.
The sectoral experts are now merged into country programs. It is less clear to me how this enhances the effectiveness of MCC operations unless the MCC is planning on hiring more sectoral experts to be integrally involved in Compact preparation and performance indicator setting. And the absence of a social sector unit alongside the infrastructure, agriculture, and financial and private sector units only adds fuel to rhw fire on allegations that the MCC is discouraging eligible countries from submitting proposals for social sector projects that have low rates of economic return.
In my own view, this is a fine operating structure on paper. But what really matter is the decisionmaking process and the right staff skills mix within the organization. What happens when the accountability and development policy departments' recommendations differ from those of country operations? Are there enough experienced development professionals who can apply lessons learned to both help countries shape programs that will measurably reduce poverty and to help the MCC to not repeat the errors of the past?
I would love to hear other reactions to this announcement! Best, Sheila
Comments
Hi, Sheila --
Nice job of teeing up the sector-vs-country- expert debate. This is a competition that has plagued the State Department, USAID, and other bureaucracies for decades, with the geographic specialists usually coming out on top because that's where most of the best talent typically congregated. The outcome in MCC will depend in large part on who gets the ear of top management most often and, consequently, who gets promoted. You are right, therefore, that the decision-making process will be key.
As to social sector projects, I do not believe MCC can be all things to all countries. Why not have a division of labor: let MCC focus on the growth sectors that seem to be its preferred milieu, and leave the social sector projects to traditional aid agencies that have more experience in those areas? -- Ed
Posted by: Ed Barber at November 29, 2005 09:56 PM

