Fact Sheet

May 6, 2009 | www.mcc.gov

MCC and Effective Donor Cordination:

Maximizing Results in the 

Fight Against Global Poverty

The world’s poor benefit greatly from the efforts of developing countries 

and donors to coordinate development assistance effectively. When donors 

coalesce behind country-owned programs to coordinate resources and 

share expertise, they maximize opportunities to promote economic growth 

and improve the lives of the poor in meaningful and sustainable ways. 

Closely coordinating with other U.S. Government agencies, international 

donors, and development actors is critical to the success of Millennium 

Challenge Corporation (MCC) programs. It recognized as a best practice 

in the effective and accountable delivery of international development assistance that maximizes results and impact. Such coordination: 

 saves time and money by avoiding costly duplication and unsuccessful approaches and by building on ongoing efforts, 

 minimizes transaction costs for partner countries, and 

 leverages MCC investments by enabling co-funding, complementary 

programs, and use of joint structures 

MCC and partner countries integrate coordination into every step of program development and implementation. Partner countries inventory and 

describe the current and potential participation of each donor in achieving 

program objectives. They reach agreements to deepen donor coordination 

and harmonization as they develop and implement their grants. Malawi, 

for example, worked with MCC, the United Kingdom’s Department for International Development, the World 

Examples of MCC Donor 

Coordination Include 

Collaboration With:

•	 USAID

•	 USTDA

•	 PEPFAR 

•	 World Bank

•	 African Development Bank

•	 European Union

•	 Norway

•	 Denmark

•	 The Netherlands

•	 Asian Development Bank

•	 German Agency for Technical 

Cooperation

•	 Japan Fund for Poverty 

Reduction

•	 Nordic Development Fund
MCC and Effective Donor Cordination:, May 6, 2009 2

Bank, and the African Development Bank to produce a single growth diagnostic to meet a number of needs, including helping set priorities for its MCC compact proposal. 

Coordinating with other U.S. Government Agencies 

Carefully coordinated government-wide solutions can deliver the 

best return on investment for American taxpayers. MCC identifies 

other U.S. Government agencies active in the country and sector 

in order to streamline efforts and build on progress. MCC’s commitment to donor coordination starts at the very highest level of 

leadership. The Secretary of State, the Secretary of the Treasury, 

the U.S. Trade Representative, and the U.S. Agency for International 

Development Administrator, who serve on MCC’s Board of 

Directors, facilitate strong inter-agency information sharing and collaboration. Some of the many examples of 

government-wide coordination on MCC programs on the ground include: 

The U.S. Agency for International Development (USAID) oversees implementation in almost all of MCC’s 21 

threshold programs. MCC benefits from USAID’s technical expertise, field presence, and administrative infrastructure as USAID takes the lead on program development, procurement, and in-county oversight of programs. 

Five of these threshold programs have successfully concluded. Close cooperation with USAID also supports the 

success of MCC compacts. In Ghana, USAID is constructing homes for teachers who will work in schools that 

the MCC compact is rehabilitating or building. In Burkina Faso, USAID is implementing a second phase of school 

construction under the MCC compact, building on the successful threshold program’s girl-friendly schools.

 MCC coordinates with the U.S. Trade and Development Agency (USTDA) in multiple countries. In Ghana, 

USTDA is funding a master plan to modernize the port of Tema that will connect to MCC’s upgrade of the 

National Highway. In Morocco, USTDA awarded a grant to the Ministry of Agriculture and Maritime Fishing 

to support an MCC project that includes cold storage facilities to reduce losses in palm date production. In El 

Salvador, USTDA grants complement MCC investments in the country’s Northern Zone. 

The coordination between PEPFAR (President’s Emergency Plan for AIDS Relief) and MCC in Lesotho is helping 

the children of HIV-positive mothers live long and healthy lives. MCC’s renovations to health centers complement 

PEPFAR’s particular focus on the prevention of mother-to-child transmission of HIV. As more women deliver 

babies at these MCC renovated health facilities, PEPFAR can better track if mothers and babies are taking their 

HIV prophylaxis appropriately. 

Careful coordination of U.S. 

Government assistance helps 

MCC better serve the U.S. 

taxpayer and its country partners
MCC and Effective Donor Cordination:, May 6, 2009 3

Coordinating with International Donors and 

Development Agencies

In addition to working with U.S. Government agencies, MCC is committed to working with other donors and 

international institutions to leverage resources and expertise in alleviating global poverty and creating opportunities for long-term growth. To that end, MCC signed memoranda of understanding with the United Kingdom’s 

Department for International Development, the Alliance for a Green Revolution in Africa, the Danish Ministry 

of Foreign Affairs, Agence Française de Développement, and the World Food Program to deepen cooperation in 

specific technical areas and achieve tangible results. This has already led to closer coordination on projects to 

bolster agricultural productivity, increase food security, and expand rural property rights. Additional examples of 

international donor coordination in MCC programs include:

 In Tanzania, MCC is working within the government’s five-year Transport Sector Investment Program 

alongside the World Bank, the African Development Bank, the European Union, Norway, Denmark, and 

the Netherlands to help Dar es Salaam develop a Roads Act that nearly doubles funding for road maintenance on the mainland. 

 In Mongolia, the Vocational Education Project builds on complementary investments funded by the 

Asian Development Bank, the German Agency for Technical Cooperation, the Japan Fund for Poverty 

Reduction, and the Nordic Development Fund. The prior work of these donors saved MCC time and 

money during the project design phase and will likely yield further benefits by allowing Mongolia to incorporate lessons learned into implementation.

 In Mozambique, the compact’s Water Supply and Sanitation Project builds on pioneering World Bank work 

started over a decade ago. MCC’s approved investments in water and sanitation will benefit from $40 million in complementary support through the World Bank’s Water Services and Institutional Support Project 

and are attracting other donor investments into the sector as well. 

In addition to fostering country-led donor coordination, MCC also rewards staff members who pursue this 

important principle. As an incentive for collaborative behavior, MCC launched an award in 2008 to recognize 

MCC employees who contribute meaningfully to making MCC’s compact and threshold programs more effective 

through donor coordination.