[Federal Register Volume 90, Number 194 (Thursday, October 9, 2025)]
[Notices]
[Pages 48204-48210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-19507]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 25-08]
Millennium Challenge Corporation Selection Criteria and
Methodology Report for Fiscal Year 2026
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
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SUMMARY: The Millennium Challenge Act of 2003, as amended, requires the
Millennium Challenge Corporation to publish a report that identifies
the criteria and methodology that MCC intends to use to determine which
candidate countries may be eligible to be considered for assistance
under the Millennium Challenge Act for fiscal year 2026. The report is
set forth in full below.
(Authority: 22 U.S.C. 7707(b)(2))
Dated: October 7, 2025.
Brian Finkelstein,
Acting Vice President, General Counsel, and Corporate Secretary.
Millennium Challenge Corporation
Selection Criteria and Methodology Report for Fiscal Year 2026
This document explains how the Board of Directors (the Board) of
the Millennium Challenge Corporation (MCC) will identify, evaluate, and
select eligible countries for fiscal year (FY) 2026. The document
discusses the following:
(I) Which countries MCC will evaluate
(II) How the Board evaluates those countries
A. Overall evaluation
B. For selection of a country for a first compact
C. For selection of a country for a subsequent compact
D. For selection of a country for a concurrent compact
E. For threshold program assistance
F. A note on potential transition out of MCC's candidate pool after
initial selection
This report is provided in accordance with section 608(b) of the
Millennium Challenge Act of 2003, as amended (the Act), as more fully
described in Appendix A.
(I) Which countries are evaluated?
MCC evaluates the policy performance of all candidate countries and
statutorily-prohibited countries by dividing them into separate income
categories for the purposes of creating ``scorecards'', which utilize
objective and quantitative data to measure countries' policy
performance on statutorily mandated criteria. These scorecard
categories are used to account for the income bias that occurs when
countries with more per capita resources perform better than countries
with fewer. Appendix B lists all candidate countries and statutorily-
prohibited countries for scorecard evaluation purposes and their income
category. In FY 2026, those scorecard evaluation income categories \1\
are:
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\1\ The first two income groups align with the definition of low
income and lower middle countries using the historical International
Development Association (IDA) threshold published by the World Bank.
The third category was added in FY 2025 by the passage of the
Millennium Challenge Corporation Candidate Country Reform Act and
includes a subset of upper middle income countries.
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Countries with gross national income (GNI) per capita of
$2,155 or less;
Countries with GNI per capita between $2,156 and $4,495;
and
Countries with GNI per capita between $4,496 and $7,855.
(II) How does the Board evaluate these countries?
A. Overall Evaluation
By statute, when evaluating candidate countries for compact
eligibility, the Board assesses (1) performance on a set of statutorily
mandated eligibility criteria, (2) the opportunity to invest in shared
prosperity and promote economic growth, and (3) the availability of MCC
funds.
(1) Policy Performance on Statutorily Mandated Eligibility Criteria
By statute, the Board relies, to the maximum extent possible, upon
the best-available objective and quantifiable policy performance
indicators. These indicators evaluate country policy performance in a
comparable, cross-country fashion. Comprised of 22 third-party
indicators in the statutory categories of ruling justly, encouraging
economic freedom, and investing in people, MCC scorecards are created
for all candidate countries and statutorily-prohibited countries.
Appendix C lists the 22 indicators that comprise the MCC scorecards and
their relationship to the statutory criteria. MCC also routinely
conducts reviews of its indicators to ensure that current indicators
remain relevant, effective, and transparent in measuring the
statutorily mandated eligibility criteria. This includes the conduct of
rigorous reviews to ensure MCC is employing the best data available.
MCC is committed to continue updating and revising data annually to
ensure continued alignment with statutory principles and administration
priorities. To ``pass'' most indicators on the scorecard, a country's
score on each indicator must be above the median score in its income
group (as defined above for scorecard evaluation purposes). For the
inflation, government accountability, and personal freedom indicators,
however, MCC has established minimum or maximum scores for ``passing.''
In particular, the Board considers whether a country:
passes at least 11 of the 22 indicators,
passes the Personal Freedom indicator; and
passes either the Control of Corruption indicator or
Government Accountability indicator.
While satisfaction of all three aspects means a country is termed
to have ``passed'' the scorecard, the Board also considers whether the
country performs ``substantially worse'' in any one policy
[[Page 48205]]
category than it does on the scorecard overall.
