Steve Radelet

 
Steve Radelet

Steven Radelet, former Senior Fellow.

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IFC updates data for Land Rights and Access indicator

September 15, 2006

By in Rethinking U.S. Foreign Assistance

This week the IFC released data from its new 2007 “Doing Business” survey. The update includes new data on the cost and time to register property, both of which are components of the new “Land Rights and Access” indicator that the MCC will use this year as supplemental information in making its selections for MCC eligibility. We provided an analysis of the new indicators earlier this week.

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FY06 Threshold Countries – Some Disturbing Choices

November 15, 2005

By in Rethinking U.S. Foreign Assistance

The MCC Board’s selection last week of 23 counties eligible to apply for funding for FY 2006 held relatively few surprises, and was very close to what we had anticipated. Although it is unfortunate that the MCC decided to add the lower-middle income countries this year, the Board limited the number of selected countries to two – El Salvador and Namibia.
The choice of 13 threshold countries has received much less attention. In fact, it is still very unclear what criteria the Board is using to choose threshold countries. While many of the countries seem to be reasonable picks, two choices are very difficult to comprehend and raise deep questions about the selection process: Jordan and the Kyrgyz Republic.
Although Jordan passes the indicators tests for the lower-middle income countries, it is not a democracy, and the Board passed over every other non-democracy that passed the tests (except Morocco). One could say, “thank goodness it wasn’t chosen as a compact country,” but putting it in the threshold program sets the stage for that progression, a decision that could seriously undermine the MCC. More to the point are the questions of the opportunity cost and the development impact of scarce MCC resources. Jordan already receives substantial USG financial support from the State Department and USAID. Jordan received assistance from the US totaling over $1.3 billion dollars in 2003 and 2004 alone, more than any country in the world other than Iraq and Afghanistan. With the MCC budget smaller than expected, the prospect of providing even more funding to Jordan at the expense of other countries makes little sense. Will a threshold program truly support development policy reforms in Jordan and even more critical, would the MCC be able to hold Jordan to the same performance standards to which it holds other MCC countries given its special status as a key ally in the war on terrorism? Don’t get me wrong – I fully support the US providing strong financial assistance to Jordan, a key ally. But these funds should continue to come from the State Department, as they do now, and not from the MCC.
The Kyrgyz Republic just has no business being a threshold country. It passes zero of the governance indicators – none – and scores particularly poorly on all the democracy related indicators. It is a very good example of the kind of country the MCC was designed to NOT provide financial assistance to. There are many other countries that are much more suitable for the threshold country than the Kyrgyz Republic. This choice cries out for explanation.
These two cases are particularly disturbing and deserving of an explanation from the MCC and reinforce our calls for greater transparency of Board decisionmaking.
We will be providing a more complete analysis of the threshold choices in the near future. Stay tuned.

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MCC and the LMIC Conundrum

November 2, 2005

By in Rethinking U.S. Foreign Assistance

Next week the MCC Board will have the option of selecting lower-middle income countries (LMICs), along with the traditional group of lower-income countries. Yesterday at our public event on the MCC selection process for FY 2006, I argued two reasons why the Board should not select any LMICs for FY 2006.

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Round 3 of the MCA

October 17, 2005

By in Rethinking U.S. Foreign Assistance

Today CGD released a new publication, Round 3 of the MCA: Which Countries are Likely to Qualify in FY 2006?, that analyzes which countries pass the MCC indicators test, which countries we anticipate will be selected for FY 2006 funding eligibility, and which countries should be selected by the Board.
Our analysis has several highlights:

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Nomination hearing for Danilovich to be CEO of the MCC

September 30, 2005

By in Rethinking U.S. Foreign Assistance

DanilovichThis week the Senate Foreign Relations Committee held a nomination hearing for John Danilovich to be Chief Executive Officer of the Millennium Challenge Corporation. CGD’s Kaysie Brown, our new research assistant working on MCA related issues, attended the meeting and provides the following report:

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Congressional Republican Study Committee Would Eliminate MCC Funding

September 26, 2005

By in Rethinking U.S. Foreign Assistance

A plan released on Sept. 21 by the Congressional Republican Study Committee (RSC) proposes dramatically cutting expenditures on a wide array of programs, including eliminating the Millennium Challenge Corporation. The RSC report, dubbed “Operation Offset,” calls for cuts across the government totaling $139 billion for 2006. Of that, $1.75 billion would come from money intended for the MCA and $900 million would come from other foreign aid spending, including level funding for peacekeeping operations, the Global AIDS Initiative and the Peace Corps. The RSC report was produced by Rep. Mike Pence (R-IN) and Rep. Jeb Hensarling (R-TX).

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Qualifying for the MCA: An Update

April 22, 2004

By in Rethinking U.S. Foreign Assistance Tags: ,

The Millennium Challenge Corporation has posted data for each candidate country for each of the 16 indicators that will be used to select qualifying countries during the first year. This step follows its announcement in early March of the methodology it proposes to use to select countries for the first year of the program. The MCC Board is expected to meet in early May to officially announce the countries that will qualify during the first year. This memo uses the MCC’s recently-released data to examine the countries most likely to qualify during the first year.

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