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[Federal Register Volume 89, Number 248 (Friday, December 27, 2024)]
[Notices]
[Pages 105635-105637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30925]

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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 24-12]

Report on the Selection of Eligible Countries for Fiscal Year 
2025

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: This report is provided in accordance with the Millennium 
Challenge Act of 2003, as amended. The report is set forth in full 
below.

SUPPLEMENTARY INFORMATION: Report on the Selection of Eligible 
Countries for Fiscal Year 2025.

Summary

    This report is provided in accordance with section 608(d)(1) of the 
Millennium Challenge Act of 2003, as amended (the Act) (22 U.S.C. 
7707(d)(1)).
    The Act authorizes the provision of assistance under section 605 of 
the Act (22 U.S.C. 7704) to countries that enter into compacts with the 
United States to support policies and programs that advance the 
progress of such countries in achieving lasting poverty reduction 
through economic growth and are in furtherance of the Act. The Act 
requires the Millennium Challenge Corporation (MCC) to determine the 
countries that will be eligible to receive assistance for the fiscal 
year, based on their demonstrated commitment to just and democratic 
governance, economic freedom, and investing in their people,

[[Page 105636]]

as well as on the opportunity to reduce poverty through economic growth 
in the country. The Act also requires the submission of reports to 
appropriate congressional committees and the publication of notices in 
the Federal Register that identify, among other things:
    1. The countries that are ``candidate countries'' for assistance 
for fiscal year (FY) 2025 based on their per-capita income levels and 
their 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 the Board of Directors of MCC 
(the Board) used to measure and evaluate the policy performance of the 
``candidate countries'' consistent with the requirements of section 607 
of the Act 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 2025, with justification for eligibility 
determination and selection for compact negotiation, including with 
which of the eligible countries the Board will seek to enter into 
compacts (section 608(d) of the Act (22 U.S.C. 7707(d))).
    This is the third of the above-described reports by MCC for FY 
2025. It identifies countries determined by the Board to be eligible 
under section 607 of the Act (22 U.S.C. 7706) for FY 2025 with which 
MCC seeks to enter into compacts under section 609 of the Act (22 
U.S.C. 7708), as well as the justification for such decisions. The 
report also identifies countries selected by the Board to receive 
assistance under MCC's threshold program pursuant to section 616 of the 
Act (22 U.S.C. 7715).
    Following the passage of the MCC Candidate Country Reform Act, as 
part of the National Defense Authorization Act on December 18, 2024, 
MCC's Board of Directors is considering additional countries for MCC 
assistance for FY 2025. Should the Board select another eligible 
country, MCC will submit a report notifying Congress of such 
selection(s).

Eligible Countries

    The Board met on December 18, 2024, to select those eligible 
countries with which the United States, through MCC, will seek to enter 
into a Millennium Challenge Compact pursuant to section 607 of the Act 
(22 U.S.C. 7706). The Board selected the following eligible country for 
such assistance for FY 2025: Liberia. Liberia is invited by MCC to 
develop a compact. The Board also selected the following previously 
selected countries for compact assistance for FY 2025: Cabo Verde, 
Senegal, and The Gambia. The Board did not vote on the selection of 
Togo, a country previously selected for compact assistance.

Criteria

    In accordance with the Act and with the ``Selection Criteria and 
Methodology Report for Fiscal Year 2025'' formally submitted to 
Congress on September 20, 2024, selection was based primarily on a 
country's overall performance in three broad policy categories: Ruling 
Justly, Encouraging Economic Freedom, and Investing in People. The 
Board relied, to the fullest extent possible, upon transparent and 
independent indicators to assess countries' policy performance and 
demonstrated commitment in these three broad policy areas. The Board 
compared countries' performance on the indicators relative to their 
income-level peers, evaluating them in comparison to either the group 
of countries with a GNI per capita equal to or less than $2,165, or the 
group with a GNI per capita between $2,166 and $4,515.
    The criteria and methodology used to assess countries, including 
the methodology for the annual scorecards, are outlined in the 
``Selection Criteria and Methodology Report for Fiscal Year 2025 \1\.'' 
Scorecards reflecting each country's performance on the indicators are 
available on MCC's website at https://www.mcc.gov/who-we-select/scorecards.
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    \1\ Available at https://www.mcc.gov/resources/doc/report-selection-criteria-methodology-fy25.
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    The Board also considered whether any adjustments should be made 
for data gaps, data lags, or recent events since the indicators were 
published, as well as strengths or weaknesses in particular indicators. 
Where appropriate, the Board considered additional quantitative and 
qualitative information, such as evidence of a country's commitment to 
fighting corruption, investments in human development outcomes, or 
poverty rates. MCC has a Guide to Supplemental Information \2\ 
available on its website to increase transparency about the type of 
supplemental information the Board uses to assess a country's policy 
performance. In keeping with statutory requirements, the Board also 
considered the opportunity to reduce poverty and promote economic 
growth in a country, as well as the availability of appropriated funds.
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    \2\ Available at https://www.mcc.gov/resources/doc/guide-to-supplemental-information.
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    The Board sees the selection decision as an annual opportunity to 
determine where MCC funds can be most effectively used to support 
poverty reduction through economic growth in well-governed countries 
with demonstrated development need. The Board carefully considers the 
appropriate nature of each country partnership--on a case-by-case 
basis--based on factors related to poverty reduction through economic 
growth, the sustainability of MCC's investments, and the country's 
ability to attract and leverage public and private resources in support 
of development.
    This was the seventh year the Board considered the eligibility of 
countries for concurrent compacts, as permitted under section 609(k) of 
the Act. In addition to the considerations for compact eligibility 
detailed above, the Board considered whether a country being considered 
for a concurrent compact is making considerable and demonstrable 
progress in implementing the terms of its existing compact.
    This was the sixteenth year the Board considered the eligibility of 
countries for subsequent compacts, as permitted under section 609(l) of 
the Act. MCC's engagement with partner countries is not open-ended, and 
the Board is deliberate when selecting countries for follow-on 
partnerships, particularly regarding the higher bar applicable to 
subsequent compact countries. The Board considered--in addition to the 
criteria outlined above--a country's performance implementing its prior 
compact, including the nature of the country's partnership with MCC, 
the degree to which the country has demonstrated a commitment and 
capacity to achieve program results, and the degree to which the 
country implemented the compact in accordance with MCC's core policies 
and standards. To the greatest extent possible, these factors are 
assessed using pre-existing monitoring and evaluation targets and 
regular quarterly reporting. This information is supplemented with 
direct surveys and consultation with MCC staff responsible for compact 
implementation, monitoring, and evaluation. MCC has a Guide to the 
Program Surveys \3\ available on its website regarding the information 
collected and assessed for any country with an existing or prior 
compact or threshold program to ensure transparency about the type of 
information the Board considers