The mandatory passing of the Personal Freedom indicator is called
the Personal Freedom ``hard hurdle'' on the scorecard, while the
mandatory passing of either the Control of Corruption or Government
Accountability indicator is called the Control of Corruption and
Accountability ``hard hurdle.'' Not passing either ``hard hurdle''
results in not passing the scorecard overall, regardless of whether at
least 11 of the 22 total indicators are passed.
Personal Freedom ``hard hurdle:'' This hurdle sets a
minimum bar for personal freedom below which the Board will not
consider a country for compact eligibility. This indicator creates an
incentive for countries to undertake reform, recognizes the
relationship between freedom and prosperity, and holds MCC to the high
standard of working with the best governed countries.
Control of Corruption and Accountability ``hard hurdle:''
Corruption in any country is an unacceptable tax on economic growth and
an obstacle to private sector investment. The Control of Corruption and
Accountability ``hard hurdle'' helps ensure that MCC works with
countries committed to combatting corruption and strengthening
transparent and accountable governance. When a candidate country only
passes one of the two indicators comprising the hurdle (instead of
both), the Board closely examines the reason it is not passing one of
the indicators to understand the broader governance environment and
trajectory of the country. This includes consultation with U.S. Embassy
officials, interagency partners, and other experts.
A country's scorecard performance is a key factor the Board uses to
select countries for an MCC program. The Board, however, also
recognizes that even the best-available data have inherent challenges.
Data gaps, real-time events versus data lags, the absence of narratives
and nuanced detail, and other data features affect each indicator. As a
result, the Board uses its judgment to interpret policy performance as
measured by the scorecards. The Board also consults other sources of
information to enhance its understanding of country context (e.g.,
specific policy issues related to trade, U.S. business opportunities,
other U.S. engagement with the country, financial sector performance,
and security/foreign policy concerns). The Board uses its judgement on
how best to weigh such information in assessing overall policy
performance and making a final determination.
(2) The Opportunity To Advance America First Priorities and Invest in
Shared Prosperity
Beyond the scorecards, the Board considers a range of information
sources depending on the country. Examples include sources that provide
a better understanding of:
a country's economy and business enabling environment;
market fundamentals, trade dynamics, critical supply
chains, and opportunities to facilitate U.S. business investments;
the potential for the private sector to lead investment
and growth; and
the control of corruption and rule of law.
Where applicable, the Board also considers MCC's own experience and
ability to work with a country to promote investments that advance our
shared prosperity, including by considering MCC's core areas of
expertise and skills versus a country's needs, and MCC's capacity to
work with a country.
This information provides greater clarity regarding the opportunity
for MCC investments to make America safer, stronger, and more
prosperous.
(3) The Availability of MCC Funds
The Board considers the availability of funds when evaluating
countries. This includes consideration of MCC's pipeline of countries
in program development, implementation, and closure. Consequently, the
Board factors in MCC's overall portfolio when making its selection
decisions given current and projected funding availability.
* * * * *
The following subsections describe how the Board applies each of
these three statutorily-mandated factors to: selection of countries for
compacts, selection of countries for subsequent compacts, selection of
countries for the threshold program, and selection of countries for
concurrent compacts. A note follows on considerations for countries
that might transition out of MCC's candidate pool after initial
selection.
B. Evaluation for Selection of a Country for a First Compact
When selecting countries for a compact, the Board looks at the
statutorily-mandated aspects described in the previous section,
including a country's performance on the MCC scorecard, evidence of a
country's commitment to ensuring a positive enabling environment for
economic growth and private sector investment, including for U.S.
businesses, and the availability of funding.
At a minimum, the Board considers whether a country passes its
scorecard. The Board also examines supporting evidence that a country's
commitment to good governance, economic freedom, and investing in its
people is on a sound footing and performance is on a positive
trajectory (especially on the ``hard hurdles'' of Personal Freedom and
Control of Corruption and Accountability), and that MCC will have the
funds to support a meaningful compact with that country. Where
applicable, previous threshold program information is also considered.
For those countries currently developing or implementing a threshold
program, the Board examines the progress the country has made toward
substantial implementation.
