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January 31, 2008
MCC approves $23 million Threshold Program with Niger
Posted by Amy Crone at 09:05 AM
MCC has announced a three-year, $23 million program to focus on corruption and strengthen demand for girls’ education in Niger. It is the 19th approved Threshold Program for the MCC and brings the total committed funding to approximately $419 million. This is also the first Threshold Program to exceed by design the 24 month approximate scope for action to reach Compact eligibility.
Of the four indicators targeted, Niger has consistently failed both Control of Corruption and Girls’ Primary Education Completion Rate -- making the program’s focus on these two areas fitting. The focus of a Threshold Program on the other two core components -- Land Rights and Access and Business Start Up is less clear though as Niger passes the former and already passes the category (economic freedom) which contains both of these indicators.
Niger’s main obstacle to full Compact eligibility is now the Investing in People category, in which, during the year that the Threshold program was negotiated, 2 of the 5 indicators plummeted below the median. As the program is currently constructed it is not likely to help Niger surmount the 3 of 5 indicators needed to pass this category. While there may be compelling reasons to focus on the new Land Rights and Access and Business Start-Up indicators, these aren’t the ones standing in the way of Niger becoming eligible for a Compact. This raises questions of the stated purpose of the Threshold Program overall – an issue we have raised most recently in our Country Selection Round paper; stay tuned for forthcoming Threshold Program analysis from the MCA Monitor team. And in the meantime, press releases from the MCC better explaining why the target areas are selected and how they fulfill the goals of the Threshold Program would be welcome and greatly appreciated.
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Comments
We’re glad you asked about this one. The Niger Threshold program is a good example of what makes the Threshold program both rewarding and challenging.
In FY07, when Niger was designing its Threshold program, the country was below the median on the Land Rights and Access and the Cost of Starting a Business indicators, but passed both Health Expenditures and Immunization Rates. MCC staff traveled to Niamey in December 2006 and March 2007 to share as much information about Niger’s indicator performance as we could.
Over the next several months, the Government of Niger proposed a Threshold program that included anti-corruption efforts, support for girls primary education, and a few immediate policy steps that would cut the cost of registering a business and a piece of property. They made those policy changes and asked MCC to fund programmatic work which would help them keep the reforms in place. As a result Niger now passes the Land Rights and Access indicator -- and the Economic Freedom category. The Threshold program will support the longevity of those reforms. This is the rewarding part – the Government of Niger not only submitted an excellent proposal, but took actions that demonstrated it was truly committed to reform.
The Niger program also demonstrates something challenging about development work – changing information. This year the WHO revised Niger’s (historic) immunization rates downward, causing their score to drop from the 64th percentile to the 4th percentile. Frankly, this took both MCC and the Government of Niger by surprise. To their credit, the Government of Niger had already initiated efforts to increase health expenditure and improve health outcomes, and those are continuing.
In the context of this demonstrated commitment to reform and the ongoing health efforts, MCC believes that the Niger Threshold program is a solid investment in Niger’s future ability to become Compact eligible. You can find more information at www.mcc.gov.
Posted by: Alicia Phillips Mandaville at February 6, 2008 05:26 PM
Dear Colleagues
I do not have a deep knowledge of MCC's programs ... rather I think of MCC as an ancient cricket club in the UK. But seriously ...
I have done a significant amount of national level development planning, and have been appalled by the prioritization of development funding by the donor community ... not just this year, but for the past thirty years!
What are the areas for priority financing assistance in Niger? What are the constraints that are making it difficult for Niger to progress? The several indicators that are referred to do not resonate as the deep reason for the socio-economic situation in Niger ... I know something of the country, and these don't strike me as the most critical issues by a mile.
Sincerely
Peter Burgess
Posted by: Peter Burgess at May 13, 2008 03:19 PM