[[Page 105637]]

regarding a country's performance on MCC programs, as relevant. The 
Board also considered a country's commitment to further sector reform, 
as well as evidence of improved scorecard policy performance.
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    \3\ Available at https://www.mcc.gov/resources/doc/guide-to-the-program-surveys/.
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Countries Newly Selected for Compact Assistance

    Using the criteria described above, one candidate country under 
section 606(a) of the Act (22 U.S.C. 7705(a) was newly selected as 
eligible for assistance under section 607 of the Act (22 U.S.C. 7706): 
Liberia. Liberia is invited by MCC to develop a compact.
    Liberia: A prior compact partner, Liberia passes the scorecard for 
the third consecutive year in FY 2025. One of the world's poorest 
countries, Liberia is a politically stable democracy that has seen two 
decades of peace since the second civil war ended in 2003. General 
elections held in late 2023 were free, fair, competitive, and peaceful, 
and the new government has committed to prioritize reforms to boost the 
economy, advance national reconciliation efforts, and strengthen the 
fight against corruption. MCC's Board selected Liberia as eligible to 
develop a subsequent compact in recognition of the progress the country 
has made to strengthen its scorecard performance and pursue economic 
and democratic governance reforms. The selection provides MCC the 
opportunity to develop a program that could significantly impact the 
lives of the Liberian people through a committed and engaged former MCC 
partner.

Countries Selected To Continue Compact Development

    Three of the countries selected as eligible for compact assistance 
for FY 2025 were previously selected for FY 2024. Cabo Verde 
(regional), Senegal (regional), and The Gambia were selected to 
continue developing compacts. Selection of these countries for FY 2025 
was based on an assessment of their policy performance since their 
prior selection and their progress in developing programs with MCC. The 
Board deferred a vote on the selection of Togo to continue developing a 
compact to provide the Government of Togo additional time to strengthen 
the protection of democratic rights and fundamental freedoms as it 
implements its new constitution and transitions to a new system of 
government next year. In making its decision to defer a vote, the Board 
discussed the importance of the Government of Togo taking meaningful 
action to address MCC's concerns regarding the country's constitutional 
change process and restrictions on fundamental freedoms. The Board may 
revisit its decision over the course of 2025 as more information 
becomes available.

Country Selected To Receive Threshold Program Assistance

    The Board did not newly select any countries to receive threshold 
program assistance for FY 2025.

Countries Selected To Continue Developing Threshold Programs

    The Board selected Philippines and Tanzania to continue developing 
threshold programs.
    Selection of Philippines for FY 2025 was based on its commitment to 
strengthening its policy performance, protections for human rights and 
fundamental freedoms, and anti-corruption efforts since its prior 
selection and its progress developing its threshold program.
    Selection of Tanzania for FY 2025 recognized the progress that has 
been made in developing a threshold program. However, in making the 
selection the Board expressed concern that the November 27 local 
elections were a missed opportunity to open political space and advance 
democratic reforms. The Board also noted with concern reports of 
disappearances, political violence, and restrictions on peaceful 
assembly and press freedoms and urges the Government of Tanzania to 
protect democratic freedoms as the country prepares for national 
elections in 2025.

Ongoing Review of Partner Countries' Policy Performance

    The Board emphasized the need for all partner countries to maintain 
or improve their policy performance. If it is determined during program 
implementation that a country has demonstrated a significant policy 
reversal, MCC can hold it accountable by applying MCC's Suspension and 
Termination Policy.\4\
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    \4\ Available at https://www.mcc.gov/who-we-select/suspension-or-termination.

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(Authority: 22 U.S.C. 7707(d)(2))

    Dated: December 19, 2024.
Peter E. Jaffe,
Vice President, General Counsel, and Corporate Secretary.
[FR Doc. 2024-30925 Filed 12-20-24; 11:15 am]
BILLING CODE 9211-03-P
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