C. Evaluation for Selection of a Country for a Subsequent Compact
Section 609(l) of the Act authorizes MCC to enter into ``one or
more subsequent Compacts.'' MCC does not consider the eligibility of a
country for a subsequent compact before the country has completed its
compact or is within 18 months of compact end date. Selection for a
subsequent compact is not automatic and is intended for countries that
(1) exhibit successful performance on their previous compact(s); (2)
exhibit improved policy performance on the eligibility criteria
assessed by the scorecard during the partnership; and (3) exhibit a
commitment to further sector reform.
(1) Successful Implementation of the Previous Compact(s)
To evaluate any previous compact's success, the Board examines
whether the compact succeeded within its budget and time limits, in
particular by looking at three aspects of each compact program:
The degree to which there is evidence of strong political
will and management capacity;
The degree to which the country has exhibited commitment
and capacity to achieve program results; and
The degree to which the country has implemented the
compact in accordance with MCC's core policies and standards.
Appendix D provides details regarding the information types
examined and sources used.
(2) Improved Policy Performance
The Board also expects the country to improve its overall policy
performance on the eligibility criteria assessed by the
[[Page 48206]]
scorecard during the partnership and to pass the scorecard in the year
of selection for the subsequent compact. The Board considers the
trajectory of a country's overall policy performance on key indicators
over time.
While the Board expects the country to be passing its scorecard,
the Board also examines other sources of information to understand the
nuance and reasons behind scorecard performance over time. The Board
also consults other information sources to look at policy performance
over time in areas not covered by the scorecard, but that the Board
deems to be important (such as trade, U.S. business opportunities,
critical supply chains, and foreign policy concerns).
(3) A Commitment To Further Sector Reform
The Board expects subsequent compacts to endeavor to tackle policy
reforms necessary to unlock an identified constraint to economic
growth. Consequently, the Board considers MCC's own experience during
the previous compact in considering how committed the country is to
advancing investments in shared prosperity and economic growth. This
includes assessing:
The country's delivery of policy reform during the
previous compact (as described above);
Expectations of the country's ability and willingness to
continue sector policy reform in a subsequent compact;
The opportunity to invest in shared prosperity and advance
America First priorities (as outlined in A.2 above);
The prior compact's relative success overall (as discussed
above), and how well future funding can be leveraged for impact, given
the country's experience in the previous compact.
D. Evaluation for Concurrent Compacts
Section 609(k) of the Act authorizes MCC to enter into one
additional concurrent compact with a country if one or both of the
compacts with the country is for the purpose of regional economic
integration, increased regional trade, or cross-border collaborations.
The fundamental criteria and process for the selection of countries
for such compacts remains the same as those for the selection of
countries for non-concurrent compacts: countries continue to be
evaluated and selected individually, as described in sections II.A,
II.B, II.C, and II.F.
Section 609(k) also requires as a precondition for a concurrent
compact that the Board determine that the country is making
``considerable and demonstrable progress in implementing the terms of
the existing Compact and supplementary agreements thereto.'' This
statutory requirement is consistent with prior Board practice regarding
the selection of a country for a non-concurrent compact. For a country
where a concurrent compact is contemplated, the Board will take into
account whether there is clear evidence of success, as relevant to the
phase of the current compact. Among other information, the Board will
examine the evaluation criteria described in Section II.C.1 above.
In addition to providing information to the Board so it can make
its determination regarding the country's progress in implementing its
current compact, MCC provides the Board with additional information
relating to the potential for regional economic integration, increased
regional trade, or cross-border collaborations for any country being
considered for a concurrent compact. This information may include items
such as:
The current state of a country's regional integration,
such as common financial and political dialogue frameworks, integration
of productive value chains, and cross-border flows of people, goods,
and services.
The current and potential level of trade between a country
and its neighbors, including analysis of trade flows and unexploited
potential for trade, and an assessment of the extent and significance
of tariff and non-tariff barriers, including information regarding the
patterns of trade.
The potential gains from cross-border cooperation between
a country and its neighbors to alleviate bilateral and regional
bottlenecks to economic growth and poverty reduction, such as through
physical infrastructure or coordinated policy and institutional
reforms.
E. Evaluation for Threshold Program Assistance
The Board also evaluates countries for participation in the
threshold program. Threshold programs provide assistance to candidate
countries exhibiting a significant commitment to meeting the criteria
described in the previous subsections but failing to meet such
requirements. Specifically, in examining a candidate country's policy
performance, the opportunity to advance shared prosperity and generate
economic growth, and available funds, the Board will consider whether a
country appears to be on a trajectory to becoming viable for compact
eligibility in the medium or short term.
