[Federal Register Volume 73, Number 177 (Thursday, September 11, 2008)]
[Notices]
[Pages 52888-52890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-21272]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 08-11]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2009 and Countries That Would Be 
Candidates but for Legal Prohibitions

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: Section 608(d) of the Millennium Challenge Act of 2003 
requires the Millennium Challenge Corporation to publish a report that 
identifies countries that are ``candidate countries'' for Millennium 
Challenge Account assistance during FY 2009. The report is set forth in 
full below.

    Dated: September 5, 2008.
William G. Anderson, Jr.
Vice President and General Counsel, Millennium Challenge Corporation.

Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility for Fiscal Year 2009 and Countries That Would Be 
Candidates but for Legal Prohibitions

    This report to Congress is provided in accordance with Section 
608(a) of the Millennium Challenge Act of 2003, 22 U.S.C. 7701, 7707(a) 
(Act).
    The Act authorizes the provision of Millennium Challenge Account 
(MCA) assistance to countries that enter into Compacts with the United 
States to support policies and programs that advance the progress of 
such countries achieving lasting economic growth and poverty reduction. 
The Act requires Millennium Challenge Corporation (MCC) to take a 
number of steps in determining the countries that will be eligible for 
MCA assistance for Fiscal Year (FY) 2009 based on a country's 
demonstrated commitment to (i) just and democratic governance, (ii) 
economic freedom and investing in their people, and (iii) the 
opportunity to reduce poverty and generate economic growth in the 
country. These steps include the submission of reports to the 
congressional committees specified in the Act and the publication of 
notices in the Federal Register that identify:
    1. The countries that are ``candidate countries'' for MCA 
assistance for FY 2009 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);
    2. The criteria and methodology that the MCC Board of Directors 
(Board) will use to measure and evaluate the relative policy 
performance of the ``candidate countries'' consistent with the 
requirements of subsections (a) and (b) of Section 607 of the Act in 
order to select ``MCA eligible countries'' from among the ``candidate 
countries'' (Section 608(b) of the Act); and
    3. The list of countries determined by the Board to be ``MCA 
eligible countries'' for FY 2009, with a justification for such 
eligibility

[[Page 52889]]

determination and selection for compact negotiation, including which of 
the MCA eligible countries the Board will seek to enter into MCA 
Compacts (Section 608(d) of the Act).
    This report is the first of three required reports listed above.

Candidate Countries for FY 2009

    The Act requires the identification of all countries that are 
candidates for MCA assistance for FY 2009 and the identification of all 
countries that would be candidate countries but for specified legal 
prohibitions on assistance. Sections 606(a) and (b) of the Act provide 
that for FY 2009 a country shall be a candidate for the MCA if it:
    <bullet> Meets one of the following two income level tests:
     [cir] Has a per capita income equal to or less than the historical 
ceiling of the International Development Association eligibility for 
the fiscal year involved (or $1,785 gross national income (GNI) per 
capita for FY 2009) (the ``low income category''); or
     [cir] Is classified as a lower middle income country in the then 
most recent edition of the World Development Report for Reconstruction 
and Development published by the International Bank for Reconstruction 
and Development and has an income greater than the historical ceiling 
for International Development Association eligibility for the fiscal 
year involved (or $1,786 to $3,705 GNI per capita for FY 2009) (the 
``lower middle income category''); and
     [cir] Is not ineligible to receive U.S. economic assistance under 
Part I of the Foreign Assistance Act of 1961, as amended (the ``Foreign 
Assistance Act''), by reason of the application of the Foreign 
Assistance Act or any other provision of law.
    Pursuant to Section 606(c) of the Act, the Board has identified the 
following countries as candidate countries under the Act for FY 2009. 
In so doing, the Board has anticipated that prohibitions against 
assistance as applied to countries in the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2008 (Div. J, Pub. 
L. 110-161 (``FY 2008 SFOAA'')), will again apply for FY 2009, even 
though the Department of State, Foreign Operations, and Related 
Programs Appropriations Act for FY 2009 has not yet been enacted and 
certain findings under other statutes have not yet been made. As noted 
below, MCC will provide any required updates on subsequent changes in 
applicable legislation or other circumstances that affect the status of 
any country as a candidate country for FY 2009.

Candidate Countries: Low Income Category

    1. Afghanistan; 2. Bangladesh; 3. Benin; 4. Bhutan; 5. Bolivia; 6. 
Burkina Faso; 7. Burundi; 8. Cambodia; 9. Cameroon; 10. Central African 
Republic; 11. Chad; 12. Comoros; 13. Congo, Dem. Rep.; 14. Congo, Rep.; 
15. Djibouti; 16. Egypt; 17. Eritrea; 18. Ethiopia; 19. Gambia; 20. 
Ghana; 21. Guinea; 22. Guinea-Bissau; 23. Guyana; 24. Haiti; 25. 
Honduras; 26. India; 27. Indonesia; 28. Kenya; 29. Kiribati; 30. 
Kosovo; 31. Kyrgyz Republic; 32. Laos; 33. Lesotho; 34. Liberia; 35. 
Madagascar; 36. Malawi; 37. Mali; 38. Moldova; 39. Mongolia; 40. 
Mozambique; 41. Nepal; 42. Nicaragua; 43. Niger; 44. Nigeria; 45. 
Pakistan; 46. Papua New Guinea; 47. Paraguay; 48. Philippines; 49. 
Rwanda; 50. Sao Tome and Principe; 51. Senegal; 52. Sierra Leone; 53. 
Solomon Islands; 54. Somalia; 55. Sri Lanka; 56. Tajikistan; 57. 
Tanzania; 58. Timor-Leste; 59. Togo; 60. Turkmenistan; 61. Uganda; 62. 
Vietnam; 63. Yemen; 64. Zambia.

