Phl meets criteria for many of MCC policy indicators

MANILA, Philippines - The Philippines has met the criteria for a majority of the Millennium Challenge Corp. (MCC) policy indicators that would help inform the eligibility decisions of the board of directors at its quarterly meeting next month, according to the MCC annual indicator data.

The US government’s MCC released yesterday its annual indicator data measuring the policy performance of 84 developing countries that are candidates for grant assistance from MCC in fiscal year 2011. 

The report, referred to as the “MCC scorecard,” includes information about how low-income and lower-middle income countries have performed on 17 policy indicators in three categories – Ruling Justly, Economic Freedom, and Investing in People.

The Philippines scored above the median on a majority of the indicators, including all indicators in the Ruling Justly and Economic Freedom categories, thereby meeting the eligibility criteria for MCC assistance.

The Philippines must maintain and improve the country’s performance on the indicators to remain eligible for MCC assistance.

“Our recently signed $434-million Millennium Challenge Compact with the Philippines is a result of the Philippine government’s commitment to the indicator criteria and our joint desire to improve the economic conditions and lives of the poor,” said US Ambassador Harry Thomas Jr.

“Continued progress in these areas will foster the conditions necessary for sustainable economic growth and poverty reduction,” he added.

The MCC’s country-by-country indicator data measure the policy performance of 84 developing countries that are candidates for grant assistance from MCC in fiscal year 2011. 

The country data will help inform the eligibility decisions of the MCC Board of Directors at its quarterly meeting, scheduled for Dec. 15, 2010. 

Countries compete against their income per group on the indicators, which assess the degree to which countries have in place a policy framework that supports poverty reduction and sustainable economic growth.

Country performance in these policy areas is one of the key criteria the board considers in its annual country selection process.

The board also considers the availability of funding.

The countries selected as eligible for MCC compact assistance by the Board of Directors have the opportunity to submit a proposal for a five-year grant program to reduce poverty through sustainable economic growth.

The board also may select countries for eligibility for MCC’s threshold program, a grant program that supports targeted policy reforms to help participating countries qualify for compact eligibility.

MCC’s selection process identifies countries that demonstrate good governance and pro-growth policies. 

The process itself has created incentives for reform in countries seeking MCC eligibility. 

US President Barack Obama’s recently announced Global Development Policy embraces this core MCC premise – that investments are best sustained where and when good governance conditions exist.

The policy commits to being more selective, focusing investments where they can have maximum impact, and seeks partner countries that embrace high standards of transparency, good governance, and accountability.