F. A Note on Potential Transition Out of MCC's Candidate Pool After
Initial Selection
Some candidate countries may have a high per capita income or a
high growth rate that implies there is a chance they could transition
out of MCC's candidate pool during the life of an MCC partnership. It
is not possible to accurately predict if or when such a transition may
occur.
Nonetheless, such countries may have more resources at their
disposal for funding their own growth. As a result, in addition to
using the regular selection criteria described in the previous
sections, the Board will use its discretion to assess both the need and
the opportunity presented by partnering with such a country, in order
to ensure that MCC's scarce grant funds are directed appropriately.
Accordingly, if a candidate country with a high probability of
transitioning out of MCC's candidate pool is under consideration for
selection, the Board will examine additional data and information
related to:
Whether the country faces significant challenges accessing
other sources of development financing (such as international capital,
domestic resources, and other donor assistance) and, if so, whether MCC
grant financing would be an appropriate tool;
Whether there is a clear and strategic opportunity for MCC
to assist the country through investments that spur economic growth and
shared prosperity;
Whether the country demonstrates particularly strong
policy performance; and
Whether MCC can reasonably expect that the country would
contribute a significant amount of funding to the compact.
Should a country eventually transition out of MCC's candidate pool
during compact development, continuing compact development beyond that
point would then be at the Board's discretion.
Appendix A: Statutory Basis for This Report
This report to Congress is provided in accordance with section
608(b) of the Millennium Challenge Act of 2003, as amended (the
Act), 22 U.S.C. 7707(b).
Section 605 (22 U.S.C. 7704) of the Act authorizes the provision
of assistance to countries that enter into a Millennium Challenge
Compact with the United States to support policies and programs that
advance the progress of such countries in achieving lasting economic
growth and poverty reduction. The Act requires MCC to take a number
of steps in selecting countries for compact assistance for FY 2026
based on the
[[Page 48207]]
countries' demonstrated commitment to just and democratic
governance, economic freedom, and investing in their people, MCC's
opportunity to reduce poverty and generate economic growth in the
country, and the availability of funds. These steps include the
submission of reports to the congressional committees specified in
the Act and publication of information in the Federal Register that
identify:
(1) The countries that are ``candidate countries'' for
assistance for FY 2026 based on per capita income levels and
eligibility to receive assistance under U.S. law and countries that
would be candidate countries but for specified legal prohibitions on
assistance (section 608(a) of the Act; 22 U.S.C. 7707(a));
(2) The criteria and methodology that MCC's Board of Directors
(Board) will use to measure and evaluate policy performance of the
candidate countries consistent with the requirements of subsections
(a) and (b) of section 607 of the Act (22 U.S.C. 7706) in order to
determine ``eligible countries'' from among the ``candidate
countries'' (section 608(b) of the Act; 22 U.S.C. 7707(b)); and
(3) The list of countries determined by the Board to be
``eligible countries'' for FY 2026, with justification for
eligibility determination and selection for compact negotiation,
including those eligible countries with which MCC will seek to enter
into compacts (section 608(d) of the Act; 22 U.S.C. 7707(d)).
This report satisfies item 2 above.
Appendix B: Lists of All Candidate Countries and Statutorily-Prohibited
Countries for Evaluation Purposes
Income Groups for Scorecards
Since MCC was created, it has relied on the World Bank's gross
national income (GNI) per capita income data (Atlas method) and the
historical ceiling for eligibility as set by the World Bank's
International Development Association (IDA) to divide countries into
separate income categories for purposes of creating scorecards.
These categories are used to account for the income bias that occurs
when countries with more per capita resources perform better than
countries with fewer. Using the historical IDA eligibility ceiling
for the scorecard evaluation groups ensures that the poorest
countries compete with their income level peers and are not compared
against countries with more resources to mobilize. Following the
passage of the Millennium Challenge Corporation Candidate Country
Reform Act in FY 2025, MCC began grouping the countries newly added
into the income pool by this legislation (countries with GNI per
capita above the World Bank's lower middle income/upper middle
income country threshold but below the threshold for initiating the
International Bank for Reconstruction and Development (IBRD)
graduation process) in a third group to maintain this principle of
countries competing with their income peers.
