Fact Sheet www.mcc.gov

MCC’s Continuum of Results 

The Millennium Challenge Corporation (MCC) is committed to delivering results throughout the entire 

lifecycle of its investments. From before investments begin to their completion and beyond, MCC’s robust 

and comprehensive “continuum of results” framework seeks to measure, collect and report on policy 

reforms associated with MCC compact eligibility and program investments, inputs and outputs that 

indicate whether projects are on track, interim outcomes as programs reach completion, and impacts as 

measured through independent evaluations. MCC’s continuum of results is designed to foster learning 

and accountability, and served as a model for global dialogue about development results at the Fourth 

High Level Forum on Aid Effectiveness in Busan, South Korea in November 2011. 

Policy 

Performance

The first result along the continuum is often the MCC Effect, when countries enact policy reforms to improve performance on MCC’s indicators. Eligibility for an MCC compact is regarded as a seal of approval, 

signaling to private investors the country is well-governed and open for business. MCC has the option 

to suspend or terminate funding if a partner country’s policy performance deteriorates significantly. 

This option to halt funding, which to date MCC has used in response to governance concerns, creates 

an incentive for ongoing policy and implementation performance that is key to delivering on the entire 

continuum of results. 

Policy and 

Institutional 

Reforms

During compact development, MCC and partner countries look closely at the policy and institutional 

environment to assess areas that might limit investments’ impact and sustainability and work with 

partner countries to plan appropriate policy and institutional reforms. These can be changes to national 

policies, laws, regulations, or even ways of doing business, and often focus on building capacity within 

existing national institutions. 

MCC EFFECT BUILDING CAPACITY FINANCIAL SUPPORT GOODS AND SERVICES PRODUCED OUTCOMES AND IMPACTS LESSONS LEARNED

POLICY 

PERFORMANCE

POLICY AND 

INSTITUTIONAL 

REFORMS

INPUTS OUTPUTS OUTCOMES ULTIMATE 

IMPACTS

FEEDBACK 

AND LEARNING
MCC’s Continuum of Results | May 23, 2012 2

Inputs MCC’s primary input is financial support for investments that promote poverty reduction and economic 

growth. MCC also contributes technical/professional support for oversight and policy dialogue. MCC 

and its partner countries use analyses of key constraints to growth, cost-benefits and beneficiaries to 

identify which investments have the biggest impact in terms of raising local incomes and generating 

long-term returns measured in economic benefits. To safeguard MCC investments, partner countries 

must adhere to international standards in financial management and procurement. Where necessary, 

they use external financial and procurement agents. 

Outputs Outputs measure the goods or services produced by a program such as kilometers of roads or irrigation 

canals built, farmers trained or land titles issued. MCC and its partner countries use monitoring and 

evaluation (M&E) plans to establish targets and track progress on outputs. Transparently reporting on 

these outputs is key for accountability and for making mid-course corrections as needed.

Outcomes Outcomes measure the medium-term effects of a program, such as increased traffic volume on improved roads, new business investments, increased production of high value crops, increased access to 

electricity of clean water, or increased school attendance. MCC and partner countries use M&E plans to 

track outcomes since they are the drivers of the increased income that MCC ultimately aims to achieve. 

Ultimate 

Impacts

The ultimate result MCC is committed to producing—and being able to attribute to its investments—is 

increased incomes among poor people in developing countries. MCC wants to know if incomes went 

up because of an MCC investment, what worked best to increase incomes and if the increases were 

achieved in a cost-effective way. Where the potential to learn is greatest, MCC uses independent impact 

evaluations to answer these questions, often comparing results from the people who participated in 

MCC-funded programs to those who did not. This indicates whether gains were the direct result of 

MCC’s investment. MCC also uses performance evaluations to answer qualitative questions, like how is a 

project being implemented and whether expected results are occurring.

Feedback and 

Learning

MCC applies lessons learned to maximize development effectiveness. This involves working with partner 

countries to identify and address implementation challenges, keep current investments on track and 

inform the design and implementation of future investments. MCC is committed to transparently sharing 

the results of all evaluations, even when they reveal that MCC investments did not achieve planned targets. This is essential both for accountability and learning. MCC has opened its portfolio to scrutiny and 

is testing a variety of implementation and evaluation approaches. MCC’s experience will foster learning 

internally, within the U.S. Government and globally both about what programs work best to increase 

incomes, and what evaluation approaches work best to measure impact. 

The Port of Cotonou

MCC’s continuum of results can be demonstrated through the Port of Cotonou modernization project, part of MCC’s $307 million compact with 

Benin. MCC’s initial input in the port’s modernization, an investment of $188 million, paralleled the 

Government of Benin’s efforts to reform its customs 

processes and the port’s financial management. Direct 

outputs of MCC’s investment included construction of 

a new wharf to allow the port to accommodate larger 

container ships and a 300-meter extension to a sand-stopping jetty. Outcomes have been annual 

savings of $2.1 million in dredging and maintenance costs and a decrease in average customs clearance time. MCC will continue to track the impact of the improvements by measuring the volume 

of port traffic and using that to estimate income gains attributable to the investment. When the compact closed in October 2011, MCC projected Benin’s entire population of 8.8 million would benefit, 

and the modernization would increase household income by $262 million over 20 years. Insights 

gleaned from that analysis will inform MCC’s future operations in similar projects.

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