Candidate Countries: Lower Middle Income Category

    1. Albania;
    2. Algeria;
    3. Angola;
    4. Armenia;
    5. Azerbaijan;
    6. Bosnia and Herzegovina;
    7. Cape Verde;
    8. Colombia;
    9. Dominican Republic;
    10. Ecuador;
    11. El Salvador;
    12. Georgia;
    13. Guatemala;
    14. Jordan;
    15. Macedonia;
    16. Maldives;
    17. Marshall Islands;
    18. Micronesia, Fed. Sts.;
    19. Morocco;
    20. Namibia;
    21. Peru;
    22. Samoa;
    23. Swaziland;
    24. Thailand;
    25. Tonga;
    26. Tunisia;
    27. Tuvalu;
    28. Ukraine;
    29. Vanuatu.

Countries That Would Be Candidate Countries but for Legal Prohibitions 
That Prohibit Assistance

    Countries that would be considered candidate countries for FY 2009, 
but are ineligible to receive United States economic assistance under 
Part I of the Foreign Assistance Act by reason of the application of 
any provision of the Foreign Assistance Act or any other provision of 
law are listed below. As noted above, this list is based on legal 
prohibitions against economic assistance that apply for FY 2008 and 
that are anticipated to apply again for FY 2009.

Prohibited Countries: Low Income Category

    1. Burma is subject to numeous restrictions, including but not 
limited to Section 570 of the FY 1997 Foreign Operations, Export 
Financing, and Related Programs Appropriations Act (Pub. L. 104-208) 
which prohibits assistance to the government of Burma until it makes 
progress on improving human rights and implementing democratic 
government, and due to its status as a major drug-transit or major 
illicit drug producing country for 2008 (Presidential Determination No. 
2007-33 (9/14/2007)) and a Tier III country under the Trafficking 
Victims Protection Act (Presidential Determination No. 2008-4 (10/18/
2007)).
    2. The Cote d'Ivoire is subject to Section 608 of the FY 2008 
SFOAA, which prohibits assistance to the government of a country whose 
duly elected head of government is deposed by military coup or decree.
    3. Iraq is subject to Section 699K of the FY 2008 SFOAA, which 
prohibits the use of FY 2008 SFOAA funds for assistance to Iraq.
    4. Mauritania is subject to section 608 of the FY 2008 SFOAA, which 
prohibits assistance to the government of a country whose duly elected 
head of government is deposed by military coup or decree.
    5. North Korea is subject to numerous restrictions, including but 
not limited to section 620A of the Foreign Assistance Act which 
prohibits assistance to governments supporting international terrorism 
and Section 607 of the FY 2008 SFOAA.
    6. Sudan is subject to numerous restrictions, including but not 
limited to Section 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism, Section 
612 of the FY 2008 SFOAA, and Section 620(q) of the Foreign Assistance 
Act, both of which prohibit assistance to countries in default in 
payment to the U.S. in certain circumstances, Section 608 of the FY 
2008 SFOAA, which prohibits assistance to a country whose duly elected 
head of government being deposed by military coup or decree, and 
Section 666 of the FY 2008 SFOAA.

[[Page 52890]]

    7. Syria is subject to numerous restrictions, including but not 
limited to 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism, Section 
607 of the FY 2008 SFOAA which prohibits direct assistance, and section 
612 of the FY 2008 SFOAA and Section 620(q) of the Foreign Assistance 
Act, both of which prohibit assistance to countries in default in 
payment to the U.S. in certain circumstances.
    8. Uzbekistan's central government is subject to Section 685 of the 
FY 2008 SFOAA, which requires that funds appropriated for assistance to 
the central government of Uzbekistan may be made available only if the 
Secretary of State determines and reports to the Congress that the 
government is making substantial and continuing progress in meeting its 
commitments under a framework agreement with the United States.
    9. Zimbabwe is subject to Section 620(q) of the Foreign Assistance 
Act and Section 612 of the FY 2008 SFOAA, which prohibit assistance to 
countries in default in payment to the United States in certain 
circumstances.

Prohibited Countries: Lower Middle Income Category

    1. China is not eligible to receive economic assistance from the 
United States, absent special authority, because of concerns relative 
to China's record on human rights.
    2. Iran is subject to numerous restrictions, including but not 
limited to Section 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism and 
Section 607 of the FY 2008 SFOAA which prohibits direct assistance.
    Countries identified above as candidate countries, as well as 
countries that would be considered candidate countries but for the 
applicability of legal provisions that prohibit U.S. economic 
assistance, may be the subject of future statutory restrictions or 
determinations, or changed country circumstances, that affect their 
legal eligibility for assistance under Part I of the Foreign Assistance 
Act by reason of application of Foreign Assistance Act or any other 
provision of law for FY 2009. MCC will include any required updates on 
such statutory eligibility that affect countries' identification as 
candidate countries for FY 2009, at such time as it publishes the 
notices required by Sections 608(b) and 608(d) of the Act or at other 
appropriate times. Any such updates with regard to the legal 
eligibility or ineligibility of particular countries identified in this 
report will not affect the date on which the Board is authorized to 
determine eligible countries from among candidate countries which, in 
accordance with Section 608(a) of the Act, shall be no sooner than 90 
days from the date of publication of this report.

[FR Doc. E8-21272 Filed 9-10-08; 8:45 am]
BILLING CODE 9211-03-P