In FY 2026, MCC will continue to use the historical IDA
classifications for eligibility and the lower middle income/upper
middle income country threshold to categorize countries in groups
for purposes of FY 2026 scorecard comparisons:
Countries with GNI per capita equal to or less than
IDA's historical ceiling for eligibility (i.e., $2,155 for FY 2026);
Countries with GNI per capita above IDA's historical
ceiling for eligibility but below the World Bank's lower middle
income/upper middle income country threshold (i.e., $2,156 and
$4,495 for FY 2026); and
Countries with GNI per capita above the World Bank's
lower middle income/upper middle income country threshold but below
the threshold for initiating the IBRD graduation process (i.e.,
$4,496 and $7,855 for FY 2026).
The list of countries for FY 2026 scorecard assessments is set
forth below:
Countries With GNI per Capita of $2,155 or Less
1. Afghanistan
2. Benin
3. Burkina Faso
4. Burundi
5. Cameroon
6. Central African Republic
7. Chad
8. Comoros
9. Congo, Dem. Rep.
10. Eritrea
11. Ethiopia
12. Gambia, The
13. Guinea
14. Guinea-Bissau
15. Haiti
16. Kenya
17. Kyrgyz Republic
18. Lao PDR
19. Lesotho
20. Liberia
21. Madagascar
22. Malawi
23. Mali
24. Mauritania
25. Mozambique
26. Myanmar
27. Nepal
28. Niger
29. Nigeria
30. North Korea
31. Pakistan
32. Rwanda
33. Senegal
34. Sierra Leone
35. Solomon Islands
36. Somalia
37. South Sudan
38. Sudan
39. Syrian Arab Republic
40. Tajikistan
41. Tanzania
42. Timor-Leste
43. Togo
44. Uganda
45. Yemen, Rep.
46. Zambia
Countries With GNI per Capita Between $2,156 and $4,495
1. Angola
2. Bangladesh
3. Bhutan
4. Bolivia
5. Cambodia
6. Congo, Rep.
7. Cote d'Ivoire
8. Djibouti
9. Egypt, Arab Rep.
10. Eswatini
11. Ghana
12. Honduras
13. India
14. Jordan
15. Kiribati
16. Lebanon
17. Micronesia, Fed. States
18. Morocco
19. Namibia
20. Nicaragua
21. Papua New Guinea
22. Philippines
23. Sao Tome and Principe
24. Sri Lanka
25. Tunisia
26. Uzbekistan
27. Vanuatu
28. Venezuela
29. Vietnam
30. Zimbabwe
Countries With GNI per Capita Between $4,495 and $7,855
1. Algeria
2. Armenia
3. Azerbaijan \2\
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\2\ Following the issuance of the FY 2026 Candidate Country
Report, President Trump waived the United States Freedom Support Act
Section 907 restriction on Azerbaijan so it is no longer prohibited
from receiving foreign assistance and is an MCC candidate country in
FY 2026.
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4. Belize
5. Botswana
6. Cabo Verde
7. Colombia
8. Ecuador
9. El Salvador
10. Equatorial Guinea
11. Fiji
12. Gabon
13. Guatemala
14. Indonesia
15. Iran, Islamic Rep.
16. Iraq
17. Jamaica
18. Kosovo
19. Libya
20. Moldova
21. Mongolia
22. Paraguay
23. Peru
24. Samoa
25. South Africa
26. Suriname
27. Thailand
28. Tonga
29. Ukraine
Statutorily-Prohibited Countries
1. Burkina Faso
2. Burma
3. Eritrea
4. Ghana
5. Guinea
6. Haiti
7. Iran
8. Mali
9. Nicaragua
10. Niger
11. North Korea
12. South Sudan
13. Sri Lanka
[[Page 48208]]
14. Sudan
15. Syria
16. Venezuela
17. Zimbabwe
Appendix C: Indicator Definitions
The following indicators will be used to measure candidate
countries' demonstrated commitment to the criteria found in section
607(b) of the Act. The indicators are intended to assess the degree
to which the political and economic conditions in a country serve to
promote broad-based sustainable economic growth and reduction of
poverty and thus provide a sound environment for the use of MCC
funds. The indicators are not goals in themselves; rather, they are
proxy measures of policies that are linked to broad-based
sustainable economic growth. The indicators were selected based on
(i) their relationship to economic growth and poverty reduction;
(ii) the number of countries they cover; (iii) transparency and
availability; and (iv) relative soundness and objectivity. Where
possible, the indicators are developed by independent sources.
Ruling Justly
1. Control of Corruption: An index of surveys and expert
assessments that rate countries on: ``grand corruption'' in the
political arena; the frequency of petty corruption; the effects of
corruption on the business environment; and the tendency of elites
to engage in ``state capture,'' among other things. Pass: Score must
be above the median score for the income group.
2. Government Accountability: Independent experts rate countries
on the prevalence of free and fair electoral processes; political
pluralism and participation of all stakeholders; government
accountability and transparency; freedom from domination by the
military, foreign powers, totalitarian parties, religious
hierarchies and economic oligarchies; and the political rights of
all groups, among other things. Pass: Score must be above the
minimum score of 17 out of 40.
3. Personal Freedom: Independent experts rate countries on their
freedom of expression and belief; association and organizational
rights; rule of law and human rights; and personal autonomy and
economic rights, among other things. Pass: Score must be above the
minimum score of 25 out of 60.
4. Freedom of Information: Measures the legal and practical
steps taken by a government to enable or allow information to move
freely through society; this includes measures of press freedom,
national freedom of information laws, and freedom of speech as
measured by the extent to which a county is shutting down social
media or the internet. Pass: Score must be above the median score
for the income group.
5. Government Effectiveness: An index of surveys and expert
assessments that rate countries on the quality of public service
provision; civil servants' competency and independence from
political pressures; and the government's ability to plan and
implement sound policies, among other things. Pass: Score must be
above the median score for the income group.
6. Rule of Law: An index of surveys and expert assessments that
rate countries on the extent to which the public has confidence in
and abides by the rules of society; the incidence and impact of
violent and nonviolent crime; the effectiveness, independence, and
predictability of the judiciary; the protection of property rights;
and the enforceability of contracts, among other things. Pass: Score
must be above the median score for the income group.
Encouraging Economic Freedom
1. Business Start-Up: An index that rates countries on the time
and cost of complying with all procedures officially required for an
entrepreneur to start up and formally operate an industrial or
commercial business as well as the overall business environment in a
country. Pass: Score must be above the median score for the income
group.
2. Inflation: The most recent average annual change in consumer
prices. Pass: Score must be 15 percent or less.
3. Regulatory Quality: An index of surveys and expert
assessments that rate countries on the burden of regulations on
business; price controls; the government's role in the economy; and
foreign investment regulation, among other areas. Pass: Score must
be above the median score for the income group.
4. Trade Policy: A measure of a country's openness to
international trade based on weighted average tariff rates and non-
tariff barriers to trade. Pass: Score must be above the median score
for the income group.
5. Women in the Economy: An index that measures the extent to
which laws provide men and women equal capacity to generate income
or participate in the economy, including factors such as the
capacity to access institutions, get a job, register a business,
sign a contract, open a bank account, choose where to live, to
travel freely, property rights protections, and protections against
domestic violence, among others. Pass: Score must be above the
median score for the income group.
6. Property and Land Rights: An index that rates countries on
the extent to which the institutional, legal, and market framework
provides secure land tenure and access to land in rural areas and
the extent to which all individuals have the right to private
property in practice and in law, including measures of intellectual
property rights, risk of expropriation, and the quality of contract
enforcement. Pass: Score must be above the median score for the
income group.
7. Access to Credit: An index that ranks countries based on
access and use of formal and informal financial services as measured
by the number of bank branches and ATMs per 100,000 adults and the
share of adults that have an account at a formal or informal
financial institution. Pass: Score must be above the median score
for the income group.
8. Employment Opportunity: Measures the rights of people to
work. Pass: Score must be above the median score for the income
group.
9. International Market Access: Measures a country government's
commitment to the free movement of capital, citizen access to
international capital markets, and the barriers to global market
access through import or export controls. Pass: Score must be above
the median score for the income group.
10. Market Competitiveness: Measures a country government's
commitment to strengthening market forces in the economy by
promoting a business environment that allows for innovation and open
competition while limiting expropriation, and monopolies. Pass:
Score must be above the median score for the income group.
Investing in People
1. Health Expenditures: Total current expenditures on health by
government (excluding funding sourced from external donors) at all
levels divided by GDP. Pass: Score must be above the median score
for the income group.
2. Chronic Disease: An indicator measuring the prevalence of
chronic diseases. Measures the likelihood of dying between ages 30
and 70 due to cardiovascular disease, cancer, diabetes, or chronic
respiratory disease. Pass: Score must be above the median score for
the income group.
3. Child Health: An index made up of three indicators: (i)
access to improved water, (ii) access to improved sanitation, and
(iii) child (ages 1-4) mortality. Pass: Score must be above the
median score for the income group.
4. Natural Resource Protection: Assesses a country government's
commitment to preserving biodiversity and natural habitats,
responsibly managing ecosystems and fisheries, and engaging in
sustainable agriculture. Pass: Score must be above the median score
for the income group.
5. Workforce Development: An indicator measuring education
within the workforce. This indicator measures the proportion of
youth and adults enrolled in training, non-formal education, and
formal education in the last 12 months. Pass: Score must be above
the median score for the income group.
6. Girls' Education:
a. Girls' Primary Completion Rate: The number of female students
enrolled in the last grade of primary education minus repeaters
divided by the population in the relevant age cohort (gross intake
ratio in the last grade of primary). Countries with a GNI/capita of
$2,155 or less are assessed on this indicator. Pass: Score must be
above the median score for the income group.
b. Girls' Lower Secondary Completion Rate: Countries with a GNI/
capita between $2,156 and $4,495 are assessed on the number of
female pupils that have completed the last grade of lower secondary
education divided by the population within three to five years of
the intended age of completion, expressed as a percentage of the
total population of females in the same age group. Pass: Score must
be above the median score for the income group.
c. Girls' Upper Secondary Completion Rate: Countries with a GNI/
capita of between $4,496 and $7,895 are assessed on the number of
female pupils that have completed the last grade of upper secondary
education divided by the population within three to five years of
the intended age of completion, expressed as a percentage of the
total population of females in the same age group. Pass: Score must
be above the median score for the income group.
Relationship to Statutory Criteria
Within each policy category, the Act sets out a number of
specific selection criteria. A
[[Page 48209]]
set of objective and quantifiable policy indicators is used to
inform eligibility decisions for assistance and to measure the
relative performance by candidate countries against these criteria.
Performance against each of these criteria is assessed by at least
one of the objective indicators. Most are addressed by multiple
indicators. The specific indicators appear in parentheses next to
the corresponding criterion set out in the Act.
Section 607(b)(1): Just and democratic governance, including a
demonstrated commitment to--
(A) promote political pluralism, equality and the rule of law
(Government Accountability, Personal Freedom, Rule of Law, and Women
in the Economy);
(B) respect human and civil rights, including the rights of
people with disabilities (Government Accountability, Personal
Freedom, Employment Opportunity, and Freedom of Information);
(C) protect private property rights (Personal Freedom,
Regulatory Quality, Rule of Law, and Property and Land Rights);
(D) encourage transparency and accountability of government
(Government Accountability, Personal Freedom, Freedom of
Information, Control of Corruption, Rule of Law, Government
Effectiveness, and Employment Opportunity);
(E) combat corruption (Control of Corruption, Government
Accountability, Personal Freedom, Rule of Law, and Freedom of
Information); and
(F) the quality of civil society enabling environment (Personal
Freedom, Freedom of Information, Employment Opportunity, and Rule of
Law).
Section 607(b)(2): Economic freedom, including a demonstrated
commitment to economic policies that--
(A) encourage citizens and firms to participate in global trade
and international capital markets (International Market Access,
Inflation, Trade Policy, and Regulatory Quality);
(B) promote private sector growth (Market Competitiveness,
Inflation, Business Start-Up, Property and Land Rights, Access to
Credit, Women in the Economy, and Regulatory Quality);
(C) strengthen market forces in the economy (Market
Competitiveness, Business Start-Up, Inflation, Trade Policy,
Property and Land Rights, Access to Credit, and Regulatory Quality);
and
(D) respect worker rights, including the right to form labor
unions (Employment Opportunity, Personal Freedom, and Women in the
Economy).
Section 607(b)(3): Investments in the people of such country,
particularly women and children, including programs that--
(A) promote broad-based primary education (Girls' Primary
Education Completion Rate, Girls' Lower Secondary Education
Completion Rate, Workforce Development, and Employment Opportunity);
(B) strengthen and build capacity to provide quality public
health and reduce child mortality (Chronic Disease, Health
Expenditures, and Child Health); and
(C) promote the protection of biodiversity and the transparent
and sustainable management and use of natural resources (Natural
Resource Protection).
Appendix D: Subsequent and Concurrent Compact Considerations
MCC reporting and data in the following chart are used to assess
threshold program performance, compact performance of MCC compact
countries nearing the end of compact implementation (i.e., within 18
months of compact end date), or for current MCC compact countries
under consideration for a concurrent compact, where appropriate.
Some reporting used for assessment may contain sensitive information
and adversely affect implementation or MCC-partner country
relations. This information is for MCC's internal use and is not
made public. However, key implementation information is summarized
in compact status and results reports that are published quarterly
on MCC's website under MCC country programs (www.mcc.gov/where-we-work) and monitoring and evaluation (www.mcc.gov/our-impact/m-and-e)
web pages.
For completed compacts, additional information is used to assess
compact performance and is found in a country's ``Star Report.'' The
Star Report captures key information to provide a framework for
results and improve the ability to disseminate learning and evidence
throughout the lifecycle of an MCC investment from selection to
final evaluation. For each compact and threshold program, evidence
is collected on performance indicators, evaluation results,
partnerships, sustainability efforts, and learning, among other
elements.
In addition to the Star Reports, MCC also surveys staff on
topics related to the quality of the partnership during design and
implementation of programs, progress toward program results, a
partner country's commitment to undertaking policy and institutional
reforms, and compliance with MCC standards. Additional information
on the survey can be found in the Guide to the Program Surveys:
https://www.mcc.gov/resources/doc/guide-to-the-program-surveys/.
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Topic MCC reporting/data source Published documents
----------------------------------------------------------------------------------------------------------------
Country Partnership
----------------------------------------------------------------------------------------------------------------
Political Will:
Status of major conditions Quarterly Quarterly results published
precedent. implementation reporting. as ``Table of Key Performance
Program oversight/ Quarterly results Indicators'' (available by country):
implementation. reporting. https://www.mcc.gov/itt.
[cir] project restructures. MCC Star Reports. Star Reports (available by
[cir] partner response to accountable country): https://www.mcc.gov/
entity capacity issues. starreport/.
Political independence of
the accountable entity.
Management Capacity:
Project management capacity.
Project performance.
Level of MCC intervention/
oversight.
Relative level of resources
required.
----------------------------------------------------------------------------------------------------------------
Program Results
----------------------------------------------------------------------------------------------------------------
Financial Results: ............................... ......................................
Commitments--including Indicator tracking Monitoring and Evaluation
contributions to compact and threshold tables. Plans (available by country): https://
funding. Quarterly financial www.mcc.gov/meplan/.
Disbursements. reporting. Quarterly results published
Project Results: Quarterly as ``Table of Key Performance
Output, outcome, objective implementation reporting. Indicators'' (available by country):
targets. Quarterly results https://www.mcc.gov/itt.
Accountable entity commitment reporting. Star Reports (available by
to `focus on results'. Impact evaluations. country): https://www.mcc.gov/
Accountable entity cooperation MCC Star Reports. starreport/.
on impact evaluation.
Percent complete for process/
outputs.
Relevant outcome data.
Details behind target delays.
Target Achievements.
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[[Page 48210]]
Adherence to Standards
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Fraud and corruption. Audits (GAO and OIG). Published OIG and GAO audits.
Procurement. Quarterly Star Reports (available by
Program closure. implementation reporting. country): https://www.mcc.gov/
IFC Performance Standards. MCC Star Reports. starreport/.
Monitoring and evaluation.
All other legal provisions.
----------------------------------------------------------------------------------------------------------------
Country Specific
----------------------------------------------------------------------------------------------------------------
Sustainability: ............................... ......................................
Implementation entity. Quarterly Quarterly results published
MCC investments. implementation reporting. as ``Table of Key Performance
Role of private sector or other donors: Quarterly results Indicators'' (available by country):
Trajectory of private sector reporting. https://www.mcc.gov/itt.
involvement going forward. MCC Star Reports. Star Reports (available by
Other relevant investors/ country): https://www.mcc.gov/
investments. starreport/.
Other donors/programming.
Status of related reforms.
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[FR Doc. 2025-19507 Filed 10-7-25; 4:15 pm]
BILLING CODE 9211-03-P